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HomeMy WebLinkAbout2000 06 12 Regular J Resolution 2000-15 Loan Agreement ',.. . COMMISSION AGENDA ITEM J CONSENT INFORMATIONAL PUBLIC HEARING REGULAR X June 12,2000 Meeting RvV~ MGR -!>-TDEPT ~.::::r- Authorization REQUEST: City Manager Requesting Approval of Resolution #2000-15 which authorizes . the City to enter into a loan agreement to finance Oak Forest Wall and Beautification Improvements, Financial Software and Equipment and a Medical Transport Unit, and authorizes the Mayor and City Manager to sign the loan documents. PURPOSE: The purpose of this Board item is for the City Commission to adopt Resolution #2000-15 which allows the City to enter into a loan agreement with Bank of America for certain capital outlay, including the Oak Forest Wall and Beautification Improvements, Financial Software and Equipment and a Medical Transport Vehic1e, and to authorize the Mayor and City Manager to sign the loan documents. CONSIDERATIONS: NOTE: THE NOTES WILL BE FINALIZED FRIDAY BY THE ATTORNEY AND BE AVAILABLE BY 5PM ON FRIDAY. This resolution is needed to: . Accept the proposed financing agreement (commitment letter attached) provided by Bank of America to provide the city with a loan not to exceed $1,651,000 for certain capital outlay as follows: Oak Forest Wall and Beautification Improvements Financial Equipment and Software Medical Transport Vehicle $751,375 $761,525 $138.100 $1,651,000 I IOOOra.doc i '. · Authorize the Mayor, City Clerk, and City Manager to execute the notes and other documents, instruments, agreements and certificates necessary or desirable to effectuate the loan agreement (attached) with Bank of America not to exceed $1,651,000 · Authorize the issuance of two notes (attached) in an aggregate principal amount not to exceed $1,651,000 pursuant to the loan agreement FUNDING: Attached are 5-year debt service schedules for each of the projects. Below is a recap of the schedules by fund. Debt service reflects an interest rate of 4.85%. Annual Debt Service Cost Medical Total Assessment General Utility Transport Debt Project Cost Fund Fund Fund Fund Service Oak Forest $751,375 $172,519 $862,595 Data $761,525 $87,425 $87,425 $874,250 Processing Medical $138,100 $31,708 $158,540 Transport Total $1,651,000 $172,519 $87,425 $87,425 $31,708 $1,895,385 I 1000ra.doc i ~ f RECOMMENDATION: It is recommended that the City Commission adopt Resolution 2000-15 to authorize and approve of the City entering into the loan agreement with Bank of America to finance certain capital outlay, as more specifically set forth herein. ATTACHMENTS: Bank of America commitment letter Bank of America loan agreement Annual debt service schedules Two notes Resolution granting authority to enter into loan agreement with Bank of America COMMISSION ACTION: 11000ra.doc --.. -- -~~~ ~~''-'~ ." ."';1'''''' WI- n."::.r-I'-n i..UU '!t:l( 'k:ld ~t:il':j IU ':j4\j'(bC'j~1~1 t-'.~~/\jb 10 f Bankof America ~ ~~ June 2, 2000 Mr. Michael C. Stewart Gardnyr Michael Capital, Inc. 2281 Lee Road, Suite 104 Winter Park, Florida 32789 Dear Mr. Stewart: AB we previously discussed, Bank of America, N.A.. ('Bank of America") is interested in extending credit to The City of Winter Springs. Enclosed is a Terms Sheet outlining the provisions of a loan, which Bank of America will consider for the City. This letter and the attached term sheet constitut.es a commitment on the part of Bank of America to make the proposed loan and are intended as an outline only and do not purport to summarize all of the terms, conditions, covenants, representations, warranties and other provisions which would be contained in definitive legal documentation for the proposed transaction. 'rhis proposal is subject to the negotiation. to the satisfaction of Bank of America and its counsel. of all of the issues outlined in the term sheet as well as completion of underwriting and due diligence by Bank of America. If any issues arise regarding the items outlined in the terms, the resolutions we negotiate may he subject to further Bank of America approval. If the proposed terms and conditions are generally acceptable. please indicate your interest in pursuing this transaction by having the appropriate signer execute this letter and contact me at 407-420-2864. When I receive such an indication from you, I will submit the documents to the loan administrator to complete the due diligence and closing process. JUN-05-2000 08:15 95% P.02 JUN 02 2000 16:06 FR BANK OF RMERICR CGG 407 420 2819 TO 94076292101 P.03/06 ,. r TERMS AND CONDITIONS BORROWER: LOAN AMOUNT: The City of Winter Springs 1) $1,000,000 2) $775,000 LOAN TYPE: 1) Bank-qualified tax exempt term loan. 2) Bank-qualified tax exempt bond anticipation note (non-revolving). TERMS: 1) Interest paid on a semi-annual basis on April 1 & October I, with annual Principal reductions on October 1. and all Principal and Accrued Interest paid at maturity (5 yeats from closing date). 2) Interest paid on a semi-annual basis on April 1 & October I, with discretionary Principal reductions allowable. and all Principal and Accrued Interest paid at maturity. Maturity for this facility shall be on a five (5) year basis from the date of closing and shall be renewed-- '-en all annua.l-hasis. .. INTEREST RATE: 1) Fixed Rate*: The interest rate will be fixed at 72.18% of the yield on the May, 2005 U.S. Treasury Bond (6.65%) as quoted in the Wall Street Journal at that time (On June 2,2000 this rate would equate to 4.80%). 2) Fixed Rate*: The interest rate will be fixed at 72.18% of the yield on the May, 2005 U.S. Treasury Bond (6.65%) as quoted in the Wall Street Journal at that time.(On June 2,2000 this rate would equate to 4.80%). .. Note: These rate options are dependent on the loan being a qualified tax-exempt obligation under Section 265 (b) (3) of the Internal Revenue Code of 1986 and all necessary documentation to that effect. JUN-85-2800 08:15 %% P.03 JlJN 02 2000 16:06 FR ERN!< OF RMERlCA eGG 407 420 2819 TO 94076292101 P.04/06 If tax-exempt status of the Borrower or loan is revoked, the loan will become immediately due and payable unless the Bank exercises its option to hold the commitment at the taxable rate. The interest rate shall be adjusted for any. negative tax consequences in the manner set forth in the Bank's llstandard gross" up provISIon. COLLATERAL: The subject loan to be secured by a covenant to budget and appropriate the funds necessary to cover debt service requirements through non-ad valorem tax revenues. PREPAYMENT: No prepayment penalties shall be imposed provided that prepayment on these notes are made from special assessments, other operating revenue sources and/or bond proceeds. Ifprepayment occurs from another institution. prepayment penalty of 1 % of the total amount outstanding on the notes shall be assessed. USE OF PROCEEDS: 1) To finance computer equipment purchases, lighting for recreational fields and vehicles. 2) To finance the Oak Forest improvements in anticipation of bond financing for the project. REPRESENTATIONS AND WARRANTIES: Customary, including confirma.tion of legal status and tax-free status and authority; execution, delivery and performance of loan documents do not violate law or existing agreements; no litigation except as disclosed to Bank; ownership of property; payment of taxes; no material adverse change in financial condition or operations since September 30.1999; principal place of business; compliance with environmental laws and continuation of representations and warranties. FINANCIAL COVENANTS: The loan documentation will contain the following financial covenants: L The amounts budgeted to cover debt service requirements ,on Facility #1 shall provide a 1.10 : 1.0 debt service coverage. lQv7196 JUN-05-2000 08:15 g5:~ P.04 .JUI~ ~IC: ~\::1\::1\::1 1b:07 FR BRNK OF AI'ERICA CGG 407 420 2819 TO 94076292101 P.05/06 AFFIRMATIVE COVENANTS: Customary, including deliv"ery of financial statements, reports and other information requested by Bank; maintenance of insurance; continuation of business and maintenance of existence; compliance with laws: payment of taxes; maintenance of property and notice of environmental claims. REPORTING REQUIREMENTS: 1. Annually, within two hundred seventy (270) days following the end of the Borrower's fiscal year, financial statements including a balance sheet and income statement prepared on a an audited basis by an independent certified public accountant, including statements of financial condition, cash flows and changes in equity. 2. Annually, by November 15th of each year, a copy of the Annual budget for the upcoming year for the City of Winter Springs. DOCUMENTS: The obligation of the Borrower hereunder shall be evidenced by a Promissory Note, Loan Agreement and such other documents and assurances as the Bank may request from Borrower and its officers in order to make the Loan in a form satisfactory to the Bank and its counsel. CONDmONS FOR CLOSING: 1. Borrower shall submit to Bank of America an oplDlon of Borrower's counsel as to legal entity, authority to execute documents and tax-free status of interest and that the indebtedness constitutes a qualified tax exempt obligation within the meaning of Section 265 (b) (3) of the Internal Revenue Code of 1986. 2. All documents pert~lning to the closing shall be prepared by the City of Winter Spring's counsel and reviewed and approved by Bank of America's counsel, Foley & Lardner. The fees to review the documents are not expected to exceed $2,000.00 per financing plus expenses but may be increased if unforeseen circumstances arise which justify an increase in such fees and shall be incurred by the Borrower and due and payable whether or not the loan closes. 3. Borrower shall maintain primary depository accounts with the Bank during the tenn of these Loans. If Borrower transfers primary depository accounts out of the Bank prior to maturity of hoth facilities referenced above, Bank shall increase the respective interest rates on each facility by 1.25%. H'V 7/96 JUN-05-2000 08:15 95% P.D5 -~" U~ ~~~~ ~b'~~ r~ tiHNK U~ HMc~ICR CGG 407 420 2819 TO 94076292101 P.06/06 4. Borrower shall authorize the Bank to automatically deduct from Borrower's depository account with the Bank. as designated by Borrower. the amount of any loan payment on the above facilities. If the funds in the account are insufficient to cover any payment, the Bank may not be obligated to advance funds to cover the payment. EXPJR..\ nON DATE: These terms shall expire on June 30. 2000 if not agreed upon by Borrower at that time. Accepted and agreed to this_ day of .20_. City of Winter Springs By: rev 7196 JUN-05-2000 08:15 95% P.06 ..J UI~-U' -uu 10;,;);1 r I\VlVl-t\~" I I !",ll .....".. \r F&L Draft of 0617/00 ., LOAN AGREEMENT BETWEEN CITY OF WINTER SPRINGS, FLORIDA AND BANK OF AMERICA, N .A. Dated as of June 16, 2000 {lD~W3&iliBta.pJ04-. 1 3 ~T JUt./-07- 20130 16; 513 407 843 6610 0'-",' ~ r ". P.02 JUN-08-00 14:51 FROM-ASE17010RL 407-843-6610 T-217 P.03/08 F-665 " SeCtion 1.1 Section 1.2 Section 1.3 Section 2.1 Section 2.2 Section 2.3 Section 2.4 SeCtion 2.5 Section 2.6 Section 2.7 Section 2.8 Section 2.9 Section 3.1 Section 3.2 Section 3.3 Section 4.1 Section 4.2 004.136274LOAN AGREEMENT JUt~-08-2000 15: 02 TABLE OF CONTENTS Page ARTICLE 1 DEPINITION OF TERMS Definitions. ................................................. . . . . . . . . . . . . . . . . . . . . . . . .. 1 Interpretation. ...................................... . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . 6 Titles and Headings. ......................... . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 ARTICLE 2 REPRESENTATIONS, WARRANTIES AND COVENANTS; SECURITY FOR NOTES; ADDITIONAL OBLIGATIONS Representations by the Ciry....................................................... 6 General Representations. Warramies and Covenants of the Bank. ........ 8 Making of Loan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Tax Covenants. ........... ... ..... ...... ... .......... ......................... ......8 Notes not to be Indebtedness of the City or State............................. 9 Security for Notes. . ... .. . . . . .. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Covenant to Budget and Appropriate. .......................................... 9 Payment Covenant. .............................................................. 10 Financial Covenams...... ................ ............... ......... ................ 10 ARTICLE 3 DESCRIPTION OF NOTES; PAYMENT TERMS; OPTIONAL PREPAYMENT Description and Payment Terms of the Notes............................... 10 Optional Prepayment......... ...... ...... ..................... ....... ..... ....... 12 Adjusrmems to Interest Rates. ................................................. 12 ARTICLE 4 ISSUANCE OF NOTES Issuance of Notes. ...................................... ............ ..... .. ..... " 16 Project Fund..................................... ............... ................... 18 {OlU94668;1}-1- 407 843 6610 '38>; P.03 J.UN-oa-oo 14: 51 40H43-661 U I-~ I ( ~ U4/U~ r-bbo FROM-ASE17010RL Section 5.1 Section 5.2 Section 6.1 Section 6.2 Section 6.3 Section 6.4 Section 6.5 Section 6.6 Section 6.7 Section 6.8 Section 6 _ 9 Section 6.10 (OA294668; 1 }004. 1 3 6274LOAN JUN-08-2000 15:02 ARTICLE 5 EVENTS OF DEFAULTS; REMEDIES Events of Default. .. . . . . . . .. . . . . . . . . . . _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - . . .. . . . . . . .. 19 Remedies. . . . . . . . . . . . . ., .. . . . . . . . . . . . .. . . . . . . ... . . - . ., . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 20 ARTICLE 6 MISCELLANEOUS Arbitration. ................................ _....................................... 20 Amendments, Changes or Mod ifications to the Agreement............... 21 CounterpartS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 21 Severability. ............................... _ . . . . . . . . . . . . . . . . . . . - . . . - . . . . . . . . . . . . . " 21 Term of Agreement. ...................:....................................... .. 22 Assignment. ...... ............ ........ ........ .... .... ............................. 22 Notice of Changes in Fact. ..................................................... 22 Notices. ............................................................................ 22 Applicable Law. .............. ............. ..... ..... .............................23 Incorporation by Reference. _........... .................. .. ...... .. . ........... 23 11 407 84] 6610 '38/; P.04 ,JUN-OB-OO 14: 52 FROM-ASE17010RL 407-843-6610 T-217 P.05/08 F-665 LOAN AGREEMENT This LOAN AGREEMENT (this "Agreement") is made and entered into as of June 16, 2000, between the City of Winter Springs, a municipality created and existing under and by virtue of the laws of the State of Florida (d1e "City"), and Bank of America, N.A., a national banking association, and its successors and assigns (the "Bank"); WIT N E SSE T H: WHEREAS, the City is authorized pursuant to Chapter 166, Pan II, Florida Statutes, as amended, and other applicable provisions of law to, among other things, (a) undertake capital projects in and for City, (b) borrow money to finance the cOSt of such projects and (c) pledge the funds and credit of the City for payment of such debts; and WHEREAS, the Bank is willing to make available to the City, and the City is willing to enter intO, 1a loan arrangement pursuant to the tenus and provisions of this Agreement in an aggregate principal amount of $ 1 , 650 , lliiJh which the City may finance the cost of the Project (as hereinafter defined); and WHEREAS, the City deems it necessary, desirable and in the best inrerest of the City that the City undertake cerrain capital projects in and for the City, including the construction of the Oak Forest subdivision wall (the "A Project") and the acquisition of computer software. a medical transpon unit and recreational improvements for the City (the "B Project" collectively with the A Project, the "Project" as more panicularly described in Exhibit A attached heretO). NOW, THEREFORE, THIS AGREEMENT WITNESSETH: That the panies hereto, intending to be legally bound hereby and in consideration of the mumal covenants hereinafter contained, DO HEREBY AGREE as follows: ARTICLE 1 DEFINITION OF TERMS Section 1.1 Definitions. The terms defined in this Article 1 shall, for all purposes of this Agreement, have the meanings specified in this Ankle 1, unless tlle context clearly otherwise requires. ., Act" shall mean Chapter 166. Part II. Florida Stamtes, as amended, Chapter 72-718, Laws of Florida, Special Acts of 1972, as amended. and other applicable provisions of law. (0R294668;1) 1 004.136274LOAN AGREEMENT JUt..1-08- 2000 15: 02 407 84.3 6610 '38% P.05 ,JUN-08-00 14: 52 FROM-ASE17010RL 40{-~4j-EEIO 1-(1( P UE/O~ F-6E5 "Additional Amount" shall have the meaning ascribed to such term in Section 3.l(d) hereof. "Agreement" shall mean this Loan Agreement dared as of June 16, 2000, between the City and the Bank, and any and all modifications, alterations, amendmentS and supplements hereto made in accordance with the provisions hereof. "Authorized Depository" shall mean the State Board of Administration of Florida or a bank or trust company which is eligible under the laws of the State to receive funds of the City. .. Authorized Investments" shall mean any of the following which shall be authorized from time to time by applicable laws of the State of Florida for deposit or purchase by the City for the invesrment of itS funds: (a) Direct obligations of (inclUding obligations issued or held in book entry form on the books of the Depanmem of the Treasury of the Unitea States of America ana stripped and zero coupon obligations), or obligations the principal of and imerest on which are uncondirionally guaranteed by. the United States of America. (b) Bonds, debenrures or notes or other evidences of indebtedness payable in cash issued by anyone or a combination of any of the following federal agencies whose obligations represent the full faith and credit of the United States of America: Expon Import Bank of the United States, Federal Financing Bank, Farmers Home Adminisrrarion, Federal Housing Administrarion, Maritime Administration, Public Housing Authority and Govenuuem National Mortgage Association. (c) Certificates of deposit properly secured at all times by collateral security described in either or both of paragraphs (a) and (b) of this definition or in the collateral provisions of Chapter 280, Florida Statutes, as amended, and issued by commercial banks, savings and loan associations or murual savings banks chartered by the State of Florida or the Unired States of America, and bank truSt receipts issued by commercial banks or trust companies chartered by the Srate of Florida or the United States of America upon any securities described in paragraph (a) of this defmition. (d) The following invesunents fully insured by the Federal Deposit Insurance Corporation: (i) certificates of deposit, (ii) savings accounts, (iii) deposit accounts, or (iv) depository receipts of a bank, savings and loan association or mutual savings bank. (e) Commercial paper rated in one of the twO highest rating categories by at least tWO narionally recognized rating agencies or corrunercial paper backed by a letter of credit or line of credit rared in one of the two highest raring categories by Moody's Investors Service and Standard & Poor' s. 2 (OR294668: 1 }004.13 6274LOAN JUt,J-08-2000 15: 02 407 843 6610 98% P.06 JWN-07-00 16:39 FROM-ASE17010RL 4UH4j-oo I U I-I~~ r UJ/to r-ouo (f) Written repurchase agreements with any bank, savings institution or trust company which is insured by the Federal Deposit Insurance Corporation, or with any broker-dealer with retail customers which falls under Securities Investors Protection Corporation protection, provided that such repurchase agreements are fully secured by collateral described in (a) above or obligations of any agency or instrumentality of the United States of America, and provided funher that (i) such collateral is held by a bank or trust company chosen by the City which has no interest in the repurchase agreement during the term of such repurchase agreement, (ii) such collateral is not subjeCt 'to liens or claims of third panies, (iii) such collateral has a market value (detennined at least once every 30 days) at least equal to the amount invested in the repurchase agreement, (iv) the entity holding the collateral . has a perfected first security interest in the collateral for the benefit of the Noteholder, (V) the agreement shall be for a term not longer than 270 days and (vi) the failure to maintain such collateral at the level required in (iii) above will require the entity holding the collateral to liquidate the collateral. (g) Money market funds rated in the highest ramlg category by Moody's Investors Service and Standard & Poor's. (h) Units of participation in the Local Government Surplus Funds Trust Fund established pursuant to Chapter 218, Pan IV, Florida Statutes, as amended, or any similar common trUst fund which is established pursuant to the law of the State of Florida as a legal depository of public moneys. (i) Obligations of state or local government municipal bond issuers that are rated in one of the twO highest rating categories by Moody's Investors Service and Standard & Poor's. (j) Such other obligations as shall be permiued to be legal investments of the City by the laws of the State of Florida. . Rating categories when referred to herein shall be without regard to gradations within such categories, such as "plus" or "minus." "Authorized City Officer" for the performance on the behalf of the City of any ac! of the City or the execution of any instrument on behalf of the Ciry shall mean any person authorized by resolution or certificate of the City to perform such act or sign such document. "Bank" shall mean Bank of America, N.A., and its successors and assigns. "Bond Counsel" shall mean Akerman, Senrerfiu & Eidson, P.A. or any other attOrney at law or firm of arrorneys of nationally recogni2ed standing in matters pertaining to the federal taX exemption of interest on obligations issued by states and political subdivisions. " j {OR29466B:l }004.13 6274LOAN JUt.1-07-2000 16: 50 407 843 6610 38;< P.03 . JUN-07-00 16:39 FROM-ASEI7010RL 407-843-6610 1-1~8 P.04/l6 ~-6U6 and duly admiued to practice law before the highest coun of any state of the United States of America. "Business Day" or ""business day" shall mean any day other than a Saturday, Sunday or a day on which banking institutions within the State are authorized by law to remain closed. "City" shall mean the City of Wimer Springs, Florida. "City Clerk" shall mean the City Clerk of the City and such other person as may be duly authorized to act on his or her behalf. "Code" shall mean the Internal Revenue Code of 1986, as amended, and applicable rules and regulations thereto and thereunder. "Cost" when used in connection with me Project, shall mean the COStS of me Project described in Section 4.1(b) hereof. "Determination of Taxability" shall mean the circumstance of interest paid .or payable on a Nate becoming includable for federal income taX purposes in rhe gross income of the Noteholder as a consequence of any aCt, omission or event whatsoever and regardless of whether the same was within or beyond the control of the City. A Determinarion of Taxability will be deemed to have occurred upon (a) the receipt by the City or a Noreholder of an original or a copy of an Internal Revenue Service Technical Advice Memorandum or StaUltory Notice of Deficiency which holds that any interest payable on its Note is includable in the gross income of such Noteholder; (b) the issuance of any public or private ruling of the Internal Revenue Service that any interest payable on such Note is includable in the gross income of the Noteholder; or (c) receipt by the City or a Noteholder of an opinion of Bond Counsel that any interest on its Note has become includable in the gross income of such Noreholder for federal income tax purposes. For all purposes of this definition, a Determination of Taxability will be deemed to occur on the date as of whiCh the interest on the Note is deemed includable in the gross income of the Noteholder. A Delennination of Taxability shall nor occur solely from the fact thaI such interest is raken into account in determining adjusted currem earnings for me purpose of the alternative minimum income tax imposed on corporations. "Fiscal Year" shall mean the period commencing on October 1 of each year and cominuing through the next succeeding September 30, or such ather period as may be prescribed by law. "Interest Payment Date" shall have the meaning ascribed thereto m Section 3.1(c) hereof. 4 {OiU94668; 1 }004. 13 6274LOAN JUt-l-07-2000 16: 50 407 843 6610 98;~ P.04 JUN-U(-UU Ib:4U r~UM-Mlt I (U I U~L 4UI-b4rbblU I-I~b r U~/lb r-bUb "Mayor" shall mean the Mayor of the City and such other person as may be duly authorized to act on his or her behalf. "Non-Ad Valorem Funds" shall mean all legally available funds of the City derived from any source whatsoever other than ad valorem taxation on real and personal property, which are legally available to make the payments required herein, bur only after provision has been made by the City for the payment of services and programs which are for essential public purposes affecting the health, welfare and safelY of the inhabitants of the City or which are legally mandated by applicable law. "Nore" or "Notes" shall mean one or more revenue notes aurhorized by the Resolution and delivered by the City to the Noteholder in accordance wim the requiremems set forth in Article 4 hereof. "Noreholder" shall mean the Bank as the holder of me Notes, or any other registered holder of or participant in any Note. "Noreholder's Adjusted Cost of Funds" shall mean the fraction (expressed as a percemage), detennined by the NOteholder. the numerator of which is me total interest expense of the Noreholder for each calendar year and the denominator of which is the tOtal average adjusted basis of all assets of the Noteholder during the calendar year as derermined under Section 265(b)(2)(B) of the Code or any successor provision thereto. "Pledged Funds" shall mean (a) the proceeds of the Nares pending the application thereof and (b) moneys budgeted and appropriated pursuant t:O Section 2.7 hereof. "Project" shall refer to the capital projects described generally in Exhibit A attached hereto, as such Project may be amended from time to time by the City. "Project Fund" shall mean the Project Fund established pursuant to Section 4.2 hereof. .'Resolution" shall mean the resolution adopted by the City on June 12, 2000, which among other things authorized the execution and delivery of this Agreement and the issuance of the Nares. " State" shall mean the State of Florida. '"Taxable Period" shall have the meaning ascribed to such term in Section 3.l(d) hereof. "Tax Certificate" shall have the meaning ascribed to such term in Section 2.4 hereof. 5 {OR29466B: 1 }004.13 6274LOAN JUr.I-07-2000 16: 50 407 843 6610 98;~ P.05 )~N-07-00 16:40 FROM-ASEI7010RL 407-843-6610 f-158 P.06/26 F-606 "Taxable Rate" shall mean the interest rate on the applicable Note multiplied by 1.5. Section 1.2 Interpret4~ioll. Unless the context clearly requires otherwise, words of the masculine gender shall be construed to include correlative words of the feminine and neuter genders and vice versa, and words of the singular nUll1ber shall be construed to include correlative words of the plural number and vice versa. Any capitalized terms used in this Agreement not herein defmed shall have the meanings ascribed to such tenllS in the Resolution. This Agreement and all the terms and provisions hereof shall be construed to effecmate the purpose set fonh herein and to sustain the validity hereof. Section 1.3 Titles and Headings. The titles and headings of the articles and sections of this Agreement, which have been insened for convenience of reference only and are not IO be considered a par~ hereof, shall not in any way modify or restrict any of the terms and provisions hereof, and shall not be considered or given any effect in conStruing this Agreement or any provision hereof or in ascenaining intent, if any question of intent should arise. ARTICLE 2 REPRESENTATIONS. WARRANTIES AND COVENANTS; SECURITY FOR NOTES; ADDITIONAL OBUGATIONS Section 2.1 Representations bv the CitY. The City represents, warrants and covenants that: (a) The City is a municipality validly created and existing under the laws of the State of Florida. Pursuant to the Resolution. the City (i) has duly authorized the execution and delivery of tl'Js Agreement and the performance by the City of all of its obligations hereunder, and (ii) shall duly authorize all Notes issued hereunder and the perfornlance by the City of all its obligations relating thereto. (b) The City has complied with all of the provisions of the Constitution and laws of the State. and has full power and authority to enter into and consummate all transactions contemplated by this Agreement or under the Notes, and to perform all of its obligations hereunder and, to the best knowledge of the CitY, the transactions contemplated hereby do not conflict with the tenns of any statute, order, rule, regulation, judgment. decree, agreement, insuumem or comminnem to which the City is a pany or by which the City is bound. 6 {OR294668; 1 }004.13 6274LOAN JUN-07-2000 16:50 407 843 6610 '38% P.06 ,JUN-07-QO 16:40 FROM-ASEI7010RL 40H43-661U 1-IS8 P.U(/l5 r-6U5 (c) The City is duly authorized and entitled to issue the Notes. This Agreement and, when issued in accordance with the terms of this Agreement, the Notes will each constinlte legal, valid and binding obligations of the City enforceable in accordance with their respective terms. subject as to enforceability to bankruptcy, insolvency, moratorium, reorganization or other similar laws affecting creditors' rights generally, or by the exercise of judicial discretion in accordance with general principles of equity. (d) There are no actions, suits or proceedings pending or, to the best knowledge of the City, threateoed against or affecting the City, at law or in equity, or before or by any governmental authority, that, if adversely determined, would materially impair the ability of the City to perform the City's obligations under this Agreement or under the Notes. (e) The City will furnish to the Bank (i) within 210 days following the end of each Fiscal Year, a comprehensive annual financial report of the City for such Fiscal Year, which shall include a balance sheet as of the end of such Fiscal Year, audited without scope limita~ions by independent certified public accountants of recognized standing selected by the City and (ii) by November 15 of each year, the annual budget of the City for the upcoming Fiscal Year. Repons shall be prepared in accordance with generally accepted accounting principles. (f) No authorization, consent, approval, license, exemption of or registration or filing with any court or governmental department, commission, board, bllIeau, agency or instrumentality, domestic or foreign, has been or will be necessary for the valid execution, delivery and performance by the City of this Agreement, the Notes and the related documents, except such as have been obtained, given or accomplished and copies of which have been provided to the Bank. (g) Except as disclosed in writing to the Bank, the City is not in default in the payment when due of any indebtedness of the Ciry. (h) The financial statements of the City for the fiscal year ending September 30, 1999, copies of which have been furnished to the Bank, have been prepared in accordance with generally accepted accounting principles and present fairly the fmancial condition of the City as of such date and the results of its operations for the period then ended. Since September 30, 1999, there has been no material adverse change in the financial condition, revenues, properties or operations of the City. (i) Any written information, reportS and other papers and data prepared by the City and furnished to the Bank by the City were, at the time the same were so furnished, complete and correct in all material respects to the extent necessary to give the Bank a true and accurate knowledge of the subject maner thereof. There is no fact, circumstance or condition that has not been disclosed to the Bank in writing by the City which materially and adversely affectS or, so far as the City can now foresee, will materially and adversely affect, (i) the 7 {OR294668; 1 }004.13 6274LOAN ]UtHJ7-2000 16: 50 407 84] 6610 '38:< P.07 JUN-U{-OO 10:41 r~LJM-AS~1 (UIUI<L 4U7-843-6610 T-158 P.08/26 F-606 financial condition, revenues, properties or operations of the City or (ii) the validity or enforceability of, or the authority or ability of the City to perform its obligations under, this Agreement, the Notes and the related documents. (j) The obligations of the City under this Agreement and the Nores are not subject to any law, rule or regulation of the State of Florida prescribing a maximum rate of interest, except for Sections 159.825(1),215.84 and 687.03, Florida StatUtes, as amended. Section 2.2 General Representations, Warranties and Covenants of the Bank. The Bank hereby representS, warrants and agrees that it is a national banking association authorized to execute and deliver this Agreemem and to perform its obligations hereunder, and such execution and delivery will not constirute a violation of its charter, articles of incorporation or bylaws. Section 2.3 Making of Loan. Pursuant to the tenns and provisions of this Agreement, the Bank agrees to make one or more loans to the City for the purpose of refunding the Refunded Obligations and financing the cost of the Project. Section 2.4 Tax Covenam'\. (a) The City hereby covenants with the holder of the Notes that in order to maintain the exclusion from gross income for purposes of federal income taxation of L'1terest on the Notes, it shall comply with each requirement of the Code applicable to the Notes. In fUrtherance of me covenant contained in the preceding semence, the Ciry agrees to continually comply with the provisions of the Federal Tax Certificate to be executed by the City relating to the Notes, as such Certificate may be amended from time to time, as a source of guidance for achieving compliance with the Code (referred to herein as the "Tax Certificate"). (b) The City hereby covenants with the holder of the Notes that it shall make any and all payments required to be made to the United States Depamnent of the Treasury in connection with the Notes pursuant to Section 148(f) of the Code. (c) So long as necessary in order to maintain the exclusion from gross income of interest on the Notes for federal income tax purposes, the covenams contained in this Section 2.4 shall survive the payments of the Notes and the interest thereon, including any payment or defeasance thereof. (d) The City hereby covenants with the holder of the Notes that it shall not take or permit any action or fail to take any action which would cause the Notes to be "arbitrage bonds" within the meaning of Section 148(a) of the Code. 8 {OR294668; 1 )004.13 6274l0AN JUN-07-2000 16:50 407 843 6610 '38:< P.08 . JUN-07-00 16:41 FROfA-ASE17010RL 407-843-6610 I-Io~ ~.U~/'O r-ouo Section 2.5 Notes nor to be Indebtedness of the City or Slate. The Notes, when delivered by the City pursuant to the terms of this Agreement, shall nOt be or constioue an indebtedness of the City, the State or any political subdivision or agency thereof, within the meaning of any constimtional, limitations of indebtedness, but shall be payable from the Pledged Funds, in the manner and to the extent provided herein. No Noteholder shall ever have the right to compel the exercise of the ad valorem taxing power of the City or taxation in any form on any property therein to pay the Notes or the interest thereon. The Notes are special and limited obligations payable as to principal and interest from the Pledged Funds in the manner and to the extent provided herein. Section 2.6 Sectl.rity for Notes. The Notes shall be secured by and payable from the Pledged Funds. Section 2.7 Covenant to Blldget and Appropriate. (a) Until all of the Notes are paid or deemed paid pursuant to the provisions of this Agreement, the City hereby covenants to appropriate in its annual budget. by amendment if necessary, from Non-Ad Valorem Funds lawfully available in each Fiscal Year of the City in which principal of or interest on the Notes becomes due and payable, amounts sufficient. together with other available moneys. to pay the principal of and interest on the Notes. as the same become due (whether by redemption, at manuity or otherwise). Such covenant and agreement on the pan of the City to budget and appropriate such amounts of Non-Ad Valorem Funds shall be cumulative to the extent not paid, and shall continue until such Non-Ad Valorem Funds or other legally available funds in amounts sufficient to make all such required payments hereunder and under the Notes shall have been budgeted, appropriated and actually paid. Notwithstanding the foregoing covenant of the City. the City does not covenant to maintain any services or programs, now provided or maintained by the City. which generate Non-Ad Valorem Funds. (b) Such covenant to budget and appropriate does not create any lien upon or pledge of such Non-Ad Valorem Funds, nor does it preclude the City from pledging in the future its Non-Ad Valorem Funds, nor does it require the City to levy and collect any particular Non-Ad Valorem Funds, nor does it give the Noteholder a prior claim on the Non- Ad Valorem Funds as opposed to claims of general creditors of the City. Such covenant to budget and appropriate Non-Ad Valorem Funds is subject in all respects to the payment of obligations secured by a pledge of such Non-Ad Valorem Funds heretofore or hereafter entered into (including the payment of debt service on bonds and other debt instr\ll11ents). However, the covenant to budget and appropriate in its general annual budget for the purposes and in the maImer stated herein shall have the effect of making available for the payment of the principal . of and interest on the Notes in the manner described herein Non-Ad Valorem Funds and placing on the City a positive duty to appropriate and budget. by amendment, if necessary, 9 {OA294668; 1 }004.13 6274LOAN JlJtl-07-2000 16: 50 407 843 6610 '38Y. P.0'3 "JUN-07-00 16:41 FROM-ASEI7010RL 407-843-6610 T-158 P 10/26 F-606 amounts sufficient: to meet its obligations hereunder; subject, however. in all respects to the restrictions of Section 166.241(3), Florida Staones, as amended, which provides that the governing body of each municipality shall make appropriations for each fiscal year which, in anyone year, shall not exceed tbe amount to be received from taXation or other revenue sources; and subject, funhe!. to the payment of services and programs which are essential public purposes affecting the health, welfare and safery of the inhabitants of the Ciry or which are legally mandated by applicable law. Section 2.8 Payment Covenam. The City covenants that it shall duly and puncrually pay from the Pledged Funds the principal of and interest on rhe Notes at the dates and place and in the manner provided herein and in the Notes according to the rrue intent and meaning thereof and all other amounts due under this Agreement. Section 2.9 Financial Covenants. The City covenants that it shall maintain a debt service coverage ratio calculated annually (as reflecred in the CitY'S audited financials) of 1.10 to 1.0 based upon the City's general fund as more particularly described as follows: the sum of the general fund's total revenues plus operating rransfers into the general fund, less the general fund's toral expenditures net of debt service paid from the general fund during the year less operating transfers out from the General Fund, plus the general fund's undesignated/unreserved fund balance, divided by debt service paid from the general fund during the year. Section 2.10 Assessments. The City covenanrs to apply as received to the payment of debt service on the Series 2000A Note all of the "Debt Service Amount" of the Annual Improvement Assessments as such terms are defined in Resolution No. 2000-06 of the City as amended and supplemented levied and imposed by the City to fund the construction of me A Project. ARTICLE 3 DESCRIPTION OF NOTES; PAYMENT TERMS; OPTIONAL PREPAYMENT Section 3.1 Description and Payment Terms of the Notes. (a) The City shall. pursuant to authority granted under the Resolution, issue and deliver three Notes to the Bank. which Notes shall not exceed 1 MILLION HUNDRED 651 THOUSAND _oq9- HUNDRED AND 001100 DOLLARS ($1, 651 , 00)0 in aggregate principal amount. The Notes shall be designated as 10 (OR29466B: 1 }004. 13 6274LOAI\I JUr-l-07-2000 15: 50 407 843 5610 '38/; P.10 . JUN-07-00 16:42 FROM-ASE17010RL 407-843-6610 T-158 P. I 1/26 F-606 "City of Wimer Springs. Florida, Capital Improvement Revenue Note, Series 2000A," "City of Winter Springs, Florida, Capital Improvement Revenue Note, Series 2000B," respectively. The text of the respective Notes shall be substantially in the forms attached hereto as Exhibit B, with such omissions, insenions and variations as may be necessary and desirable to reflect the tenns of each NOte. The provisions of the forms of the N ores are hereby incorporated in this Agreement. (b) Each Note shall be dated the date of its delivery, shall be in the principal amount set forth therein and payable as set forth therein and shall bear interest from its date at the rate or rates set fonh therein or as the same may be adjusted pursuant to Section 3.3 hereof. The Notes shall be executed in the name of the City by the manual signature of the Mayor and the official seal of the City shall be affixed thereto and attested by the manual signarure of the City Clerk. In case anyone or more of the officers, who shall have signed or sealed any of the NOtes, shall cease to be such officer of the City before the Notes so signed and sealed shall have been actUally delivered, such Notes may nevenheless be delivered as herein provided and may be issued as if the person who signed or sealed such NOtes had not ceased [0 hold such office. Any NOte may be signed and sealed on behalf of the City by such person who at the actual time of the execution of such Note shall hold the proper office, although at the dare the Notes shall acrually be delivered, such person may not have held such office or may have been so authorized. (c) Interest on a Note shall be payable on the dates set fonh therein (the "Interest Payment Dates") commencing on the date set forth therein. Principal of a Note shall be payable at the times and in the manner set forth therein. Interest on a Note shall be calculated on the basis of a 365/366-day year. (d) In the event of a Determination of Taxability t the interest rare on any Note subject to such Determination of Taxabiliry shall be changed to the Taxable Rate effective retroactively to the date on which such Determination of TaxabilitY was made. Immediately upon a Determination of Taxability t the City agrees to pay to any holder of a Note subject to such Determination of Taxability the Additional Amount (as defined herein). "' Additional Amount" means (i) the difference between (A) interest on such Note for the period corrunencing on the date on which the interest on such Note (or portion thereof) loses its taX- exempt starns and ending on me earlier of the date such Note ceased to be outstanding or such adjustment is no longer applicable to such Note (the "Taxable Period") at a rate per annum equal to the Taxable Rate as adjusted from time to time on the same dates and in the same manner as the interest rate on such Note was or would be adjusted pursuant to the provisions of such Note, and (B) the aggregate amount of interest payable on such Note for the Taxable Period under the provisions of such N ore without considering the Determination of Taxability t plus (ii) any penalties and interest paid or payable by such Noteholder to the Internal Revenue Service by reason of such Determination of Taxability . 11 {OR294663; 1)004.13 6274LOAN JUt-I-07-2000 16: 50 407 843 6610 99/: P.ll ....... .....'" .,,,,,..,... 1-IJlJ r J,-I,"U r-OUo (e) All payments of principal of and interest on the Notes shall be payable in any coin or currency of the United States which, at the time of payment, is legal tender for the payment of public and private debts and shall be made to the Bank (i) in immediately available funds, (ii) by delivering to the Bank no later than payment date a check drawn on an account at any bank that is a member of the Federal Reserve system, or (iii) in such other manner as the City and the Bank shall agree upon in writing. (f) There will be no Bank. fees [0 maintain the loan and the Notes. The Bank shall pay for all of its COStS relating to servicing the loan and the Notes. The City agrees to pay the legal fees and costs of Bond Counsel and counsel to the Bank. Section 3.2 Optional Prepavmen~. The City may prepay and redeem any Note or all Notes as a whole or in part, at any time or from time to time, without penalty or premium, by paying to the Noteholder all or part of the principal amount of the Note to be prepaid, together with the unpaid interest accrued on the amount of principal so prepaid to the date of S'.lch prepaymem. Each prepayment of a Note shall be made on such date and in such principal amount as shall be specified by the City in a written notice delivered to the NOteholder not less than five (5) Business Days prior thereto specifying the principal amount of the Note or Notes to be prepaid and the date of such prepayment. Notice having been given as aforesaid, the principal amount of the Note stated in such notice or the whole thereof, as the case may be, shall become due and payable on the prepaymem date stated in such notice, together with interest accrued and unpaid to the prepayment date on the principal amoum then being paid; and the amount of principal and interest then due and payable shall be paid (a) in case the entire unpaid balance of the principal of any Note is to be prepaid, upon presentation and surrender of such Note at the office of the City on the date specified for prepayment, and (b) in case only pan of the unpaid balance of principal of any Note is to be paid. upon presentation of such NOte at the office of the City for notation thereon of the amount of principal and imerest on such Note then paid. If on the prepayment date moneys for the payment of the principal amount to be prepaid on such Note, together with interest to the prepayment date on such principal amoum. shall have beer. paid LO the Noteholder as above provided and if notice of prepayment shall have been given to the Noteholder as above provided, then from and after the prepayment date interest on such principal amount of such Note shall cease to accrue. If said moneys shall not have been so paid on the prepayment dare, such principal amount of such Note shall continue to bear interest until payment rhereof at the rate or rates provided for in this Agreement. Section 3.3 Adiusnnems w Interest Rates. (a) The interest rates on the Notes shall be subject to adjustment as described in tllls Section 3.3 from the date of their issuance. The Bank shall promptly notify the City in writing of any adjusunents for the Notes pursuant to this Section 3.3. Such adjustments shall become effective as of the effective date of the event causing such adjusnnem. Adjustments 12 {OR294668:1 }004. i 3 6274LOAN JlJtJ-07-2000 16: 50 407 843 6610 '3 g~~ =>. 12 JUN-07-00 16:42 fROM-ASEI7010RL 407-843-66IU I-l~~ ~ 1~/(b r-ouo pursuant to this Section 3.3 may be retroactive. The Bank shall cenify to the City in writing the additional amount, if any, due to the Bank as a result of an adjustment pursuant to this Section 3.23 (b) Subject to the provisions of Section 3.3(a) above, the interest rate on each Note shall be adjusted as follows: (i) Alternative Minimum Tax Where Interest on the Note is a Direct Tax Preference Item. If the Nmeholder or its holding company pays an alternative minimum tax in any taX year and the interest on the Note is a direct tax preference item under Section 57(a)(5) or any successor provision of the Code then the imerest rate on the Note for the period during such tax yea: in which interest is accruing on the Note shall be increased during such accrual period by an amount equal to (A - B) x C where: (A) A equals the interest rate on the Note expressed as a percemage; (B) B equals the Noteholder's Adjusted Cost of Funds; and (C) C equals the maximum marginal rate of the alternative minimum tax expressed as a decimal (currently .20); (ii) Alternative Minimum Tax Where Interest on the Note is an Indirect Tax Preference Item. If the Noteholder or its holding company pays an alternative minimum taX in any tax year and the interest on the Note is not a direct taX preference' item under Section 57(a)(5) or any successor provision of the Code, bUt is an indirect tax preference item because of the application of Section 56(g) or any successor provision of the Code then the interest rate on the NOte for the period during such taX year in which interest is accruing on the Note shall be increased during such accrual period by an amount equal to (A - B) x C where: (A) A equals the interest rate on the Note expressed as a percentage; (B) B equals the Noreholder's Adjusted COSt of Funds; and (C) C equals 75 % of the maximum marginal rate of the alternative minimum taX expressed as a decimal, or, if the Code is amended to effeCtively increase or decrease the percentage of interest on the NOte which is subject to such indirect alternative minimum tax, then C shall equal the 13 {OR294668:' }004.13 6274LOAN JUN-07-2000 16:50 407 84.3 6610 99.% P.13 JUN-07-00 16:43 {OR294668; 1 }004. 1 3 6274LOAN JUt'I-07-2000 16: 50 FROM-ASEI7010RL 4U(-~4j-titiIU I-I~~ r 14/(0 r-ouo percentage of such interest which is effectively subject to such indirect alternative minimum taX. (iii) Loss of Federal Income TClx Deducrion for State Income Taxes. If the federal income tax deduction for state income taxes paid on the interest paymems received under the Note during any period is reduced because of any change in the tax laws or regulations and the Noteholder is then subject to payment of state income tax on the interest on the Nqte then the inte:-est rate on the Note shall be increased during such period by an amount equal to A x B x C x D where: (A) A equals the fraction (expressed as a decimal) of the total stare income taX disallowed as a result of such tax law change; (B) B equals the rate of the Florida stare income tax (expressed as a decimal); (C) C equals the maximum federal corporate tax rate then in effect for the Noteholder (expressed as a decimal); and (D) D equals the interest rare on the Note (expressed as a percentage) . (iv) Panial Tax.ability. If the imerest payments received under the Note during any period become partially taXable to the extent nor otherwise taxable on the date of issuance thereof because of an,y change in the taX laws or regulations, then t..~e interest rate on the Note shall be increased during such period by an amount equal to (A - B) x C where: (A) A equals the Taxable Rate (expressed as a percentage); (B) B equals the interest rate on the Note (expressed as a percentage); and (C) C equals the fraction of the interest rate on the Note which has become taxable as the result of such tax change (expressed as a decimal). (v) Other Changes in Tax Laws. If the tax laws or regulations are amended to cause the interest on the Notes to become taxable to the extent nor otherwise taxable on the date of issuance thereof, to be subjecr to a minimum tax or an alternative minimum tax or to otherwise decrease the yield on the Note to the No[ebolder (directly or indirectly, other than a change described in (i) 14 407 843 6610 '38% P.14 "JUN-07-00 16:43 FROM-ASE17010RL 407-843-6610 1-158 P 15/26 F-606 through (iv) above or because of a Determination of Taxability), then the interest rate on the Note shall be adjusted to cause the yield on the NOLe to equal what the yield on the Note would have been in the absence of such change or amendment in the tax laws or regulations. If the tax laws or regulations are amended to increase the yield en the Note to the Noteholder, then the Bank shall adjust the interest rate on the Note to cause the yield on me Note to equal what the yield on the Note would have been in the absence of such change or amendment in the taX laws or regulations. (c) The above adjusunents shall be cwnulative, bur in no event shall the interest rate on a Note exceed the maximum rate permiaed by law. Interest on the Notes and all other tax rates and interest rates are expressed as annual rates. However, proper partial adjusmlent shall be made if the tax law change is effective after the first day of the Noteholder's tax year or if interest on a Note does not accrue for the entire taX year of the Noteholder. Adjusunents which create a circular calculation because the interest rate on a Note is affected by the calcu lation shall be carried om sequentially. increasing the interest rate on the Note. until the change on the interest rate on the Note caused by the next successive calculation of the adjusnnent is de minimis. If more than one of paragraphs numbered (i) through (v) in Section 3.3(b) apply, then the interest rate on the Note shall be adjusted in the order in which listed above. (d) To the extent an adjusnnem to the imerest rate on a Note is not effected within three (3) months of the event giving rise to the adjusunent, the additional interest due as a result of such adjustment shall be paid with interest thereon compounded monthly at the rate which is equal to the interest rate on the Note; provided, however, in no event shall such interest rate exceed the maximum rate permirred by law. Subject to the provisions of Section 3.3(a) hereof, all unpaid amounts determined to be owing as a result of such calculation shall be due and payable within ten (10) days after delivery of written notice of the amount of such adjus::mem, and shall be paid to the Noteholder of record dwing the period to which the adjustment relates. This obligation shall survive the paymem and cancellation of the Notes. (e) In the event the maturity of any Note is accelerated or prepaid in accordancl:: with the provisions hereof. then such amounts mat constirute payments of interest, together with any COSts or considerations which constirute imerest under the laws of the State of Florida, may never exceed an amount which would result in payment of interest at a rate in excess of (i) the applicable maximum rate of interest allowed by Sections 215.84 and 159.825(1), Florida StatuteS, as amended, or (ii) the nonusurious interest allowed by the laws of the State of Florida or the United States of America to the extent applicable. as presently in effect and to the extent an increase is allowable by such laws; and excess interest, if any, shall be cancelled automatically as of the date of such acceleration, or, if theretofore paid. shall be credited on the principal amount of the Note unpaid, but such crediting shall not cure or waive any default under this Agreement. 15 {OR29466S: 1 }004.13 6274LOAN JUN-07-2000 16:50 407 843 6610 98;'-; P.15 . 'JUN-07-00 16:43 FROM-ASE17010RL 407-843-6610 T-158 P 16/26 f-606 ARTICLE 4 ISSUANCE OF NOTES Sect.ion 4.1 Issuance of No~e~. (a) The Bank shall not be obligated to make any loan under this Agreement unless at or prior to the date of issuance of [he Notes the City delivers to the Bank the following items in form and substance acceptable to the Bank: (i) A certificate of the Mayor, dared as of the date of issuance of the Notes, to the effect mat the representat.ions and warranries of the City contained in Section 2.1 hereof are true and correct as of such date and that there is currently no Event of Default or event that. with notice or lapse of time or both would become an Event of Default hereunder; (ii) A fully executed Tax Certificate relating to the Notes; (iii) A copy of a completed and executed Form 8038-G relating to the Notes to be filed wim the Internal Revenue Service; (iv) An opinion of Bond Counsel in form and substance to the effect that (A) mis Agreement and the Notes have been duly authorized by the City and are enforceable obligations in accordance with their terms and the Resolution has been duly adopted and is enforceable in accordance with its terms (enforceability of such insuumenrs may be subject. to standard bankruptcy exceptions and the like), (B) interest on the Notes shall be excluded from gross income for federal income tax purposes and shall nor be treated as a preference item for purposes of computing the alternative minimum taX imposed by the Code (however, the interest on the Notes owned by corporations may be subject to the federal alternative minimum tax which is based in pan on adjUSted current earnings), (C) the Notes are "qualified [ax-exempt obligations" under Section 265(b)(3)(B) of the Code and (D) the interest on the Note shall be exempt from present Florida intangible taxes; (v) A certificate of the Mayor, dated the date of issuance of the Notes, to the effect that the interest rates on me Notes are in compliance with the applicable maximum interest rate provisions contained in Sections 215.84 and 159.825(4), Florida Starures, as amended; (vi) The fully executed NOtes; 16 {OA29466B; 1 }004.13 6274LOAN JUt.j-07-2000 16: 50 407 843 6610 98;~ P.16 ,.JUN-07-00 16:44 FROM-ASE17010RL 407-843-66\ 0 i-IJ~ r I (Ito r-ouo (vii) An opinion of counsel to the City regarding the due authorization. validity and enforceability of this Agreemem and the Nares and the due adoption of the Resolution (enforceability may be subject to standard bankruptcy exceptions and the like); and (viii) Such additional certificates, insmunems and other documents as the Bank, or its counselor Bond Counsel, or counsel to the City, may deem necessary or appropriate. (b) The City shall apply the proceeds of the Series 2000A Note described in Section 3.1 hereof to pay for the costS of the A Project and the City shaH apply the proceeds of the Series 2000B Note described in Section 3.1 to pay for the costs of the B Project which costs shall include but not be limited to: (i) The costs of architeCtUral and engineering services related to the Project, including, witham limitation, the costs of preparation of studies, surveys, reports, tests, plans and specifications; (ii) The costs of legal. accounting, financial advisory, consulting, marketing and other special services related to the Project; (iii) CostS and fees incurred in connection with the issuance of the Notes; (iv) Fees and charges incurred in connection with applications to federal, state and local govenunemal agencies for any requ.isite approval or permirs regarding the acquisition and construction of the Project; (v) Costs incurred in connection with the acquisition of the sites for the Project, including any necessary rights-of-way, easements or other interesTS i., real or personal propeny; (vi) COSTS incurred in connection with the acqulsmon, construction, improvement or extension of the buildings, structures and facilities comprising the Project; (vii) Costs incurred in connection with the acquisition and installation of any machines, equipment, vehicles, fixtUres, appunenances or personal properry of any kind or nature, which are to comprise a part of the Project; (viii) Interest on Notes accruing prior to the completion date of the Project; and (ix) To the extent permitted by law, other COStS and expenses relating to the Project which are incurred for the purpose of providing for the Project. 17 {OR294668; 1 }004. 13 6274LOAN JUt.I-07-2000 16: 50 407 843 6610 99% P.17 JUN-07-00 16:44 FROM-ASEI7010RL 407-843-6610 I-IJ~ f' Ib/lb r-oUo Section 4.2 Proiect Fund. The City covenants and agrees to establish a separate fund with an Authorized Depository to be known as the "City of Winter Springs, Florida, Capital Improvement Revenue Notes Project Fund," and within such ProjeCt Fund an A Account and a B Account. Moneys in the A Account shall be used only for payment of the Cost of the A Project and moneys in the B Account shall be used only for payment of the costs of the B Project. Moneys in the Project Fund, until applied in payment of any item of the COSt of a Project in the manner hereinafter provided, shall be held in truSt by the City and shall be subject to a lien and charge in favor of the Noteholder and for the further security of the Noreholder. There shall be paid into the Project Fund as provided in the firSt paragraph of this section, the proceeds derived from the Notes simultaneously with the delivery of the NOtes to the Noreholder, and there may be paid into either account of the Project Fund. at the option of the City, any moneys received for or in connection with the applicable Project by the City from any other source. The City covenants that the acquisition and construction of the Project will be completed without delay and in accordance with sound governmental practices. The City shall make disbursements or payments from the applicable account of the Project Pund to pay the Cost of the applicable Project upon the filing with the City Clerk of documems and/or certificates signed by an Authorized City Officer stating with respect to each disbursement or payment to be made: (a) the item number of the payment, (b) the name and address of the person to whom payment is due, (c) the amoum to be paid, (d) the purpose, by general classification, for which paymem is to be made, and (e) that (i) each obligation, item of cOSt or expense mentioned therein has been properly incuITed, is in payment of a pan of the Cost of the applicable Project and is a proper charge against the Project Fund and has not been the basis of any previous disbursement or payment, or (ii) each obligation, item of cost or expense mentioned therein has been paid by the City, is a reimbursemem of a pan of the Cost of me applicable Project, is a proper charge against the Project Fund, has not been theretofore reimbursed to the City or otherwise been the basis of any previous disbursement or payment and the City is entitled to reimbursement mereof. The City Clerk shall retain all such documents and/or certificates of the Authorized Issuer Officers for seven (7) years from the dares of such documents and/or cenificates. The City Clerk shall make available the documents and/or certificates at all reasonable rimes for inspection by the Noteholder or the agent or representative of the NOteholder. The date of completions of the A and B Project shall be determined by the Authorized City Officer who shall cenify such faCt in writing to the City. Promptly after The date of the completions of the A and B Project. and after paying or making provisions for the payment of all unpaid items of the Cost of the Project, the City shall deposit any balance of moneys remaining in the Project Fund in such other fund or account of the City as shall be determined by the City, provided the City has received an opinion of Bond Counsel to the 18 {OR294668; 1)004.13 62.74LOAN JUt 1-07-2000 16: 50 407 84] 6610 38;; P.18 .JUN-U(-UU Iti:44 rt(UM-A~t I (U I UIlL 4U(-~4j-bbIU I-I~b r 1~/lb r-bUb effect that such transfer shall not adversely affect the exclusion, if any, of interest on the Notes from gross income for federal income taX purposes. The Project Fund shaH be cominuously secured in the manner by which the deposit of public funds are authorized to be secured by the laws of the State of Florida. Moneys on deposit in the Project Fund may be invested and reinvested in Authorized Invesunems maturing not later than the date on which the moneys therein will be needed. Any and all income received by the City from the invesunem of moneys in the Project Fund shall be retained in the applicable account of the Project Fund. All invesunems shall be valued at COSt. Nothing contained in this Agreemem shall prevent any Authorized Invesunems acquired as invesonenrs of or security for funds in the Project Fund from being issued or held in book-enrry form on the books of the Deparrment of the Treasury of the United Stares. ARTICLE 5 EVENTS OF DEFAULTS; REMEDIES Section 5.1 Evems of Default. An -Event of Default" shall be deemed to have occurred under this Agreement: if: (a) The City shall fail to make payment of principal or interest then due on ar.y Note; or (b) Failure by the City to observe and perform any covenam, condition or agreement on its pan to be observed or performed by it under this Agreement or the Resolution other than as referred to in clause (a) of this Section, for a period of fony-five (45) days after wrinen notice specifying such failure and requesting mat it be remedied has been given to the City. unless the NOteholder shall detennine in good faith that the delay would materially impair its likelihood of full repayment; and during such period, the City shall cure the default or provide to the Noteholder a wrinen plan for curing such default, which may be accepted or rejected in the Noteholder's discretion; or (c) There shall occur the dissolution or liquidation of the City. or the filing by the City of a voluntary petition in bankruptCY, or the commission by the City of any act of bankruptcy, or adjudication of the City as a bankrupt, or assigrun~nt by the City for the benefit of its creditors, or appointment of a receiver for the City, or the entry by the City into an agreement of composition wirh its creditors, or the approval by a court of competent jurisdiction of a petition applicable to the City in any proceeding for its reorganization 19 {OA294668; 1 }004.13 6274LOAN JUt,I-07-2000 16; 50 407 84] 6610 SSX P.1S ., JUN;'07-00 16 :45 FROM-ASEI7010RL 407-843-6610 I-I"~ r.LUILO r-ouo instituted under the provisions of the Federal Bankruptcy Act, as amended. or under any similar act in any jurisdiction which may now be in effect or hereafter amended; or (d) Any representation or warranty made by the City in connection with the transactions contemplated hereunder proves to be untrue in any material respect as of the date made or deemed made: or (e) Default shall occur in the payment of the principal of or interest on any obligation of the City for borrowed money, as and when the same shall become due, and which payment is not subsequently made within ten (10) days after the scheduled payment date, unless the City sllall be contesting its liability therefor in good faith; or (f) Any judgment in an amount in excess of $1,000,000 shall be entered or filed against the City and remains unvacated, unpaid. unhanded or unsuyed for a period of thiny (30) days. Section 5.2 Remedies. If any such Event of Default shall have occurred. the Noteholder may seek enforcement of all remedies available [0 it under law. The holder of a defaulted Note may declare such Note to be immediately due and payable. Any amounts due on the Notes which shall remain unpaid past the scheduled payment dates. shall bear interest at the lesser of the Taxable Rate or the maximum rate of interest permined by law until all amounts then due under such NOt:es are paid in full. The Bank shall be emirled to its reasonable costS and expenses (including reasonable fees and expenses of counsel) incurred in enforcing any of its rights under this Agreement after an Event of Default. ARTICLE 6 MISCELLANEOUS Section 6.1 Arbitration. Any controversy or claim between the parties hereto including but not limited to those arising om of or relating to this Agreemenr or any related instruments, agreements or documents, including any claim based on or arising from an alleged tOrt. shall be determined by binding arbitration in accordance with me Federal Arbitration Act (or if not applicable. the applicable state law), the rules of practice and procedure for the arbitration of commercial disputes of J.A.M.S.lEndispute or any successor thereof ("I.A.M.S. "). and the Special Rules set forth below. In the event of any inconsistency, the Special Rules shall control. Judgment upon any arbitration award may be entered in any court having jurisdiction. Any parry to this Agreement may bring an action. including a summary or expedited proceeding. to compel 20 {OF\294668: 1 }004.13 6274l0AN JUr,I-07-2000 16: 50 407 843 6610 38% P.20 "JUN-07-00 16:45 FROM-ASEI7010RL 407-843-6610 1-158 P ll/lb ~-6U6 arbitration of any controversy or claim to which this Agreemenr applies in any coun having jurisdiction over such action. (a) Special Rules. The arbitration shall be conducted in Orange County, or if there is real or personal propeny collateral, in the county where such real or personal propeny is located, at time of me execUtion of this Agreement, and administered by l.A.M.S. who will appoint an arbitrator; if J .A.M.S. is unable or legally precluded from administering the arbitration, then the American Arbitration Association will serve. All arbitration hearings will be commenced within 90 days of the demand for arbitration; funher. the arbitrator shall only. upon a showing of cause, be permitted to extend the commencement of such hearing for up to an additional 60 days. (b) Reservation of Rights. Nothing in this arbitration provision shall be deemed to (i) limit the applicability of any otherwise applicable statutes of limitation or repose and any waivers contained in rhis Agreement or (ii) be a waiver by the Bank of the protection afforded to it by 12 D.S.C. Sec. 91 or any substantially equivalent: state law or (iii) limit the right of the Bank hereto (A) to exercise self help remedies such as (but nor limited to) setoff or (B) to obtain from a coun provisional or ancillary remedies such as (but not limited to) injunctive relief, writ of mandamus or the appoinonem of a receiver. The Bank may exercise such self help rights or obtain such provisional or ancillary remedies before, during or after the pendency of any arbitration proceeding brought pursuant to this Agreement. Neither this exercise of self help remedies nor the institution or maintenance of an action for provisional or ancillary remedies shall constitute a waiver of the right of any pany, including the clain1<lm in any such action, to arbitrate the merits of the controversy or claim occasioning resort to such remedies. Section 6.2 Amendment~. Changes or Modifications to the Agreement. This Agreement shall not be amended, changed or modified without the prior wrinen consent of the Bank and the City. Section 6.3 Coumerparts, This Agreement may be executed in any number of counterparts, each of which, when so executed and delivered, shall be an original; bUt such coumerpans shall together constitute but one and the same Agreement, and, in making proof of this Agreement, it shall not be necessary to produce or account for more than one such counterpart. Section 6.4 Severability. If any clause, provision or section of this Agreement shall be held illegal or invalid by any court, the invalidity of such provisions or seCtions shall not affect any other provisions or sections hereof. and this Agreement shall be construed and enforced to the end 21 {OR294668; 1}004.13 6274l0AN JUt.HJ7-2000 16: 50 407 843 6610 38% P.21 ,,JUN-07-00 16:45 FROM-ASEI7010RL 407-843-66IU I-I~~ ~ "I'b r-bUb that the transactions contemplated hereby be effected and the obligations contemplated hereby be enforced, as if such illegal or invalid clause, provision or section had not been contained herein. Section 6.5 Term of Agreement. This Agreemem shall be in full force and effect from the date hereot" and shall continue in effect as long as any NOtes are oUtstanding. NOtwithstanding the other provisions set fonh herein, to the extem any law or regulation enacted subsequent to the termination of this Agreement retroactively reduces the Bank's yield on any Note or Notes, the provisions regarding adjusunems to interest rates shall survive the repayment of any NOte hereunder for a period not to exceed two (2) years after such repayment. Section 6.6 Assignmem. The Bank acknowledges and agrees that it is r.reating the r.ransactions contemplated hereunder as loan transactions and not as the sale and purchase of securities. The Bank further acknowledges and agrees that it presently intends to hold each NOte issued hereunder through its respective fInal maturity date. The Bank may assign any of the Notes or its obligations hereunder; provided. however, the Bank shall give the City ten (10) days prior written nOtice of any such assigrunem and, provided funher, the Bank shall comply wim all applicable securities laws at the time of such assignment. Section 6.7 Notice of Changes 1n faCIo Promptly after the City becomes aware of the same, the City will notify the Bank of (a) any change in any material fact or circumstance represented or warranted by the City in this Agreement or in connection with the issuance of the Notes, and (b) any default or event which, with notice or lapse of time or born. could become a default under the Agreement, specifying in each case the nature thereof and what action the City has taken, is taking and/or proposed to take with respect theretO. Section 6.8 Notices. Any notices or other communications required or permitted hereunder shall be sufficiently given if delivered personally or sent registered or cenified mail, postage prepaid, to the City, City of Winter Springs. 1126 East Stare Road 434. Winter Springs, Florida 32708, Attention: City Manager, and to the Bank:, Bank of America, N.A., 390 N. Orange Avenue. Th Floor, Orlando, Florida 32801. Anemion: Mark W. Irby, or at such orner address as shall be furnished in writing by any such pany to the other, and shall be deemed to have been given as of the date so delivered or deposited in the United Stares mail. 22 {OR294663; 1)004.13 6274LOAi'J JIjI~-07-2000 16: 50 407 843 6610 99X P.22 Section 6.9 Applicable Law. The substanrive laws of the State of Florida shall govern this Agreement. Section 6.10 Incorponuion bv Reference. All of the terms and obligations of me Resolution are hereby incorporated herein by reference as if said Resolution was fully set fonh in this Agreement. 23 {OR294668; 11004.13 6274LOAN JUN-07-2000 16:50 407 843 6610 '38\ P.23 .JUN-Ui-UU 10:40 r/(UM-A~t: I (U I UIlL 4U(-~4,-bbIU I-IJ~ r '4/,b ~-bUb IN WITNESS WHEREOF, the parries hereto have caused this Agreement to be duly executed as of the date firSt set fonh herein. CITY OF WINTER SPRlNGS, FLORlDA (OFFICIAL SEAL) By Mayor ATTEST: By City Clerk BANK OF AMERICA, N.A. By Title: ATTEST: By Title: 24 {OR294668; 1 }004.13 6274l0AN ]Ut.j-07-2000 16: 50 407 84.3 6610 99>; P.2.c: . JUN-07-00 16:46 FfWM-ASc I (0 I CiRL 4U(-~4j-bbIU EXHIBIT A THE PROJECT I-I~b r.'~/'b r-bUO The Project consists of certain capital projects in and for the City of Winter Springs, Florida, all in accordance with the plans and specifications on file or to be on file with the City, including, but not limited to, the acquisition of 33 new vehicles and fuel dispensing equipment for the City. (OR2946S8; 1 }004.13 6274LOAN JUt~-07-2000 16: 50 407 84.3 6610 98:-: P.25 ,.JUN-07-00 16:46 FROM-ASEI7010RL {OR29466B:l }004.13 6274LOAN JUt.j-07-2000 16: 50 EXHIBIT B PORMS OF NOTES .407 84] 6610 407-843-6610 T-158 P.Z6/Z6 F-606 '3'3% P.26 City of Winter Springs, Florida Data Processing Five Year Debt SeNice Schedule DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P+I 6/01/2001 139,352.00 4.850% 35,497.64 174,849.64 6/01/2002 144,674.00 4,850% 30,175.40 174,849.40 6/0112003 151,691.00 4.650% 23,1 58.70 174,849.70 6/01/2004 159,047,00 4.850% 15,801.68 174,848.68 6/01/2005 166,761.00 4,850% 8,087.90 174,848.90 Total 761,525.00 - 112,721.32 874,246.32 YIELD STATISTICS Bond Year Dollars.... ................. ....... .......,... ..... .. ......,......... ........ ..... ,....... ....,., ......,. ..... ,..... ............... Average li/e......... ....... ................,..,.,.,.,......,..........,....,..,.,.... ....,......,.,.....,.,. ...,.,.,.,.. ....... ..........,.,..... Average Coupon. ....... .....,. ....,.....,....,. ,...,.,...,..,.,. ,...,..,',......... .......",..,..,....,..,......." ....... ....."............ $2,324.15 3.052 Years 4.8499996% Net Interest Cost (NIC),: ................. ....." ........... ..... ,.,......,.......,. ,.,...... ........', ,..,. ,...,.,. .......,...... ,..... ,... True Interest Cost (TIC),..... ........................., ....... .................,.,. .,....... ,...... ,......... .................. ........... Bond Yield for Arbitrage Purposes....... ......... ............. ........................................... ....... ........... .......... All Inclusive Cost (AIC)...................... .............................................,................................................ 4.8499996% 4.8507396% 4.8507396% 4.8507396% IRS FORM 8038 Net Interest Cost.. ,..... ,.....,.. ......... ...... ,..................,.........,........, ........, ,......,. ...... ,........,.,............,. ...... 4.8499996% Weighted Average Maturity.........................,........,.........,.................................................................. 3.052 Years Garrinyr Michael Capilal, Inc Public Finance F/7e = WS 0818 Pro 5 YR.sf-SampJe Issue- SINGLE PURPOSE 61 812000 12:47 PM JUN-08-2000 13:46 95% P.03 City of Winter Springs, Florida Medical Transport Five Year Debt Service Schedule DEBT SERVICE SCHEDULE Dale Principal Coupon Interest . Total P+I 610112001 25,271.00 4,650% 6,437.36 31,706.38 610112002 26,236.00 4.650% 5,472.20 31,708.20 610112003 27,50B.00 4.650% 4,199.76 31,707.76 610112004 28,643.00 4.850% 2,865.62 31,708.62 6/0112005 30,242.00 4.850% 1,466.74 31,708.74 Total 138,100.00 - 20,441.70 158,541.70 YIELD STATISTICS Bond Year Dollars..., ...... ,..................,........,.............."" ......,........... '" . ......... .......... ....... ....., ,..... ....... Average life.............................. ......... .......,.................... ......................................... ............, ............. Average Coupon"...,......""......., ......,....."""......... ...",.,. ...".,.......................".......,.........................,. $421.48 3.052 Years 4.8499989% Net Interest Cost (NIC)....... ........... ........................ ... ............... ... ......... ......,., ......,.......,.... '................ True Interest Cost (TIC).... "....... ........................,...........,........ ........... .......,. .... ,. ....... .................. ...... Bond Yield for Arbitrage Purposes........".."............"..........................,.."...".............,................."... Alllncluslve Cost (AI C)....... ....",.. ............. .................. ..........,............ ,.,..... .................................. ...., 4.8499989% 4.8507388% 4.8507388% 4.8507388% IRS FORM 8038 Net Interest Cas!........ ,...."" ....,.". ....." ,..... ... ...... ... ...............,.,......" ,.......... ....... ,....,.,.". .,...... ............ 4.8499989% Weighted Average Maturity, ................ ....".., ,...... .,.........,......", ................., ......, ,..."", .............. ......... 3.052 Years G arrinyr Michael Cap/tal, Inc Public Finance FOe = WS Mad Trans 5 YR.sf-Sample {ssua- SINGLE PURPOSE 6/ 812000 12:49 PM JUN-08-2000 13:46 95% P.04 " City of Winter Springs, Florida Oak Forest Wall Five Year Debt SeNice Schedule DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P"I 6/01/2001 137,494.00 4.850% 35,024.51 172,518.51 6/01/2002 142,745.00 4.850% 29,773.22 172,518.22 6/0112003 149,669.00 4,850% 22,850.10 172,519.10 6/0112004 156,928.00 4.850% 15,591.14 172,519.14 6/0112005 164,539.00 4.850% 7,980.14 172,519.14 Total 751,375.00 111,219.11 862,594.11 YIELD STATISTICS Bond Year Dollars............ .............................................................................................. ................. $2,293.18 Average Life,............. ........,.. .......,..... .................... ......... ......... ........... ....... ............. ,.,...... ....",.... ,. ..... 3.052 Years Average Coupon.........,. ....... ........ ......... ................,.. .............,.,.......,........... ..............,............ .....,..... 4,8499993% Net Interest Cost (NIC)..................................................................................................................... 4.8499993% True Interest Cost (TiC)................... ................. ........... ....... ........... ....... ......... ........ ....... ................... 4.8507393% Bond Yield for Arbitrage Purposes.................................................................................................... 4.8507393% All Inclusive Cost (AIC).... ..............................................................,................................................. 4.8507393% IRS FORM 8038 Net InteresI Cost......................., .., ..............." ....."" ......,... ...... ........... ....... ,......" ....... ...... ....... ....... .... 4.8499993% Weighted Average Maturity., ...... .,......... ..,....... ......." ........,......., ......." ,.....", ............. ....... ......,...... ..... 3.052 Years Garrinyr Michael Capital, Inc Public Finance FIle = WS Oak 5 YR.sf-Sample Issue- SINGLE PURPOSE 61 812000 12:45 PM JUN-08-2000 13:46 95% P.02 J~~~08-00 16:06 r~UM-A~~ I (u IU~L. 'lur-O'l.l-OOIU I-~~~ ~ U~/14 ~-b(( '. ( RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL COMMISSION OF THE CITY OF WINTER SPRL'J"GS, FLORIDA, ACCEPTING THE PROPOSAL OF BANK OF AMERICA, N.A., TO PROVIDE THE CITY WITH A NOT TO EXCEED $ $1,651,000 LOAN TO FINANCE THE COST OF CERTAIN CAPITAL PROJECTS IN AND FOR THE CITY, INCLUDING THE CONSTRUCTION OF THE OAK FOREST SUBDIVISION WALL AND THE ACQUISITION OF COMPUTER SOFTWARE, AND A MEDICAL TRANSPORT UNIT AND RECREATIONAL IMPROVEMENTS FOR THE CITY; AUTHORIZING THE EXECUTION AND DEUVERY OF A LOAN AGREEMENT WITH SAID BANK PURSUANT TO WHICH THE CITY WILL ISSUE NOTES TO SECURE THE REPAYMENT OF SAID LOAN AND WILL PLEDGE TO THE EXTENT PROVIDED THEREIN CERTAIN PLEDGED FUNDS TO SECURE THE REPAYMENT OF SAID NOTES; AUTHORIZING THE ISSUANCE OF TWO NOTES IN AN AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED S $1,651,000 PURSUANT TO THE LOAN AGREEMENT TO SECURE THE REPAYMENT OF SAID LOAN; DESIGNATING SAID NOTES FOR THE EXCEPTION TO THE PROVISIONS CONTAINED IN THE INTERNAL REVENUE CODE OF 1986 WHICH DENY FINANCIAL INSTITUTIONS ANY DEDUCTIONS FOR INTEREST EXPENSE ALLOCABLE TO TAX-EXEMPT OBLIGATIONS; AUTHORIZING THE EXECUTION AND DELIVERY OF OTHER DOCUMENTS IN CONNECTION WITH SAID LOAN; AND PROVIDING AN EFFECTIVE DATE. BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, FLORIDA: SECTION 1. AUTHORITY FOR THIS RESOLUTION. This Resolution is adopted pursuant to the provisions of Chapter 166, Part II, Florida Starutes, as amended. Chapter 72-718, Laws of Florida, Special Acts of 1972, as amended, being the charter of the City of Winter Springs, Florida and other applicable provisions of law. SECTION 2. FINDINGS. It is hereby ascertained, determined and declared: (A) The City of Wimer Springs, Florida (the "City"), deems it necessary, desirable and in the best interests of the City that the City undertake certain capital projects in and for the City, including the construction of the Oak Forest subdivision wall and the acquisition of computer software; and a medical transpOrt unit and rocrCatiOIllll improvements (50000199;1 }OR2940 44;2 JUtHJ8- 2000 16: 17 407 843 6610 99% P.02 J'.ll1-UO-UU I b: U ( r~UM-A'\C II U I U~L "t\oll 1J~"l ..."" 1 \oj {, .- for the City, all as more panicularly described in the Loan Agreement (as defined herein) and in accordance with the plans and specifications on file or !O be on file with the City, as the same may be modified from time to time (the "Project"). (B) Bank of America, N.A. (me "Bank") has submitted a proposal to the City to make a not to exceed $ $1,651,000 loan (the "Loan") to the City, the proceeds of which will be applied to finance the cost of the Project. (C) The Loan will be secured by the Loan Agree'mem pursuam to which the City will issue notes (the "Notes") to secure me repayment of the Loan. (D) The City is advised that due to the present volatility of the market for municipal debt, it is in the best interest of the City to issue the Notes pursuant to me Loan Agreement by negotiated sale, allowing the Ciry to issue the Notes at the most advantageous time, rather than a specified advertised furore date, thereby allowing the City to obtain the best possible price, interest rate and other terms for the Notes and, accordingly, the City Commission of the City hereby finds and determines that it is in the best financial interest of the City that a negotiated sale of the Notes pursuant to the Loan Agreement be authorized. (E) The Loan will be repaid solely from the Pledged Funds (as defined in the Loan Agreement). Such Pledged Funds include, but are not limited to, moneys budgeted and appropriated pursuant to the Loan Agreement. The ad valorem taxing power of the City will never be necessary or authorized to pay the amOLlntS due on the Loan. (F) It is not reasonably anticipated that more than $10,000,000 of taX-exempt obligations under Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code"), will be issued by the City in calendar year 2000. SECTION 3, AUTHORIZATION OF REFUNDING AND PROJECT. The City does hereby authorize the acquisition and construction of the Project. SECTION 4. ACCEPT ANCE OF PROPOSAL. The Ciry hereby accepts the proposal of the Bank to provide the City with the Loan. SECTION 5. AUTHORlZA nON OF LOAN AGREEMENT. The Loan and the repayment of the Loan by the City shall be pursuant to the tenns and provisions of a Loan Agreement. The City hereby authorizes the Mayor or the Vice Mayor or the Conunissioner of the City (the "Mayor") and the City Clerk or any Assistant City Clerk of the City (the "City Clerk") to execute and deliver on behalf of the City the Loan Agreement by and between the City and the Bank substantially in the form attached hereto as Attachment A (the "Loan Agreement"), with such changes. insenious and additions as they may approve, their execution thereof being evidence of such approval. SECTION 6. AUTHORIZATION OF NOTES TO FINANCE THE COST OF THE PROJECT. The City does hereby authorize the issuance of two Notes in the aggregate principal amount of not exceeding $ $1,651,000 for the purpose of providing the City {roGOOl99: I} JUt.j-08-2000 16: 17 407 843 6610 98% P.03 JUN-08-00 16:07 FROIHSE 170 1 ORL 407-843-6610 T-229 P.04/i4 F-677 .- ~- ~ (YI1f<11t~) ." with suffIcient funds to finance the cost of the Project. The Mayor} and City Clerk are hereby authorized to execute, seal and deliver on behalf of the City the Notes and other documents, instrUI11ents, agreements and certificates necessary or desirable to effectuate the Loan as provided in the Loan Agreement. The Notes shall be issued in the principal amount (not exceeding in aggregate $ ) $1,651,000), shall bear interest at the initial interest rates (nor exceeding _ %), shall have a fmal maulrity date of five years from the date of the execution and delivery of the Loan Agreement authorized herein and shall have such other terms, all as set fonh in the Loan AgTeernem and the Notes authorized herein and executed and delivered in connection with Loan. SECTION 7. DESIGNATION OF NOTES AS QUAUFIED TAX-EXEMPT OBLIGATIONS. The City hereby designates the Nores described in Section 6 hereof as "qualified tax-exempt obligations" under Section 265(b)(3) of the Code. TIlls designation is based upon the fmdings of the City set fonh in Section 2(G) of this Resolution and the Mayor is authorized to recerrify such fmding upon the issuance of the Notes. The City acknowledges that any action which adversely impactS the starns of the Notes as "qualified tax-exempt obligations" will result in an upward adjusunem to the interest rare on the Notes. SECTION 8. LIMITED OBLIGATION. The obligation of the City to pay the Notes is a limited and special obligation payable solely from the Pledged Funds in the manner and to the extent set fonh in the Loan Agreement and shall not be deemed a pledge of the faith and credit or taXing power of the City and such obligation shall not create a lien on any property whatsoever of or simated within the City other than the Pledged Funds. c;,ha vYJ'tr"t~) SECTION 9. GENERAL AUTHORIZATION. The MayorJ'3.nd City Clerk ~ -ether ..emIJI6yet~ ."r agems 8hh~ CitY are authorized to execute and deliver such documems, instruments and contracts, and are hereby authorized and direcred to do all acrs and things required hereby as may be necessary for the full, puncrual and complete perfonnance of all the terms, covenants, provisions and agreemems herein contained, or as otherwise may be necessary or desirable to effecrnate the purpose and intent of this Resolution. SECTION 10. REPEAL OF INCONSISTENT DOCUMENTS. All ordinances, resolutions or pans thereof in conflict herewith are hereby superseded and repealed to the extent of such conflict:. SECTION 11. EFFECTIVE DATE. immediately upon its adoption. This Resolution shall take effect PASSED, APPROVED AND ADOPTED this 12th day of June, 2000. CITY OF WINTER SPRINGS, FLORIDA (OFFICIAL SEAL) By Mayor {$OOOO199:1 J JUN-08-2000 16:17 407 843 6610 99% P.04 Ju11-U~-UO 16:07 FROM-ASEI7010Rl ., ...'. , ATTEST: City Clerk Approved as to form Mle.liS~J ~f~~ie-tH'Y/ City Attorney {$OOOO199:1} JUt~-08-2000 16: 17 407 843 6610 407-843-6610 T-229 P.05/14 F-677 '3'3% P.05 _"Il-UO-UU 10: U ( r/(UM-A~tl(UIU/(L ~.ii'" t 4Ut-OIl.:l-OOIU Anachment A LOAN AGREEMENT ________________d COMPARISON OF HEADERS ----------------- -HEADER 1- -HEADER 2- A ----------------- COMPARISON OF FOOTERS ----------------- -FOOTER 1- {0R294044; -1- 2} -FOOTER 2- {0R194044; B-2}qR294044; + 2 R {sOOOO 199; 1 }OR2940 44;2 Jljt~-08-2000 16: 17 407 843 6610 I-ii~ r.Uo/lll r-o(( 98/; P.06 . ~ ATTACHMENT TO REGULAR AGENDA ITEM J JUN-09-00 15:27 f Io/UM-A~t: II U I U~L "'U I U.,... \.nJ... UNITED STATES OF AMERICA ST ATE OF FLORIDA CITY OF WINTER SPRINGS CAPIT AL IMPROVEMENT REVENUE NOTE, SERIES 2000A Principal Sum Interest Rate Date of Issuance Maturity Date $751 ,375 -%- 4.85% June 16, 2000 June 15, 2005 $ The CITY OF WINTER SPRINGS, FLORIDA (the "City") , for value received, hereby promises to pay, solely from the Pledged Funds described in (he within mentioned Agreement, to the order of BANK OF AMERICA, N. A., or its successors or assigns (the "Noteholder"). the Principal Swn specified above loaned to the City pursuant to that certain Loan Agreement by and between Bank of America. N. A.. and the City, dated as of June 16,2000 (the "Agreement"), and to pay interest on such Principal Sum from the Date of Issuance specified above or from the most recent date to which interest has been paid ar the Interest Rate per annum specified above (subject [Q adjusnnem as hereinafter provided) on April 1 and October 1 of each year. commencing October 1, 2000, until such Principal Sum shall have been paid. The Principal Sum hereof shall be payable in installments of $ on October 17 each year commencing October 1, 2000 with any then unpaid Principal Swn hereof due and payable in installments of $ on October 1 of each year commencing October 1, 2000 with any then unpaid Principal Sum hereof due and payable on the marurity date hereof. Such Principal Swn and interest is payable in any coin or currency of the United States of America which, at the time of payment, is legal tender for the payment of public and private debts. This Note is one of an a.uthorized i:s9ue of Notes (the "Netes") authorized to be issued in the aggregate principal amount of $ of like aate, renor and effect. except a.s to series, issued $751,375 under the authority of and in full compliance with the Constitution and laws of the State of Florida, including, panicularly, Chapter 166, Pan II, Florida Statutes, as amended, the Chaner of the City and other applicable provisions of law, and a resolution duly adopted by the City on June 12, 2000 (the "Resolution"), as such resolution may be amended and supplemented from time to time, and is subject to all rerms and conditions of the Resolution and the Agreement Any tenn used in this Note and not otherwise defIned shall have the meaning ascribed to such term in the Agreement. The Notes --ere This Note is being issued to finance the cost of certain capital projeers in 8.00 for {he City, including the construction of the Oak Forest subdivision wall-ttflt! [he aCqlii9ition of compmcr software, Ii medical rrflroport unit and rooreational impDvemems {OR296455: 1 }004.13 62Bl0R294491.DOC; JUt.j-09-2000 15: 38 99% P.02 JUN-09-OO 15:27 FROM-ASElID I ORL 4UI-~4j-titill: I-Uj ~Uj/Uo to-lid for the City, as described in the Agreement and the Resolution. The Notes are This Note is payable from the Pledged Funds as described in and in accordance with the Agreement. Pursuant to the Agreement, the City has covenanted to appropriate in its annual budget, by amendment, if necessary, from Non-Ad Valorem Funds lawfully available amounts sufficient, together with other available moneys, to pay the principal of and interest on.ffie Neres this Note, as the same become due (whether by redemption. at maturity or otherwise). Such covenant and agreement on the pan of the City to budget and appropriate such amounts of Non-Ad Valorem Funds shall be cumulative to the extent not paid, and shall continue umil such Non-Ad Valorem Funds or other legally available funds in amounts sufficient to make all such required payments under the NotC9 this Note shall have been budgeted, appropriated and acrually paid. Notwithstanding the foregoing, the City has not covenanted to maintain any services or programs, now provided or maintained by the Cit:y I which generate Non-Ad Valorem Funds. Such covenant and agreement on the pan of the City to budget and appropriate such amounts of Non-Ad Valorem Funds is subject, however, in all respects to cemin appropriation constraints contained in Section 166.241(3), Florida Statutes, as amended. and (Q the payment of services and programs which are for essemial public purposes affecting the health, welfare and safety of the inhabitantS of the City or which are legally mandated by applicable law. This Nare shall bear interest from itS Date of Issuance at the lnterest Rate specified above on the basis of a 365/366-day year. The Imerest Rare specified above is subject to adjUStment as provided in Section 3 .1 (d) of the Agreement in the event of a Determination of Taxability. In addition, this Note is subject to adjusunent in accordance with the provisions in Section 3.3 of the Agreement. The N oreholder shall provide to the City upon request such documentation to evidence the amount of interest due on this NOte. Notwithstanding any provision in this Note to the contrary, in no event shall the interest contracted for, charged or received in connection with this Note (including any other costs or considerations that constitute interest under the laws of the State of Florida which are contracted for, charged or received) exceed the maximum rate of interest allowed under the Stare of Florida as presently in effect. In the event the marurity of this Note is accelerated or prepaid in accordance with the provisions hereof or of the Agreement, then such amounts that constiulte payments of intereSt, together with any costs or considerations which constitute imerest under the laws of the State of Florida, may never exceed an amoum which would result in payment of interest at a rate in excess of (a) the applicable maximum rate of interest allowed by Sections 215.84 and 159.825(1), Florida SraUlteS, as amended, or (b) the nonusurious interest allowed by the laws of the State of Florida or the United States, to the extent applicable, as presently in effect and to the extent an increase is allowable by such laws; and excess interest, if any, shall be cancelled automatically as of the date of such acceleration, or, if theretofore paid, shall be credited on the principal amount of this Note unpaid, but such crediting shall not cure or waive any default under this Agreement. 2 {OR295456; 1 }004.13 62810R294491.DOC; JUtl-0'3-2000 15: 38 '3 '3:-; P.03 JUN-09-00 15:27 F ROM-ASEI {U IORL 4UI-d4j-titiIU I-'Ij ~.U4/Uti r-llti All payments made by the City hereon shall apply first ro accrued interest, and t.hen to the principal amount then due on this Note. The City may prepay this Note as a whole or in part. at any time or from time to time, without premium, by paying ro the Noteholder all or pan of the Principal Sum of the Note, toget.her with the unpaid interest accrued on the amount of principal so prepaid to the date of such prepayment. Each prepayment of this Note shall be made on such date and in such principal amount as shall be specified by the City in a wrinen notice delivered ro the NOteholder nOt less than five (5) Business Days prior thereto. Notice having been given as aforesaid, the Principal Sum of this Note stated in such notice or the whole thereof, as the case may be, shall become due and payable on the prepayment date stated in such nOtice, rogether with interest accrued and unpaid ro the prepayment date on the principal amount men being paid; and the amount of principal and interest then due and payable shall be paid (a) in case the entire unpaid balance of the principal of this Note is to be paid, upon presemation and surrender of this Note at the office of the City, and (b) in case only pan of the unpaid balance of principal of this Note is to be paid. upon presentation of this Note at the office of the City for notation thereon of (he amount of principal and interest on this Note then paid. If on the prepayment date moneys for the payment of the principal amoWlt to be prepaid on this NOte, rogether with interest. ro the prepayment date on such principal amount. shall have been paid ro th~ Noreholder as above provided and if notice of prepayment shall have been given to the Noteholder as above provided, then from and after the prepayment date interest on such principal amoum of this Note shall cease to accrue. If said moneys shall not have been so paid on the prepayment date, such principal amount of this Note shall cominue to bear interest until paymem thereof at the rate or rates provided for in the Agreement. This Note, when delivered by the Cicy pursuant to the terms of the Agreement and the Resolutio~, shall not be or constitUte an indebtedness of the City or of the State of Florida or any political subdivision or agency thereof, within the meaning of any constitutional. statutory or chaner limitations of indebtedness, but shall be payable solely from the Pledged Funds, as provided in the Agreement and the Resolution. No Noteholder shall ever have the right to compel the exercise of the ad valorem taxing power of the City or the State of Florida. or taxation in any fonn on any property therein to pay this Note or the interest. mereon. Upon the occurrence of an Event of Default relating to this Note, the Principal Sum of this Note may become or be declared due and payable before the marurity date hereof in the marmer, with the effect and subject to the conditions set forth in the Agreement and the Resolution. The Noteholder shall also have such other remedies as described in the Agreement. If this Note shall be declared to be immediately due and payable or any amounts due on this Note shall remain unpaid past any scheduled payment dare, this Note shall bear 3 {OR295455; 1 }004.13 62810R294491.DOC; JUt,j-0'3-2000 15: 38 gg;.; P.0.4 JUN-09-00 15:28 F ROM-ASE 170 IORL 407-843-6610 T-273 P.OS/06 F-7IB interest at the lesser of me Taxable Rate (as defined in the Agreement) or the maximum rate pennitted by law.umil all amounts then due under this Note are paid in full. The City hereby waives demand, pratest and notice of dishonor. No obligation under the Agreement or this Note shall be or be deemed to be an obligation of any member of the City Commission or any officer, employee or agent of the City in his or her individual capacity, and none of such persons e?,ecuting the Agreement or this Nate shall be liable personally thereon or hereon by reason thereof. It is cenified, recited and declared that all acts, conditions and things required to exist, happen and be perfonned precedent to aod in c011.'1ection with the execmion and delivery of the Agreement and the issuance of this Note do exist, have happened and have been performed in due time, form and manner as required by law, and that the issuance of this Note, tOgether with all other obligations of the City under the Agreement, does not exceed or violate any constitutional or statutory limiIation. IN WITNESS WHEREOF, the Ciry of Winter Springs, Florida, caused this Note to be signed by the manual signature of irs Mayor and its official seal to be affixed hereto or imprinred or reproduced hereon, and arresred by the manual signature of irs Ciry Clerk, and this Nate to be dated the Date of Issuance set forth above. CITY OF WINTER SPRINGS, FLORIDA (OFFICIAL SEAL) By Mayor ATTEST: City Clerk _________________ COMPARISON OF FOOTERS ------------------ -FOOTER 1- {0R294491; +t2}004.1362810R294491.DOC; 10R294491;1 20R294491;2 -FOOTER 2- {0R194491; .} 2}OO4.1362810R294491.DOC; l0R294~91; 1 20R294491;2 4 {OR296455: 1 }004.13 62810R294491.DOC; JlJtj-O'3-2000 15:3,9 38>: P.DS JUI1-U~-UU I J: JU r~UM-I\~C II U I U~L QU I-O<lroo I U '-'10 r U'/UJ r-I" UNITED STATES OF AMERlCA STATE OF FLORIDA CITY OF WINTER SPRINGS CAPITAL IMPROVEMENT REVENUE NOTE, SERIES 2000B Principal Sum Interest Rate Date of Issuance Mamriry Dare $899 ,625 % 4.85% June 16, 2000 June 15, 2005 $ The CITY OF WINTER SPRINGS. FLORIDA (the "City"). for value received, hereby promises to pay, solely from the Pledged Funds described in the within mentioned Agreement, to the order of BANK OF AMERlCA, N. A., or iIS successors or assigns (the "Noreholder"), the Principal Sum specified above loaned to the City pursuant to thaI cenain Loan Agreement by and between Bank of America, N. A., and the City, dated as of June 16, 2000 (the" Agreement"), and to pay interest on such Principal Sum from the Date of Issuance specified above or from the most recent date to which interest has been paid at the Interest Rate per annwn specified above (subject to adjusonem as hereinafter provided) on April 1 and OctOber 1 of each year, commencing October I, 2000, until such Principal Sum shall have been paid. The Principal Sum hereof shall be due and payable on the maturity dare hereof. Such Principal Sum and interest is payable in any coin or currency of the United States of America which, at the time of payment, is legal tender for the payment of public and private debts. This Note is one of an authorized issue of N()tes (rho '"Notes") authorized to be issued in the aggregate principal amount of $ of like date, tenor and effect, except as to serios. is~ed $899,625 under the authority of and in full compliance with the Constitution and laws of the State of Florida, including, panicularly, Chapter 166, Pan n. Florida Statures, as amended, the Chaner of the City and other applicable provisions of law, and a resolution duly adopted by the City on June 12, 2000 (the "Resolution"), as such resolution may be amended and supplemented from time to rime, and is subject to all terms and conditions of the Resolution and the Agreement. Any term used in this Note and not otherwise defined shall have the meaning ascribed to such term in the Agreemem. Thc Nmos are This Note is being issued to finance the cost of cenain capital projects in and for the City, including the cO~U1:letiOR of the Oak Forest subdivision wall and me acquisition of computer sofrwar~ and is a medical transpon unit and recrcationf1t imprOV<mlcnt3 for the City, as described in the Agreement and the Resolution. Tho NOles arc This Note is payable from the Pledged Funds as described in and in accordance with the Agreement. (~0000325; 1}004.13 6281 JUr.J-09-2000 16: 00 407 843 6610 98.% P.02 JUN-09-OO 15:50 FROM-ASEI7010RL 407-843-6610 f-2(6 P U2/U~ r-(~~ Pursuant to the Agreement, the City has covenanted to appropriate in its annual budget, by amendment, if necessary, from Non-Ad Valorem Funds lawfully available amounts sufficient, together with other available moneys, to pay the principal of and interest on-me Netes this Note, as the same become due (whether by redemption, at maturity or otherwise). Such covenant and agreement on the pan of the City to budget and appropriate such amounts of Non-Ad Valorem Funds shall be cumulative to the extent not paid, and shall continue until such Non-Ad Valorem Funds or other legally available funds in amounts sufficient to make all such required payments under me Nores this Note shall have been budgeted, appropriated and actually paid. Norwithstanding the foregoing, the City has not covenanted to maintain any services or programs. now provided or maintained by the City, which generate Non-Ad Valorem Funds. Such covenant and agreement on the pan of the City to budget and appropriate such amounts of Non-Ad Valorem Funds is subject, however, in all respects to certain appropriation constraints contained in SeCtion 166.241(3). Florida Statutes. as amended, and to the payment of services and programs which are for essential public purposes affecting the health, welfare and safety of the inhabitants of the City or which are legally mandated by applicable law. This Note shall bear interest from its Date of Issuance at the Interest Rate specified above on the basis of a 365/366-day year. The Interest Rate specified above is subject to adjustment as provided in Section 3.1(d) of the Agreement in the event of a Determination of Taxability. In addition, this Note is subject to adjusanem in accordance with the provisions in Section 3.3 of the Agreement. The Noteholder shall provide to the City upon request such documentation to evidence the amount of interest due on this Note. Notwithstanding any provision in this Note to the contrary, in no event shall The interest conrracted for, charged or received in connection with this Note (including any other costs or considerations that constitute interest under the laws of the Stare of Florida which are contracted for, charged or received) exceed the maximum rare of interest allowed under the State of Florida as presently in effect. In the event the maturity of this Note is accelerated or prepaid in accordance with the provisions hereof or of me Agreement, then such amounts that constitute payments of interest, together with any costs or considerations which constitute interest under the laws of the State of Florida, may never exceed an amount which would result in payment of interest at a rate in excess of (a) the applicable maximwn rate of imerest allowed by SeCtions 215.84 and 159.825(1), Florida Statutes, as amended, or (b) the nonusurious interest allowed by the laws of the State of Florida or the United States, to the extent applicable, as presenrly in effect and to the extent an increase is allowable by such laws; and excess interest, if any, shali be cancelled aUtomatically as of the date of such acceleration, or, if theretofore paid, shall be credited on the principal amount of this Note unpaid, but such crediting shall not cure or waive any default under this Agreement. All payments made by the City hereon shall apply fIrst [0 accrued interest, and then to the principal amount then due on this Note. 2 {S000032 5;' 100413 62B1 JUt,I-0'3-2000 16: 00 407 843 6610 99;< P.03 The City may prepay this Note as a whole or in pan:, at any time or from time to time, without premium, by paying (0 me Noteholder all Or part of me Principal Sum of me Note, together with the unpaid interest accrued on the amount of principal so prepaid ro me date of such prepayment. Each prepayment of mis NOle shall be made on such date and in such principal amount as shall be specified by me City in a written notice delivered ro me Noteholder not less than five (5) Business Days prior theretO. Notice having been giver. as aforesaid, the Principal Sum of this Note scated in such notice or the whole thereof, as the case may be, shall become due and payable on the prepayment date stated in such Dotice, together with interest accrued and unpaid to the prepayment date on the principal amount men being paid; and the amount of principal and interest then due and payable shall be paid (a) in case the entire unpaid balance of the principal of this Note is to be paid. upon presentation and surrender of this Note at the office of the City, and (b) in case only pan of the unpaid balance of principal of this Note is to be paid, upon presentation of this Note at the office of the City for notation thereon of the amount of principal and interest on this Note then paid. If on the prepayment dare moneys for the paymem of the principal amount to be prepaid on this Note, tOgether with interest to the prepaymem dare on such principal amounr, shall have been paid to the Nmeholder as above provided and if notice of prepayment shall have been given to the Noteholder as above provided, then from and after the prepayment date interest on such principal amount of rhis Note shall cease to accrue. If said moneys shall not have been so paid on the prepayment date, such principal amount of this Note shall continue co bear interest until payment thereof at the rate or rales provided for in the Agreement. This Note, when delivered by the City pursuant to the terms of the Agreement and the Resolution, shall not be or constitute an indebtedness of the City or of me Sra~ of Florida or any political subdivision or agency thereof, within the meaning of any constitutional, statutory or chaner limitations of indebtedness, but shall be payable solely from the Pledged Funds, as provided in the Agreement and the Resolution. No Noteholder shall ever have the right [Q compel the exercise of the ad valorem taXing power of the City or the Stare of Florida, or taxation in any form on any propeny therein to pay this Note or the interest thereon. Upon the occurrence of an Event of Default relating to this Note, the Principal Sum of this Note may become or be declared due and payable before the maturity date hereof in the manner, with rhe effect and subject to the conditions set forth in the Agreement and the Resolution. The Noteholder shall also have such other remedies as described in the Agreem~m_ If this Note shall be declared ro be immediately due and payable or any amounts due on this Note shall remain unpaid past any schedukd payment date, this Note shall bear interest at the lesser of the Taxable Rate (as defined in the Agreement) or me maximwn rate penniued by law until all amounts then due under this Note are paid in full. The City hereby waives demand, protest and notice of dishonor. 3. - - - - - -,.1 } 004_ 1 3 JlJtl-0'3-2000 16: 00 407 8.43 6610 '38.;; P.04 JUN-09-OO 15:51 FROM-ASEI7010RL 407-843-6610 T-ZI6 P.Uo/Uo r-IZZ No obligation under the Agreeml::nt or this NOte shall be or be deemed ro be an obligation of any member of the City Commission or any officer, employee or agent of the City in his or her individual capacity, and none of such persons executing the Agreement or this Note shall be liable personally thereon or hereon by reason thereof. It is cenified, recited and declared that all actS, conditions and Things required to exist, happen and be performed precedent to and in connection WiTh the execution and delivery of the Agreement and the issuance of this Note do exist, have happened and have been performed in due time, fonn and manner as required by law, and that the issuance of this Note, tOgether with all other obligations of the City under the Agreement, does not exceed or violate any constitutional or srarutory limitation. IN WITNESS WHEREOF, the City of Wimer Springs, Florida, caused this Note to be signed by the manual signarure of iTS Mayor and its official seal to be affixed hereto or imprinted or reproduced hereon, and arrested by the manual signature of its City Clerk, and this NOte to be dated the Date of Issuance set fonh above. CITY OF WINTER SPRINGS, FLORIDA (OFFICIAL SEAL) By Mayor ATTEST: City Clerk ------------------ CaMP ARlSON OF FOOTERS _____m__m_____ -FOOTER 1- {0R294587; 1]004. 13628 1 UNITED ST^TE8 OF AMERIC.'\0R294587;12}004.136281 -FOOTER 2- {0R294587; 1}004.1362&lUNITED STATES OF AMERlCA0R294587; 1 2}004.136281 u 4 l 50000325; 1 }004.13 fi2S1 JUt.H3'3-2000 16: 00 407 843 6610 99;~ P.0S JUN-09-00 13:55 FROM-ASE I!O IORL 407-843-6610 T-267 P.02/06 F-713 RESOLUTION NO. A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS. FLORIDA, ACCEPTING THE PROPOSAL OF BANK OF AMERICA. N .A., TO PROVIDE THE CITY WITH A NOT TO EXCEED $1,651,000 LOAN TO FINANCE THE COST OF CERTAIN CAPITAL PROJECTS IN AND FOR THE CITY, INCLUDING THE CONSTRUCTION OF THE OAK FOREST SUBDIVISION WALL AND THE ACQUISITION OF COMPUTER SOFTW ARE, AND A MEDICAL TRANSPORT UNIT FOR THE CITY; AUTHORIZING THE EXECUTION AND DELIVERY OF A LOAN AGREEMENT WITH SAID BANK PURSUANT TO WHICH THE CITY WILL ISSUE NOTES TO SECURE THE REP A YMENT OF SAID LOAN AND WILL PLEDGE TO THE EXTENT PROVIDED THEREIN CERTAIN PLEDGED FUNDS TO SECURE THE REPAYMENT OF SAID NOTES; AUTHORIZING THE ISSUANCE OF TWO NOTES IN AN AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $1,651,000 PURSUANT TO THE LOAN AGREEMENT TO SECURE THE REP A YMENT OF SAID LOAN; DESIGNATING SAID NOTES FOR THE EXCEPTION TO THE PROVISIONS CONTAINED IN THE INTERNAL REVENUE CODE OF 1986 WHICH DENY FINANCIAL INSTITUTIONS ANY DEDUCTIONS FOR INTEREST EXPENSE ALLOCABLE TO TAX-EXEMPT OBLIGATIONS; AUTHORIZING THE EXECUTION AND DELIVERY OF OTHER DOCUMENTS IN CONNECTION WITH SAID LOAN; AND PROVlDING AN EFFECTIVE DATE. BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OP WINTER SPRINGS, FLORIDA: SECTION 1. AUTHORITY FOR THIS RESOLUTION. This Resolution is adopted pursuant to the provisions of Chapter 166, Pan II, Florida Statutes, as amended, Chapter 72-718, Laws of Florida, Special ActS of 1972, as amended, being the chaner of the City of Winter Springs. Florida and other applicable provisions of law. SECTION 2. FINDINGS. It is hereby ascertained, derermined and declared: (A) The City of Winter Springs, Florida (the "City"), deems it necessary, desirable and in the best interests of the City that the City undertake certain capital projectS in and for the City, including the consrruction of the Oak Forest subdivision wall and the acquisition of computer software and a medical rransport unit for the City I all as more panicularly described in the Loan Agreement (as defined herein) and in accordance with the {OR295411:1} JUN-09-2000 14:05 407 843 6610 98;~ P.O,2 'JUN-09-00 13:55 FROM-ASE17010RL 407-843-6610 T-267 P.03/06 F-713 plans and specifications on file or [0 be on me with the City, as the same may be modified from time to time (the "Project"). (B) Bank of America, N.A. (the "Bank") has submiued a proposal to the City to make a not to exceed $1,651,000 loan (the "Loan") to the City, d1e proceeds of which will be applied to finance the cost of the Project. (C) The Loan will be secured by the Loan Agreement pursuant to which the City will issue notes (the "Notes") to secure the repayment of the Loan. CD) The City is advised that due to the present volatility of the market for municipal debt, it is in the best interest of the City to issue the Notes pursuant to the Loan Agreement by negotiated sale, allowing the City to issue the Notes at the most advantageous time, rather than a specified advertised future date, thereby allowing the City to obtain the best possible price. interest rate and other terms for the Notes and, accordingly, the City Commission of the City hereby finds and detennines that it is in the best financial interest of the City that a negotiated sale of the Notes pursuant to the Loan Agreement be authorized. (E) The Loan will be repaid solely from the Pledged Funds (as defIDed in the Loan Agreement). Such Pledged Funds include, but are not limited to, moneys budgeted and appropriated pursuant to the Loan Agreemenr. The ad valorem taXing power of the City will never be necessary or authorized to pay the amounts due on the Loan. (F) It is not reasonably anticipated that more than $10,000,000 of tax-exempt obligations under Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code"), will be issued by the City in calendar year 2000. SECTION 3 . AUTHORIZATION OF REFUNDING AND PROJECT. The City does hereby authorize the acquisition and constrUction of the Project. SECTION 4. ACCEPTANCE OF PROPOSAL. The City hereby accepts the proposal of the Bank to provide the City with the Loan. SECTION 5. AUTHORIZATION OF LOAN AGREEMENT. The Loan and the repayment of the Loan by the City shall be pursuant to the terms and provisions of a Loan Agreement. The City hereby authorizes the Mayor or the Vice Mayor or the Commissioner of the City (the "Mayor") and the City Clerk or any Assistant City Clerk of me City (the "City Clerk") to execute and deliver on behalf of the City the Loan Agreement by and between the City and the Bank substantially in the form attached hereto as Attachment A (the "Loan Agreement"), with such changes. insertions and additions as they may approve, their execution thereof being evidence of such approval. SECTION 6. AUTHORIZATION OF NOTES TO FINANCE THE COST OF THE PROJECT. The City does hereby authorize the issuance of tWO Notes in the aggregate principal amount of not exceeding $1,651,000 for the purpose of providing the City wiTh sufficient funds to finance the cost of the Project. The Mayor, City Manager, and City Clerk {OlU95411:1} JUt.I-09-2000 14: 05 407 843 6610 99% P.03 JUN-09-00 13:55 FROM-ASEI701DRl 407-843-6610 T-267 P.04/06 F-713 are hereby authorized to execute, seal and deliver on behalf of the City the Notes and other documents, instruments, agreements and certificates necessary or desirable to effecruate the Loan as provided in the Loan Agreement:. The Notes shall be issued in the principal amount (not exceeding in aggregate $1,651.000), shall bear interest at the initial interest rates (not exceeding _%), shall have a final maruriry date of five years from the date of the execution and delivery of the Loan Agreement authorized herein and shall have such other temlS. all as set forth in the Loan Agreement and the Notes authorized herein and executed and delivered in connection with Loan. SECTION 7 . DESIGNATION OF NOTES AS QUALIFIED TAX-EXEMPT OBLIGATIONS. The City hereby designates the Notes described in Section 6 hereof as "qualified tax-exempt obligations" under Section 265(b)(3) of the Code. This designation is based upon the findings of the City set fonh in Section 2(G) of this Resolution and the Mayor is authorized to recertify such finding upon the issuance of the Notes. The City acknowledges that any action which adversely impacts the statUS of the Notes as "qualified taX-exempt obligations" will n~sult in an upward adjusnnem to the interest rate on me Nmes. SECTION 8. LIMITED OBLIGATION. The obligation of me City to pay me Notes is a limited and special obligation payable solely from the Pledged Funds in the manner and to the extent set forth in the Loan Agreement and shall not be deemed a pledge of the faith and credit or taxing power of the City and such obligation shall not create a lien on any property whatsoever of or siruated within the City other than the Pledged Funds. SECTION 9. GENERAL AUTHORIZATION. The Mayor, City Manager, and City Clerk and other employees or agents of the City are authorized to execute and deliver such documents, instruments and contracts, and are hereby authorized and. directed to do all acts and things required hereby as may be necessary for the full, punCtual and complete perfonnance of all the terms, covenants, provisions and agreements herein contained, or as otherwise may be necessary or desirable to effecroate the purpose and intent of this Resolmion. SECTION 10. REPEAL OF INCONSISTENT DOCUMENTS. All ordinances, resolutions or parts thereof in conflict herewith are hereby superseded and repealed to the extent of such conflict. SECTION 11. EFFECTIVE DATE. immediately upon its adoption. This Resolution shall take effect PASSED, APPROVED AND ADOPTED this 12th day of June, 2000. CITY OF WINTER SPRlNGS, FLORIDA (OFFICIAL SEAL) By Mayor {0R29S4l\;l} JUrl-0'3-2000 14: 05 407 843 6610 '38>: P.04 JUN-09-UO 13:~6 r~UM-ASt:I(UIU~L ATTEST: City Clerk Approved as to form ana legal sufficiency: City Attorney {0R29541l;1} JUt 1-0'3-2000 14: 05 407 84.3 6610 4UI-b4j-bOIU l-lol r UJ/Ub r-t Ij '38/; P.DS . . JUN-09-00 13: 56 FROM-ASEI7010RL 407-843-6610 Attachment: A LOAN AGREEMENT _________________ COMPARISON OF HEADERS ----------------- -HEADER 1- -HEADER 2- A __________________ COMPARISON OF FOOTERS ----------------- -FOOTER 1- {0R294044; ~ 3} -FOOTER 2- {0R294044; 2)0R294044~ 3} R (OR295411:1} JUN-09-2000 14:05 407 843 6610 98% T-267 P.06/06 F-713 P.06 COMMISSION AGENDA ITEM K CONSENT INFORMATIONAL PUBLIC HEARlNG REGULAR X 6-12-00 Meeting MGR. ~ /DEPT Authorization REQUEST: The Information Services Department wishes to amend its prior recommendation to the City Commission for the award for the Financial Systems Request For Proposal and to allow the City Manager to enter into contract negotiations with preferred vendor. PURPOSE: To inform the City Commission of the change in the most preferred bid package received as a result of the Financial Systems RFP. CONSIDERATIONS: The original bid was won by SCT Global Government Solutions in conjunction with KIVA for a total Financial, GIS and Land Management solution bid in the amount of$753,515. The SCT/KIVA proposal could not be implemented. Because of an error on the part of SCT in preparing their bid, the pricing on a module was unintentionally excluded from their proposal pricing, although the module itself was listed as being included. With much discussion between the City and SCT, a compromise could not be reached. Therefore, Information Services along with the City's consultant, is recommending the second place bidder, Munis. Munis has worked out a partnership agreement with KN A so that the solution they are offering us is the total solution we would have had with SCT, which is a total Financial, GIS, and Land Management system with all interfaces included. This solution (Munis) has a total project expense of $688,909 which includes software, hardware, and services. An additional cost of$45,130 is included in the total cost of the project for the consulting services by Ameritek bringing the total project cost to $734,039. The Munis products carry a 90-day warranty; therefore, an additional $15,855 would be due Munis on January 1, 2001 for maintenance costs for the first year. Page 2 of2 Regular Agenda Item - K Amendment of Recommendation to Commission on award of Financial Systems RFP June 12, 2000 FUNDING: The annual loan payment of $174,850 will be paid 50% by the Utility Fund and 50% by the General Fund. RECOMMENDATION: It is the recommendation of the Information Services Department, in conjunction with Ameritek Orlando Consultation Group to amend the award of the bid from SCT to Munis in the amount of $688,909. It is requested that the City Commission authorize the City Manager to enter into contract negotiations with Munis for the procurement of the Financial, GIS, and Land Management system. IMPLEMENTATION SCHEDULE: See RFP. ATTACHMENTS: Ameritek Letter of June 6,2000. COMMISSION ACTION: S:\City Hall\Agendas, Agenda Items, Minutes\Agenda Items\FY 2000\June 2000\June 12, 2000\Regular K Rp/'.nmmpntilltinn fnr Fimmr.i~1 ~v~tpm RFP? 0"_1 ?OO tin/'. ;;~... , so i. .Ai=,. IITii lEe .,,*r,~:.#):;:~.:.-.r~;J""''':':':: ~'~'':':.:.o;;;.~.I;:.;:;.t;~.::.:...:::-.'~..<~,;'.'T}~,'':'.~~~'~~~:*.r...'~.\;~~.~~,,:;)~~~\Tl.~':'j;:~:''f;:~::'::"'::''~l-'' .\:r,'" t'.~l''''}I;)\,.t;;'(;'r!~..'' 1;1,:':.:............~,'!,:i)I:.W ;:',~,: ,:;'~;'~~'."~n,""K',:;' . '::'~:'. ';':'.; .; . 151 Semoran Commerce Place. Apopka. Florida 32703 · (407) 886-2323 . 0 A LAN 0 0.1 N C. , :-: .. " .~. .,; ~ " :. ~~: ~. ',' June 6. 2000 To: Ron Mclemore City Manager - City of Winter Springs 1126 East State Road 434 Winter Springs, Florida 32708 Dear Ron, The intend of this letter is to summarize the solution presented by MUNIS for the City of Winter Springs Finandal Application Procurement and Implementation. After many hou~ of discussions by membe~ of MUNlS, KIVA, and Ameritek Orlando, Ameritek Orlando is proud to present to the City of Winter Spfings the most complete and comprehensive solution feasible for the City of Winter Springs via a joint effort with MUNIS and KIVA Land Management Systems. The purpose of this letter is to summarize the financial details of the solution. The cost summary of the proposed solution IS as follows: MUNIS Solution Details: MUNIS Software Investment: $156,300 MUNIS Services Expenses: $258.520 MUNIS Travel Expen~ (Estimated): $ 41,650 MUNIS Hardware Expenses: $ 26.277 Total MUNIS Expense: $482,747 KIVA Solution Details: KIVA Software Investment: $ 63,500 KIVA Special Services Expenses: $ 63.900 KIVA Training Expenses: $ 30.780 KIVA Hardware Expenses: $ 19,782 Total KIVA Expense: $177,9&2 Oracle Solution Details (KIVA): Oracle Software Investment: $ 2.600 Oracle Services Expenses: $ 1.600 Total Oracle Expense (KIVA): $ 4,200 Oracle Solution Details (MUNIS):Oracle Software Investment (Estimated):$19.000 Orade Tools Investmem (Estimated): $ 5,000 Total Oracle Expense (MUNIS):$ 24,000 Ameritek Solution Details: Project Management I Consulting Fee: 5) 45,130 Total Amerltek EXp6nse: $ 45,130 TOTAL PROJECT EXPENSE (Software I Hardware I Services): $734.039 MUNIS MAINTENANCE COST FOR FIRST YEAR: $15,855 (Due: January 1,2001) MUNIS MAINTENANCE COST FOR SECOND YEAR: $31,710 (Due: October 1,2001) (Continuing MUMS Maintenance Fee to be paid ANNUALL Yon October 1 of each year) KIVA MAINTENANCE COST FOR FIRST YEAR: SO KIVA MAINTENANCE COST FOR SECOND YEAR: $ 11,410 (Due: October 1, 2001) (Continuing KIVA Maintenance Fee ro be paid ANNUALL Yon October 1 of eaCh year) ORACLE MAINTENANCE COST FOR FIRST YEAR: $ 563 (Due: 90 Days from Installation) (Comjnuing ORACLE Maintenance Fee to be paid ANNUALL Y every 12 months from first payment dale) HP HARDWARE MAINTENANCE COST FOR FIRST YEAR: SO HP HARDWARE MAINTENANCE COST FOR SECOND-FORTH YEAR: $3.900 (Due: October 1, 2001) (Continuing HP Hardware Maintenance Fee not due unt~ October 1, 2004 - Paid direct to HP) TOTAL MAINTENANCE COSTS DUE 90 DAYS FROM INSTALLATION: TOTAL MAINTENANCE COSTS DUE JANUARY 1, 2001: TOTAL MAINTENANCE COSTS DUE OCTOBER 1.2001: TOTAL RECURRING MAINTENANCE COSTS FOLLOWING YEARS: (ESTIMATE): $ 563 U!..lli UL9-2.0. $ 43.683 ;i' Serving Central Florida Slnetl 1976 ':Y_;~~Il"..~.I,""';fY'~~'\''''-''''~''';'''~J)'I:~~~v.;:o.~?,'i~,~~~~w:.~'r-'.~"1:"~:.~,;l:'4.::c:..''J~'''!,,'''f'~I,).\'r~t;;'':N~~':-r.:-,~~,...-!ft1~~'''''-:.:sc.~~~::'l~,;,~~\,"';";';"""t:~"":'o;'~~~~:::'.:~:~':-W .,",I",I'~':'"'''''''''' .':. ,',' KIVA and MUNIS are prepared to deliver the solution as summarized in the amended proposal which is being presented to you today at the prices summarized in this letter. It is the recommendation of the Amente!< Or1ando Consulting Group that the City move forward with contract approval and fund disbursem€1'\t negotiations as soon as possible. Respectfully. /:;/~/ /t%~~ j:~4~ .^~ Michael E. Kor~ Ameritek. Orlando Consulting Group