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16-2096 Authorize Pledged Funds for the Principal Purpose of Paying Costs of Constructing Certain Road ImprovementsORDINANCE NO. 16-2096 AN ORDINANCE AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $5,900,000 IN AGGREGATE PRINCIPAL AMOUNT OF OBLIGATIONS OF THE CITY OF LONGWOOD, FLORIDA SECURED BY AND PAYABLE FROM THE PLEDGED FUNDS DESCRIBED HEREIN FOR THE PRINCIPAL PURPOSE OF PAYING COSTS OF CONSTRUCTING CERTAIN ROAD IMPROVEMENTS AND OTHER CAPITAL IMPROVEMENTS WITHIN THE CITY DESCRIBED HEREIN; PROVIDING FOR THE RIGHTS OF THE HOLDERS OF SUCH OBLIGATIONS; AND PROVIDING SEVERABILITY AND AN EFFECTIVE DATE. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF LONGWOOD, FLORIDA, AS FOLLOWS: SECTION 1. DEFINITIONS. When used in this Ordinance, the following terms shall have the following meanings, unless some other meaning is plainly intended: "City" shall mean the City of Longwood, Florida, a municipal corporation established by the State of Florida. "City Charter" shall mean the charter of the City, as the same may be amended from time to time. "City Commission" shall mean the City Commission of the City of Longwood, Florida. "Cost" or "Costs," as the same relates to the Series 2016 Projects, shall mean (1) the cost of physical construction, reconstruction or completion; (2) the cost of acquisition or purchase, installation or equipping; (3) the cost of all labor, materials, machinery and equipment; (4) the cost of land and interests therein; property rights; easements and franchises of any nature whatsoever; (5) the cost of indemnity and surety bonds and premiums for insurance during acquisition, construction, equipping or installation; (6) all interest due to be paid on the Obligations and any other obligations relating to the Series 2016 Projects during the period of acquisition, construction, equipping or installation and for such period of time subsequent to completion of acquisition, construction, equipping or installation, as the City Commission deems appropriate; (7) engineering, financial, legal and other consultant fees and expenses; (8) the cost of plans and specifications, construction plans, surveys and estimates of costs; (9) costs and expenses of audits, fees and expenses of any paying agent, registrar, trustee, issuer of a credit facility or a Ordinance No. 16-2096 Page 1 liquidity facility, insurance company or depository; (10) payments, when due (whether at the maturity of principal or the due date of interest or upon redemption) on any interim or temporary indebtedness incurred for any portion of the Series 2016 Projects; (11) costs and expenses related to the issuance of the Obligations or other indebtedness related to the Series 2016 Projects; (12) costs related to collection of special assessments, if any; and (13) any other costs and expenses properly attributable to acquisition, construction, equipping or installation of the Series 2016 Projects, and such other expenses as may be necessary or incidental to the issuance of the Obligations; and shall include reimbursement to the City or any other person, firm or corporation for any moneys advanced for any costs incurred by the City or such person, firm or corporation in connection with any such items or costs. The Resolution may provide for additional items to be included in the aforesaid Costs. "Gas Tax Revenues" shall mean the proceeds of the first 6-cents of the local option gas tax received by the City pursuant to Section 336.025(1)(a), Florida Statutes. "Obligations" shall mean the bonds, notes or other evidence of indebtedness issued by the City pursuant to the authority of this Ordinance and more particularly described and determined by the Resolution. "Ordinance" shall mean this Ordinance enacted by the City Commission on the date hereof, as it may be amended and supplemented from time to time. "Pledged Funds" shall mean (1) the Gas Tax Revenues, (2) the Sales Tax Revenues, and (3) until applied in accordance with the provisions of the Resolution, all moneys, including investments thereof, in the funds and accounts established under the Resolution for the benefit of the Obligations except for any rebate account or fund. "Resolution" shall mean the resolution or resolutions of the City Commission detailing the term, forms and other provisions of the Obligations, including the repayment source and security for the Obligations and various covenants and restrictions relating to the security of the Obligations. "Sales Tax Revenues" shall mean the proceeds of the one -cent local government infrastructure sales surtax received by the City pursuant to Section 212.055(2), Florida Statutes. "Series 2016 Projects" shall mean (1) the Church Avenue resurfacing/reconstruction project, and (2) the Florida Central Commerce Parkway project, all as more particularly described in the plans and specifications on file or to be on file with the City, as the same may be modified or amended from time to time. The words "herein," "hereunder," "hereby," "hereto," "hereof," and any similar terms shall refer to this Ordinance. Ordinance No. 16-2096 Page 2 Words importing the singular number include the plural number, and vice versa. SECTION 2. FINDINGS. The City Commission hereby finds and determines that: (A) The City has various capital needs and requirements in the form of the Series 2016 Projects which must be acquired, constructed, equipped and installed in order to maintain and protect the health, safety and welfare of the citizens of the City. (B) The most efficient and cost-effective method of financing the acquisition, construction, equipping and installation of the Series 2016 Projects is by the issuance of the Obligations secured by the Pledged Funds as provided herein and in the Resolution. (C) Each of the Series 2016 Projects is a separate stand-alone capital improvement project for which the City will solicit separate construction contracts and as such will each constitute ' a separate capital improvement project for purposes of the limitations set forth in Section 6.10(b) of the City Charter relating to the issuance of indebtedness; provided, however, since one of the Series 2016 Projects is expected to exceed the $3,000,000 threshold set forth in the City Charter, the approval of at least four (4) city commissioners must be obtained. (D) The principal of, redemption premium, if any, and interest on the Obligations shall be paid from the Pledged Funds. The City shall never use or be required to use its ad valorem taxing power for the payment of the Obligations. The Obligations shall not constitute a general obligation of the City or a pledge of its faith and credit, nor shall the holders of the Obligations have any lien or encumbrance on any property in the City except the Pledged Funds. (E) The adoption of this Ordinance shall constitute the City Commission's approval of the issuance of debt and the borrowing of money in accordance with Sections 3.10 and 6.10(b) of the City Charter. SECTION 3. AUTHORIZING THE FINANCING OF THE SERIES 2016 PROJECTS. The City Commission hereby authorizes the acquisition, construction, equipping and installation of the Series 2016 Projects. SECTION 4. ISSUANCE OF THE OBLIGATIONS. The Obligations are hereby authorized to be issued in aggregate principal amount of not exceeding $5,900,000. The Obligations may be issued at one or more times and in one or more series. The particular title and designation of each Obligation may be made by a Resolution. The Obligations shall be issued for the principal purposes of (A) paying all or a portion of the Costs of the Series 2016 Projects, and (B) paying costs and expenses of issuing the Obligations. The principal of, redemption premium, if any, and interest on Ordinance No. 16-2096 Page 3 the Obligations shall be payable from the Pledged Funds, as provided herein and in the Resolution. The Obligations shall be dated such date or dates, shall bear interest at such rate or rates, shall mature at such time or times and in such amount or amounts as may be determined by the Resolution, and may be redeemable before maturity, at the option of the City, at such price or prices and under such terms and conditions as may be fixed by the Resolution. The City Commission shall determine by the Resolution the form of the Obligations, the manner of executing the Obligations, and shall fix the denomination or denominations of such Obligations, the place or places and dates of payment of the principal and interest, and such other terms and provisions of the Obligations as it deems appropriate. The Obligations may be issued as capital appreciation debt, current interest paying debt, variable rate debt, serial debt, term debt, taxable debt, tax-exempt debt or any combination thereof, as shall be determined by the Resolution. In case any officer whose signature or a facsimile of whose signature shall appear on any Obligation shall cease to be such officer before delivery of such Obligation, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he or she had remained in office until such delivery. The City Commission may sell the Obligations in such manner and for such price as it may determine by the Resolution to be in the best interests of the City. The Obligations may be further secured by any credit enhancement as the City Commission by the Resolution deems appropriate. The Obligations may be issued without any other proceedings or the happening of any other conditions or other things other than those proceedings, conditions or things which are specifically required by this Ordinance. The proceeds of the Obligations shall be disbursed in such manner and under such restrictions, if any, as may be provided by the Resolution. The Obligations shall be further secured by the Resolution which may include, but without limitation, provisions as to the rights and remedies of the holders of the Obligations, the application of funds and such other matters as are customarily in such an instrument. The Resolution may provide for the City entering into one or more loan agreements with the purchaser(s) of the Obligations. SECTION 5. TAXING POWER NOT PLEDGED. The Obligations issued under the provisions of this Ordinance shall not be deemed to constitute a pledge of the faith and credit or taxing power of the City, but the Obligations shall be payable from the Pledged Funds in the manner provided herein and in the Resolution, unless otherwise paid by such entity as shall provide credit enhancement on the Obligations, if any. The issuance of the Obligations under the provisions of this Ordinance shall not directly, indirectly or contingently obligate the City to levy or to pledge any form of ad valorem taxation whatsoever. The holders of the Obligations shall never have the right to compel any exercise of the ad valorem taxing power on the part of the City to pay any of Ordinance No. 16-2096 Page 4 the Obligations or the interest thereon against any property of the City, nor shall the Obligations constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City except the Pledged Funds. SECTION 6. TRUST FUNDS. All moneys received pursuant to the authority of this Ordinance, whether as proceeds from the sale of the Obligations or the Pledged Funds, shall be deemed to be trust funds, to be held and applied solely as provided in this Ordinance and in the Resolution. The Pledged Funds upon receipt thereof by the City, shall be subject to the lien and pledge of the holders of the Obligations or any entity providing credit enhancement for the Obligations. SECTION 7. REMEDIES OF HOLDERS OF OBLIGATIONS. The holders of the Obligations, except to the extent the rights herein given may be restricted by the Resolution, may, whether at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce and compel the performance of all duties required hereby, or by such Resolution, to be performed by the City. SECTION 8. ALTERNATIVE METHOD. This Ordinance shall be deemed to provide an additional and alternative method for the doing of things authorized hereby and shall be regarded as supplemental and additional to powers conferred by other laws, and shall not be regarded as in derogation of any powers now existing or which may hereafter come into existence. This Ordinance, being necessary for the health, safety and welfare of the inhabitants and/or property owners of the City, shall be liberally construed to effect the purposes hereof. SECTION 9. VALIDATION. To the extent deemed necessary by Bond Counsel, Nabors, Giblin & Nickerson, P.A., or desirable by the City Attorney, the City Attorney is authorized to institute appropriate proceedings for validation of the Obligations pursuant to Chapter 75, Florida Statutes. SECTION 10. GENERAL AUTHORITY. The members of the City Commission of the City and the officers, attorneys and other agents or employees of the City are hereby authorized to do all acts and things required of them by this Ordinance, or desirable or consistent with the requirements hereof for the full punctual and complete performance of all the terms, covenants and agreements contained herein. SECTION 11. SEVERABILITY. In the event that any portion or section of this Ordinance is determined to be invalid, illegal or unconstitutional by a court of competent jurisdiction, such decision shall in no manner affect the remaining portions or sections of this Ordinance which shall remain in full force and effect. Ordinance No. 16-2096 Page 5 SECTION 12. EFFECTIVE DATE. This Ordinance shall take effect immediately upon its enactment by the City Commission of the City of Longwood, Florida by a vote of at least 4 of the 5 City Commissioners voting in favor of adoption. READ BY TITLE ONLY IN PUBLIC SESSION the 19th day of September, 2016. DULY ENACTED ON THE SECOND AND FINAL READING IN PUBLIC SESSION this 34 day of October, 2016. CITY OF LONGWOOD, FLORIDA ATTEST: APPROVED AS TO FORM AND LEGALITY FOR THE USE AND RELIANCE OF THE CITY OF LONGWOOD, FLORIDA ONLY: - e-- - --- ,.: C-� - , <' - Daniel W. Langl , C' Obrae Ordinance No. 16-2096 Page 6