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HomeMy Public PortalAboutResolution No. 24-072 - Resolution authorizing issuance of a request for proposals for bond financing or refianacing.Sponsored by: City Manager RESOLUTION NO. 24-072 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF OPA-LOCKA, FLORIDA, AUTHORIZING ISSUANCE OF A REQUEST FOR PROPOSALS ("RFP") FOR BOND FINANCING OR RE -FINANCING PROVIDING FOR INCORPORATION OF RECITALS; PROVIDING FOR AN EFFECTIVE DATE WHEREAS, City Manager recommends that the City Commission the City of Opa-Locka ("City") authorize the issuance of a Request For Proposal (RFP) for Bond Financing or Re -Financing; and WHEREAS, according to the City Manager, among other debt, the City of Opa- Locka ("City") has the Capital Improvement & Refunding Revenue Bond, Series 2015 B Note, currently with a remaining balance of Three Million Six Hundred Twenty - Three Thousand Seven Hundred Sixty -One Dollars ($3,623,761.00), which will have a one-time final (balloon) payment of Three Million Two Hundred Seventeen Thousand Two Hundred Ninety -Six Dollars ($3,217,296.00) due on June 1, 2025. It is recommended that the balloon payment be refinanced; and WHEREAS, in addition to the recommendation to finance or refinance the balloon payment due in June, 2025, the City has other additional needs, including the complete replacement of the Municipal Complex air conditioning system and substantial improvements to Ingram Park; and WHEREAS, the recommended RFP from the City Manager will include a requirement to provide refinancing or financing of up to Six Million Dollars ($6,000,000.00); and WHEREAS, review of any recommended RFP related to bond work shall be approved by the bond counsel hired by the City prior to the time that the RFP is advertised in any manner; and WHEREAS, the City has determined that authorizing the issuance of an RFP for said services is in the best interest of the City and its residents and further Resolution No. 24-072 authorizes the spending of up to Three Thousand Dollars ($3,000.00) for advertising purposes, if deemed appropriate; and NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF OPA-LOCKA, FLORIDA: Section 1.Adoption of Representations. The above recitals are true and correct and are incorporated into this Resolution by reference. Section 2. Approval of Issuance of RFP for Bond Financing. The City Commission of the City of Opa-Locka hereby approves the issuance of a Request For Proposal (RFP) for Bond Financing consistent with this Resolution; and further authorizes the spending of up to Three Thousand Dollars ($3,000.00) for advertising purposes, if necessary. Section 3. Scrivener's Errors. Sections of this Resolution may be renumbered or re -lettered and corrections of typographical errors, which do not affect the intent of this Resolution may be authorized by the City Manager, following review by the City Attorney, without need of public hearing, by filing a corrected copy of same with the City Clerk. Section 4. Effective Date. This Resolution shall take effect immediately upon adoption by the City Commission of the City of Opa-Locka. PASSED and ADOPTED this 24th day of Apri 24. TEST: a Flores, City Clerk John H. Ta L or Jr., Mayor 2 Resolution No. 24-072 APPROVED AS TO FORM AND LEGAL SUFFICIENCY: Moved by: Vice Mayor Ervin Seconded by: Commissioner Bass VOTE: 4-0 Commissioner Bass Yes Commissioner Kelley Yes Commissioner Williams Absent Vice Mayor Ervin Yes Mayor Taylor Yes 3 DocuSign Envelope ID 591 D68B5-807C-4DB5-B403-66BF7349D020 City of Opa-locka Agenda Cover Memo City Manager: Darvin Williams CM Signature: Ordinance s'05',_W,,.,L:.. C4OCO?C1C0DC492... Other Commission Date:Meeting April 24, 2024 Item (Enter X in the box) Resolution X Fiscal Impact: (Enter X in the box) Yes No Ordinance Reading: (Enter X in box) 1st Reading 2'"' Reading X Public Hearing: (Enter X in the box) Yes No Yes No X X Funding Source: Account#: (Enter Fund & Dept) Ex: See Financial Impact Section Advertising Requirement: (Enter X in the box) Yes No X Contract/P.O. Required: (Enter X in the box) Yes No RFP/RFQ/Bid#: N/A X Strategic Plan Related (Enter X in the box) Yes No Strategic Plan Priority Area: Strategic Plan Obj./Strategy: (list the specific objective/strategy t Sponsor Name City Manager Department: City Manager Short Title: A resolution of the City Commission of the City of Opa-locka authorizing the City Manager to issue a Request for Proposal for Bond Financing. Staff Summary: Among other debt, the city has a Capital Improvement & Refunding Revenue Bond, Series 2015 B Note, currently with a remaining balance of $3,623,761. A one-time final (balloon) payment of $3,217,296 is due in June 2025. A recommendation was made to the City to refinance the balloon payment. The City has additional needs, including the complete replacement of the Municipal Complex air conditioning system and substantial improvements to Ingram Park. Consequently, the recommended RFP will include a requirement to provide refinancing of up to $6 million. The City intends to use the proceeds from the refinancing of the bond to address the needs of City such as to replace the malfunctioning air conditioning system for City Hall. DocuSign Envelope ID: 591 D68B5-807C-4DB5-B4C3-66BF7349D020 Financial Impact: The issuance of an RFP has no immediate financial impact other than possibly incurring advertising expense of up to $3,000 to ensure broad distribution of this RFP to a wide range of potential bidders. This advertising expense, if incurred, will be charged to Non -Department -Other Advertising, which has an available balance of $23,059. Proposed Action: Staff recommends the City Commission authorizes the issuance of an RFP for Bond Refinancing. Attachments: Request For Proposals for Bond Financing. City of Opa-locka Government Center Air Conditioning System Replacement Workshop 4/10/2024 Presenter: Darvin Williams, City Manager Current HVAC System • The City of O pa-locka Government Center has a total of 50 Rooftop Units which have been in place since 2008 when the building was built. • Over the years several units have experienced partial or major failure. Increasing cost of Repairs and Maintenance. A situation that has amplified due to the records of temperatures in Florida. Current HVAC System Maintenance HVAC systems require regular check- ups to ensure they run efficiently. Service intervals vary by system type and external factors like weather. • Industry Standard In tervals: Experts recommend servicing HVAC units twice a year. The City is Performing Maintenance Every Week The consequences of a poorly efficient or absent HVAC system in a building can be significant. Here are some of the health hazards and effects associated with inadequate HVAC systems: 1. Mo ld Growth: 1. Poorly maintained AC units can lead to mold growth. 2. Mold can cause respiratory issues and weaken the building's structure. 3. Regular inspections are crucial to prevent mold. 2. Poor Indoor Air Quality: 1. Accumulated dust, dirt, and debris in the HVAC system can pollute indoor air. 2. This can result in respiratory diseases and allergies. 3. Regular filter changes are essential to maintain air quality. 3. Rodent and Insect Infestations: 1. Dirt buildup in air ducts creates a breeding ground for pests. 2. Regular maintenance helps prevent infestations. 4. Increased Energy Bills: 1. Poor ventilatio n affects energy efficiency, leading to higher bills. 2. Proper HVAC maintenance can mitigate this issue. 5. Structural Deterioration: 1. Lack of ventilation accelerates decay and corrosion of building materials. 2. Rot compromises the building's integrity, necessitating c ostly repairs Fiscal Year 2024 (October 1St, 2023- March 2024) $22,751.28 Additional Projected Cost FY 2024 $22,751. 28 TOTAL MAINTENANCE COST FY 2024* $45,502.56 Options Explored The City has explored various options for the replacement of the HVAC System such as: • Installation of a Chiller System (RTU)(Building Infrastructure is not adequate for this type of equipment) • Replacement of individual units (Not Cost Efficient) • RFP Design and Build of HVAC System with Bigger Units with more Capacity (This option will replace the existing 50 units with 5 Units of bigger capacity and similar weight to the currently installed including the replacement of all ducts, coils and accessories) !L1Q[1J pTIO pTION 3 OPTI(