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Resolution 154-2007 RESOLUTION NO. 154-2007 RESOLUTION APPROVING AN INTERLOCAL AGREEMENT WITH THE CITY OF SOUTH MIAMI HEALTH FACILITIES AUTHORITY AND AUTHORIZING ITS EXECUTION AND DELIVERY BY THE MAYOR OR HIS DESIGNEE; APPROVING THE ISSUANCE AND SALE BY THE CITY OF SOUTH MIAMI HEALTH FACILITIES AUTHORITY OF ITS REVENUE BONDS FOR THE BENEFIT OF MARINERS HOSPITAL, INC. PURSUANT TO SUCH INTERLOCAL AGREEMENT AS REQUIRED BY SECTION 147(F) OF THE INTERNAL REVENUE CODE, AS AMENDED; AND PROVIDING FOR OTHER RELATED MATTERS. WHEREAS, Monroe County, Florida (the "County") is a political subdivision existing under the laws of Florida and a "local agency" with the power to issue revenue bonds for the purpose of providing funds to pay all or any part of the "cost" of a "project" constituting a "health care fucility," as defmed in Sections 159.27(2), (5) and (16), respectively, of the Florida Industrial Development Financing Act (Part II of Chapter 159, Florida Statutes), as amended (the "Industrial Act") and to issue revenue refunding bonds for the purpose of refunding any bonds then outstanding which shall have been issued under the provisions of Part II of the Industrial Act; and WHEREAS, the City of South Miami Health Facilities Authority (the "Authority") is a "health facilities authority" as defined in Section 154.205(2) of the Florida Health Facilities Authorities Law (Part III of Chapter 154, Florida Statutes), as amended (the "Authority Act"), with power, among other things, to issue revenue bonds for the purpose of assisting "health facilities" (as defined in Section 154.205(8) of the Authority Act) in the acquisition, construction, renovation, rehabilitation, furnishing and equipping of "projects" (as defmed in Section 154.205(10) of the Authority Act), to issue revenue bonds for the purpose of refunding outstanding obligations issued, made or given by a health facility for the cost of a project and to issue refunding bonds to refund any of its revenue bonds then outstanding (Section 154.209(10) CHI-1576665v3 Florida Statutes); and the Authority is also a "local agency" under Section 159.27(4) of the Industrial Act, with the power to issue revenue bonds for the purpose of providing funds to pay all or any part of the "cost" of a "project" constituting a "health care fuci1ity" (as defmed, respectively, in Sections 159.27(2), (5) and (16) of the Industrial Act) and to issue revenue refunding bonds for the purpose of refunding any bonds then outstanding which shall have been issued under the provisions of Part II of the Industrial Act; and WHEREAS, the County and the Authority are each a "public agency" as defined in Section l63.01(3)(b) of the Florida Interlocal Cooperation Act of 1969 (Section 163.01, Florida Statutes) (the "Interlocal Cooperation Act") and as such "public agencies" are authorized to enter into interlocal agreements pursuant to Section 163.01(5) of the Interlocal Cooperation Act for the joint exercise of powers which they share in common and which each might exercise separately; and WHEREAS, in order to accomplish economies of scale and other cost savings, and to reduce the costs of providing health care services, Mariners Hospital, Inc., a Florida not for profit corporation (the "Interlocal Borrower"), with facilities located within the boundaries of the County and outside the boundaries of the City of South Miami, has requested that the County enter into an interlocal agreement (the "Interlocal Agreement") with the Authority, pursuant to the Interlocal Cooperation Act, to authorize the Authority to issue one or more series of revenue bonds (the "Bonds") to finance or refinance such facilities, which Bonds shall be in an aggregate principal amount not exceeding $800,000,000, and to loan a portion of the proceeds thereof to the Interloca1 Borrower to, among other things, (i) refund a portion of the $104,205,000 City of South Miami Health Facilities Authority Hospital Revenue Bonds, Series 1998 (Baptist Health Systems Obligated Group) (the "Series 1998 Bonds"); (ii) fund a debt service reserve fund for - 2 - CHI-1576665v3 the benefit of the Bonds, if deemed necessary or desirable by the Interlocal Borrower; (iii) fund interest accruing on the Bonds; and (iv) pay certain expenses incurred in connection with the issuance of the Bonds, including, without limitation, the cost of any credit enhancement or liquidity enhancement, if deemed necessary or desirable by the Interlocal Borrower, all as permitted by the Authority Act, the Industrial Act and the Interlocal Cooperation Act and all as more fully described in the Interlocal Agreement; and WHEREAS, the Board wishes to approve the Interlocal Agreement and to authorize its execution and delivery by the Mayor or his designee for the reasons set forth above; and WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), provides that the elected legislative body of the governmental unit which has jurisdiction over the area in which the facility financed or refinanced with the proceeds of tax exempt bonds is located is to approve the issuance of such bonds after a public hearing; and WHEREAS, the ii1cilities refinanced with the proceeds of the Bonds are located in Monroe County, Florida and the Board of County Commissioners of Monroe County, Florida (the "Board") is the elected legislative body of the County; and WHEREAS, the Interlocal Borrower caused notice of a public hearing to consider approval of the Bonds and the location and nature of the ii1cilities to be refinanced with the proceeds of the Bonds to be published on April 3, 2007 in the Key West Citizen and The Keynoter, newspapers of general circulation in the County, and a copy of said notice is attached as Exhibit A (the "Notice"); and WHEREAS, the Board has held a public hearing on this date in accordance with such Notice as required by the Code and has reviewed and considered all public comments, whether oral or written, which have been received; and - 3 - CHl-l 576665v3 WHEREAS, for the reasons set forth above, it appears to the County that entering into the Interlocal Agreement with the Authority to provide for the issuance of the Bonds and the approval ofthe issuance and sale of such Bonds as required by Section 147(f) of the Code is in the best interests of the County and the Interlocal Borrower, NOW, THEREFORE, Be It Resolved by the Board of County Commissioners of Monroe County, Florida, that: Section 1. Authorization of Execution and Delivery of Interlocal Agreement. The Interlocal Agreement between the County and the Authority in the form attached as Exhibit B hereto is approved, with such changes as shall be approved by the County Administrator or the Mayor after consultation with the County Attorney, and the Mayor/Chairman of the Board of County Commissioners is hereby authorized to execute and deliver the Interlocal Agreement on behalf of the County. Such execution by the Mayor of the Interlocal Agreement shall constitute conclusive evidence of its final approval by such officer and the County. Section 2. Approval of Issuance of the Bonds. After conducting a public hearing in accordance with Section 147(f) of the Code, this Board hereby approves the issuance by the Authority for the purposes described in the Notice. The Bonds shall be issued in the aggregate principal amount, bear interest at such rates, mature in such amounts and be subject to optional and mandatory redemptions as are approved by the Authority without the further approval of the County. Any action regarding the issuance of the Bonds by this Board does not constitute an endorsement to a prospective purchaser of the Bonds of the credit worthiness of the Interlocal Borrower. - 4- CHI-1576665v3 The Bonds shall not constitute a debt, liability or obligation of the County or the State of Florida or any political subdivision thereof, but shall be payable solely from the revenues provided therefor, and neither the fuith and credit nor any taxing power of the County or the State of Florida or any political subdivision thereof is pledged to the payment of the principal of, premium, if any, and interest on the Bonds. The County shall have no obligation with respect to the Bonds other than its obligations under the Interlocal Agreement. Section 3. Further Acts. The Mayor and Mayor Pro Tern of the County are authorized and directed to execute all necessary documents on behalf of the County to comply with the requirements of the Interlocal Agreement. Section 4. Ratification of Acts. All of the acts and doings of the members, officials, officers, agents and employees of the County which are in conformity with the intent and purposes of this Resolution, whether previously or subsequently taken or done, shall be and are ratified, confirmed and approved. Section 5. Severabilitv. If any section, paragraph, clause or provision of this Resolution shall be held to be invalid or ineffective for any reason, the remainder of this Resolution shall continue in full force and effect, it being expressly hereby found and declared that the remainder of this Resolution would have been adopted despite the validity or ineffectiveness of such section, paragraph, clause or provision. Section 6. Effective Date. This Resolution shall take effect immediately upon its adoption, and any provisions of any previous resolutions in conflict with the provisions hereof are hereby superseded. - 5 - CHI-I 576665v3 PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida, at a regular meeting of said Board held on the 18th day of April, 2007. Mayor Mario Di Gennaro Mayor Pro Tern Dixie Spehar Commissioner George Neugent Commissioner Charles McCoy Commissioner Sylvia Murphy Yes Yes Yes Yes Yes [SEAL] BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA By ~i}~ Mayor/Chairman 3: C> 0 z :r> :u.........=.r: 0" J~~_ I'TlC=< ;, n. <_.~ 0('"): ~?-;c~-: ;~;,-" -., ..t-... I LJ !,:,. rq ~ => = ..... > ." :::0 .." .'- '''-' i=~ \.0 ." :x ~ ~1'1 c::> -v ;:0 ,"., (J a ;'0 o 0\ MONROE COUNTY ATTORNEY ATIR~S !f,~'fiJJ ~YNTHIA L. HALL ASSISTANT COUNTY ATTORNEY '-/''S' ;;..OO~ ' Date - 6- CHI.1576665v3 NOTICE OF PUBLIC HEARING ANO MEETING NOTICE IS GIVEN PURSUANT to Section 147 01 the Internal Revenue Code of 1986, a amended (the"Q)dej'httheEkulal~GommissiJ1ers or Monroe County, Florida (1he -BOBlln will hold a public hearing 813:00 p.m., EasEm Olt/llQtJtSavings llme, on April 18, 2007 at the Harvey GcNemment Cllnlllr, 1200TrumanAvenlll, KsyWest, FIorkla for the purpose 01 f1ICfIlvlng commenlsand hearing discussbn regarding the p8n offlnance described bellM'. 1l1e Illlblichll8l'lngwllllle held ass pBrtolthe Boan:l's regular meeting on ttmdate,wt!ich meetlng will commence 81 9:00 a.m., Eastern Daylight Savings Time, and will continue until all items, Including the pUblic hflBfing, are completed. During the Bo8n::I's regular meeting,the 8o&rdwil1conslder slIchbuslnessasmayl""oPlltlycomebeforethe Board atsald meeting Including, wlthoulllmllatlon, consideration of the approval of an Interlocel Agreement with the City of South Miami Health Fa:lllt1esAuthorlty(th8~Authortly")relalingmthe Issuance afthe Boodsdescrlbed below. The BolIrd will consider a plan offinllllce by the Authority to issue one or more series of Illvenue bonds (the ~Bonds.) In an aggregate principal amount nOl to llXC8lId $800,000,000 pursuant to the Health FacilltlesAuthorltillslawoftheS1atecl AorIda(Part III, Chapter 154,FlorldaS1atutes),the AOOda Industrial Development Ananclng Act (Part II, Chapter 159, Rorida Statutes) and the Florida Inilrtx:alCooparatlonActcl1969(SecIIon 163.01, Part I, Chapter 163, Florida Statutes), all as arnended(coIlect1vely,the "AcIs"),forthe lJenefltcl Mariners Hospital, Inc. (the "Borrower"), a notfor proIltcorporatlon organlled under the laws of the State of Florida, and certain other affiliated corpoIlIIIoosDfthe Borrower. Aporti)n of the proceedsolthe Boods(whenand If Issued), In an amoont m4to 8XC88d $20,000,000, will be 100000ed llytheAuthofltytothe Borrowerto be used to: (0 refund a portion of the $1 04,205,000 CIlyof&uhMiBmlHeallhfacillllllsAuthortlylblpllal R1Nenue Bonds, Selles 1998 (8apIIsI: HMth Systems Ob_Qoo~(Ihe"Serles 1998 _1;(~1u'" adelJlservice reserve fund for the beneflt of tl1e Bonds, If deemed necessary or desirable by the Borrower and the Authority; (UQ provide for the payment oIlnlllrest on a portion of the Boods, if deemBdnBCeSSlWYor8lMsablebytheAutholilylBld the Borrower; and (lY) paycertaln expenses incurred In connection with the issuance of the Bonds, Including the cost 01 any credit enhancement or IIquldltyenhancernent, If deemed necessary or desirable by the Authority and the Borrower. Apa1IonoftheprtlaMllsoltheSeriBs19981ro;1s were i68d tofinlll'lC8 or refinance MlWIners Hospilal, a 42-bed acute care hospital located at 91500 0Ve1S88S Highway In Tavernier, Florida. The hlBthcarefa::llitleslocated or to be located In Monroe County, Aorkla that wI! be financed or reflnanced wltt1 the proceeds of the Boodsare or wllbeCMlOlld,operaBlocmanaged lPjlleBa1lM1lr and are or win be Ioad8d at 40 High Polnt Road, 91550 0VelS88S Highway, 91500 0Wrseas HIghway and 87465 Old Highway In T8\/emler, Florida and at 103400 Overseas Highway, 100210 Overseas Highway and 1003tl0 Overseas Highway in Key L.argo,AorIda The public hearing Is being held for the purpo&e ofaffortllng residents of Monroe County,Florlda and other Interested parties an opportunity to exlHessthelr views, both orally and in wrlting, on the propllilldissu8nceoftheBondsandtherurbJre and Iocatlon of the lacllltleslo be financed or refinanced with the proceeds thareof. WrittBn comments may be submtlled tothe Brerd at 1100 Simonton Street, Key West, Flood&. 33040 until 5:00 p.rn.on April 17, 2007. THE BONDS WILL NOT CONSTITUTE AN INDEBTEDNESS OF THE STATE OF FLORIDA, MONROE COONlY, FlORlDA ORTHE CITY OF SOUltI MIAMI, FLORIDA ORANY POll1lrAl SUBDIViSION OF EACH, BUT WILL BE PAlO SOLELY FROM REVENUES DERIVED fROM THE OPEM.TICINS OF THE BORROWER, ITS AFFILIATES AND RELATED FACILITIES AND OTHER REVENUES OF THE BORROWER AND ITS AFFLWES PlEDGED TO THE BONDS. n lilY pllfSOO decides to appea!lIlY dacisb1 naIe lIytheBoerdwlthrespecttoanymatlerconsklered atsuchmeetlng,suchpersonwlAneedarecordof theproceading and for such purpose may need to ensurethalavartlltlmrecortloltheprooeadlngsls mac:le, which record Includes the testimony and wklenceuponwhlctJtheappaallslobebased. InlDXlldancewllllleAmertal1swlthDisab/IItIes AcI, persons needing a special lICCOmmodatlon In _"_.111" procoeding"". """" the Individual or agency publishing thlsnOOce 110 f81erthan saven (7) days prlor tothe proceeding lit (305)292-...'. Monroe County, florida By Its Board of County CommlssloollIS C1eril: olthe Boerd 01 County CommlsslooelS April 3, 2007 EXHIBIT I~ MOm'l"A;)C~~~m~.,1 INTERLOCAL AGREEMENT THIS IS AN INTERLOCAL AGREEMENT, dated as of April 18, 2007 (the "Agreement"), by and between the CITY OF SOUTH MIAMI HEALTH F ACILlTIES AUTHORITY (the "Issuer"), a public body corporate and politic duly created and existing under the laws and Constitution of the State of Florida, and MONROE COUNTY, FLORIDA, (the "Interlocal Participant"), a political subdivision of the State of Florida. RECITALS Pursuant to the Florida Interlocal Cooperation Act of 1969, Section 163.01, Part I, Chapter 163, Florida Statutes, as amended (the "Interlocal Cooperation Act"), "public agencies," as defined in the Interlocal Cooperation Act, are authorized to enter into agreements with one another in order to make the most efficient use oftheir powers by enabling them to cooperate with other localities on a basis of mutual advantage and thereby to provide services and facilities in a manner and pursuant to forms of govemmental organization that will accord best with geographic, economic, population and other factors influencing the needs and development of local communities. The Interlocal Cooperation Act provides that a public agency may, pursuant to contract, exercise jointly with any other public agency any power, privilege or authority which such public agencies share in common which each might exercise separately. Pursu<mt to the Health Facilities Authorities Law (Part III, Chapter 154, Florida Statutes), as amended (the "Health Authorities Act"), and the Florida Industrial Development Financing Act (Part II, Chapter 159, Florida Statutes), as amended (the "Industrial Development Act" and, together with the Health Authorities Act, the "Financing Acts"), the Issuer and the Interlocal Participant are authorized to issue revenue bonds and loan the proceeds thereof to qualified borrowers to, among other things, pay all or any part of the "cost" of any "project" (both as defined in the respective Financing Acts) and to issue refunding bonds to refund any revenue bonds then outstanding which shall have been issued under the provisions of the Health Authorities Act or the Industrial Development Act. The Issuer and the Interlocal Participant are public agencies and desire and are permitted to enter into this Agreement to authorize the Issuer to issue revenue bonds (the "Series 2007 Bonds") on behalf of the Interlocal Participant and loan a portion of the proceeds thereof to, among others, Mariners Hospital, Inc. (the "Interlocal Borrower"), for the purposes of providing funds to, among other things, (i) refund a portion of the $104,205,000 City of South Miami Health Facilities Authority Hospital Revenue Bonds, Series 1998 (Baptist Health Systems Obligated Group) (the "Series 1998 Bonds"), the proceeds of which were used to payor reimburse the Interlocal Borrower for the payment of the costs of acquiring, constructing, renovating, rehabilitating and equipping certain healthcare facilities, including, without limitation, the acquisition, construction and equipping of a new 42-bed acute care hospital located at 91500 Overseas Highway, Tavernier, Florida, (ii) fimd a debt service reserve fund for the benefit of the Series 2007 Bonds, if deemed necessary or desirable by the Interlocal Borrower, (iii) fund interest accruing on the Series 2007 Bonds, and (iv) pay certain expenses incurred in connection with the issuance of the Series 2007 CHI-I 57S027vS Bonds, including, without limitation, the cost of any credit enhancement or liquidity enhancement if deemed necessary or desirable by the Interlocal Borrower. None of the foregoing actions is prohibited by or conflicts with any agreement, ordinance or resolution of the Issuer or Interlocal Participant or any judgment, order or decree affecting the Issuer or the Interlocal Participant. In consideration of the mutual agreements contained herein and upon the further consideration of the recitals hereinabove set forth, it is hereby agreed by and between the parties hereto as follows: Section 1 Definitions. Unless the context otherwise requires, the following terms for all purposes of this Agreement shall have the following meanings: "Acts" means the Financing Acts and the Interlocal Cooperation Act. "Administrator" means the administrator appointed pursuant to Section 4( c) hereof. "Agreement" means this Interlocal Agreement and all amendments and supplements thereto. "BHSF" means Baptist Health South Florida, Inc., a Florida not for profit corporation, and its successors and assigns. "Bond Indenture" means the Bond Trust Indenture dated as of May 1,2007 between the Issuer and th,: Bond Trustee pursuant to which the Series 2007 Bonds are to be issued, and all amendments and supplements thereto. "Bond Trustee" means the bond trustee selected by the Interlocal Borrower and approved by the Issuer, or any successor trustee under the Bond Indenture. "Financing Acts" means the Health Authorities Act and the Industrial Development Act. "Health Authorities Act" means the Health Facilities Authorities Law (Part III, Chapter 154, Florida Statutes), as amended. "Industrial Development Act" means the Florida Industrial Development Financing Act, Part II, Chapter 159, Florida Statutes, as amended. "lnterlocal Borrower" means Mariners Hospital, Inc., a Florida not for profit corporation, and its successors and assigns. "lnterlocal Cooperation Act" means the Florida Interlocal Cooperation Act of 1969, Section 163.01, Part I, Chapter 163, Florida Statutes, as amended. "lnterlocal Participant" means Monroe County, Florida and its successors and assigns. "Issuer" means City of South Miami Health Facilities Authority, and its SUCCeisors and assigns, as issuer of the Series 2007 Bonds. CHI-1575027v5 2 "Loan" means the loan to be made by the Issuer to the Interlocal Borrower to, among other things, (i) refund a portion of the Series 1998 Bonds, the proceeds of which were used to payor reimburse the Interlocal Borrower for the payment of the costs of acquiring, constructing, renovating, rehabilitating and equipping certain healthcare facilities, including, without limitation, the acquisition, construction and equipping of a new 42-bed acute care hospital located at 91500 Overseas Highway, Tavernier, Florida, (ii) fund a debt service reserve fund for the benefit of the Series 2007 Bonds, if deemed necessary or desirable by the Interlocal Borrower, (iii) fund interest accruing on the Series 2007 Bonds, and (iv) pay certain expenses incurred in connection with the issuance of the Series 2007 Bonds, including, without limitation, the cost of any credit enhancement or liquidity enhancement if deemed necessary or desirable by the Interlocal Borrower. "Loan Agreement" means the Loan Agreement between the Issuer and, among others, the Interlocal Borrower, setting forth the terms of the Loan. "Master Note" means the Master Note of BHSF delivered to the Bond Trustee in order to evidence the obligation ofthe Interlocal Borrower to pay a collective amount sufficient to amortize the Loan. "Resolution" means a resolution of the governing body of a party hereto adopted for the purpose of approving and authorizing the execution of this Agreement or any amendment hereto, or approving any action taken pursuant to this Agreement when such approval is required hereby. "Series 1998 Bonds" means the $104,205,000 City of South Miami Health Facilities Authority Hospital Revenue Bonds, Series 1998 (Baptist Health Systems Obligated Group). "Series 2007 Bonds" means the revenue bonds issued in one or more series by the Issuer, in part, on behalf of the Interlocal Participant for the benefit of the Interlocal Borrower under the Bond Indenture. Terms defined in this Section in the singular shall include the plural and vice versa. Section 2 Purposes. In order to assist in the development and maintenance of the public health, to accomplish economies of scale and other cost savings, and to reduce the cost of providing health care services, this Agreement is entered into pursuant to the authority granted in the Acts for the purposes of providing for the issuance of the Series 2007 Bonds by the Issuer on behalf of, among others, the Interlocal Participant for the benefit of the Interlocal Borrower in order, among other things, to make the Loan to the Interlocal Borrower to, among other things, (i) refund a portion of the Series 1998 Bonds, the proceeds of which were used to payor reimburse the Interlocal Borrower for the payment of the costs of acquiring, constructing, renovating, rehabilitating and equipping certain healthcare facilities, including, without limitation, the acquisition, construction and equipping of a new 42-bed acute care hospital located at 91500 Overseas Highway, Tavernier, Florida, (ii) fund a debt service reserve fund for the benefit of the Series 2007 Bonds, if deemed necessary or desirable by the Interlocal Borrower, (iii) fund interest accruing on the Series 2007 Bonds, and (iv) pay certain expenses incurred in connection with the issuance of the Series 2007 Bonds, including, without limitation, the cost of any credit enhancement or liquidity enhancement if deemed necessary or desirable by the Interlocal CHI.lS75027vS 3 Borrower. This Agreement shall be interpreted so as to permit the realization of such purposes to the full extent authorized by the Acts. Section 3 Effective Date; Closing Conditions; Duration This Agreement shall become effective and shall enter into force, within the meaning of the Interlocal Cooperation Act, upon receipt by the Administrator of (i) the Resolutions duly adopted by the governing body of the Issuer and of the Interlocal Participant, respectively, approving and authorizing the execution and delivery of this Agreement, (ii) a counterpart of this Agreement, duly executed by authorized officers of the Issuer and the Interlocal Participant; and (iii) evidence satisfactory to the Administrator of the recording of a duly executed counterpart ofthis Agreement with the Clerk of the Circuit Court of Miami-Dade County, Florida and the Clerk of the Circuit Court of Monroe County, Florida. The issuance of the Series 2007 Bonds shall be subject to the receipt by the Administrator of (i) the documents and showings listed in clauses (i) through (iii) above and (ii) such other documents, opinions and showings as may be necessary to effectuate the issuance of the Series 2007 Bonds and the making of the Loan. The term of this Agreement shall end upon the discharge ofthe Bond Indenture in accordance with the provisions thereof. Upon the expiration of this Agreement, any property or moneys not required to be used to pay principal, premium, if any, or interest on the Series 2007 Bonds and not otherwise required to be applied as required by the Bond Indenture shall, to the extent permitted by law, be distributed pro rata between the Interlocal Borrower and the other parties to whom loans were made from proceeds of the Series 2007 Bonds. Section 4 The Inter/oca/ Financing. The Issuer shall use its best efforts to issue the Series 2007 Bonds subject to the following conditions: (a) The Series 2007 Bonds. (i) The Issuer shall authorize the issuance and delivery of the Series 2007 Bonds pursuant to and subj ect to the terms and conditions of the Bond Indenture, the portion of which that shall be attributable to the Loan being in an aggregate principal amount not to exceed $20,000,000. The Series 2007 Bonds shall be dated and shall bear interest, be subject to repurchase and redemption, be designated and be in the form, and have such other terms as are provided in the Bond Indenture, as finally executed and delivered by the Issuer without further approval of the Interlocal Participant, but subject in all respects to the provisions set forth in the resolution of the Issuer approving the Series 2007 Bonds. (ii) The Series 2007 Bonds, together with interest thereon, shall not constitute a debt, liability or obligation of Monroe County, Florida, the State of Florida or any political subdivision or agency thereof, but shall be special and limited obligations of the Issuer payable solely from, and shall be secured by, to the extent and in the manner provided in the Bond Indenture, a pledge to the Bond Trustee of the rights of the Issuer under the Master Note and the Loan Agreement and the amounts in the funds and accounts created by the Bond Indenture. The Interlocal Participant and its members, officers, agents and employees shall not be liable for the payment of the principal of, premium, if any, or interest on the Series 2007 Bonds, nor shall the Interlocal Participant or its members, officers, agents and employees, be liable for any other indebtedness or liability which may arise in connection with the issuance of the Series 2007 Bonds or the making of the Loan. CHI-I 575027v5 4 (iii) The proceeds of the sale of the Series 2007 Bonds shall be applied in accordance with the provisions of the Bond Indenture for the purposes specified in the Bond Indenture and in Section 2 hereof. (iv) The Series 2007 Bonds may be issued in one or more series and, if issued in more than one series, references herein to the Bond Indenture, the Loan Agreement and the Master Note shall be deemed to include, if necessary, any supplemental or additional Bond Indentures or Loan Agreements and any additional Master Notes executed and delivered in connection with the issuance of the Series 2007 Bonds. (v) The Interlocal Borrower shall agree to pay any amounts owing on the Series 2007 Bonds pursuant to the provisions of Section 148(f) of the Internal Revenue Code of 1986, as amended. (vi) The Interlocal Borrower shall agree in the Loan Agreement to protect, indemnifY and save the Issuer and the Interlocal Participant, their members, officers, agents and employees against and from any and all liabilities, suits, actions, claims, demands, damages, losses, expenses and costs of every kind and nature incurred by or asserted or imposed against the Issuer or the Interlocal Participant, their members, officers, agents and employees which may arise in connection with the issuance of the Series 2007 Bonds or the making of the Loan or this Agreement. (b) The Loan. (i) Pursuant to and subject to the terms and conditions of the Bond Indenture, the Issuer is hereby authorized to make available to the Interlocal Borrower proceeds of the Series 2007 Bonds to be used by the Interlocal Borrower for the other purposes set forth in Section 2 without further approval of the Interlocal Participant. (ii) The Loan Agreement shall provide for payments sufficient to pay expenses incident to the issuance of the Series 2007 Bonds and any fees, costs and expenses of the Interlocal Participant and its counsel. (c) Administrator. Pursuant to Section 163.01(6) of the Interlocal Cooperation Act, the Issuer is hereby designated the Administrator. The Administrator shall have and is hereby delegated full power and authority to do all things necessary or convenient to carry out the purposes of this Agreement, including, without limitation, the appointment of such agents or entities as are necessary or desirable to effectuate the issuance of the Series 2007 Bonds and the making of the Loan. Section 5 No Personal Liability. No covenant or agreement contained in this Agreement shall be deemed to be a covenant or agreement of any member, officer, agent or employee of the Issuer or the Interlocal Participant in his or her individual capacity, and no member, officer, agent or employee of the Issuer or the Interlocal Participant shall be liable personally on this Agreement or be subject to any personal liability or accountability by reason of the execution of this Agreement. CHI-I 575027v5 5 Section 6 Fees and Expenses. The Interlocal Borrower has agreed to pay to the Interlocal Participant an administrative fee relating to the execution, delivery and administration of this Agreement, including, without limitation, the reasonable legal fees and costs, including costs of recordation, incurred by the Interlocal Participant as a result of the review and execution oftms Agreement. Section 7 Indemnity. The Interlocal Borrower agrees, to the fullest extent permitted by law, to indemnify and hold harmless the Issuer and the Interlocal Participant, their respective officers, employees and agents, from and against any and all losses, claims, damages, liabilities or expenses, of every conceivable kind, character and nature whatsoever, including, but not limited to, losses, claims, damages, liabilities or expenses (including reasonable fees of attorneys, accountants, consultants and other experts) arising out of, resulting from or in any way connected with this Agreement or the issuance of the Bonds. Said agreement is acknowledged in the Approval and Acknowledgement attached hereto as Exhibit A. Section 8 Amendments. This Agreement may not be amended, changed, modified or altered except by an instrument in writing which shall be (i) approved by a Resolution of the governing body of the Issuer and of the Interlocal Participant, (ii) executed by duly authorized officers of the Issuer and the Interlocal Participant, and (iii) recorded with the Clerk of the Circuit Court of Miami-Dade County, Florida and the Clerk of the Circuit Court of Monroe County, Florida. Section 9 Severability. If any term or provision of this Agreement or the application thereof shall to any extent be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to circumstances other than those with respect to which it is invalid or unenforceable, shall not be affected thereby, and shall be enforced to the extent permitted by law. To the extent permitted by applicable law, the parties hereby waive any provision of law which would render any of the terms of this Agreement unenforceable. Section 10 Governing Law. All questions with respect to the construction of this Agreement, and the rights and liabilities of the parties hereto, shall be governed by the laws of the State of Florida. Section 11 Notices. Any notice or other communication shall be sufficiently given and shall be deemed given when delivered or mailed by registered or certified mail, postage prepaid, addressed as follows: CHI-1575027v5 6 Ifto the Issuer: City of South Miami Health Facilities Authority c/o Office of City Manager 6130 Sunset Drive South Miami, Florida 33 143 Attention: City Manager Telephone: (305) 663-6338 Telecopy: (305) 663-6345 If to the InterIocal Participant: Board of County Commissioners of Monroe County, Florida 1I00 Simonton Street Key West, Florida 33041 Telephone: (305) 292-4441 Telecopy: (305) 292-4544 With a copy to: Suzanne J. Hutton, Esq. Monroe County Attorney P.O. Box 1026 Key West, Florida 33041-1026 The Issuer and the InterIocal Participant may, by notice given hereunder, designate any further or different addresses to which subsequent notices or communications shall be sent. Section 12 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one and the same instrument. Section 13 No Delegation of Authority. This Agreement shall in no way be interpreted to authorize the unlawful delegation of the constitutional or statutory duties of the Issuer, the InterIocal Participant or any of their officers, members, representatives or employees. Section 14 Limited Approval. The approval given herein shall not be construed as an approval of any necessary zoning or rezoning applications nor for any planning or regulatory permits and the approval of this Agreement shall not be construed to be a waiver by either the Issuer or the InterIocal Participant of, and neither the Issuer nor the InterIocal Participant shall be estopped from asserting, any regulatory rights or responsibilities it may have with respect thereto. CHI-l 575027vS 7 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested in their respective corporate names by their duly authorized officers all as of the date first above written. CITY OF SOUTH MIAMI HEALTH FACILITIES AUTHORITY B,JW- ~ Title: (', kO.. ' {L Printed Name: ty\QRi.o A-C<...~ [SEAL] ::"" ( Title: ~d1Ij,-6f' Printed Name: Ik(Tr'( ~ 2i c:J Z > :;oC")~ (=?,--'; 0'::;;:.....-. ~. :-" __.10 ~~ ?O c:' -;0:. MONROE COUNTY, FLORIDA c//~<;:-:\~~:~. ~,"'~,:.~ '<:~'.\ -"\\"""\.. :":,rt\ ,. .' ~ .If ': By ~ ... :--, :.~; ,., {:-: Pl ~A}~ Mayor Printed Name: Mario Di Gennaro [SEAL] Attest: ,DannyL Kohlage, Clerk ~~ Deputy Clerk .';ate CHI-l 575027vS ..... => ..., => ...... r ::J: ,." :l>> I::J -< I -/1 CD C) ;:;:J " ~:''J ::J: t'-11 " - 0 .. ::1.' U1 to N APPROVAL AND ACKNOWLEDGEMENT Baptist Health South Florida, Inc., as Obligated Group Agent on behalf of itself and Mariners Hospital, Inc., hereby approves the Interlocal Agreement and acknowledges acceptance of its obligations arising under Sections 6 and 7 of the Interlocal Agreement by causing this Approval and Acknowledgement to be executed by its authorized officer or agent, all as of the date of the Interlocal Agreement. Approved and Acknowledged: BAPTIST HEALTH SOUTH FLORIDA, INC. By (ta/1 e I!w>v- Ralph E. Lawson, Executive Vice President and Chief Financial Officer CHI.1575027v5