Health Facilities Authority - Regular Meeting

Good afternoon. This is the Health Facilities Authority meeting. It's 416. We're going to call this meeting to order and do a roll call for the members in person. Go ahead.

Reynolds Martin.

Turn on the mic. My mic's not on? Oh, there we go.

Reynolds Martin present.

Manny Alonso.

Online.

Justin Puente.

Lizzie Santos. We have a quorum. Okay, we had a discussion. I enrolled other health facility authority members in the donations. So I don't know if Lily or Alfredo, I'm gonna take it.

Good afternoon, everybody. I hope I can answer your questions. I understand that you had some questions regarding the role of this authority moving forward and where the funds that the authority received from any bond issuance, where those monies could be spent. This authority was created by the city commission years ago. It is a creature of statute, meaning Florida law allows for the creation of these authorities for conduit issuance of debt for health facilities that benefit the community. And I believe in the past that I'm aware of, there was a 2017 bond issuance and there was a very recent one in 2025 last year which this board was involved with. So as long as there is debt outstanding that this board or this authority has issued, the authority must continue to exist and it needs to meet annually at a minimum and file an annual report. With respect to the 2025 bond issuance, there was some funds received from the Baptist group, a non-profit group, to the authority. I believe, Mr. River, you have that in a special trust fund. And if there's any question as to how that money needs to be spent, that's dictated by Florida statute. and specifically I'll reference the statute. It's 154.209 subsection 14. So after the authority pays itself any administrative expenses and costs in connection with that 2025 bond issuance, it can then approve by resolution the donation of any surplus funds after it pays itself its administrative costs to the city. However, those funds must be used by the city and I'm gonna quote, for nonprofit human health service agencies, unquote. Okay, so they have to be nonprofit and it has to be related to health services.

Do they have to be within the city?

Do they have to be within the city? There's no specific requirement in the statute that I'm looking at, but I believe past practice, the city has used prior bond issuance fees for the benefit of these agencies within the city.

What expenses have there been?

Good afternoon. The expenses that were as part of the issuance have been covered by Baptist Health South, so you have no administrative expenses. Those expenses have already been paid, and literally the entire whole amount of $250,000 sits whole. And just to add, I just want to add just a little bit to what the city attorney was saying. The reason, and let me just explain, the reason they use conduit debt, the reason they use conduit debt is because the only way that they could get the benefits of us as government entities, which we borrow at lower costs, at lower interest rates, the only way a health facility or a health like a hospital like South Miami or others throughout the country is to use a government entity as a conduit, hence why it's called conduit. So they're going through us to issue this debt so that they get the benefits that we get when we issue debt. If not, they would be at market rate and it would cost them more. And the negative to that is it would cost more to provide care to the community. So the benefit to us doing this conduit is that it provides a more affordable, better care for the community as a whole. So that's why we do it. We don't do it for money. We don't do it for, it's just part of the process, but it's not the initial, the primary reason we do this. We primarily do this for the benefit of the community. So that's my spiel on that.

Thank you, Alfredo. And so next steps for this? Well, you know, it has come to my attention that there are... Oh, Mike.

Oh, I'm sorry. It has come to my attention that there are some worthy groups within the community, the new community. One would be the South Miami Clinic, and the other would be the Thelma Gibson Health Initiative. And both of them serve underserved population of this community and other nearby communities, and they will be well-deserved of receiving some of this money to help with their operating costs.

Thank you for that. So next steps for this board, the authority, we can't do it today because we don't have a physical quorum present. But the next meeting, there should be a resolution which approves the donation of the funds. We've just heard there are no administrative expenses. So 250,000 donation to the city to be used for the purposes that Florida law allows you to use it for. The ultimate decision is with the city commission where those funds are allocated. However, this board can certainly make recommendations and suggestions to the commission on worthy entities that meet that statutory criteria, right? So it would have to be nonprofit health service agencies.

I would suggest that our next meeting, we would have members from those organizations come and present to us the things that they do that might be beneficial to this community that makes them worthy of receiving money from the authorities. I think it would be prepared. I know Dr. Scott would be prepared. She said that she would be happy to present to this board and to the city what she's accomplishing in this community, for this community.

Just keeping in mind that this board can make recommendations and suggestions, but the ultimate decision is with the city commission, and that's fine. Okay?

That's fine. We'll try to do all we can do.

Thank you. We appreciate that.

I do have a question for Alfredo. It's my understanding that the Marshall William property is for sale. And the city has tried to contract in order to purchase it. So would it be possible if we were to take some of that money, and I think this goes directly to Dr. Scott, and maybe even think about, you know, the Marshall William property is an important property for the community. And what better opportunity to maybe purchase it, but also utilize it for the care of the children of our community, right? And maybe even thinking about just throwing something out there. maybe grabbing the Marshall Williams property and making it a part of it, at least a healthcare facility where we can treat the children of the community.

Keep it in the city.

Keep it in the city, and where we can build something that's very nice, but children will always remember where they're going when it comes to that Marshall Williams property. You know, $250,000 is a lot of money. I think it could be of good use, something we can talk about later. But I have other suggestions. It's just something that popped into my brain because that property will need to be refurbished from what my understanding is. So if we can do that, we can grab this money and make something nice out of it and it's money we can apply to it versus city money, it would be a good idea. Just a thought.

I think it's a good idea. As long as it stays within its public health care, not-for-profit. I think it's definitely, and again, I'm not an attorney. I'm not going to even pretend. But it seems to me, based on the simplicity of what it can be used for, it qualifies based on that. That's all I can really, but at the end of the day, it falls with the city attorney.

I thank you Mr. Alonso for that suggestion. I think if it meets the non-profit health facility services, if it's structured in the proper way, it could be possible, yes.

Certainly something for us to consider in terms of making a recommendation to the city as to what could be done with the monies.

I'll hold the others for later. I have a list, but I think everybody should be present.

When then can we come and meet again to further talk about this?

I'll just add while she looks, because you're going to have to coordinate again for physical presence.

Physical presence, yes.

The annual report, we can do it in conjunction because I must do the annual report before March 30th. I will be doing that annual report. forever, so long as there's conduit debt. Some years, like this year, there is business to conduct as you have business to transfer 250. Many years thereafter, there is no issuance of conduit debt, so my report will continuously be no business has been had as of this year. but it's just a formality that is required. And again, they may come back in the future if interest rates drop and do a refinance, which has happened before. So there's gonna be business maybe in the future, but you're gonna see me for a very long time coming before this board until the outstanding debt is terminated or retired.

I have a question, Mr. River. So the annual report is 2025, the actual year? Correct.

Okay. So I'm always one year behind. I'm required to do it 90 days at the end of the calendar year.

And I think this question is for Justin. Justin, I know it's tough for you to get here, especially during this time of year, but maybe something in the morning or later in the evening, probably easier for you if we can get a body here?

Absolutely. Yeah, I mean, this time of year, mornings or later afternoons are much better for me.

But is six better for you, six or six?

Six would be perfect.

Lizzie?

I wouldn't object to six.

Lizzie, what about your schedule?

Lizzie.

Sandra? Okay, so six is, okay, I'll see if I can schedule for something for six o'clock. um what do you want to meet two weeks uh one week what what are we looking at i'm out of town from the 28th through the 4th okay so any what about the 9th 10th or the 9th or the i mean sorry not the 10th 9th or the 11th i have those days not the 10th lisa's birthday should come no the 10th is the planning board meeting That would be a Monday, Nikki? No, the 9th. 9th is the Monday and 11th is the Wednesday. Or we could do the 16th. That's another Monday.

Oh, yeah, that's why we're out that day. I can't make it on the 11th.

I have another board meeting, but the 9th is good. 9th is good. 9th is good? Okay. Is that okay for you, Justin?

Yeah, that works for me.

February 9th, I'm gonna check with the other two members to make sure and send out a calendar invite. So at this meeting, we're gonna have suggestions from the authority members.

And we would have a resolution approving the donation of the funds to the city, addressing the annual report to be filed, and then there could be recommendations or suggestions to the commission on the use of the funds.

Okay, so February 9th at 6 p.m. in person. Okay, I got that. So item number two, we're not gonna discuss that item on this agenda right here. This is a resolution that you prepared earlier.

There is a second item to be discussed?

No, I'm saying because I'm asking Lily, are we going to just defer this item because there are no members, we don't have a quorum.

Yes, the resolution approving the donation, there's no quorum present, so we shouldn't take formal action. Okay, no problem. We can do it at the next meeting.

So do we have to move the item to defer it?

No, no.

Yeah, because we don't have any quorum. Well, thank you for your time. Motion to adjourn would be in order.

Thank you. Perfect. Thank you. Thank you all. Thank you.

Thank you, Nikki.

Meeting is adjourned.

Thank you.

PM, we'll now call to order a meeting of the South Miami City Commission. If you could please remember to silence or turn off your cell phones, we would greatly appreciate it. Madam Clerk, if you could call the roll, please.

Yes, Mayor Fernandez.