Health Facilities Authority - Regular Meeting

Okay. Are you ready? We're going to call the Health Facilities Authority meeting to order. Today is Monday, July 7, 2025. It's approximately 4 p.m. I'm going to do a roll call now. Chair Del Castillo? Yes. Vice Chair Martin?

I'm here.

Member Barquette?

Here.

Member Alonzo?

Here.

Member Fuentes?

Here.

We all have a quorum. Okay, and the action items are, the first one is public hearing is required by section 147F by the Internal Revenue Code of 1986. So we're gonna open it for public hearing.

So yes, so good afternoon. My name is Lisandra Santos. I'm the chair of the City of San Miami Health Authority Facility. I would like to open the meeting. Welcome all to the Health Facility Authority meeting this July 7, 2025. I would like to announce or disclose that I have been in appearance of a conflict and I will be needed to recuse myself for participating and voting on today's agenda items as an employee by Baptist Health. I will be stepping out of the meeting. I will not be participating in voting on the items C1 and C22 on today's agenda. Our Vice Chair, Mr. Martin Reynolds, will run the meetings in my absence. And then I will be back.

Thank you. Nikki, are we going to have a presentation or?

Are we doing it? No, presentation?

Yes, the first item, if I may. Good afternoon, everyone. The first item is C1. It's the IRS TEFRA hearing, Mr. Vice Chair. The attorney went ahead and prepared a script for you or an outline of what needs to be said for the TEFRA hearing, which is required by IRS code. So, Mr. Cates, if you would share that, thank you.

And then if I may, Brandon, my screen is off. I don't know if it's disconnected or... Should I proceed?

Yes.

I hereby open this public hearing today, July 7, 2025, at 4 o'clock. My name is Reynolds Martin, Sr. I'm the Vice Chair of the City of South Miami's Health Facilities Authority. I am the hearing officer for the authority. In addition to myself, also present are, state your names. Justin Puente.

Kelly Marquette.

Manny Alonzo.

Thank you. The public hearing is being held pursuant to a notice that was published as required by Section 147F of the Internal Revenue Code of 1986 as amended. The notice was published on various dates in various newspapers of general circulation in various counties, including Broward, Charlotte, Palm Beach, Miami-Dade, Monroe, and Leon Counties, and statewide in the Florida Administrative Register. publishers' affidavits for these publications with newspaper clippings attached will be forthcoming and will be placed on file in the records of the hearing officer. The purpose of this hearing is to permit the public to express their views in person or in writing regarding a proposed plan by the City of South Miami's Health Facilities Authority to issue its hospital revenue bonds in the aggregate principal amount not to exceed $500 million with respect to facilities in Florida in one or more series over the longest period permitted by law. The proceeds of the bonds will be used to finance, refinance, or reimburse the costs of acquiring, constructing, renovating, and equipping certain health care facilities at locations listed in the notice. Provide one or more debt service reserve funds for the benefit of all or a portion of the bonds, if deemed necessary or desirable. pay portion of the interest to accrue on the bonds if deemed necessary or desirable, pay certain working capital expenditures if deemed necessary or desirable, and pay certain costs of issuance of bonds, including the cost of any credit or liquidity enhancement thereof. If deemed necessary or desirable, the proceeds of the bonds will be used to finance, refinance, or reimburse the costs of acquiring, constructing, expanding, renovating, rehabilitating, and equipping certain health care facilities and all necessary attendant or related facilities, equipment, site work, and utilities thereto listed in the notice. the initial owner, operator, or manager, a general functional description, and the location of each such facility are listed in the notice. All interested persons wishing to contend or protest against the issuance of all or any of the five issues of these bonds may now be heard. Does anyone wish to be heard?

And no one's on Zoom and no one's in the chambers.

All written statements will be considered.

Does anyone wish to submit written statements?

There being no comments from any members of the public at the hearing today, the public hearing is hereby adjourned.

Thank you, Mr. Vice Chair. That concludes the C1 hearing item, and we can proceed to item C2 on the agenda.

A resolution of the City of South Miami Health Facilities Authority authorizing the issuance and sale by the City of South Miami Health Facilities Authority of one or more series of its City of South Miami facilities. Health Facilities Authorities Hospital Revenue Bonds Series 2025 Baptist Health South Florida Obligated Group in an aggregate principal amount not to exceed $500 million to provide funds to a pay or reimburse Baptist Health South Florida Inc. and or South Miami Hospital Inc., Baptist Outpatient Services, Doctors Hospital, Homestead Hospital, Mariners Hospital, West Kendall Baptist Hospital, Fisherman's Health, Inc., Bethesda, and together with Baptist Hospitals, Doctors Hospital, Homestead Hospital, Mariners Hospital, South Miami Hospital, West Kendall Hospital, Fisherman's, and Bethesda Hospital. The affiliates for the cost of acquiring, constructing, remodeling, renovating, and equipping certain health care facilities owned by the borrower or the affiliates fund a debt service reserve fund for the benefit of the bonds if deemed necessary or desirable by the authority. And Baptist House of South Florida. fund working capital for any of the borrower and affiliates if deemed necessary or desirable by Baptist Hospital of South Florida, fund interest accruing on the bonds if deemed necessary, and pay certain expenses incurred in connection with the issuance of the authorizing

Excuse me.

Including the cost of any credit or liquidity enhancement, authorizing the execution and delivery of a bond purchase agreement, providing for the sale of the bonds, authorizing the execution and delivery of one or more bond trusts and indentures securing the bonds, authorizing the execution and delivery of one or more loan agreements with borrow for the use by the borrower and or its affiliates, authorizing the execution and delivery of a tax exempt certificate and agreement with respect to the bonds, authorizing the use and distribution of an official statement in connection with the issuance of the bonds, providing that the bonds shall be limited obligations of the authority payable solely from the revenues provided, therefore, and shall not constitute a debt, liability, or obligation of the City of South Miami, of the State of Florida, or of any political subdivision thereof, and that neither the faith and credit for any taxing power of the authority of the City of South Miami, Florida, of the of the state of florida or any political subdivision thereof is pledged to the payment of the principal or premium if any or interest in the bonds and providing for other related matters I'll second it.

Who moved it? I'm sorry.

Motion to approve. All right. It's been moved and properly seconded that the resolution be adopted. All those in favor, let it be known by saying aye.

Mr. Chair, I think there may be some discussion or questions. Oh, okay. Thank you.

You wanna start, Justin? Yeah, I appreciate what we're trying to accomplish here, and I know that the city's gonna be indemnified, and we appreciate everything that Baptist does for our communities. I did ask the last time if the fee for $250,000 could be negotiated or increased, and with the board's, I guess, approval, maybe we ask for, instead of $250,000, maybe an ask of $300,000. In the past, there have been bonds that have been issued by the city, and I know that there sometimes is a cap on those dollars, but there's been an inflation and time has passed, and I think that we could probably put that money to very good use for certain services that we can apply to the city, so that maybe we can reduce some of the care that you provide to the area in the ER side. I wanted to see if we can maybe look at it to increase it to 300,000 versus 250.

On the board, we need a second.

No, no, it's just a discussion item. And then maybe we ask the team from Baptist for some input.

I serve as bond council to Baptist Health South Florida. And similar to 2017, we're coming back, and you're correct, the fee in 2017 was $250,000. I would submit to the board respectfully that that fee is actually higher than most other authorities in the state. They range from zero all the way up to about 75,000. We did a deal with Palm Beach County. Their fee is one and a half basis points. On a deal like this, it would be 75,000. So we're happy to pay the $250,000, but we think that's a very fair amount for the action that the board would take today, with all due respect, of course. That's a denial.

No, my question to you is, so it's one and a half basis points on the total value of the bond? Correct. It's a typical fee? Yeah. Okay.

Palm Beach County charges one and a half basis points on the total value of principal amount of the bonds, which at $500 million would be $75,000. Right.

And that's a one-time fee? Correct. Yeah, one-time fee.

Okay. All right. Yeah, very similar.

So then I do appreciate the response, and I appreciate then that we're at a much higher level than others, but I thought I would ask.

Understood, and thank you.

So then with that, I guess with that, you have questions or anything?

No. Then are we ready to vote? All those in favor, let me know by saying aye. Aye.

Let's do a roll call vote.

Oh, you're going to call a roll call? Yes. Yes.

Member Fuentes?

Yes.

Member Marquette? Yes. Member Alonso?

Yes.

Vice Chair Martin? Yes. It passes 4-0.

Madam Clerk, if we could call the chair back in and she can adjourn the meeting. Yes. Thank you.

Well, we can ask a question. When would our next meeting be? Obviously, there's going to be a point in time where the fee will be received by the city. And we would also, probably before that, would like to discuss what options there are that we can utilize. And I still maintain my position. We would like to use those dollars somehow. I know that some parts of the community need more than others, right? So we would try to maybe utilize those dollars to kind of release some pressure from the South Miami ER.

Through the vice chair, if I may, the chair. The next regular meeting of this authority is the annual meeting in March of 2026. At that time, the disposition of the funds could be addressed. However, if this authority would like to call a special meeting prior to that date, you certainly can. It's at the will of this authority, so.

So madam, is it the authority's ability to call a meeting and talk about the disposition of the $250,000 that's being made available to us?

That's correct, sir. Okay, fine.

If you know, how was this $250,000 disposed of previously?

I was not here, but Jeff, let me ask my partner, Jeff, or maybe the Baptist folks, what finance may know. Unfortunately, our finance director is not here at the moment, but we can certainly find out that information and report back to you.

If I may, would the Baptist team know what other facilities have utilized those dollars? No. Okay.

We can certainly find out for you and report back to you. Pursuant to Florida statute, the money does need to be used, and I'm going to quote the statute, for non-profit human health service agencies.

Sure. Do we have a time frame in which that money can be distributed?

I'm not aware of a time frame, no. Thank you.

If I may, is there any money sitting in the account now at all? Zero? Okay.

If you want, we can set up a meeting. Like, if we have a time frame, like a three-month or six-month, whatever you suggest, you guys can get, like, a settle, like, to see how was it.

So, how would we call a special meeting? Do we contact the clerk?

We can contact, yeah. So, we can do, like, a tentative six-month from now. So, to have a kind of, like, make sure that... Six months. Or three months.

Let's do it in three months.

Three months to see how it is, and then we set it up.

Talk about agencies that might be available that qualify to receive the monies.

That's perfect.

All right.

At least to have either a number or an answer. All right. Sounds good. I'm in accord. Excellent.

Madam Clerk, thank you. If you could just note that in three months for a special meeting. Thank you.

We're going to schedule and send it to everybody. Yes.

Motion to adjourn.

Yeah. Okay, so if nobody has nothing else to say, this meeting will be closed. Thank you. Thank you very much.

Thank you. Thank you, Chair.

Members?