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HomeMy WebLinkAbout022837 RES - 02/11/1997RESOLUTION AUTHORIZING AND DIRECTING THE CITY MANAGER, UPON APPROPRIATION BY THE CITY COUNCIL, TO PAY TO THE NUECES RIVER AUTHORITY AN AMOUNT NOT TO EXCEED $11,100,000 WHICH AMOUNT HAS BEEN MADE AVAILABLE BY FEDERAL LEGISLATION DEFERRING CHOKE CANYON PAYMENTS, FOR USE BY THE RIVER AUTHORITY TO PAY PROJECT COSTS OF THE LAKE TEXANA PIPELINE PROJECT AND REDUCE THE PRINCIPAL AMOUNT OF BONDS REQUIRED TO BE ISSUED FOR SAID PROJECT WHEREAS, the City Council desires to keep water rates as low as possible. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. The City Manager of the City of Corpus Christi is authorized and directed, upon appropriation of funds by the City Council, to deliver to the Nueces River Authority (the "Authority") an amount not to exceed $11,100,000. SECTION 2. Said monies shall be deposited by the Authority in a construction fund to be used exclusively for the Authority's acquisition and construction of the Project as defined in the Nueces River Authority - City of Corpus Christi Water Transmission Facilities Contract (the "Contract") approved by the City Council on November 12, 1996. Said monies shall be used in lieu of the principal amount of Bonds to be issued under the Contract, as prepayment of the Bonds under the Contract, thereby reducing the amount of Bonds to be issued and reducing interest costs for the Project. SECTION 3. The monies appropriated by the City Council to implement this Resolution shall be derived from savings, and restored from anticipated savings, resulting from the five-year deferral of payments to the federal government on Choke Canyon authorized by the United States Congress in Public Law 104-318. SECTION 4. The actual amount paid by the City Manager to the Authority, up to the limit provided herein, shall be equal to the principal amount of bonds which are determined to be necessary to capitalize interest payments until the anticipated completion date of the Project. 022837 toaikilkEk) Corpus Christi, Texas /1 day of r_2 b( j , 19 97 The above resolution was passed by the following vote: Mary Rhodes Dr. Jack Best Betty Black Melody Cooper Tony Heldenfels Betty Jean Longoria John Longoria Edward A. Martin Dr. David McNichols 022837 3