HomeMy WebLinkAbout023548 RES - 01/26/1999A RESOLUTION
BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS,
DIRECTING THE CITY MANAGER TO PROCEED IN PREPARING THE
NECESSARY DOCUMENTS AND TAKING OTHER MEASURES IN
CONNECTION WITH THE ISSUANCE OF UTILITY SYSTEM REVENUE
BONDS.
WHEREAS, the City of Corpus Christi (the "City") currently has outstanding $45,220,000
in principal amount of its Utility System Revenue Refunding Bonds, Series 1990 (the "Series 1990
Bonds"); and
WHEREAS, due to favorable economic conditions, the City finds it desirable to proceed
with a refunding of the Series 1990 Bonds scheduled to mature on July 15 in each of the years 2000
through 2010, inclusive; and
WHEREAS, the City currently has outstanding $13,220,000 in principal amount of its
Utility System Commercial Paper Notes, Series A (the "Commercial Paper Notes"); and
WHEREAS, due to favorable economic conditions, the City finds it desirable to proceed
with a refunding of Commercial Paper Notes; and
WHEREAS, it is necessary for the City to proceed with repairs and improvements to the
Utility System, particularly with respect to repairs and improvements to Wesley Seale Dam; and
WHEREAS, due to favorable economic conditions, the City may be able to advance refund,
and achieve debt service savings with respect to a portion of the City's outstanding Utility System
Revenue Bonds, Series 1994 and Series 1995 (the "Series 1994/1995 Bonds"); and
WHEREAS, the refunding of the Series 1990 Bonds, the refunding of Commercial Paper
Notes, the advance refunding of the Series 1994/1995 Bonds, and the repairs and improvements to
the Utility System described above, are herein referred to as the "financing plan"; and
WHEREAS, the City finds it necessary to issue Utility System Revenue Bonds, in one or
more series, to implement the financing plan described above; and
WHEREAS, it is anticipated that the principal amount of Utility System Revenue Bonds to
be issued for the purpose of refunding the Series 1990 Bonds would not exceed $50,000,000; and
WHEREAS, it is anticipated that the principal amount of Utility System Revenue Bonds to
be issued for the purposes of refunding Commercial Paper Notes and to make necessary repairs and
improvements to the Utility System, particularly with respect to repairs and improvements to Wesley
Seale Dam, would not exceed $40,000,000; and
I ULEG-DIR\VERONICA\ALISON\ORD99.600\AGORD99 614
WHEREAS, because of the provisions of the Internal Revenue Code of 1986 (the "Code"),
it is necessary to effect the sale of Utility System Revenue Bonds to refund the Series 1990 Bonds
in a separate series of bonds; and
WHEREAS, the City Council hereby finds, considers and declares that the reimbursement
of the payment by the City of such expenditures will be appropriate and consistent with the lawful
objectives of the City and, as such, chooses to declare its intention, in accordance with the provisions
of Section 1.150-2 of the U.S. Treasury Regulations, to reimburse itself for suetpayments at such
time as it issues the Utility System Revenue Bonds for the repair and improvement of the Utility
System, particularly with respect to repairs and improvements to Wesley Seale Dam; and
WHEREAS, it is hereby officially found and determined that the meeting at which this
Resolution was considered was open to the public, and public notice of the time, place and purpose
of said meeting was given, all as required by Chapter 551, Texas Government Code.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEXAS:
SECTION 1. That the City Manager is hereby directed to proceed with the preparation of
documents and the taking of other measures to implement the financing plan described in the
preamble to this Resolution including, without limitation, implementing a proc.ss to review, and
report back to the City Council on recommendations with respect to the selection of, underwriters
for the issuance of the Utility System Revenue Bonds described in the preamble of this Resolution.
SECTION 2. That the City Manager is hereby authorized to retain the services of M. E.
Allison & Co., Inc. as Financial Advisor, and McCall, Parkhurst & Horton L.L.P. as Bond Counsel,
in connection with the issuance and sale of the proposed Utility System Revenue Bonds.
SECTION 3. That all costs to be reimbursed pursuant to this Resolution for necessary
repairs and improvements to the Utility System, particularly with respect to repairs and
improvements to Wesley Seale Dam, will be capital expenditures; the proposed Utility System
Revenue Bonds shall be issued within 18 months of the later of (i) the date the excenditures are paid
or (ii) the date on which the property, with respect to which such expenditures were made, is placed
in service; and the foregoing notwithstanding, the Utility System Revenue Bonds will not be issued
pursuant to this Resolution on a date that is more than three years after the date any expenditure
which is to be reimbursed is paid.
SECTION 4. That all resolutions or parts thereof in conflict herewith are hereby repealed.
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PASSED AND APPROVED this the 26th day of January, 1999.
ayor, City o Corpus Christi
City Secretary, City of
Corpus Christi, Texas
APPROVED THIS THE 26TH DAY OF JANUARY, 1999:
JAMES R. BRAY, JR., CITY ATTORNEY
.�u.�xraw
Alison Gal away, Assistant Cit Attorney
H1LEG-DIRVVERONICA'.ALISONVORD99.600AC RD99.614
Corpus Christi, Texas
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The above resolution was passed by the following vote:
Samuel L. Neal, Jr.
Javier Colmenero
Melody Cooper
Alex L. Garcia, Jr.
Dr. Arnold Gonzales
Betty Jean Longoria
John Longoria
Edward A. Martin
Dr. David McNichols
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