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Home My WebLink About025360 RES - 07/08/2003RESOLUTION APPROVING THE SUBSTITUTION OF A DEBT SERVICE RESERVE FUND INSURANCE POLICY FOR FUNDS 1N THE RESERVE FUND SUPPORTING THE OUTSTANDING CITY OF CORPUS CHRISTI, TEXAS UTILITY SYSTEM REVENUE BONDS THE STATE OF TEXAS COUNTIES OF NUECES AND SAN PATRICIO CITY OF CORPUS CHRISTI WHEREAS, the City of Corpus Christi, Texas (the "City" or the "Issuer"), a "home-rule" city operating under a home-rule charter adopted pursuant to Section 5 of Article XI of the Texas Constitution, with a population according to the latest federal decennial census of in excess of 90,000, has heretofore issued its City of Corpus Christi, Texas Utility System Revenue Refunding Bonds, Series 1990 (the "Series 1990 Bonds"), its Utility System Revenue Bonds, Series 1994 (the "Series 1994 Bonds"), its Utility System Revenue Bonds, Series 1994-A (the "Series 1994-A Bonds"), its Utility System Revenue Bonds, Series 1995 (the "Series 1995 Bonds"), its Utility System Revenue Bonds, Series 1995-A (the "Series 1995-A Bonds"), its City of Corpus Christi, Texas Utility System Revenue Refunding and Improvement Bonds, Series 1999 (the "Series 1999 Bonds"), its City of Corpus Christi, Texas Utility System Revenue Refunding and Improvement Bonds, Series 1999-A, in the aggregate principal amount of $15,750,000 (the "Series 1999-A Bonds"), its City of Corpus Christi, Texas Utility System Revenue Refunding Bonds, Series 2000 (the "Series 2000 Bonds"), its City of Corpus Christi, Texas Utility System Revenue Refunding Bonds, Series 2000-A (the "Series 2000-A Bonds"), its City of Corpus Christi, Texas Utility System Revenue Rcfimding and Improvement Bonds, Series 2002 (the "Series 2002 Bonds") and its City of Corpus Christi, Texas Utility System Revenue Refunding Bonds, Series 2003 (the "Series 2003 Bonds"); and WHEREAS, the Series 1990 Bonds are no longer outstanding; and WHEREAS, the Series 1994 Bonds, the Series 1994-A Bonds, the Series 1995 Bonds, the Series 1995-A Bonds, the Series 1999 Bonds, the Series 1999-A Bonds, the Series 2000 Bonds, the Series 2000-A Bonds, the Series 2002 Bonds and the Series 2003 Bonds are sometimes collectively referred to herein as the "Previously Issued Priority Bonds"; and WHEREAS, in the ordinance authorizing the issuance of the Series 1990 Bonds (the "Base Ordinance"), the City established a reserve fund (the "Debt Service Reserve Fund") to provide additional security for the benefit of the owners of the outstanding Previously Issued Priority Bonds; and WHEREAS, the Base Ordinance provides that the Debt Service Reserve Fund may be funded with cash, Eligible Investments (as defined in the Base Ordinance), any Credit Facility, or any combination of the foregoing ("Reserve Fund Obligations"); and WHEREAS, the term "Credit Facility" is defined in the Base Ordinance to mean a policy of municipal bond insurance, a surety bond or a letter or line of credit; and 025360 WHEREAS, the City currently has cash on deposit in the Debt Service Reserve Fund which has been invested in Eligible Investments that has a current value of $10,364,730; and WHEREAS, the City in the Base Ordinance reserved the right to replace or substitute a Credit Facility for cash or Eligible Investments on deposit in the Debt Service Reserve Fund; and WHEREAS, City staffhas recommended to the City Council that a debt service reserve fund policy to be issued by Financial Security Assurance, lnc. ("FSA") be substituted for the cash that has been invested in Eligible Investments as hereinabove described; and WHEREAS, FSA is an eligible "Credit Facility Provider" as such term is defined in the Base Ordinance; and WHEREAS, it is deemed necessary and advisable that this Resolution be adopted. THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI THAT: Section 1. The City Council approves the substitution of a Credit Facility in the form of a debt service reserve fund policy to be obtained from FSA for cash and Eligible Investments currently on deposit in the Debt Service Reserve Fund. Section 2. The Credit Facility to be obtained from FSA shall be in an amount not to exceed $9,407,583.64, which amount, together with other Reserve Fund Obligations currently on deposit in the Debt Service Reserve Fund, shall be sufficient to enable the City to satisfy its covenant in the Base Ordinance that the City will provide reserves in an amount equal to the average debt service requirements for the outstanding Previously Issued Priority Bonds. Section 3. The City Manager and the Director of Financial Services shall be and are hereby expressly authorized, empowered and directed from time to time and at any time to do and perform all such acts and things and to execute, acknowledge and deliver in the name and under the corporate seal and on behalf of the City all such instruments, whether herein mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this Resolution, including, without limitation, executing any documents to effect the issuance of a debt service reserve fund policy by FSA such as an insurance agreement to be delivered in connection with any such debt service reserve fund policy in substantially the form attached to the commitment of FSA to issue such debt service reserve fund policy in substantially the form attached hereto. Section 4. The funds withdrawn from the Debt Service Reserve Fund after the substitution of the Credit Facility therefor shall be deposited to the credit of the "System Fund" established by the Base Ordinance and used for the purposes permitted by the Base Ordinance. Attest: Armando ~hap~-~0 City Secretary Approved: July 3, 2003 Lisa Aguilar ~.) Assistant City Attorney for City Attorney Samuel L. eal,~r. Mayor The City of Corpus Christi CERTIFICATE FOR RESOLUTION THE STATE OF TEXAS COUNTIES OF NUECES AND SAN PATRICIO CITY OF CORPUS CHRISTI I, the City Secretary of said City, hereby certify as follows: 1. The City Council of said City convened in REGULAR MEETING ON THE 8TH DAY OF JULY, 2003, at the City Hall, and the roll was called of the duly constituted officers and members of said City Council, tu-wit: Samuel L. Neal, Jr. Brent Chesney, Javier D. Colmenero, Henry Garrett, Bill Kelly, Rex Kinnison, Melody Cooper, Jesse Noyola, Mark Scott George K. Noe, Jay Reining, Lee Ann Dumbauld, Armando Chapa, Mayor Councilmembers City Manager, Acting City Attomey, Director of Financial Services, City Secretary and all of said persons were present, except the following absentee: tv ~, ~-( , thus constituting a quomm. Whereupon, among other business, the following was transacted at said Meeting: a written RESOLUTION APPROVING THE SUBSTITUTION OF A DEBT SERVICE RESERVE FUND iNSURANCE POLICY FOR FUNDS IN THE RESERVE FUND SUPPORTING THE OUTSTANDING CITY OF CORPUS CHRISTI, TEXAS UTILITY SYSTEM REVENUE BONDS was duly inh-oduced for the consideration of said City Council and read in full. It was then duly moved and seconded that said Resolution be passed; and, after due discussion, said motion canying with it the passage of said Resolution, prevailed and carded by the following vote: AYES: NOES: 2. That a tree, full and correct copy of the aforesaid Resolution passed at the Meeting described in the above and foregoing paragraph is attached to and follows this Ceflificate; that said Resolution has been duly recorded in said City Council's minutes of said Meeting; that the above and foregoing paragraph i,s a tree, full and correct excerpt from said City Council's minutes of said Meeting pertaining to the passage of said Resolution; that the persons named in the above and foregoing paragraph are the duly chosen, qualified and acting officers and members of said City Council as indicated therein; that each of the officers and members of said City Council was duly and sufficiently notified officially and pemonally, in advance, of the time, place and purpose of the aforesaid Meeting, and that said Resolution would be introduced and considered for passage at said Meeting, and each of said officers and members consented, in advance, to the holding of said Meeting for such purpose, and that said Meeting 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. SIGNED AND SEALED the 8th day of July, 2003. City Secretary SEAL 2 C ~or~us Christi, Texas ._~ day of .) ~- C~,.. ,2003 The above resolution was passed by the following vote: Samuel L. Neal, Brent Chesney Javier D. Colmenero Melody Cooper ttenry Garrett Bill Kelly Rex A. Kirmison Jesse Noyola Mark Scott RESOLR~I DOC 0 2 ~.~ 3 6 0 CITY OF CORPUS CHRISTI CERTIFICATION OF FUNDS (City Charter Article IV, Sections 7 & 8) I, the Director of Financial Services of the City of Corpus Christi, Texas (or his/her duly authorized representative), hereby certify to the City Council and other appropriate officers that the money required for the current fiscal year's portion of the contract, agreement, obligation or expenditure described below is in the Treasury to the credit of the Fund specified below, from which it is to be drawn, and has not been appropriated for any other purpose. Future payments are subject to annual appropriation by the City Council. City Council Action Date: 7/8/03 Agenda Item: Resolution approving the substitution of a Debt Service Reserve Fund insurance policy for funds in the Reserve Fund supporting the outstanding City of Corpus Christi, Texas Utility System Revenue Bonds. Amount Required: $ 10,364,730.00_ Fund Name Fund No. Org. No. Account No. Prqiect No. Amount 4400 00000 251150 $ 5,505,647.00 4410 00000 251010 321,669.00 4410 00000 251020 679,096.00 4410 00000 251030 882,560.00 4410 00000 251040 2,232,577.00 4410 00000 251050 743,181.00 Total $10~64,730.00 Certification Not Required Director of Financial Services Date: {~. ~/,, , O~ C:\Council Agenda Items\DebtSvchasPolicyUtilitySystemsBonds7803.doc