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HomeMy WebLinkAbout026164 RES - 03/08/2005 RESOLUTION AUTHORIZING THE CITY MA1'\AGER TO TAKE ACTIONS NECESSARY TO APPROVE THE ISSUANCE OF REFUNDING B01'\DS BY LA V ACA-1'\A VIDAD RIVER AUTHORITY AND NUECES RIVER AUTHORITY 11'\ RESPECT TO THE CITY OF CORPUS CHRISTI LAKE TEXANA PROJECT WHEREAS, the City of Corpus Christl, Texas (the "City") approved the issuance of bonds by Nueces River Authority (the "NRA") captioned "Nueces River Authority Water Supply Facilities Revenue Bonds (City of Corpus Christi Lake Texana Project) Series 1997", in the aggregate principal amount ofS118, 195,000 (the "NRA Bonds"); and WHEREAS, the NRA Bonds are currently outstanding in the aggregate principal amount of $105,770,000; and WHEREAS, the City approved the issuance ofbonds by Lavaca-Navidad River Authority (the "LNRA") captioned "Lavaca-Navidad River Authority Water Supply Facilities Revenue Bonds (City of Corpus Christi Lake Texana Project) Series 1997", in the aggregate principal amount of S8,970,000 (the "LNRA Bonds"); and WHEREAS, the LNRA Bonds are currently outstanding in the aggregate principal amount of 56,950,000; and WHEREAS, the City has executed contracts with both the NRA and the LNRA, pursuant to which the City is obligated to make payments sufficient to pay the debt service due and payable on the NRA Bonds and the LNRA Bonds, respectively; and WHEREAS, the City has requested that the NRA and the LNRA consider the issuance of refunding bonds to produce a debt service savings on the NRA Bonds and the LNRA Bonds, respectively, that are subject to redemption prior to their scheduled maturities; and WHEREAS, the City has been advised by representatives of both the NRA and the LNRA that each entity is willing to proceed with the issuance ofsuch refunding bonds; and WHEREAS, the documents governing the issuance orthe NRA Bonds and the LNRA Bonds each provide that refunding bonds may be issued subject to the approval ofthe tenns of the refunding bonds by the City; and WHEREAS, because offluctuating conditions in the municipal bond market, the City Council has detennined to delegate to the City Manager the authority to approve the terms ofthe refunding bonds that may be issued by NRA and LNRA, subject to the parameters hereinafter described. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COU1'\CIL OF THE CITY OF CORPUS CHRISTI, TEXAS: 026164 Section 1. That the City Manager is hereby authorized to act on behalf ofthe Cityto approve the tenTIS of the refunding bonds to be issued by NRA to refund a portion of the outstanding NRA Bonds, and to approve the temlS of the refunding bonds to be issued by LNRA to refund a portion of the outstanding LNRA Bonds. The City Manager may evidence such approval on behalf of the City by executing the bond purchase agreement prepared in connection with the sale and delivery 0 f the refunding bonds issued by N RA and LNRA, respectively, or by executing a certificate evidencing the approval ofthe terms ofthe refunding bonds issued by NRA and LNRA, respectively, as the City Manager in his discretion may determine. Section 2. That the City Manager is authorized to consult with M.E. Allison & Co., Inc., the City's financial advisor, to determine that the sale of the refunding bonds by NRA and LNRA, respectively, occurs on such terms that are consistent with the conditions in the municipal bond market at the time such refunding bonds are priced for sale by NRA and LNRA, respectively. Section 3. That the City Manager shall be and is 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 behalfoftlie City all such instruments, whether lierein mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this Resolution, including, but not limited to, approving the form of the notice of redemption calling the NRA Bonds and the LNRA Bonds for redemption prior to their scheduled maturities, and such instruments as may be necessary to effect the issuance of refunding bonds by either NRA or LNRA. A determination by the City Manager that the final forms of said instruments, including specifically, but not by way of limitation, the respective bond purchase agrcements relating to the refunding bonds issued by NRA or LNRA, comply with the authorizing documents relating to the NRA Bonds and the LNRA Bonds and applicable State law, shall have the same force and effect as a finding or determination made by the City Council. Section 4. That the foregoing notwithstanding, the City Manager shall not approve the sale of refunding bonds by either NRA or LNRA if (i) the debt service savings to be generated by the issuance of such refunding bonds by either NRA or LNRA, as the case may be, does not generate at least a three percent (3%) net present value savings to the Cityor (ii) the sale ofrefunding bonds by eitlier NRA or LNRA results in bonds having a maturity beyond the final maturity ofthe outstanding NRA Bonds or LNRA Bonds, as the case may be. Prior to the delivery of any refunding bonds by NRA or LNRA, the City Manager shall execute and deliver to tlie City Council a certificate selling forth tlie terms of such refunding bonds, and in such certificate tlie City Manager shall state tliat the terms of such refunding bonds conform to the parameters set forth in this Resolution. Section 5. Tliat the authority delegated to the City Manager to approve the sale of refunding bonds by NRA and LNRA, respectively, shall expire on Friday, April 29, 2005. Section 6. That this Resolution shall become effective inmlediately upon its adoption by the City Council. ATTEST: 2 THE CITY OF CORPUS CHRISTI Armand~ City Secretary A~.4 ~/ Samuel L. Neal, Jr. ' Mayor APPROVED: Z0. day of ,(,k."J. ,2005. Hy ;J1(?t</~~ d;/:klL~ Mary K/ly Fis er Citv Attornev _a~~ of _. '~\~_L-~_, 2005 The above resolution was passed by the following vote: Samuel L. Neal, .lr. Hrent Chesney Javier D. Colmenero Melody Cooper Ilenry Garrett Bill Kelly Rex A. Kinnison Jesse Noyola Mark Scott f),J,j,y =---~~--=~ ;.. , _ _I~Q.L ;- . ~~--_. C(Z~/ --------,;1--- , 026164 CERTIFICATE FOR RESOLUTION THE STATE OF TEXAS COUNTIES OFNUECES AND SANPATRICIO CITY OF CORPUS CHRISTI I, the undersigned City Secretary of the City of Corpus Christi, Texas (the "City"), hereby certifY as follows 1. The City Council of the City convened in REGULAR MEETING ON THE 8TH DAY OF MARCH, 2005, at the City Hall, and the roll was called of the duly constituted officers and members of the City Council, to-wit Samuel L. Neal, Jr. Mayor Brent Chesney, Javier D. Colmenero, Melody Cooper, Councilmembers Henry Garrett, Bill Kelly, Rex Kinnison, Jesse Noyola, Mark Scott George K Noe, City Manager, Mary Kay Fischer, City Attorney, Cindy O'Brien, Director of Financial Services, Armando Chapa, City Secretary and all of said persons were present, except the following absentees~ thus constituting a quorum Whereupon, among other business, the following was transacted at said Meeting: a written RESOLUTION AUTHORIZING THE CITY MANAGER TO TAKE ACTIONS NECESSARY TO APPROVE THE ISSUANCE OF REFUNDING BONDS BY LA V ACA-NA VIDAD RIVER AUTHORITY AND NUECES RIVER AUTHORITY IN RESPECT TO THE CITY OF CORPUS CHRISTI LAKE TEXANA PROJECT was duly introduced for the consideration of the City Council and read in full. It was then duly moved and seconded that said Resolution be passed; and, after due discussion, said motion carrying with it the passage of said Resolution, prevailed and carried by the following vote AYES'R. NOES (~t\.{,j..t~ .- - 2. That a true, fun and correct copy of the aforesaid Resolution passed at the Meeting described in the above and foregoing paragraph is attached to and fonows this Certificate; that said Resolution has been duly recorded in the City Council's minutes of said Meeting; that the above and foregoing paragraph is a true, fun and correct excerpt from the 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 the City Council as indicated therein; that each of the officers and members of the City Council was duly and sufficiently notified officially and personally, 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 March, 2005. ~ City Secretary SEAL RESOLUTION AUTHORIZING THE CITY MANAGER TO TAKE ACTIONS NECESSARY TO APPROVE THE ISSUANCE OF REFUNDING BONDS BY LA V ACA-NA VIDAD RIVER AUTHORITY AND NUECES RIVER AUTHORITY IN RESPECT TO THE CITY OF CORPUS CHRISTI LAKE TEXANA PROJECT WHEREAS, the City of Corpus Christi, Texas (the "City") approved the issuance of bonds by Nueces River Authority (the "NRA") captioned "Nueces River Authority Water Supply Facilities Revenue Bonds (City of Corpus Christi Lake Texana Project) Series 1997", in the aggregate principal amount of$118,195,000 (the "NRABonds"); and WHEREAS, the NRA Bonds are currently outstanding in the aggregate principal amount of $105,770,000; and WHEREAS, the City approved the issuance of bonds by Lavaca-Navidad River Authority (the "LNRA") captioned "Lavaca-Navidad River Authority Water Supply Facilities Revenue Bonds (City of Corpus Christi Lake Texana Project) Series 1997", in the aggregate principal amount of $8,970,000 (the "LNRA Bonds"); and WHEREAS, the LNRA Bonds are currently outstanding in the aggregate principal amount of $6,950,000; and WHEREAS, the City has executed contracts with both the NRA and the LNRA, pursuant to which the City is obligated to make payments sufficient to pay the debt service due and payable on the NRA Bonds and the LNRA Bonds, respectively; and WHEREAS, the City has requested that the NRA and the LNRA consider the issuance of refunding bonds to produce a debt service savings on the NRA Bonds and the LNRA Bonds, respectively, that are subject to redemption prior to their scheduled maturities; and WHEREAS, the City has been advised by representatives of both the NRA and the LNRA that each entity is willing to proceed with the issuance of such refunding bonds; and WHEREAS, the documents governing the issuance of the NRA Bonds and the LNRA Bonds each provide that refunding bonds may be issued subject to the approval of the terms of the refunding bonds by the City; and WHEREAS, because of fluctuating conditions in the municipal bond market, the City Council has determined to delegate to the City Manager the authority to approve the terms of the refunding bonds that may be issued by NRA and LNRA, subject to the parameters hereinafter described. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: 026164 Section 1. That the City Manager is hereby authorized to act on behalf of the City to approve the terms of the refunding bonds to be issued by NRA to refund a portion of the outstanding NRA Bonds, and to approve the terms of the refunding bonds to be issued by LNRA to refund a portion of the outstanding LNRA Bonds. The City Manager may evidence such approval on behalf of the City by executing the bond purchase agreement prepared in connection with the sale and delivery of the refunding bonds issued by NRA and LNRA, respectively, or by executing a certificate evidencing the approval of the terms of the refunding bonds issued by NRA and LNRA, respectively, as the City Manager in his discretion may determine. Section 2. That the City Manager is authorized to consult with M.E. Allison & Co., Inc., the City's financial advisor, to determine that the sale of the refunding bonds by NRA and LNRA, respectively, occurs on such terms that are consistent with the conditions in the municipal bond market at the time such refunding bonds are priced for sale by NRA and LNRA, respectively. Section 3. That the City Manager shall be and is 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, but not limited to, approving the form of the notice of redemption calling the NRA Bonds and the LNRA Bonds for redemption prior to their scheduled maturities, and such instruments as may be necessary to effect the issuance of refunding bonds by either NRA or LNRA. A determination by the City Manager that the final forms of said instruments, including specifically, but not by way of limitation, the respective bond purchase agreements relating to the refunding bonds issued by NRA or LNRA, comply with the authorizing documents relating to the NRA Bonds and the LNRA Bonds and applicable State law, shall have the same force and effect as a finding or determination made by the City Council. Section 4. That the foregoing notwithstanding, the City Manager shall not approve the sale of refunding bonds by either NRA or LNRA if (i) the debt service savings to be generated by the issuance of such refunding bonds by either NRA or LNRA, as the case may be, does not generate at least a three percent (3 %) net present value savings to the City or (ii) the sale of refunding bonds by either NRA or LNRA results in bonds having a maturity beyond the final maturity of the outstanding NRA Bonds or LNRA Bonds, as the case may be. Prior to the delivery of any refunding bonds by NRA or LNRA, the City Manager shall execute and deliver to the City Council a certificate setting forth the terms of such refunding bonds, and in such certificate the City Manager shall state that the terms of such refunding bonds conform to the parameters set forth in this Resolution. Section 5. That the authority delegated to the City Manager to approve the sale of refunding bonds by NRA and LNRA, respectively, shall expire on Friday, April 29, 2005. Section 6. That this Resolution shall become effective immediately upon its adoption by the City Council.