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
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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.