HomeMy WebLinkAbout030115 RES - 03/18/2014FINAL
RESOLUTION AUTHORIZING THE CITY MANAGER TO
TAKE ACTIONS NECESSARY TO APPROVE THE
ISSUANCE OF REFUNDING BONDS DESIGNATED AS
LAVACA - NAVIDAD RIVER AUTHORITY WATER
SUPPLY CONTRACT REVENUE REFUNDING BONDS,
TAXABLE SERIES 2014 (LAKE TEXANA PROJECT); AND
OTHER MATTERS IN CONNECTION THEREWITH
WHEREAS, the authorized representative of the City of Corpus Christi, Texas (the
"City ") shall approve the issuance of bonds by the Lavaca - Navidad River Authority (the
"LNRA ") designated as "Lavaca - Navidad River Authority Water Supply Contract Revenue
Refunding Bonds, Taxable Series 2014 (Lake Texana Project) ", in the aggregate estimated
principal amount of $47,235,000 (the "LNRA Bonds "); and
WHEREAS, the LNRA Bonds will refund for debt service savings certain currently
outstanding LNRA obligations (the "Refunded Bonds "); and
WHEREAS, the City has executed contracts with the LNRA pursuant to which the City
is obligated to make payments sufficient to pay a portion of the debt service due and payable on
the LNRA Bonds and the Refunded Bonds; and
WHEREAS, the City has requested that LNRA consider the issuance of the LNRA Bonds
to produce debt service savings on the Refunded Bonds that are subject to redemption prior to
their scheduled maturities; and
WHEREAS, the City has been advised by representatives of the LNRA that it is willing
to proceed with the issuance of the LNRA Bonds; and
WHEREAS, the documents governing the issuance of the LNRA Bonds each provide
that refunding bonds may be issued subject to the approval of the terms of such 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, or his designee, the authority to approve
the terms of the LNRA Bonds, subject to the parameters hereinafter described.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEXAS:
Section 1. That the City Manager, or his designee, is hereby authorized to act on behalf
of the City to approve the terms of the LNRA Bonds. The City Manager, or his designee, 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 LNRA Bonds, or by executing a certificate
evidencing the approval of the terms of the LNRA Bonds, as the City Manager in his discretion
may determine.
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Section 2. That the City Manager, or his designee, is authorized to consult with M.E.
Allison & Co., Inc., the City's financial advisor, to determine that the sale of the LNRA Bonds
occurs on such terms that are consistent with the conditions in the municipal bond market at the
time the LNRA Bonds are priced for sale by the LNRA.
Section 3. That the City Manager, or his designee, 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 Refunded Bonds for
redemption prior to their scheduled maturities, and such certifications or instruments as may be
necessary to effect the issuance of the LNRA Bonds. A determination by the City Manager, or
his designee, that the final forms of such certifications or instruments, including specifically, but
not by way of limitation, the bond purchase agreement and offering documents, if any, relating to
the LNRA Bonds, comply with the authorizing documents relating to the LNRA Bonds, and
applicable Texas 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, or his designee, shall
not approve the sale of the LNRA Bonds if the debt service savings to be generated by the
issuance of such LNRA Bonds does not generate at least a two and three- fourths percent (2.75 %)
net present value savings to the City. Prior to the delivery of the LNRA Bonds, the City
Manager, or his designee, 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, or his designee,
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 the
LNRA Bonds shall expire on September 1, 2014.
Section 6. That this Resolution shall become effective immediately upon its adoption
by the City Council. This Resolution supersedes any prior resolutions adopted by the City
Council with respect to the LNRA Bonds.
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PASSED AND APPROVED this the 18th day of March, 2014.
ATTEST:
Rebecca Huerta, City Secretary
(SEAL)
APPROVED THIS
Nelda Martinez, Mayor
City of Corpus Christi, Texas
DAY OF MARCH, 2014:
Barney L. Knight, Interim City Attorney
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THE STATE OF TEXAS )(
COUNTY OF NUECES )(
I, the undersigned, City Secretary of the City of Corpus Christi, Texas, do hereby certify that the
above and foregoing is a true, full and correct copy of a Resolution passed by the City Council of
the City of Corpus Christi, Texas (and of the minutes pertaining thereto) on the 18th day of
March, 2014, relating to establishing the City's authorization to the City Manager to take actions
necessary to approve the issuance of refunding bonds designated as Lavaca - Navidad River
Authority Water Supply Contract Revenue Refunding Bonds, Taxable Series 2014 (Lake Texana
Project), which Resolution is duly of record in the minutes of said City Council, and 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 Texas Government Code, Chapter 551.
EXECUTED UNDER MY HAND AND SEAL of said City, this the day of March, 2014.
City Secretary
(CITY SEAL)
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Corpus Christi, Texas
1 U i of kly aUCIk
The above resolution was passed by the following vote:
Nelda Martinez
Kelley Allen
Rudy Garza
Priscilla Leal
David Loeb
Chad Magill
Colleen McIntyre
Lillian Riojas
Mark Scott
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