HomeMy WebLinkAbout96-2 - Water Revenue BondsRESOLUTION NO. 96 -2
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH RELATING TO THE CITY'S WATER REVENUE
BONDS, SERIES 1994, AUTHORIZING REPLACEMENT OF THE
RESERVE FUND WITH A SURETY BOND, AND APPROVING
CERTAIN ACTIONS IN CONNECTION THEREWITH
• WHEREAS, the City of Newport Beach (the "City") is a chartered city (a public body,
corporate and politic) duly created, established and authorized to transact business and exercise
its powers, all under and pursuant to the City Charter and the Constitution and laws of the State
of California; and
WHEREAS, the City Council of the City has previously adopted by ordinance Chapter
3.27 of the Newport Beach City Code, known as the City of Newport Beach Municipal Facilities
Revenue Bond Code (the "Code ") authorizing the issuance of revenue bonds for certain
"Enterprises" of the City, including the system of the City for the acquisition, storage, treatment
and distribution of water; and
WHEREAS, the City has embarked upon a water services capital improvement program
for its water enterprise; and
WHEREAS, for the corporate purposes of the City, the City has previously issued its
Water Revenue Bonds, Series 1994 (Water Services Capital Improvement Program), in a
principal amount of Seventeen Million One Hundred Thousand Dollars ($17,100,000) (the
"Bonds "); and
WHEREAS, pursuant to the Trust Indenture related to the Bonds (the "Trust Indenture "),
a Reserve Fund is held by the Trustee as security for the Bonds; and
WHEREAS, pursuant to Section 5.05 of the Trust Indenture, the City may at any time
substitute an Alternate Reserve Fund Security for the Reserve Fund, and receive amounts in the
Reserve Fund for authorized purposes; and
WHEREAS, the City has received a commitment from Ambac Indemnity to provide such
an Alternate Reserve Fund Security, and the City Council wishes at this time to authorize such
substitution for purposes of adding additional moneys to the Construction Fund for the Project;
and
WHEREAS, the City now desires to authorize the execution of such documents and the
performance of such acts as may be necessary or desirable to effect the substitution of the
Alternate Reserve Fund Security;
NOW, THEREFORE, BE IT RESOLVED by the City of Newport Beach, as follows:
Section 1. The City Manager is hereby authorized and directed to accept from Ambac
Indemnity or other nationally recognized municipal bond insurer an Alternate Reserve Fund
Security meeting the requirements of Section 5.05 of the Trust Indenture, and to deliver such
Alternate Reserve Fund Security in substitution for the Reserve Fund held by the Trustee for the
Bondholders, upon compliance with all requirements therefor set forth in the Trust Indenture.
The City Manager may accept on behalf of the City the terms of such Alternate Reserve Fund
Security and may execute a commitment letter in connection therewith provided the total cost of
the Alternate Reserve fund Security does not exceed 5% of the amount in the Reserve Fund.
. Section 2. Stradling, Yocca, Carlson & Rauth is confirmed to act as bond counsel in
connection with this substitution and to render such opinions as may be required to effect the
substitution and the investment banking firm of Chilton & O'Connor shall serve and be
compensated in connection with the substitution on the basis described in that letter agreement on
file with the City Manager.
Section 3. The proceeds of the Reserve Fund released to the City (net of the costs of
obtaining the Alternate Reserve Fund Security) shall be deposited upon receipt in the
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Construction Fund held under the Trust Indenture and shall be applied to costs of the Project in
accordance with the Trust Indenture.
Section 4. The Mayor of the City, the City Manager, the City Clerk of the City, and any
other proper officer of the City, acting singly, are hereby authorized and directed to execute and
deliver any and all documents and instruments relating to the substitution of the Alternate Reserve
Fund Security, and to do and cause to be done any and all acts and things necessary or proper
for carrying out the transactions contemplated by this Resolution and the Trust Indenture and any
related agreements, including, but not limited to, certifications regarding tax status of the Bonds.
Section 5. This Resolution shall take effect immediately upon its adoption.
ADOPTED this 8th day of January , 1996.
4
Mayor, City of Newport Beach
ATTEST:
o
City Clerk, City of NewportV ch ;
PueL:34144_11017182459.00003 2
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