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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 is C J 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 12/29195