HomeMy WebLinkAboutC.C. RES 03-069RESOLUTION NO. 03-69
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, APPROVING THE SUBSTITUTION OF AN ALTERNATE
LETTER OF CREDIT FOR AN EXISTING LETTER OF CREDIT FOR THE
CITY OF TUSTIN LIMITED OBLIGATION IMPROVEMENT BONDS
REASSESSMENT DISTRICT NO. 95-2 (TUSTIN RANCH), APPROVING THE
FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF A
REIMBURSEMENT AGREEMENT AND AUTHORIZING THE EXECUTION OF
NECESSARY DOCUMENTS AND CERTIFICATES AND RELATED ACTIONS
WHEREAS, pursuant to a Fiscal Agent Agreement, dated as of February 1, 1996, by
and between the City of Tustin (the "City") and State Street Bank and Trust Company of
California, N.A., as fiscal agent (the "Fiscal Agent") (as so amended, the "Fiscal Agent
Agreement"), the City issued its Limited Obligation Improvement Bonds Reassessment
District No. 95-2 (Tustin Ranch), Series A in the aggregate principal amount of $41,500,000
(the "Bonds"); and
WHEREAS, in order to provide security for the payment of the principal of and
interest on the Bonds and to provide liquidity support for the purchase of tendered Bonds, the
City entered into a Reimbursement, Credit and Security Agreement, dated as of February 1,
1996, with Kredietbank N.V., New York Branch (currently known as KBC Bank NV and
referred to herein as the "Existing Bank"), pursuant to which the Existing Bank issued its
irrevocable Letter of Credit (the "Existing Letter of Credit"); and
WHEREAS, Section 5.04(f) of the Fiscal Agent Agreement provides that, subject to
the conditions specified therein, at any time, the City may, at its option, provide for delivery to
the Fiscal Agent of an Alternate Letter of Credit in substitution for the then existing Letter of
Credit; and
WHEREAS, the City desires to substitute an irrevocable Letter of Credit (the "BNY
Letter of Credit") issued by The Bank of New York ("BNY"), for the Existing Letter of Credit; and
WHEREAS, the BNY Letter of Credit will be issued pursuant to a Reimbursement,
Credit and Security Agreement, dated as of May 1, 2003, by and between the City and BNY
(such Reimbursement Agreement, in the form presented to this meeting, with such changes,
insertions and omissions as are made pursuant to this Resolution, being referred to herein as
the "Reimbursement Agreement"); and
WHEREAS, there has been prepared and submitted to this meeting a form of the
Reimbursement Agreement; and
WHEREAS, the City desires to proceed 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 BNY Letter of Credit for the Existing Letter of Credit;
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NOW, THEREFORE, the City Council the City of Tustin does hereby resolve as
follows:
Section 1. The Reimbursement Agreement, in substantially the form submitted to this
meeting and made a part hereof as though set forth herein, be and the same is hereby
approved. The Mayor of the City, the Mayor Pro Tem of the City or such other member of
the City Council as the Mayor may designate, the City Manager of the City and the Director
of Finance of the City, or such other officer of the City as the City Manager or the Director of
Finance may designate (the "Authorized Officers") are, and each of them is, hereby
authorized and directed, for and in the name of the City, to execute and deliver the
Reimbursement Agreement in the form submitted to this meeting, with such changes,
insertions and omissions as the Authorized Officer executing the same may require or
approve, such requirement or approval to be conclusively evidenced by the execution of the
Reimbursement Agreement by such Authorized Officer.
Section 2. The termination of the Existing Letter of Credit and the substitution
therefor of the BNY Letter of Credit is hereby approved and the officers and employees of the
City are hereby authorized and directed, for and in the name and on behalf of the City, to
take such actions and to execute and deliver such documents, instruments, notices,
certificates and representations as are necessary or appropriate to effect such termination
and substitution.
Section 3. The officers and employees of the City are, and each of them hereby is,
authorized and directed, to do and cause to be done any and all acts and things necessary
or proper in order to consummate the transactions herein authorized and otherwise to carry
out, give effect to and comply with the terms and intent of this Resolution.
Section 4. All actions heretofore taken by the officers and employees of the City with
respect to the transactions herein authorized are hereby approved, confirmed and ratified.
Section 5. This Resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Tustin on the 5th day of May, 2003.
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Tracy Wills
Mayor
ATTEST:
Pamela Stoker
City Clerk
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STATE OF CALIFORNIA
COUNTY OF ORANGE
CITY OF TUSTIN
CITY OF TUSTIN
RESOLUTION CERTIFICATION
ss
RESOLUTION NO. 03-69
Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin,
California, does hereby certify that the whole number of the members of the City Council is five;
that the above and foregoing Resolution was duly and regularly passed and adopted at a
regular meeting of the City Council held on the 5th day of May, 2003, by the following vote:
COUNCILMEMBER AYES: woRLEY, RAwASHIMA, BONE, DAVERT, TxoMAs
COUNCILMEMBER NOES: NONE
COUNCILMEMBER ABSTAINED: NONE
COUNCILMEMBER ABSENT: NONE
Pamela Stoker
City Clerk
RES: Resolution No03-69AlternateLetterOfCredit.doc