HomeMy WebLinkAboutCC 7 EXECUTION AG 12-06-93CONSENT CALENDAR NO. 7
1'2-6-93
n^T~- NOVEMBER 30, 1993
TO' WILLIAM ]%- HUSTON, CITY MANAGER
FROM: RONALD A. NAULT, DIRECTOR OF FINANCE
SUBJECT: CITY OF TUSTIN RESOLUTION NO.93-130 AUTHORIZING EXECUTION OF
]% GUARANTEE AGREEMENT RELATING TO ASSESSMENT DISTRICT 86-2
RECOMM~ND%TION:
It is recommended by staff and the Assessment District Bond Council
that the City Council adopt Resolution No. 93-130, executing a
Guarantee Agreement between the city, citibank and State Street
Bank regarding Trustee services for Assessment District 86-2.
FISCAL IMPACT:
None
DISCUSSION:
citibank N.A. was selected and has been serving'as Trustee for city
Assessment District No 86-2 since the sale of bonds for the
district in 1988. Citibank N.A., has recently transferred its
Municipal Corporate Trust Accounts to State Street Bank and Trust
Company N.A.. Both citibank and State Street Bank have requested
that the City approve State Street Bank as successor trustee for
Assessment District 86-2.
The city's Bond Counsel, Mudge Rose Guthrie Alexander and Ferdon,
have reviewed all the documentation regarding this Agreement and
concurr with staff's recommendations.
Ronald A. NaultV
Direct~ of Finance
RAN: ls
Attachment
8:statest.rso
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RESOLUTION NO. 93-130
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN
AUTHORIZING THE EXECUTION AND DELIVERY OF THE GUARANTEE
AGREEMENT RELATING TO ASSESSMENT DISTRICT NO. 86-2 AND
AUTHORIZING CERTAIN RELATED MATTERS
The City Council of The City of Tustin does hereby resolve as
follows? "
WHEREAS, the City Council of The City of Tustin (the "City")
has previously authorized the execution and delivery of an
Indenture of Trust, dated as of September 1, 1988, by and between
the City and Citibank, N.A. ("Citibank"), as trustee (the
"Indenture") with respect to the issuance of $81,400,000 aggregate
principal amount of the City's Assessment District No. 86-2
Improvement Bonds (the "Bonds"); and
WHEREAS, Citibank has transferred its municipal corporate
trust accounts to State Street Bank and Trust Company, N.A., as the
intended successor trustee (the "Trustee"); and
WHEREAS, State Street Bank and Trust Company, the parent of
the Trustee, has agreed to guarantee the performance by the
successor Trustee of its obligations under the Indenture; and
WHEREAS, in connection with such guarantee by State Street
Bank and Trust Company, the City, Citibank and State Street Bank
and Trust Company, N.A. desire to enter into an Agreement, dated as
of December 1, 1993, relating to the appointment of the Trustee as
successor trustee, the proposed form of which is attached hereto as
Exhibit A.
.,
NOW, THEREFORE, the City Council of the City of Tustin does
hereby resolve and order as follows:
Section 1. The City hereby approves the Guarantee Agreement,
and the Mayor, the Mayor Pro-Tem or the Finance Director and
the City Clerk are hereby authorized on behalf of the City to
execute the Guarantee Agreement with such additions, deletions
and clarifications as approved by the Mayor, the Mayor Pro-Tem
or the Finance Director, such execution being approval by the
City of such additions, deletions or clarifications.
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Section 2. The Mayor or Mayor Pro-Tem, the City Manager, the
Finance Director, the Treasurer, the City Clerk and other
appropriate officers of the City are hereby further authorized
and directed to execute and deliver any and all documents and
instruments and to do and cause to be done any and all acts
necessary and proper to carry out the transactions
contemplated by this Resolution.
PASSED AI~D ADOPTED at a regular meeting of the City Council of
the City of Tustin held on the 6th day of December, 1993.
Jim Potts, Mayor
Attest:
Mary Wynn, City Clerk
EX~HIBIT A
AGREEMENT dated as of November , 1993 among the
City of Tustin (the "City"), Citibank, N.A. ("Citibank") and
State Street Bank and Trust Company, N.A. (the 'Trust
Company").
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Citibank is the Trustee under the Indenture of Trust
dated as of September 1, 1988 between the City and Citibank
(the "Indenture") providing for the issuance of Assessment
District No. 86-2 Limited Obligation Improvement Bonds (the
"Bonds"). In connection with the acquisition by the Trust
~ompany of the municipal trust and agency business of
Citibank on June 28, 1993 Citibank hereby notifies the City
of its intent to resign as Trustee and Paying Agent under the
Indenture and the parties hereto wish to substitute the Trust
Com~an~.for Citibank as Trustee and Paying Agent under the
Indenture. State Street Bank and Trust Company, the parent
of the Trust Company, has guaranteed in a separate letter the
performance of the obligations of the Trust Company under the
Indenture.
Section 1. Resiqnation and Appointment. Citibank
hereby resigns as Trustee and Paying Agent under the
Indenture. The City hereby waives the 60 days' notice
requirement under Section 8.06 of the Indenture. The City
hereby appoints the Trust Company as successor Trustee and
Paying Agent under the Indenture and the Trust Company hereby
accepts such appointment. Each such resignation,
appointment and acceptance shall be effective as of the date
hereof.
Section 2. Transfer of Property. Citibank hereby
assigns and transfers to the Trust Company all of its right,
title and interest in and to all property held by it under
the Indenture and shall pay over, assign and deliver to the
Trust Company all money or other property held by it under
the Indenture.
Section 3. Notices. The address of the Trust
Company for receiving notices is 20 Exchange Place, 16th
Floor, New York, New York 1'0005 or such other address as the
Trust Company may specify to the parties hereto.
Section 4. Counterparts. This Agreement may be
executed in several counterparts and all such counterparts
executed and delivered, each as an original, shall constitute
but one and the same instrument.
THE CITY OF TUSTIN
By
CITIBANK, N.A.
By
STATE STREET BANK AND TRUST COMPANY, N.A.
By
The appointment of the Trust Company as Trustee and Paying
Agent under the Indenture is hereby consented to and the 60
days' notice requirement under Section 8.06 of the Indenture
is hereby waived.
THE TOKAI BANK LTD.,
LOS ANGELES AGENCY
By
1841R