HomeMy WebLinkAboutCity of Tamarac Resolution R-92-131S
CITY OF TAMARAC
3 RESOLUTION NO. R-92-
j RESOLUTION AMENDING RESOLUTION NO. R-92-74
= AUTHORIZING THE ISSUANCE OF THE CITY'S WATER
AND SEWER UTILITY REVENUE REFUNDING BONDS,
i SERIES 1992, TO INCLUDE CERTAIN PROVISIONS
REQUIRED BY FINANCIAL GUARANTY INSURANCE
., COMPANY; AND TO PROVIDE AN EFFECTIVE DATE.
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WHEREAS, the City issued $12,700,000 of its Water and
Sewer Utility Revenue Bonds, Series 1986 (the "Series 1986
Bonds") as additional bonds pursuant to Section 207 of Resolution
No. R-85-436 (the "1985 Resolution") in order to pay the cost of
certain capital improvements of the System; and
WHEREAS, the City adopted Resolution No. R-94-74 on
April 22, 1992, (the "Resolution") authorizing the issuance of
the City's Water and Sewer Utility Revenue Refunding Bonds,
Series 1992, in order to refund the Series 1986 Bonds; and
WHEREAS, the City has received a commitment from
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Financial Guaranty Insurance Company ("FGIC") to insure the
payment of principal and interest on the Series 1992 Bonds; and
WHEREAS, FGIC agreed to permit the Series 1992 Bonds to
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be sold and delivered on the assurance that an amendment to the
Resolution would be presented for consideration to this Council
at the first regularly scheduled meeting in August; and
WHEREAS, the City wishes to amend the Resolution to
conform with the request of FGIC.
NOW, THEREFORE, BE IT RES7LVED BY THE CITY COUNCIL OF
THE CITY OF TAMARAC, FLORIDA:
Section 1. The Resolution is hereby amended by
inserting on page 9 before Section 18 -as a new, Section the
followings
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A. Definitions.
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"Series 1992 Bond Insurer" means Financial
f Guaranty Insurance Company, a New York stock
i insurance company or any successor thereto.
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"Series 1992 Bond Insurance Policy" means the
municipal bond new issue insurance policy issued
by the Series 1992 Bond Insurer that guarantees
payment of principal of and interest on the Series
1992 Bonds.
B.
Investment Obligations purchased with monies on
deposit in the Reserve Fund shall be valued not
less often than annually, at the lower of cost or
market value thereof, exclusive of accrued
interest and shall have a term to maturity not
greater than five years. Any deficiencies in the
amount of deposit in the Reserve Fund resulting
from a decline in market value of investment
obligations or a draw shall be restored no later
than the succeeding valuation date which shall be
not less often than annually. The Reserve Fund
for the Series 1992 Bonds shall at all times be
funded with Investment Obligations for the Reserve
Fund.
C. Disclosure to Do ---Insurer. The Series 1992
Bond Insurer shall be provided by the City with
the following information:
(1) Within 120 days after the end of
the City's Fiscal Year, the budget for
the new year, the annual audited
financial statements, a statement of
the amount on deposit in the Debt
Service Reserve Fund as of the last
valuation, and, if not presented in the
audited financial statements, a
statement of the net revenues -pledged
to payment of Bonds in such Fiscal
Year;
(2) The Official Statement or other
disclosure, if any, prepared in con-
nection with the issuance of additional
debt, whether or not it is on a parity
with the - Series 1992 Bonds within
thirty (30) days after the sale
thereof;
(3) Notice of any draw upon or,
deficiency due to market fluctuation in
the amount, if any, on deposit in the
Debt Service Reserve Fund;
(4) Notice of the Redemption, other
than mandatory sinking fund redemption,
of any of the Series 1992 Bonds, inclu-
ding the principal amounts, maturities
and CUSIP numbers thereof;
(5) Simultaneously with the delivery
of the annual audited financial
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statements a written report containing
the following:
(1) The number of system users as
of the end of the fiscal year;
(ii) Notification of the with-
drawal of any system user compri-
sing four percent (4%) or more of
systems sales measured in terms of
revenue dollars since the last
reporting date;
(iii) Any significant plant retire-
ments or expansions planned or
undertaken since the last reporting
date; and
(6) Such additional information as
the Series 1992 Bond Insurer may
reasonably request, from time to time.
D. Additional Bonds. Notwithstanding satisfaction
of other conditions to the issuance of additional
bonds contained in the Resolution, no such
issuance may occur should any event of default
have occurred and be continuing.
E. Notice of Redemption. Notice of the redemption
of the Series 1992 Bonds, other than mandatory
sinking fund redemption, and except for any notice
that refers to the Series 1992 Bonds that are the
subject of advanced refunding, shall be circulated
only if sufficient funds have been deposited with
the Paying Agent to pay the redemption price of
the Series 1992 Bonds to be redeemed.
F. payment, nefault. The following provisions
pertain to a payment default:
(1) In determining whether a payment
default has occurred or whether a payment on
the Series 1992 Bonds has been made under the
Resolution, no affect shall be given to
payments made under the Series 1992 Bond
Insurance Policy;
(2) The Series 1992 Bond Insurer shall
receive immediate notice of any payment
default and notices of any other default
known to the Paying Agent or the City within
thirty (30) days after the default occurs;
(3) Any waiver of an event of default
shall be subject to the prior written consent
of the Series 1992 Bond Insurer.
G. Rights of the 1992 Band Insure=. For all
purposes of Article VIII of the 1985 Resolution,
except the giving of notice of default to
Bondholders, the Series 1992 Bond Insurer shall be
deemed to be the sole holder of the Series 1992
Bonds for so long as it has not failed to comply
with its payment obligations under the Series 1992
Bond Insurance Policy.
H. AMendmeent or Supplement to the Resolution. Any
amendment or supplement to the Resolution shall be
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subject to the prior written consent of the Series
1992 Bond Insurer. The City shall provide any
rating agency rating the Series 1992 Bonds with
notice of such amendment and a copy thereof at
least fifteen (15) days in advance of its
execution or adoption. The Series 1992 Bond
Insurer shall be provided with a full transcript
of all proceedings relating to the execution of
any supplemental resolution.
I. Defeasance Obligations. only cash, direct
non -callable obligations of the United States of
America and securities fully unconditionally
guaranteed as to the timely payment of principal
and interest by the United States of America, to
which direct obligation or guaranty the full faith
and credit of the United States of America has
been pledged, Refcorp Interest Strips CATS, TIGRS,
STRPS, or defeased municipal bonds rated AAA by
S&P or Aaa by Moody's (or any combination
thereof), shall be used to effect defeasance of
the Series 1992 Bonds unless the Series 1992 Bond
Insurer otherwise approves. In the event of an
advanced refunding, the City shall cause to be
delivered to the Series 1992 Bond Insurer a
verification report of an independent nationally
recognized certified public accountant.
J.
Requirements. The following payment provisions
shall be followed in the event of a need for a
draw against the Series 1992 Bond Insurance
Policy:
(1) If, on the third day preceding any
interest payment date for the Series 1992
Bonds, there is not on deposit sufficient
monies available to pay all principal of and
interest on the Series 1992 Bonds due on such
date, the Paying Agent shall immediately
notify the Series 1992 Bond Insurer and
Citibank, N.A., New York, New york, or its
successor, as its Fiscal Agent, the ("Fiscal
Agent") of the amount of such deficiency and
the Bond Registrar shall simultaneously make
available to the Series 1992 Bond Insurer and
to the Fiscal Agent the registration books
for the Series 1992 Bonds. In addition:
(i) The Bond Registrar shall provide,
the Series 1992 Bond Insurer with a list
of the Bondholders entitled to receive
principal or interest payments from the
Series 1992 Bond Insurer under the terms
of the Series 1992 Bond Insurance Policy
and shall make arrangements for the
Series 1992 Bond Insurer and Fiscal Agent
(A) to mail checks or draft to
Bondholders entitled to receive full or
partial interest payments from the Series
1992 Bond Insurer, and (B) to pay
principal of the Series 1992 Bonds
surrendered to the Fiscal Agent by the
Bondholders entitled to receive full or
partial principal payments from the
Series 1992 Bond Insurer; and
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(ii) The Bond Registrar shall, at the
time it makes the registration books
available to the Series 1992 Bond Insurer
pursuant to (i) above, notify the
Bondholders entitled to receive the
payment of principal of or interest on
the Bonds from the Series 1992 Bonds
Insurer (A) as to the fact of such
entitlement, (B) that the Series 1992
Bond Insurer will remit to them all or
part of the interest payments coming due
subject to the terms of the Series 1992
Bond Insurance Policy, and (C) that,
except as provided in paragraph (2)
below, in the event that any Bondholders
entitled to receive full payment of
principal from the Series 1992 Bond
Insurer, such Bondholder must tender his
Bond with the instrument of transfer in
the form provided on the Bonds executed
in the name of the Series 1992 Bond
Insurer, and (d) that, except as provided
in paragraph (2) below, in the event that
such Bondholders entitled to receive
partial payment of principal from the
Series 1992 Bond Insurer, such Bondholder
must tender his Bond for payment, first
to the Bond Registrar, which shall note
on such Bond the portion of principal
paid by the Bond Registrar, and then,
with an acceptable form of assignment
executed in the name of the Series 1992
Bond Insurer, to the Fiscal Agent, which
will then pay the unpaid portion of
principal to the Bondholders subject to
the terms of the Series 1992 Bond
Insurance Policy.
(2) In the event that the Bond Registrar
has noticed that any payment of principal of
or interest on a Bond has been recovered from
a Bondholder pursuant to the United States
Bankruptcy Code by a trustee in bankruptcy in
accordance with the final, nonappealable
order of a court having competent juris-
diction, the Bond Registrar shall, at the
time it provides notice to the Series 1992
Bond Insurer, notify all Bondholders that in
the event that any Bondholder's payment is so
rendered, such Bondholder will be entitled to
payment from the Series 1992 Bond Insurer to
the extent*of such recovery, and the Bond
Registrar shall furnish to the Series 1992
Bond Insurer its records evidencing the
payments of principal of and interest on the
Series 1992 Bonds which have been made by the
Bond Registrar and subsequently recovered
from Bondholders, and the dates on which such
payments were made.
(3) The Series 1992 Bond Insurer shall,
to the extent it makes payment of principal
of or interest on the Series 1992 Bonds,
become subrogated to the rights of the
recipients of such payments in accordance
with the terms of the Series 1992 Bond
Insurance Policy and, to evidence such
subrogation, (A) in the case of subrogation
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as to claims for past due interest, the Bond
Registrar shall note the Series 1992 Bond Insurer's
rights as subrogee on the registration books upon
receipt from the Series 1992 Bond Insurer approved
for the payment of interest thereon to the
Bondholders of such Bonds, and (B) in the case of
subrogation as to claims for past due principal,
the Bond Registrar shall note the Series 1992 Bonds
Insurer's right as subrogee on the registration
books for the Series 1992 Bonds upon receipt of
proof of the payment of principal thereof to the
Bondholders of such Series 1992 Bonds.
Nothwithstanding anything in this Resolution or the
Series 1992 Bonds to the contrary, the Bond
Registrar shall make payment of such past due
interest and past due principal directly to the
Series 1992 Bond Insurer to the extent that the
Series 1992 Bond Insurer is a subrogee with respect
thereto.
K. Notice . All notices to the Series 1992 Bond Insurer
and the Fiscal Agent shall be as follows:
FINANCIAL GUARANTY INSURANCE COMPANY
175 Water Street
New York, New York 10038
Attention: General Counsel
CITIBANK, N.A.
20 Exchange Place - 16th Floor
New York, New York 10005
Attention: Municipal Trust and Agency Services
Administration
SECTION 2. This Resolution shall take effect
immediately upon its adoption. VC
PASSED, ADOPTED AND APPROVED this % day of , 1992.
ATTEST:
CARD A. EVANS
CITY CLERK
I HEREBY CERTIFY that I
have approved this RESOLUTION
as t.&form.
t'
TC ELL S. KRAFT j
CITY ATTORNEY 1,
4
. L. BENDER
MAYOR
RECORD OF COUNCIL VOTE
MAYOR BENDER
DISTRICT 1 : C/M KATZ
DISTRICT 2: V/M SCi-iUMANIy,_"�
DISTRICT 3: /M EiCHREIBER
DISTRICT 4: C/M ABRAMOWITZ