HomeMy WebLinkAboutResolution 643 Revenue Bonds
RESOLUTION NO. 643
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF WINTER
SPRINGS, FLORIDA, AMENDING RESOLUTION NO. 638 OF THE CITY
ENTITLED: "A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF WINTER SPRINGS, FLORIDA, AUTHORIZING THE ISSUANCE
OF NOT EXCEEDING $12,300,000 WATER AND SEWER REVENUE
BONDS SERIES 1990 OF THE CITY TO BE APPLIED TO ACQUIRE
THE EXISTING WATER AND SEWER ASSETS OF SEMINOLE UTILITIES
COMPANY; PROVIDING FOR THE PAYMENT OF THE SERIES 1990
BONDS FROM THE NET REVENUES OF SUCH SYSTEM; MAKING OTHER
COVENANTS AND AGREEMENTS IN CONNECTION THEREWITH; AND
PROVIDING AN EFFECTIVE DATE", BY CLARIFYING THE FUNDING
OF THE RESERVE FUND IN REGARD TO ANY ADDITIONAL PARITY
OBLIGATIONS; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Winter Springs, Florida (the "Issuer" or
the "City"), has by Resolution No. 638 adopted on April 23, 1990,
(the "Resolution"), authorized the issuance of its not exceeding
$12,300,000 City of Winter Springs, Florida, Water and Sewer
Revenue Bonds, (the "Series 1990 Bonds") for the purpose of
financing the acquisition of the existing water and sewer assets
of Seminole Utilities Company; and
WHEREAS, the Issuer has received a request from Municipal Bond
Investors Assurance Corporation as the insurer of the payment of
debt service of the Series 1990 Bonds to clarify Section 17B of
the Resolution as it relates to the funding of the Reserve Fund in
regard to any Additional Parity Obligations; and
WHEREAS, all capitalized undefined terms used herein shall
have the meanings set forth in the Resolution;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF WINTER SPRINGS, FLORIDA:
SECTION I.
Section l7B of the Resolution is hereby amended
to read as follows:
B. On the date of issuance of the Series 1990
Bonds the Issuer shall deposit to the Reserve Fund a
Qualified Surety Bond in an amount equal to the Reserve
Requirement on the Series 1990 Bonds. Unless provided
for through the purchase of a guaranty or municipal bond
insurance issued by a reputable and recognized municipal
bond insurer, an irrevocable letter of credit rated in
one of the two highest categories by a nationally
recognized rating agency, a Qualified Surety Bond or any
combination thereof, their shall be deposited to the
Reserve Fund, prior to the issuance of any other Series
of Bonds, or the account created therein for the benefit
of such Series of Bonds, an amount equal to the Reserve
Requirement on such Series of Bonds, which amount shall
be used only for the purposes provided in Section
20(B)(2) of this Resolution.
SECTION 2.
EFFECTIVE DATE. The provisions of this Resolu-
tion shall take effect immediately upon its passage.
PASSED AND ADOPTED BY THE CITY COMMISSION OF THE CITY OF
WINTER SPRINGS, FLORIDA this 11th day of June, 1990.
Leanne M. Grove
Mayor
(SEAL)
ATTEST:
Clerk
Approved as to form and Legal
Sufficiency
City Attorney
2
PARKER · JOHNSON · OWEN · MLuJIRE
MICHAUD · rANG · KRUPPENBACHER, EA.
Attorneys at Law
Michael D. Williams
MEMBER OF FIRM
May 16, 1990
Mr. Richard Rozansky
Cit.y Manager
City of Winter Springs
1126 East S.R. 434
Winter Springs, Florida 32708
Dear Dick:
I have confirmed with Municipal Bond Investors Assurance
Corporation ("MBIA"), as the Insurer of the Water and Sewer Revenue
Bonds, Series 1990 that the enclosed Resolution takes care of the
concern they raised at the pre-closing, concerning the funding of
the Reserve Fund should the City decide to issue any additional
parity obligations under the resolution authorizing the Series 1990
Bonds. It is my understanding that this Resolution will be on the
City Commission Agenda of June 11. While I was on the phone with
the representative of the Bond Insurer, he asked that I remind you
that at the time the City adopts the rate increases for the System
securing the Series 1990 Bonds, he would appreciate being provided
a copy of that rate ordinance at the address for MBIA indicated in
Resolution No. 638 of the City. Should you have any questions
concerning the enclosed, please do not hesitate to call.
Very truly yours,
Michael D. Williams
MDW/jka
Enclosures