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HomeMy WebLinkAboutRes1993-062 . . . Sponsored by: Tones CITY OF SEWARD, ALASKA RESOLUTION NO. 93-062 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING AN AMENDMENT OF THE TERMS OF THE GENERAL OBLIGATION BONDS, 1984 SERIES A, AUTHORIZED BY RESOLUTION NO. 84-105, AS AMENDED; AUTHORIZING THE EXECUTION OF AN AMENDMENT TO LOAN AGREEMENT BETWEEN THE CITY OF SEWARD AND THE ALASKA MUNICIPAL BOND BANK AND PROVIDING FOR RELATED MATfERS WHEREAS, the city of Seward ("the City"), by Resolution No. 84-105, as amended (the "Bond Resolution"), authorized the issuance of $5,000,000 of General Obligation Bonds of the City (the "Original Bonds"); and WHEREAS, Resolution No. 84-108 of the City authorized the sale of the Bonds to the Alaska Municipal Bond Bank (the "Bank") under the terms of a Loan Agreement dated as of October 1, 1984 (the "Loan Agreement"), between the Bank and the City, and the Bank purchased the Bonds with the proceeds of its General Obligation Bonds, 1984 Series A (the "Original Bank Bonds"); and WHEREAS, Resolution No. 86-69 of the City authorized the issuance and sale of its $6,110,472 General Obligation Refunding Bonds, 1986 Series (the "Bonds") to refund the Original Bonds under the terms of the Loan Agreement amended by an Amendment to Loan Agreement dated August 1, 1986, between the Bank and the City, and the Bank purchased the Bonds with the proceeds of its General Obligation Refunding Bonds, 1986 Series A (the "Bank Bonds"); and WHEREAS, the Bank has determined that a refunding of a portion of the Bank Bonds will reduce the combined principal and interest payments thereon and on the Bonds; and WHEREAS, after due consideration it appears to the City Council that it is advisable for the City to provide for the amendment of the terms of the Bonds and the Loan Agreement to conform to the terms of the refunding bonds to be issued by the Bank, in order to effect a savings of debt service on the Bonds; and WHEREAS, because the principal amounts and interest rates of the amended Bonds will not be known until the Bank sells its bonds to refund the Bank Bonds, the exact principal amounts of and interest rates on the Bonds as amended shall hereafter be fixed by the Mayor or City Manager subject to the provisions of this resolution; and . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 93-062 WHEREAS, the City Council finds that the anticipated date of the week of May 17,1993, for the pricing and sale of the Bonds creates an emergency situation necessitat- ing the introduction and adoption of this Resolution at the City Council's regular meeting of May 10, 1993j NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The Mayor and City Manager each hereby is authorized to approve amendments to the bonds maturing on and after October 1, 1997, to conform the principal amounts of and interest rates on such Bonds to the principal amounts of and interest rates on the corresponding bonds of the Bank issued to refund the Bank Bonds, provided that (i) the true interest cost expressed as a percentage payable on the outstanding principal of the Bonds as amended shall not exceed 5.5% per annum, and (ii) the debt service savings to be realized through the amendment of the Bonds will equal at least 2.0% of the principal amount of the amended maturities of the Bonds, net of all issuance costs and underwriting discount, on a present value basis. Section 2. If any of the Bonds maturing on or prior to October 1, 2003, are amended pursuant to Section 1, such maturities of the Bonds shall not be subject to optional redemption by the City prior to their maturity. If the Bonds maturing on October 1, 2004, are amended pursuant to Section 1, such Bonds shall be subject to redemption to the City at the times, and on the terms, fixed by the Mayor and City Manager pursuant to Section 1. Section 3. The Mayor, City Manager and Clerk each hereby is authorized to execute Bonds amended pursuant to this resolution and deliver such amended Bonds to the Bank in exchange for the original Bonds. In case any officer whose signature shall appear on any amended Bond shall cease to be such officer before the delivery of such Bond, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. Section 4. The Mayor, City Manager and Clerk each hereby is authorized to execute an Amendment to Loan Agreement in substantially the form submitted to and part of the records of this meeting, incorporating the amended terms of the Municipal Bonds as authorized by Sections 1 and 2. Section 5. The Mayor, City Manager, Finance Director and Clerk each hereby is authorized and directed to do and perform all things and determine all matters not determined by this resolution, to the end that the City may carry out its obligations under the Bonds, the Loan Agreement and this resolution. Section 6. This resolution shall take effect immediately upon its adoption. . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 93-062 PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 10th day of May, 1993. AYES: NOES: ABSENT: ABSTAIN: A TrEST: THE CITY OF SEWARD, ALASKA ~~ ~. C~ Dave W. Crane, Mayor Bencardino, Crane, Darling, Krasnansky, Sieminski, Swartz, White None None None APPROVED AS TO FORM: Wohlforth, Argetsinger, Johnson & Brecht, Attorneys for the city of Seward, Alaska ~~~ City Attorney (City Seal)