Loading...
Ord. 0726-01 10-12-98CITY OF PEARLAND ORDINANCE NO. 726-1 AN ORDINANCE AMENDING ORDINANCE No. 726 (AUTHORIZING ISSUANCE OF CITY OF PEARLAND, TEXAS, WATER AND SEWER SYSTEM REVENUE BONDS, SERIES 1996B); AND ENACTING OTHER PROVISIONS RELATING THERETO; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: that: ARTICLE I FINDINGS AND DETERMINATIONS Section 1.1. Findings and Determinations. It is hereby officially found and determined (a) Pursuant to Section 7.15 of Ordinance No. 726 Authorizing Issuance of City of Pearland, Texas, Water And Sewer System Revenue Bonds, Series 1996B ("Ordinance No. 726") and Paragraph B of Exhibit A thereto, the City is authorized to amend Ordinance No. 726 with the consent of (i) the Owners of a majority in aggregate principal amount of a the City's Water and Sewer System Revenue Bonds, Series 1996B (the "Series 1996B Bonds") and (ii) the Bond Insurer. (b) The Texas Water Development Board (the "TWDB") as the owner of 100% of the Series 1996B Bonds and Financial Security Assurance Inc. as the Bond Insurer have provided the City Council with their written consents to the amendment hereinafter authorized. (c) The City Council now deems it to be in the best interest of the City to amend Ordinance No. 726, which authorized the issuance of the Series 1996B Bonds and provided the terms thereof, as hereinafter provided. ARTICLE II DEFINITIONS AND INTERPRETATIONS Section 2.1. Definitions. Capitalized terms used herein and not otherwise defined shall have the meaning assigned to them in Ordinance No. 726. Section 2.2. Interpretations. All terms defined herein and all pronouns used in this Ordinance shall be deemed to apply equally to singular and plural and to all genders. The titles and headings of the articles and sections of this Ordinance have been inserted for convenience of ::ODMANCDOCS W OUSTOM577857\ I 1 reference only and are not to be considered a part hereof and shall not in any way modify or restrict any of the terms or provisions hereof. This Ordinance and all the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth herein. ARTICLE III AMENDMENT Section 3.1. Amendment. As authorized by Section 7.15 of Ordinance No. 726 and Paragraph B of Exhibit A thereto, Ordinance No. 726 shall be amended to read as follows: (a) Section 2.1 of Ordinance No. 726 shall be amended by inserting the following definition to follow the definition of "Subordinate Lien Obligations" shall mean and include a bond insurance policy(with the City's payment Surety Policy' Y p Ym obligation thereunder being limited to the insurer's right of subrogation), provided that the issuer of any Surety Policy shall be rated in the highest rating category at the time of issuance of such Surety Policy by A.M. Best Company, Standard & Poor's Ratings Group, or Moody's Investors Service. A Surety Policy shall insure all Bonds and Additional Bonds on a pro rata basis. Although not permitted by law in effect at the time of issuance of the Series 1996B Bonds, a Surety Policy may include a letter of credit or other agreement or instrument, including any related reimbursement or financial guaranty agreement, whereby the issuer is obligated to provide funds up to and including the maximum amount and under the conditions specified in such agreement or instrument, to the extent that changes in the law subsequent to the issuance of the Series 1996B Bonds permit the use of such an agreement or instrument as a Surety Policy and the City obtains an opinion of nationally recognized bond counsel to such effect." (b) Section 5.6 of Ordinance No. 726 shall be amended by inserting the following two paragraphs at the end of such section: "The requirements of the immediately preceding paragraph of this Section notwithstanding, the City may provide a Surety Policy or Policies issued in amounts equal to all or part of the Average Annual Principal and Interest Requirements on the Bonds in lieu of depositing cash into the Reserve Fund; provided, however, that no such Surety Policy may be so substituted unless (i) the ordinance authorizing the substitution of the Surety Policy for all or part of the Average Annual Principal and Interest Requirements on the Bonds contains a finding that such substitution is cost effective and (ii) the City obtains an opinion of nationally recognized bond counsel that such substitution is permitted by applicable Texas law then in effect. In the event a Surety Policy issued to satisfy all or a part of the City's obligation with respect to the Reserve Fund causes the amount then on deposit in the Reserve Fund to exceed the Average Annual Principal and Interest Requirements on all Bonds, the City may transfer such excess amount to any fund or funds established for the payment of or security for Bonds or any Subordinate Lien Obligations (including any escrow established for the final payment of any such obligations pursuant to Article 717k, Vernon's Texas Civil Statutes)." ::ODMAPCDOCS\HOUSTOM57785TI 2 ARTICLE IV MISCELLANEOUS Section 4.1. Notice to Rating Agencies. As required by Exhibit A to Ordinance No. 726, the delivery of a copy of this Ordinance in substantially final form to Standard & Poor's Ratings Service and Moody's Investors Service at least 10 days prior to the effective date hereof is hereby authorized, ratified and confirmed. Section 4.2. Further Proceedings and Related Matters. The Mayor, the City Secretary and other appropriate officers and agents of the City are hereby authorized and directed to do any and all things necessary and/or convenient and to take all other actions that are reasonably necessary to carry out the terms of this Ordinance, including executing by manual or facsimile signature and delivering on behalf of the City all certificates, consents, receipts, requests, notices, investment agreements and other documents as may be reasonably necessary to satisfy the City's obligations under this Ordinance. The Mayor may authorize such ministerial changes in the written text of this Ordinance as are necessary to consummate the amendment authorized hereby and as he determines are consistent with the intent and purposes of this Ordinance, which determination shall be final. Section 4.3. Severability. If any Section, paragraph, clause or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such Section, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance. Section 4.4. Open Meeting. It is hereby found, determined and declared that a sufficient written notice of the date, hour, place and subject of the meeting of the City Council at which this Ordinance was adopted was posted at a place convenient and readily accessible at all times to the general public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended, and that this meeting has been open to the public as required by law at all times during which this Ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 4.5. Declaration of Emergency. It is hereby officially found and determined that a case of emergency affecting life, health, property and the public peace exists which requires the holding of the meeting at which this Ordinance is passed and further requires that this Ordinance be passed finally and take effect immediately on the date of its introduction, such emergency and urgent public necessity being that the amendment authorized hereby is required as soon as possible and without delay for the purposes set forth herein. ::ODMAIPCDOCS W OUSTON157785Y11 3 Section 4.6. Repealer. All ordinances, or parts thereof inconsistent herewith, are hereby repealed to the extent of such inconsistency. PASSED AND APPROVED THIS j d. day of Dcc+o b" , 1998. ATTEST: exas ::ODMAIPCDOCS\HOUSTON\5778571I 4 Mayor, City of Pearland, Texas