Item #07 Approval of the Second Supplement to Master Water and Sewer Bond Resolution 2016-017 t I
ocoee
floritla
AGENDA ITEM COVER SHEET
Meeting Date: December 6, 2016
Item # 7
Reviewed By:
Contact Name: Robert Briggs Department Director: Wa,%: y • VI %!Jf
Contact Number: X1518 City Manager: Robert F .ef//
Subject: Second Supplement to Master Water and Sewer Bond Resolution 2016-017
Background Summary:
The City Commission adopted the Master Water and Sewer System Bond Resolution 2016-017 on November
1, 2016. As the final documents for the 2016 Water and Sewer Refunding and Revenue Bonds issue reach
completion, a request for clarification related to future defeasance was made. At the recommendation of
counsel, the attached amendment is before the Commission for approval.
The revision is a supplement to Section 6.03(B), clarifying that in the unlikely event of a defeasance undertaken
with municipal bonds, that the securities for the underlying escrow will be secured with cash or non-callable
obligations of the United States of America and unconditionally guaranteed as to the timely payment of principal
and interest by the United States of America. The supplement further requires verification agent review and
reporting as to "defeased municipal bonds." The City Manager, Finance Director, Financial Advisor and Bond
Counsel understand that making this change which supplements the verification provisions for water and sewer
bonds has no detrimental effect and has no additional cost for the City
Issue:
Approval of second supplement to Resolution 2016-017.
Recommendations
Staff recommends approval of the second supplement to Resolution 2016-017.
Attachments:
Resolution 2016-
Financial Impact:
Approving this supplement to Resolution 2016-017 will have no financial impact.
Type of Item: (please mark with an 51
Public Hearing For Clerk's Dept Use:
Ordinance First Reading X Consent Agenda
Ordinance Second Reading Public Hearing
Resolution Regular Agenda
X Commission Approval
Discussion 8 Direction
Original Document/Contract Attached for Execution by City Clerk
Original Document/Contract Held by Department for Execution
Reviewed by City Attorney N/A
Reviewed by Finance Dept. N/A
Reviewed by 0 N/A
2
RESOLUTION NO. 2016-
A RESOLUTION OF THE CITY COMMISSIONERS OF THE CITY
OF OCOEE, FLORIDA SUPPLEMENTING RESOLUTION NO.
2016-017 PROVIDING FOR DIRECTION TO A VERIFICATION
AGENT REGARDING ANY VERIFICATION REPORT
REQUIRED BY SECTION 6.03 THEREOF; MAKING CERTAIN
COVENANTS AND AGREEMENTS IN CONNECTION
THEREWITH;AND PROVIDING FOR AN EFFECTIVE DATE.
BE IT RESOLVED BY THE COMMISSION OF THE CITY OF OCOEE, FLORIDA THAT:
SECTION 1. Authority for this Resolution. This resolution is adopted pursuant to the
provisions of the Constitution of the State of Florida, the Charter of the City, Chapter 166, Part
II, Florida Statutes, and other applicable provisions of law (collectively, the "Act") and Section
6.01(A) of Resolution No. 2016-017 adopted by the City on even date herewith (the
"Resolution').
SECTION 2. Definitions. All capitalized undefined terms shall have the meaning
ascribed thereto in the Resolution.
SECTION 3. Supplement to Section 6.03(6) of the Resolution. Section 6.03(B) of the
Resolution is hereby further clarified and supplemented with the addition of the following
provision as the last two sentences of subsection (B) thereof:
The verification report required pursuant to the provisions above, shall
also specify whether the Acquired Obligations used to fund the escrow include
"defeased municipal bonds" as permitted by such definition. If the verification
agent determines that such "defeased municipal bonds" have been utilized to
fund the escrow, then (i) the verification report shall further document and
ascertain that the specific defeased municipal bonds were defeased with an
escrow which is secured by either cash or direct non-callable obligations of the
United States of America and unconditionally guaranteed as to the timely
payment of principal and interest by the United States of America, and (ii) the
verification agent shall obtain and review a copy of the verification report related
to the escrow securing the "defeased municipal bonds."
SECTION 4. Prior Resolutions. All prior resolutions of the City inconsistent with the
provisions of this resolution is hereby supplemented to conform with the provisions herein
contained and in the Resolution and this resolution and the Resolution shall remain in full force
and effect.
SECTION 5. Severability and Invalid Provisions. If any one or more of the covenants,
agreements or provisions herein contained shall be held contrary to any express provision of
law or contrary to the policy of express law, but not expressly prohibited or against public
policy, or shall for any reason whatsoever be held invalid, then such covenants, agreements or
provisions shall be null and void and shall be deemed separable from the remaining covenants,
agreements or provisions and shall in no way affect the validity of the other provisions hereof
or of the Series 2016 Bonds.
SECTION 6. Resolution to Continue in Force. The Resolution and all the terms and
provisions thereof, are and shall remain in full force and effect.
SECTION 7. Effective Date. This resolution shall take effect immediately upon its
adoption and authentication as provided by law.
Passed and Adopted this 6th day of December, 2016, at a regular meeting duly called and
held.
CITY OF OCOEE, FLORIDA
Rusty Johnson,Mayor
ATTEST:
Melanie Sibbitt, City Clerk
APPROVED AS TO FORM&
LEGAL SUFFICIENCY:
City Attorney
\users\mslbbitt\appdala\local\mlcrosoll\windows\temporary snternet files\comentomlook\xzmzfgll\supplemental resolution(011443374).doc
2