HomeMy WebLinkAbout2011-3383 - Ordinance - 11/21/2011
ORDINANCE NO. ZDI -338
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COLLEGE STATION,
TEXAS, AUTHORIZING THE DEFEASANCE OF A PORTION OF CITY OF COLLEGE
STATION, TEXAS CERTIFICATES OF OBLIGATION, SERIES 2009; APPROVING AN
ESCROW AGREEMENT; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of College Station, Texas (the "City") has previously issued its
"City of College Station, Texas Certificates of Obligation, Series 2009", in the original aggregate
principal amount of $31,315,000 (the "Certificates of Obligation"); and
WHEREAS, a portion of the proceeds of the Certificates of Obligation in the amount of
$2,600,000 was expended to acquire approximately 7.1469 acres of land located at 701
University Drive East (the "Project") to be used as a site for a convention center; and
WHEREAS, the City Council has determined that it no longer intends to construct a
convention center on the site of the Project; and
WHEREAS, the City Council hereby approves the defeasance of certain maturities, or
portions thereof, of the Certificates of Obligation that are attributable to the Project, as described
in Exhibit A attached hereto and incorporated by reference herein (the "Defeased Certificates");
and
WHEREAS, Chapter 1207, Texas Government Code, as amended ("Chapter 1207")
authorizes the City to enter into an escrow agreement with the paying agent for the Defeased
Certificates with respect to the safekeeping, investment, reinvestment, administration, and
disposition of lawfully available revenues of the City for the purpose of acquiring defeasance
securities and irrevocably depositing same in trust with the appropriate escrow agent to mature as
to principal and interest in such amounts and at such times as will insure the availability, without
reinvestment, of sufficient money, together with any money deposited therewith, to pay when due
the principal of, premium, if any, or interest on the Defeased Certificates; and
WHEREAS, The Bank of New York Mellon Trust Company, N.A., Dallas, Texas is the
paying agent/registrar for the Certificates of Obligation, and the Escrow Agreement authorized
herein, in which The Bank of New York Mellon Trust Company, N.A., Dallas, Texas is
designated as the Escrow Agent, constitutes an escrow agreement of the kind authorized and
permitted by Chapter 1207; and
WHEREAS, the City hereby finds that it is in its best interests to deposit lawfully
available funds of the City with the Escrow Agent in order to effect firm banking arrangements
for the payment of principal and interest to the maturity dates and redemption dates of the
Defeased Certificates; and
WHEREAS, the Certificates of Obligation provide that the City may exercise the right to
call outstanding Certificates of Obligation maturing on and after February 15, 2020, for
redemption, in whole or in part, on February 15, 2019, or on any date thereafter, at a redemption
price of par plus accrued interest on the principal amounts called for redemption to the date fixed
for redemption.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
COLLEGE STATION, TEXAS:
Section 1. The City hereby establishes the Escrow Fund to be held by the Escrow Agent
pursuant to the Escrow Agreement.
Section 2. Funds in the amount of $2,699,817.62 are hereby determined by the City to
be available for the purposes described herein and necessary for the purchase of securities to be
deposited to the Escrow Fund and used for payment of the principal of and interest on the
Defeased Certificates, and such funds shall be deposited to the Escrow Fund created under the
Escrow Agreement.
Section 3. The City hereby calls for redemption on February 15, 2019, the Defeased
Certificates maturing on February 15 in each of the years 2020 through 2029, inclusive, at the
price of par plus accrued interest to the date of redemption, in accordance with the terms and
conditions of the ordinance authorizing the issuance of the Certificates of Obligation.
Section 4. The Mayor of the City is hereby authorized and directed to execute and
deliver, and the City Secretary is authorized to attest, the Escrow Agreement (the "Escrow
Agreement") with The Bank of New York Mellon Trust Company, N.A., Dallas, Texas (the
"Escrow Agent"), in substantially the form presented at this meeting. The City Manager and
Executive Director of Business Services of the City are hereby authorized and directed to make
the necessary arrangements for the purchase of the Escrowed Securities described in the Escrow
Agreement and the delivery thereof to the Escrow Agent on or before December 1, 2011, for
deposit to the credit of the Escrow Fund, including the execution of any subscription forms for
the purchase and issuance of the "United States Treasury Securities - State and Local
Government Series" for deposit to the Escrow Fund, all as provided by the Escrow Agreement,
and to take appropriate measures to provide notice of redemption to the paying agent/registrar for
the Defeased Certificates and the holders of the Defeased Certificates so called for redemption.
Section 5. The Bank of New York Mellon Trust Company, N.A., as the paying
agent/registrar for the Defeased Certificates, is hereby directed to provide the appropriate notices
of redemption and defeasance as specified by the ordinance authorizing the issuance of the
Certificates of Obligations and is hereby directed to make appropriate arrangements so that the
Defeased Certificates may be defeased and redeemed on the dates described in the Escrow
Agreement.
Section 6. This Ordinance shall be effective immediately from and after its passage.
PASSED AND APPROVED this 21 st day of November, 2011.
ovi ct,
Nancy Berry, ayor
ATTEST:
Sherry Mashb , City Secretary (City Seal)
APPROVED:
c 11 P st orton L. .P.,
B ounsel
EXHIBIT A
DESCRIPTION OF DEFEASED CERTIFICATES
City of College Station, Texas Certificates of Obligation, Series 2009
Original Principal Principal
Amount Amount Beine Redemption
Maturi Outstanding Defeased Date
2/15/2012 $1,265,000 $105,000 defeased to maturity
2/15/2013 $1,325,000 $110,000 defeased to maturity
2/15/2014 $1,390,000 $115,000 defeased to maturity
2/15/2015 $1,470,000 $120,000 defeased to maturity
2/15/2016 $1,545,000 $125,000 defeased to maturity
2/15/2017 $1,145,000 $95,000 defeased to maturity
2/15/2018 $1,210,000 $105,000 defeased to maturity
2/15/2019 $1,270,000 $105,000 defeased to maturity
2/15/2020 $1,330,000 $110,000 2/15/2019
2/15/2021 $1,405,000 $120,000 2/15/2019
2/15/2022 $1,470,000 $125,000 2/15/2019
2/15/2023 $1,545,000 $130,000 2/15/2019
2/15/2024 $1,625,000 $140,000 2/15/2019
2/15/2025 $1,715,000 $145,000 2/15/2019
2/15/2026 $1,795,000 $150,000 2/15/2019
2/15/2027 $1,890,000 $160,000 2/15/2019
2/15/2028 $1,985,000 $170,000 2/15/2019
2/15/2029 $2,090,000 $175,000 2/15/2019
Total $2,305,000.00