CIC Resolution 08-152COMMUNITY IMPROVEMENT COMMISSION RESOLUTION NO.08 -152
AUTHORIZING THE SUBSTITUTION OF A SURETY BOND FOR THE CASH
FUNDED RESERVE ACCOUNT RELATING TO THE COMMISSION'S $17,510,000
COMMUNITY IMPROVEMENT COMMISSION OF THE CITY OF ALAMEDA TAX
ALLOCATION REFUNDING BONDS (BUSINESS AND WATERFRONT
IMPROVEMENT AREA) SERIES 2003C, AND THE COMMISSION'S $1,025,000
COMMUNITY IMPROVEMENT COMMISSION OF THE CITY OF ALAMEDA TAXABLE
TAX ALLOCATION REFUNDING BONDS (BUSINESS AND WATERFRONT
IMPROVEMENT AREA), SERIES 2003D, APPROVING THE FORM AND
AUTHORIZING AND DIRECTING EXECUTION OF A GUARANTY AGREEMENT
RELATING TO SUCH SURETY BOND AND AUTHORIZING AND DIRECTING
CERTAIN ACTIONS WITH RESPECT THERETO
WHEREAS, the Commission has previously issued its $17,510,000 Community
Improvement Commission of the City of Alameda Tax Allocation Refunding Bonds
(Business and Waterfront Improvement Area), Series 2003C, and its $1,025,000
Community Improvement Commission of the City of Alameda Taxable Tax Allocation
Refunding Bonds (Business and Waterfront Improvement Area), Series 2300D
(collectively, the "Bonds "), pursuant to that certain Indenture of Trust, dated as of
October 1, 2003 (the "Indenture "), by and between the Commission and Union Bank of
California, N.A., as trustee (the "Trustee "); and
WHEREAS, at the time of execution and delivery of the Bonds, the Commission
applied a portion of the proceeds thereof to cash fund a reserve account (the "Reserve
Account ") in an amount equal to maximum annual debt service with respect to the
Bonds (the "Reserve Requirement "); and
WHEREAS, to secure payment of principal of interest on the Bonds, Ambac
Assurance Corporation (the "Municipal Bond Insurer ") issued its municipal bond
insurance policy; and
WHEREAS, the Indenture provides that, at any time, moneys on deposit in the
Reserve Account may, with the prior written consent of the Municipal Bond Insurer, be
substituted by the Commission with a "Qualified Reserve Account Credit Instrument"
being an irrevocable standby or direct -pay letter of credit or surety bond issued by a
commercial bank or insurance company and deposited with the Trustee pursuant to the
Indenture provided that all of the following requirements are met: (a) the Tong -term credit
rating or claims paying ability of such bank or insurance company is in one of the two
highest rating categories by S &P and Moody's; (b) such letter of credit or surety bond
has a term of at least twelve (12) months; (c) such letter of credit or surety bond has a
stated amount at least equal to the portion of the Reserve Requirement with respect to
which funds are proposed to be released pursuant to the Indenture; and (d) the Trustee
is authorized pursuant to the terms of such letter of credit or surety bond to draw
thereunder an amount equal to any deficiencies which may exist from time to time in the
Interest Account, the Principal Account or the Sinking Account (as such terms are
defined in the Indenture) for the purpose of making payments required pursuant to
Indenture; and
WHEREAS, the Commission has made application to the Municipal Bond Insurer
to issue a surety bond in substitution of moneys on deposit in the Reserve Account and
the Municipal Bond Insurer has issued a commitment to issue its surety bond (the
"Surety Bond ") in the full amount of the Reserve Requirement; and
WHEREAS, the Surety Bond is a Qualified Reserve Account Credit Instrument.
NOW, THEREFORE, BE IT RESOLVED as follows:
Section 1. Approval of Surety Bond. The Board hereby approves the
substitution of the Surety Bond for the moneys on deposit in the Reserve Account.
Such moneys, when released to the Commission following the issuance of the Surety
Bond, will be segregated by the Commission and applied solely to the funding of capital
projects or applied to the payment of interest with respect to the Bonds.
Section 2. Approval of Guaranty Agreement. A guaranty agreement, by and
between the Commission and the Municipal Bond Insurer, relating to the Surety Bond,
substantially in the form on file with the Secretary, be and is hereby approved, and the
Executive Director, or any assignee thereof, is hereby authorized and directed to
execute said document, with such changes, insertions and omissions as may be
approved by such official, and the Secretary is hereby authorized and directed to attest
to such official's signature.
Section 3. Additional Authorization. The executive Director, the Secretary and
all other appropriate officials of the Commission are hereby authorized and directed to
execute such other agreements, documents and certificates as may be necessary to
effect the purposes of this resolution and the transactions contemplated thereby.
Section 4. Effective Date. This Resolution shall take effect upon its adoption by
the Board.
I, the undersigned, hereby certify that the foregoing Resolution was duly and
regularly adopted and passed by the Community Improvement Commission of the City of
Alameda in a Special Meeting of the Community Improvement Commission on the 15th day
of January 2008, by the following vote to wit:
AYES: Commissioners deHaan, Gilmore, Matarrese, Tam
and Chair Johnson - 5.
NOES: None,
ABSENT: None.
ABSTENTIONS: None.
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the official seal of said
Commission this 16th day of January, 2008.
Lara Weisiger, Secreta
Community Improveme 'mmission
Beverly Johnson,
Community lmpr�ve ietimission