10/22/01 Board of Public Works Minutes

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REGULAR MEETING OCTOBER 22, 2001 AUTHORIZING OTHER ACTIONS IN RESPECT THERETO WHEREAS, the City of South Bend, Indiana (the "City") has determined that it is advisable to issue current refunding bonds as authorized by Ordinance No. 9270-01, passed by the Common Council of the City (the "Common Council") on September 24, 2001 (the "Bond Ordinance") and designated as the "City of South Bend, Indiana Sewage Works Refunding Revenue Bonds of 2001" in an original amount not to exceed Six Million Three Hundred Thousand Dollars ($6,300,000) (the "2001 Bonds"); and WHEREAS, Section 24 of the Bond Ordinance provides that in connection with the sale of the 2001 Bonds the City may obtain bond insurance to secure the 2001 Bonds, with the premium for such bond insurance to be payable from the proceeds of the 2001 Bonds; and WHEREAS, the Board of Public Works of the City (the "Board") has determined, based upon information furnished to the City by its financial advisor, that it is advisable to obtain a financial guaranty bond insurance policy to secure the 2001 Bonds (the "Bond Insurance Policy"), and to select MBIA Insurance Corporation ("MBIA") to issue the Bond Insurance Policy; and WHEREAS, the Commitment of MBIA to issue the Bond Insurance Policy requires the City to comply with certain MBIA procedures and approvals (the "Policy Terms"), and such provisions include the matters which are contained in a proposed resolution (the "Resolution") to be considered by the Common Council; and WHEREAS, the Board desires to recommend to the Common Council that it adopt the Resolution to insure that the City is in compliance with MBIA's Policy Terms for so long as the 2001 Bonds are secured by the Bond Insurance Policy; and WHEREAS, the Board has reviewed the proposed form of the Resolution, a copy of which is attached hereto as Exhibit A, and the Board has found such resolution to be satisfactory: NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF PUBLIC WORKS OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: Section 1. The Board hereby approves (i) the City obtaining a financial guaranty bond insurance policy to secure the 2001 Bonds (the "Bond Insurance Policy"), and (ii) the selection of MBIA Insurance Corporation ("MBIA") to issue the Bond Insurance Policy. Section 2. The Board hereby approves the substantially final form of the Resolution presented to this meeting and recommends to the Common Council the adoption of such Resolution to insure that the City is in compliance with MBIA's Policy Terms for so long as the 2001 Bonds are secured by the Bond Insurance Policy. Section 3. The Board hereby ratifies the actions taken to file the Resolution with the Clerk of the City ("City Clerk") for presentation to the Common Council, and the Clerk of the Board is hereby directed to present a copy of this Resolution to the City Clerk for presentation to the Common Council for its consideration, as soon as may be done, thereby requesting the adoption of the Resolution. Section 4. This Resolution shall be in full force and effect from and after its adoption by the Board. Adopted at a meeting of the Board of Public Works of the City of South Bend, Indiana, on this 18TH day of October, 2001.