HomeMy WebLinkAboutResolution - 2336 STATE OF CALIFORNIA ) RESOLUTION NO. 2336
COUNTY OF RIVERSIDE)ss
CITY OF SAN JACINTO )
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SAN JACINTO, CALIFORNIA AUTHORIZING
PROCEEDINGS AND AGREEMENTS RELATING TO
THE REFINANCING OF WATER SYSTEM
IMPROVEMENTS, APPROVING ISSUANCE AND SALE
OF REFUNDING BONDS BY THE SAN JACINTO
FINANCING AUTHORITY, APPROVING AN OFFICIAL
STATEMENT AND AUTHORIZING OFFICIAL ACTIONS
WHEREAS, the San Jacinto Financing Authority (the "Authority") has
been formed pursuant to a Joint Exercise of Powers Agreement by and among the City
of San Jacinto (the "City") and the San Jacinto Redevelopment Agency (the "Agency"),
and is authorized under said Agreement and under the laws of the State of California to
finance the acquisition and construction of public capital improvements for any of its
members; and
WHEREAS, the City has financed certain improvements to the water
system of the City (the "Project"); and
WHEREAS, the City has previously issued its 1993 Certificates of
Participation (Water Improvement Project) (the "1993 Certificates") which are payable
from revenues pursuant to an Installment Purchase Agreement, dated as of April 1,
1993 (the 1993 Installment Purchase Agreement"), and
WHEREAS, the Authority has also issued its $4,500,000 original principal
amount Revenue Bonds, Series 1997 (Water Improvement Project) (the "1997 Bonds")
the payable from the revenues to be derived by the Authority from the City pursuant to a
supplemental installment purchase agreement, dated as of July 1, 1997 relating to the
Project (the "1997 Installment Purchase Agreement'), such payment of revenues being
on a parity with the obligation of the City to make installment payments under the 1993
Installment Purchase Agreement; and
WHEREAS, the City proposes to prepay the 1993 Certificates in order to
achieve an interest cost savings and prepay an existing lease agreement dated June 2,
1997, with Municipal Leasing Associates, Inc. assigned to Heller Financial, Inc, (the
"1997 Lease"), and
WHEREAS, the Authority proposes to issue its revenue bonds in the
amount of not to exceed $2,900,000 (the "Bonds") for the purpose of prepaying the
1993 certificates and the 1997 Lease under the provisions of Article 4 (commencing
with Section 6584) of Chapter 5 of Division 7 of Title 1 of the California Government
Code (the "Act") which Bonds shall be payable from revenues derived by the Authority
from the City pursuant to an Amended and Restated Installment Purchase Agreement
relating to the Project (the "Installment Purchase Agreement"), such payment of
revenues to be on a parity with the obligation of the City to make payments under the
�— 1997 Installment Purchase Agreement; and
WHEREAS, the firm of Westhoff, Cone & Holmstedt (the
"Underwriter") has proposed to purchase and underwrite the Bonds and has
presented to the Authority a form of Purchase Agreement for the Bonds, to be
entered into among the Authority, the City and the Underwriter (the "Purchase
Agreement") and has presented the Authority with a proposed form of an Official
Statement describing the Bonds, to be used in connection with the marketing
thereof by the Underwriter; and
WHEREAS, the City Council wishes at this time to give its final
approval to the transactions described herein and the final form of the agreements
and documents relating thereto;
THEREFORE, IT IS RESOLVED that the City Council of the City of
San Jacinto adopts the following:
Section 1. Findings with Respect to Use of Proceeds and Pledge of
Revenues. The City Council finds and determines that it is in the prudent
management of fiscal affairs of the City to use the proceeds of the Bonds to
prepay the 1993 Certificates and the 1997 Lease for the benefit of the Water
System.
Section 2. Approval of Bonds. The City Council hereby approves of
the issuance of the Bonds by the Authority under and pursuant to the Act provided
that the maximum aggregate principal amount of the Bonds shall not exceed
$2,900.000. Pursuant to the Act, the City Council hereby finds and determines
that the issuance of the Bonds through negotiated sale will result in savings in
effective interest rates, bond underwriting costs and bond issuance costs and
thereby result in significant public benefits to its members within the contemplation
of Section 6586 of the Act.
Section 3. Approval of Financing Documents. The City Council
hereby approves each of the following documents in substantially the respective
forms on file with the City Clerk, together with such additions thereto and changes
therein as the Bond Counsel shall deem necessary, desirable or appropriate, the
execution of which by the Mayor or the City Manager shall be conclusive evidence
of the approval of any such additions and changes.
(a) The Amended and Restated Installment Purchase Agreement,
dated as March 1, 2002, relating to the installment purchase of the Project by the
City from the Authority; and
(b) The Purchase Contract, by and among the City, the Authority
�- and the Underwriter providing for the sale of the Bonds; and
The Mayor or the City Manager are hereby authorized and directed
to execute, and the City Clerk is hereby authorized and directed to attest and affix
the seal of the City to, the final forms of each of the above-mentioned documents
for and in the name and on behalf of the City. The City Council hereby authorizes
the delivery and performance of the Amended and Restated Installment Purchase
Agreement.
Section 4. Sale of Bonds. The City Council hereby approves the
sale of the Bonds by the Authority by negotiation with the Underwriter, pursuant to
the Purchase Contract in substantially the form on file with the City Clerk, together
with such additions thereto and changes therein as the Bond Counsel shall deem
necessary, desirable or appropriate, the execution of which by the City Manager
shall be conclusive evidence of the approval of any such additions and changes.
The City Manager is hereby authorized and directed to execute the final form of
the Purchase Contract for and in the name and on behalf of the City upon the
submission of an offer by the Underwriter to purchase the Bonds, which offer is
acceptable to the City Manager and consistent with the requirements of this
Resolution. The amount of the Underwriter's discount the Bonds shall be not more
than one and three quarter percent (1.75%) of the par amount thereof and the net
effective rate of interest to be represented by the Bonds (taking into account any
original issue discount on the sale thereof) shall not exceed five and one half
percent (5.50 %) per annum.
Section 5. Official_....Statement; Continuing Disclosure. The City
Council approves the preparation of, and hereby authorizes the City Manager to
deem final within the meaning of Rule 15c2-12 of the Securities and Exchange Act
of 1934 except for permitted omissions, a preliminary form of Official Statement
describing the Bonds. Distribution of such preliminary Official Statement by the
Underwriter is hereby approved. The City Manager is hereby authorized to
execute the final Official Statement in the name and on behalf of the City, including
any modifications resulting from additions thereto and changes therein as the City
Attorney shall deem necessary, desirable or appropriate, with the execution of the
final Official Statement by the City Manager to be conclusive evidence of the
approval of any such additions and changes. The City Council hereby authorizes
the distribution of the final Official Statement by the Underwriter. The City
Manager is further authorized to sign on behalf of the City a continuing disclosure
certificate with respect to the financing, in such form as may be approved by Bond
Counsel,
Section 6. Bond Counsel and Disclosure Counsel. The law firm of
Best Best & Krieger LLP is hereby appointed to act as Bond Counsel and
Disclosure Counsel with respect to the issuance of the Bonds upon the terms set
forth in the letter on file with the City Clerk and the City Manager is authorized to
execute said letter for and in the name of the City.
Section 7. Official Actions, The Mayor, the City Manager, the
Finance Director, the Utility Director, the City Clerk and any and all other officers of
the City are hereby authorized and directed, for and in the name and on behalf of
the City, to do any and all things and take any and all actions, including obtaining a
rating on the Bonds and/or a municipal bond insurance policy and a debt reserve
fund surety bond (including the execution of a financial guarantee agreement with
respect thereto), and including execution and delivery of any and all assignments,
certificates, requisitions, agreements, notices, consents, instruments of
conveyance, warrants and other documents, which they, or any of them, may
deem necessary or advisable in order to consummate the transactions as
described herein in connection with the issuance and sale of the Bonds.
Section 8. Effective Date. This Resolution shall take effect from
and after the date of its passage and adoption.
APPROVED AND ADOPTED this 7th day of March, 2002.
AYES: Ayres, Carlson-Buydos, Conner, Williams
NAYS: Good
ABSTAIN: None
ABSENT: None
City of San Jacinto
P4Q�b�
Patrick A. Williams, Mayor
Attest:
rothy L. ouinard, City Clerk