HomeMy WebLinkAboutResolution - 2337/FA02-01 STATE OF CALIFORNIA ) RESOLUTION NO. 2337 1 FA 02-01
COUNTY OF RIVERSIDE)ss
CITY OF SAN JACINTO )
A RESOLUTION OF THE BOARD OF DIRECTORS
OF THE SAN JACINTO FINANCING AUTHORITY
AUTHORIZING THE ISSUANCE OF ITS REFUNDING
REVENUE BONDS IN THE AGGREGATE
PRINCIPAL AMOUNT OF NOT TO EXCEED
$27900,000 IN CONNECTION WITH FINANCING
PROCEEDINGS RELATING TO WATER SYSTEM
IMPROVEMENTS, AUTHORIZING AND DIRECTING
EXECUTION OF AN INDENTURE OF TRUST AND A
SUPPLEMENTAL INSTALLMENT PURCHASE
AGREEMENT, AUTHORIZING SALE OF THE
BONDS, APPROVING A PURCHASE CONTRACT
AND AN OFFICIAL STATEMENT AND
AUTHORIZING OFFICIAL ACTIONS AND
EXECUTION OF RELATED DOCUMENTS
WHEREAS, the Sari 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 improve-
ments 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
Oft 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 Board of Directors (the "Board") of the Authority has
duly considered such transactions and wishes at this time to approve said
transactions in the public interests of the Authority;
THEREFORE, IT IS RESOLVED that the Board of Directors of the
San Jacinto Financing Authority adopt the following:
Section 1. Findings and Determinations. Pursuant to the Act, the
Board hereby finds and determines that the issuance of the Bonds 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 2. Issuance of Bonds. The Board hereby authorizes the
issuance of the Bonds under and pursuant to the Act, in the maximum aggregate
principal amount not to exceed $2,900,000.
Section 3. Approval of Financing Documents. The Board hereby
approves each of the following documents in substantially the respective forms on
file with the Secretary, together with such additions thereto and changes therein as
Bond Counsel shall deem necessary, desirable or appropriate, the execution of
which by the Chairman and the Executive Director shall be conclusive evidence of
the approval of any such additions and changes:
(1) the Indenture of Trust relating to the issuance of the
Bonds by and between Union Bank of California, N.A. (the "Trustee") and
the Authority; and
(2) the Amended and Restated Installment Purchase
Agreement relating to the installment purchase of the Project by the City
from the Authority.
The Chairman or the Executive Director are hereby authorized and
directed to execute, and the Secretary is hereby authorized and directed to attest
and affix the seal of the Authority to, the final form of each of the foregoing
documents and agreements for and in the name and on behalf of the Authority.
The Board hereby authorizes the delivery and performance of each of the
foregoing documents and agreements.
Section 4. Sale of Bonds. The Board 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 Secretary, together with
such additions thereto and changes therein as Bond Counsel shall deem
necessary, desirable or appropriate, the execution of which by the Executive
Director shall be conclusive evidence of the approval of any such additions and
changes. The Executive Director is hereby authorized and directed to execute the
final form of the Purchase Contract for and in the name and on behalf of the
Authority upon the submission of an offer by the Underwriter to purchase the
Bonds, which offer is acceptable to the Executive Director and consistent with the
requirements of this Resolution. The amount of Underwriter's discount for 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 (5.5%) per annum.
Section 5, Official Statement; Continuing Disclosure. The Board
hereby approves the preparation of, and hereby authorizes the Executive Director
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 of the Bonds. Distribution of such preliminary Official Statement by the
Underwriter is hereby approved. The Executive Director is hereby authorized to
execute the final Official Statement in the name and on behalf of the Authority,
including any modifications resulting from additions thereto and changes therein
as Bond Counsel shall deem necessary, desirable or appropriate, with the
execution of the final Official Statement by the Chairman to be conclusive
evidence of the approval of any such additions and changes. The Board hereby
authorizes the distribution of the final Official Statement by the Underwriter. The
Executive Director is further authorized to sign on behalf of the Authority 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 as Bond Counsel and Disclosure
Counsel upon the terms and conditions set forth in the letter on file with the
Secretary of the Authority and the Executive Director is hereby authorized to
execute said letter for and in the name of the Authority.
Section 7, Official Actions_ The Chairman, the Executive Director,
the Treasurer, the Assistant Treasurer, the Secretary and any and all other officers
of the Authority are hereby authorized and directed, for and in the name and on
behalf of the Authority, to do any and all things and take any and all actions,
including obtaining a rating on the Bonds andlor a municipal bond insurance policy
and a debt service 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 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 by the
following roll call vote:
AYES: Ayres, Carlson-Buydos, Conner, Williams
NAYS: Good
ABSTAIN: None
ABSENT: None
Submitted by.
orothy L. houinard, City Clerk
City of San Jacinto Financing Authority
P � ; r F; v
Patrick A. Williams, Chairman
TTEST:
rothy L. ouinard, City Clerk