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HomeMy WebLinkAboutCC RES 11-32RESOLUTION NO. 11-32 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AUTHORIZING THE COMMENCEMENT OF PROCEEDINGS TO FINANCE IMPROVEMENTS TO THE CITY'S MUNICIPAL WATER SYSTEM AND THE ISSUANCE OF WATER REVENUE BONDS BY THE CITY OF TUSTIN PUBLIC FINANCING AUTHORITY FOR SUCH PURPOSES, DESIGNATING CONSULTANTS AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO The City Council of the City of Tustin does hereby resolve as follows: WHEREAS, the City and the Tustin Community Redevelopment Agency have heretofore entered into a joint exercise of powers agreement establishing the Tustin Public Financing Authority (the "Authority") for the purpose, among others, of issuing its bonds to be used to provide financial assistance to the City; WHEREAS, the City has determined that, due to prevailing financial market conditions, it is in the best interests of the City to finance the acquisition and construction of certain improvements and facilities (the "Improvements") which will constitute part of the City's municipal water enterprise (the "Water System"); WHEREAS, for the purpose of raising funds necessary to provide such financial assistance to the City, the Authority proposes to authorize the issuance of its revenue bonds 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"), designated as the Tustin Public Financing Authority Water Revenue Bonds, 2011 Series A (the "Bonds"), all pursuant to and secured by an indenture of trust (the "Indenture"), by and between the Authority and The Bank of New York Mellon Trust Company, N.A., as trustee (the "Trustee"); WHEREAS, in order to provide for the repayment of the Bonds, the Authority will sell the Improvements to the City pursuant to an installment sale agreement (the "Installment Sale Agreement"), under which the City will agree to make installment payments to the Authority payable from the net revenues of the Water System which will be calculated to be sufficient, in time and amount, to enable the Authority to pay the principal of and interest and premium (if any) on the Bonds when due and payable; WHEREAS, the City's obligations under the Installment Sale Agreement will be on parity as to payment and security with the City's obligations with respect to its $14,355,000 City of Tustin 2003 Refunding Water Revenue Bonds, of which $11,165,000 is currently outstanding; Resolution No. 11-32 Page 1 of 3 WHEREAS, it is appropriate that the City formally authorize the commence of proceedings to issue the Bonds and to appoint a financial advisor, a bond counsel, a disclosure counsel and an underwriter in connection therewith; NOW, THEREFORE, it is hereby ORDERED and DETERMINED, as follows: SECTION 1: Officers and officials of the City are hereby authorized to proceed with the preparation of documents necessary to provide for the issuance and sale of the Bonds. All such documents to which the City and the Authority will be a party shall be subject to the final approval thereof by the City Council and the Authority at subsequent meetings of the City Council and the Authority. SECTION 2: Fieldman, Rolapp & Associates is hereby designated as financial advisor to the City and Quint & Thimmig LLP is hereby designated as bond counsel and as disclosure counsel to the City, each in connection with the issuance and sale of the Bonds. The City Manager, the Assistant City Manager or the Finance Director is hereby authorized and directed to execute agreements with such firms for their services with respect to the Bonds, in forms acceptable to the City Manager, the Assistant City Manager or the Finance Director and the City Attorney; provided that any and all compensation payable to such firms shall be contingent upon the sale and issuance of the Bonds. SECTION 3: Citigroup Global Markets Inc. is hereby designated as underwriter to the City in connection with the issuance and sale of the Bonds. SECTION 4: The Mayor, the City Manager, the Assistant City Manager, the Finance Director, the City Attorney, the City Clerk and all other appropriate officials of the City 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 financing herein authorized. SECTION 5: This Resolution shall take effect upon its adoption. PASSED AND ADOPTED by the City Council of the City of Tustin, at a regular meeting on the 19t" day of April, 2011. Resolution 11-32 Page 2 of 3 ATTEST: PAMELA STOKE , City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 11-32 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 19th day of April, 2011, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: Amante, Nielsen, Gomez, Murray (4) None (0) None (0) Gavello (1) P ELA STOKER, City Clerk Resolution No. 11-32 Page 3 of 3