HomeMy WebLinkAboutCC RES 12-21RESOLUTION NO. 12-21
A RESOLUTION OF THE GITY COUNCIL OF THE CITY OF
TUSTIN, GAt_IFORNIA, AUTHORIZING THE
COMMENCEMENT OF PROCEEDINGS TO REFINANCE
IMPROVEMENTS TO THE CITY'S MUNICIPAL WATER
SYSTEM AND THE ISSUANCE OF WATER REFUNDING
REVENUE BONDS BY THE TUSTIN PUBLIC FINANCING
AUTHORITY FOR SUCH PURPOSES, DESIGNATING
CONSULTANTS RND 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 refinance the acquisition and
construction of certain improvements and facilities to the City's municipal water
enterprise (the "Enterprise"} and, in particular, to provide for the refunding of the City of
Tustin 2003 Refunding Water Revenue Bonds, of which $11,165,000 is currently
outstanding (the "2003 Bonds"};
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 Refunding Revenue Bonds, 2012 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 City will sell
certain Enterprise improvements to the Authority and the Authority will sell such
improvements back 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 Enterprise 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 securi#y with the City's obligations with respect to an
Resolution 12-21
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installment sale agreement securing the outstanding Tustin Public Financing Authority
Water Revenue Bonds, 2011 Series A;
WHEREAS, it is appropriate that the City formally authorize the commencement
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 a
subsequent meeting 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 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, 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: Stifel, Nicolaus & Company, Incorporated, DBA Stone &
Youngberg, a Division of Stifel Nicolaus, 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 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 21St day of February, 2012.
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JOyN NIELSEN,
Mayor
Resolution 12-21
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ATTEST:
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PAMELA STOKER,
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. 12-21 was duly
passed and adopted at a regular meeting of the Tustin City Council, held on the 21St day
of February, 2012, by the following vote:
COUNCILMEMBER AYES: Nielsen, Murray, Amante, Gavello, Gomez (5)
COUNCILMEMBER NOES: None (0)
COUNCILMEMBER ABSTAINED: None (0)
COUNCILMEMBER ABSENT: None (0)
PAMELA STOK~1
Ci#y Clerk
Resolution 12-21
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