HomeMy WebLinkAboutr10320waterrevenuerefundingbondsRESOLUTION NO . 10320 (2011 Series)
A RESOLUTION OF THE CITY OF SAN LUIS OBISPO AUTHORIZING TH E
ISSUANCE AND SALE OF WATER REVENUE REFUNDING BONDS IN THE
PRINCIPAL AMOUNT OF NOT TO EXCEED $6,700,000 TO REFINANC E
OUTSTANDING 2002 WATER REVENUE REFUNDING BONDS, AND APPROVIN G
RELATED DOCUMENTS AND ACTION S
WHEREAS,the City owns and operates a public enterprise for the supply, treatment an d
distribution of water within the service area of the City (the "Water System"), and in order to
refinance bonds issued to finance improvements to the Water System, the City has previousl y
issued its City of San Luis Obispo 2002 Water Revenue Refunding Bonds in the aggregate
original principal amount of $9,485,000 (the "2002 Bonds"); an d
WHEREAS,the City has the right to redeem the 2002 Bonds in full on any business da y
at a redemption price equal to 100% of the principal amount thereof, without premium, and in
order to provide funds for that purpose and thereby realize debt service savings, the City Counci l
wishes at this time to authorize the issuance and sale of City of San Luis Obispo 2012 Wate r
Revenue Refunding Bonds in the aggregate principal amount of not to exceed $6,700,000 (th e
"Refunding Bonds") under the provisions of Articles 10 and 11 of Chapter 3 of Part 1 o f
Division 2 of Title 5 of the California Government Code, commencing with Section 53570 o f
said Code (the "Refunding Bond Law"); an d
WHEREAS,the City Council of the City has duly considered such transactions an d
wishes at this time to approve said transactions in the public interests of the City .
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Lui s
Obispo as follows :
SECTION 1 .Authorization of Refunding Bonds .The City Council hereby authorize s
the issuance of the Refunding Bonds in the maximum principal amount of $6,700,000, for th e
purpose of providing funds to redeem and discharge the 2002 Bonds in full . The Refunding
Bonds shall be revenue bonds which are payable from and secured by a pledge of and lien on th e
net revenues of the Water System . The Refunding Bonds shall be issued under and i n
accordance with the provisions of the Refunding Bond Law .
SECTION 2 .Approval of Indenture of Trust .The Refunding Bonds shall be issued
upon the terms and conditions set forth in the Indenture of Trust between the City and U .S . Bank
National Association, as trustee, which is hereby approved in substantially the form on file with
the City Clerk together with any changes therein or additions thereto deemed advisable by the
Director of Finance and Information Technology . The City Manager is hereby authorized an d
directed to execute, and the City Clerk is hereby authorized and directed to attest to, the final
form of the Indenture of Trust on behalf of the City .
R 10320
Resolution No . 10320 (2011 Series )
Page 2
SECTION 3 .Approval of Escrow Deposit and Trust Agreement .The 2002 Bonds shall
be refunded under and in accordance with the provisions of the Escrow Deposit and Trust
Agreement between the City and U .S . Bank National Association, as escrow bank, which i s
hereby approved in substantially the form on file with the City Clerk together with any change s
therein or additions thereto deemed advisable by the Director of Finance and Informatio n
Technology . The City Manager is hereby authorized and directed to execute, and the City Clerk
is hereby authorized and directed to attest to, the final form of the Escrow Deposit and Trus t
Agreement on behalf of the City .
SECTION 4 .Competitive Sale of Bonds .The City Council hereby authorizes an d
directs the competitive sale of the Refunding Bonds in accordance with the Notice of Sale i n
substantially the form on file with the City Clerk together with any changes therein or addition s
thereto deemed advisable by the Director of Finance and Information Technology . The Directo r
of Finance and Information Technology is hereby authorized and directed to accept the best bi d
for the sale of the Refunding Bonds, as determined in accordance with the Notice of Sale .
SECTION 5 .Publication of Notice .Pursuant to Section 53692 of the Government
Code, Jones Hall, as bond counsel to the City, is hereby authorized and directed to cause a
Notice of Intention to Sell Bonds, in form and substance acceptable to said firm, to be publishe d
once in The Bond Buyer not later than 15 days prior to the date set for receipt of bids on th e
Refunding Bonds .
SECTION 6 .Official Statement .The City Council hereby approves and deems nearl y
final within the meaning of Rule 15c2-12 of the Securities Exchange Act of 1934, th e
preliminary Official Statement describing the Refunding Bonds in the form on file with the Cit y
Clerk . The City Manager or the Director of Finance and Information Technology (each, a n
"Authorized Officer") is individually authorized, at the request of the purchaser of the Refundin g
Bonds, to execute an appropriate certificate affirming the City Council's determination that th e
preliminary Official Statement has been deemed nearly final within the meaning of such Rule .
Distribution of the preliminary Official Statement by the purchaser of the Refunding Bonds i s
hereby approved . An Authorized Officer is hereby authorized and directed to approve an y
changes in or additions to a final form of said Official Statement, and the execution thereof by a n
Authorized Officer shall be conclusive evidence of approval of any such changes and additions .
The City Council hereby authorizes the distribution of the final Official Statement by th e
purchaser of the Refunding Bonds . The final Official Statement shall be executed in the nam e
and on behalf of the City by an Authorized Officer .
SECTION 7.Engagement of Professional Services .The City Council hereby confirm s
the designation of Jones Hall, A Professional Law Corporation, as bond counsel and disclosur e
counsel, and the firm of Fieldman, Rolapp & Associates, as financial advisor, in connection with
the issuance and sale of the Refunding Bonds, in accordance with the existing agreement s
between the City and each of such firms . The term of each of such agreements shall remain i n
effect until terminated by the City in its sole discretion, but not prior to the issuance of th e
Refunding Bonds .
Resolution No . 10320 (2011 Series)
Page 3
SECTION 8 .Official Actions .The City Manager, the Director of Finance an d
Information Technology, the City Clerk and all other officers of the City are each authorized an d
directed in the name and on behalf of the City to make any and all assignments, certificates ,
requisitions, agreements, notices, consents, instruments of conveyance, warrants and othe r
documents, which they or any of them deem necessary or appropriate in order to consummat e
any of the transactions contemplated by the agreements and documents approved under thi s
Resolution . Whenever in this Resolution any officer of the City is authorized to execute o r
countersign any document or take any action, such execution, countersigning or action may b e
taken on behalf of such officer by any person designated by such officer to act on his or he r
behalf in the case such officer shall be absent or unavailable .
SECTION 9 .Effective Date .This Resolution shall take effect from and after the date o f
approval and adoption thereof .
Upon motion of Council Member Carter, seconded by Council Member Ashbaugh, an d
on the following vote :
AYES :
Council Members Ashbaugh, Carter and Smith, Vice Mayor Carpenter an d
Mayor Marx
NOES :
Non e
ABSENT : Non e
The foregoing resolution was adopted this 13 th day of December, 2011 .
ATTEST :
Elaina Can o
City Clerk