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HomeMy WebLinkAboutResolution 2001-124 N.C.S. 06/25/2001ResolutionNo2001-124 N.C.S. of the City of Petaluma, California AUTHORIZING THE ISSUANCE AND SALE OF WATER REVENUE BONDS, SERIES 2001, APPROVING OFFICIAL STATEMENT, AND AUTHORIZING OFFICIAL ACTIONS RELATED THERETO The Council of the City of Petaluma does RESOLVE as follows: SECTION 1. Authority. The City is a chartered. city and municipal corporation organized and existing under the constitution and laws of the State of California and is duly empowered as a chartered city to exercise the powers reserved to it under said constitution with respect to municipal affairs. SECTION 2. Sewer and Water Systems; Bond Law. As an exercise of such powers, the City has heretofore adopted the provisions of Chapter 4.08 (commencing with Section 4.08.010) of the Petaluma Municipal Code, as amended by Ordinance No. 2112 NCS, entitled "ORDINANCE OF THE CITY OF PETALUMA AMENDING THE PETALUMA BOND LAW, RELATING TO THE REFINANCING OF REVENUE BONDS" (the "Ordinance"), which was adopted on May 7, 200'1 (the "Law") which authorizes the City, when the public interest and necessity require; by resolution„ to issue- its .revenue bonds for the purpose of financing or refinancing the acquisition, construction, extension or improvement of any sewer or water enterprise system or facility of the City. SECTION 3. Bonds Proposed. The City, after due investigation and deliberation, has determined that it is in the public interest of the City at this time to authorize the issuance of its water revenue bonds (the "Bonds") under the Law for the purpose o£ (i) refinancing a lease obligation of the City and Certificates of Participation therein executed and delivered in 1990 in the principal amount of $6,600,000 to finance Zone IV Water System Improvements (the "1.990 Certificates"); (ii) financing improvements to the Petaluma municipal water system (the "Project"); (iii) funding a reserve fund for the Bonds; and (iv) funding costs of issuance incurred in connection with the issuance and sale of the Bonds. SECTION 4. Preliminary Official Statement: Kelling, Northcross & Nobriga, as financial advisor to the City (the "Financial Advisor") has prepared and submitted to the City a preliminary Official Statement relating to the Bonds, a copy of which is on file with the City Manager, for distribution to municipal bond broker-dealers and banking institutions which may be .interested in purchasing the Bonds. SECTION 5. Authorization of Sale. Tuesday, .July 17, 2001, at the hour of 10:00 a.m. (Pacific Standard Time), is hereby fixed as the time, and the office of the Financial Advisor at 1333 Broadway, Suite 1000, Oakland, California 94612 is hereby fixed as the place at which bids will be received for the purchase of the Bonds as described in and subject to the terms and conditions of the Official Notice of Sale, a copy of which is on file with the City Clerk, or at such Resolution No. N.C.S. Reso.2001-1~- Page 1 other time as shall. be determined by the City Manager. The Finance Director is hereby authorized to award the sale of the Bonds to the. bidder whose responsible bid for the Bonds results in the lowest true interest cost to the City, to be determined in accordance with the Official Notice of Sale. The portion of the Bonds attributable to the refunding of the 1990 Certificates shall only be sold if savings equal to at least four percent (4%) of the principal amount of the 1990 Certificates outstanding are achieved through the sale of the Bonds and the refunding of the 1990 Certificates. The portion of the Bonds attributable to the Project shall be sold without regard to the savings level to be achieved by the refunding of the 1990 Certificates. SECTION 6. Indenture of Trust. The Bonds, in a principal amount ofnot-to-exceed $11,500,000, shall be issued pursuant to an Indenture of Trust, dated as of August 1, 2001 (the "Indenture"), by and between the City and a trustee to be chosen by the Finance Director, as trustee (the "Trustee"). The Indenture, in substantially the form on file with the City Manager, is hereby approved, and the Mayor, the City Manager and the Finance Director (each, an "Authorized Official") is hereby separately authorized to execute the Indenture when finalized, following the sale of the Bonds, and the City Clerk is hereby authorized and directed to attest said Authorized Official's signature. SECTION 7. Official Statement. The preliminary Official Statement describing the Bonds in substantially the .form heretofore submitted to the Council, is hereby approved, subject to whatever additions, deletions and corrections may be deemed advisable by the Authorized Official upon consultation with the Financial Advisor, Bond Counsel and the City Attorney. The Authorized Official is hereby separately authorized and directed, upon consultation with the Financial Advisor, Bond Counsel and the City Attorney, to approve such changes to the preliminary Official Statement as shall be necessary to cause such preliminary Official Statement to be brought into the form of a final Official Statement, and the Authorized Official is hereby authorized and directed to execute .and deliver copies of the final Official Statement to the purchaser of the Bonds, at the time of delivery of the Bonds. The Council hereby approves, and hereby deems nearly final within the meaning of Rule 15c2-12 of the Securities Exchange Act of 1934 (the "Rule"), the preliminary Official Statement. The Authorized Official is hereby authorized to execute an appropriate certificate stating the Council's determination that the preliminary Official Statement has been deemed nearly final within the meaning of the Rule. SECTION 8. Distribution of Official Statement. The Financial Advisor is hereby authorized and directed to cause copies of the preliminary Official Statement to be printed and mailed to prospective bidders for the Bonds. SECTION 9. Preparation of Bonds. The Finance Director is directed to cause the Bonds to be prepared in accordance with the provisions of the Indenture of Trust approved in Section 6 and to cause their execution by the proper officers of the City and authentication by the Trustee and to cause the Bonds to be delivered when so executed and authenticated to or on behalf of the purchaser or purchasers thereof, upon the receipt of the purchase price therefor. SECTION 10. Execution of Documents. The Mayor, Vice Mayor, City Manager, City Clerk, Finance Director, Director of Water Resources, City Attorney and any and all other Reso. 2001-124 NCS Page 2 officers of the City are each authorized and directed in the name and on behalf of the City to make any and all certificates, requisitions, agreements, notices, consents, warrants and other documents, which they or any of them might deem necessary or appropriate in order to consummate the lawful issuance, sale and delivery of the Bonds to the original purchaser thereof, including an Escrow Deposit and Trust Agreement relating to the refunding of the 1990 Certificates. Under the power and authority conferred upon this Council by the Charter of said City. REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the ~t`1'c Council of the City of Petaluma at a ~e~ir'IajFpC(~pl,}'Milg-lie~) (Special) meeting C ~ f on the .~~.tYl ............. day of ......JLLI1~....................................., 20~1~., by the following vote: ••••••• ••• ••••••••••••••• A o y AYES: O'Brien, Healy, Torliatt, Maguire, Moynihan., Vice Mayor Cader-Thompson Mayor Thompson NOES: None ABSENT: None ATTEST: .........~ .................. .. ...........:................ ............... .... ........................................................................ City Cl 4~ O H ~;~~ I~so. ~70F.1-124 NCS Ma or page 3 ounce i e ................................... y Res: No ...................................N.C.S.