HomeMy WebLinkAboutResolution 90-271 08/06/1990 F~eSOlUtioC1 NO. ga-271 N.C.S.
of the City of Petaluma, C~liforni~l
1 RESOLUTION APPROVING AGREEMENT
2 WITH FINANCIAL ADVISOR FOR
3 ZONE IV WATER IMPROVEMENTS
4 CERTIFICATE OF PARTICIPATION
5
6 The City Council of the City of Petaluma resolves.: .
~ This Council approves that certain agreement between the CITY OF
8 PETALUMA and CALIFORNIA PUBLIC FINANCE, for services of that
9 firm as Financial Advisor for Zone IV Water Improvements Certificate of
io Participation and attached to this resolution.
it The Mayor or City Manager is authorized to sign the agreement and
12 the City Clerk is authorized to attest its execution.
Uader the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: i ~m~' Cep' ~ foregoing Resolution was introduced and adopted by the approved as to
Council of the City of Petaluma at a (Regular) C*~I~3`~~ 6 fo~
...__.~........._.g.....~_....-............_. 19 ~1l b the ~'";J~~7.~-~
on the -.-..6th...-...... day of Au us y
following vote:
!City" Attorney
AYES: Balshaw, Davis, tiVoolsey, Tencer, Vice Mayor Cavanagh, Mayor Hilligoss
NOES: 0
ABSENT: Sobel
ATTEST :
City Clerk Mayor
Qoimcil Fill.
C.~ 10-85 Res. Na.....9,0.-27.1.P... V.C.S.
. CPF INCORPORATED
- ' ~ Post Office Box:751322
Petaluma, California ,
- - 94975-1322
- - - •Telephone
• CALIFORNIA. ~ ~ (707) 795-6994
PUBLIC. ' `
• .FINANCE , •
Juy 17, rs9g
1+1r. David A;. Spilman
Fin6nce Offcer• '
City o:f PetaZ°uma' •
11 English Street -
Petaluma, Cal'ifornia'-94952
Dear Mr. Splmon:
,
.CPF INCORPORATED`("CPF")..appreciates the opPortuni-ty•ta.submit this proposal to _
ac~t~ as: fihahci~ng~ 'advi>sor to the C~t,y of~ `Pet~al~~uma for ~.a proposed Certificate of
Partici'potio"n..security: issue (then"Certi"ficates") to'provide fngnc'ng ao
• construct the proposed Zone IV wa.te.r system improvements.
It is our understanding; that.~the City wishes to pr`oceed:as quickly as possible
to provi'ds funds for this.. purpose.: , . Ia is •fur her our understanding ,that, the` •
J:
Gertifi'cate issue is to be sfructured w•i~th ~a~ technical .cla.im on the City's
general .fund'•6ut~that the intent. of: the Gty is to ultimdtely pay 1'eas.e
- obligati"ons on the ,issue wi-th wdte~•system connection fees.. To the extent these
. - - -
fee`s may not be collected a,t`'-such times as funds are'reguired to pay lease
' obligations such'-payment would; be. made either from. current- water. system
operating revenues and/or an:y wp.ter system surplus funds. then currently on hand'.
The technical claim on :gener.'a'1~ fund 'revenues' will strengthen, the- security and
help .reduce the time period required`to sell 'the Certificates.
k?e also. understand thet the' firm of S;turg,is, Ness;;: Brunsell and Sperry will act
' ~as•Special Counsel` to the'C;t.y for.thi~s issue and that they wi12 assist us in
.moving quickl+y to sell the Certificates.
-
This proposal :is based on the, assuiegt-ion "that 'tune; is of the essence because. the •
City has rece.ved~ c• favorable ;construction b'id' for '_the ,p'roposed. improvements and
- the 'city arches to: take.: ;advan•toge of the current strong. market' for munic;~pal
securities. •
- GPF INCORPORATED'proposes; to~ work-;,with the C~ia:~y„ City staff,, special counsel and
others-cs necessar.y ao bccomplish tfie followi~ng:~
1..,Evaluate ,f'noncc7~aspects of. financing the proposed improvements from
nea!•~water service connection fees 'n the Corona=Ely area and from general
. ~ Mr. 'David- A. Splmam -
Finance Officer '
• Gity ojf: Petarl_uma
9uhy-17, 199 ~ ~ Page 2.
wat_er•,reVen,ues.(ncluding. the effect new de"velopment will' have~~•on water .
system operoting-revenues);,;- ~ >
2. Upon. completion. ~.of the inistal` cnalys°s CPF''~ll assist• the Ci yin
• determining the:. par value of securities to be 'sold:;. •
• 3. .E'st~mote 'fhe amount of inyes merit `i'ncome ,to• be° received- •during
construction of: the project so:•as to~ permit sale of the lowest. pare •
` - value of securites,possiple to assure~comple•te•financng of the '
project';
4. Recommend: the amount End structure of;any;re"serve fund ,or funds to
' assure. the Cit;y• monies will be avail_atil"e for, payment~.•oflease
oblig6tions when. due; •
5. Recommend g specific securi y maturity structur-e 'taking into
consdergt-ion such factors as ex;i~sti~ng opergti-ng r-avenues and' the
expected,'rate of new•deGel`opment (which, will be related to the time-at--
which fiea:`cater connection. fees are collected.) to be-sure funds :will be
6vai2bble td•meet debt:.payments while. desgning~'the. securty_issue in
such d 'manner°.a"s. to provide the ~l'owest net~•intere'st •rate° obtainoble '
6. Recommend ;call features and 'time(s) of such.' calls;
7. Recommend defe"a`scnce requ~cemen.ts;
8. Recommend ~timng• for the sale' of securi'tie's;.. •
9. Coord~ngte• sale .of the"securit'es and delivery of .the proceeds; .
• lg'. Provide a.comprehens;ve md~l'ing.3ist'`for•sgle:of securities through
public bid; •
11-. Assist in compiling, and providing dato'as•.`rnpy be necessary in
conjunction with completing; the` ;financing, .arid:,
12. A'ssst~ the' City in compiling andpresenting. data to the 'siting
•
CPF w•i1I' be responsible for"'.compi'hing 'data and wrt,i,ng. both a preliminary
.arid fi?nal, official statement,, descr-ibng in full detail, th.e City; t"he proj,ect;,
the. securities and the security foc poyment':of lease obligations and provider
such other information as•may be necessary to obtan.t~he lowest interest rate
possible on. the :issue::
At the •t?me'the• underwriting is compl"eted CP.F ,will .provide the City vi~th
accurate calculations of thenet,.interest cost and`a.,detail'ed lease payment'
schedule for the;, wife of the secur 'i,es.
' Following. sale of the secur-i ies CPF will ass'st,the City, if requested, in the
selection of i_°nyestments and provide o final calcula"flan of investment income to
- ' `F.:
Mr. D6yid A.. 'Spilmam • -
Fi"ndnce Officer
City of Petal^umc - ~ •
Jul'-,y~ 17.. 1:99' Page ~3
be available for project •pur-poses. •In odditi_on we ,gill, if requested,,. assist in
' selection of .investments. to be.ocqured and•heI`d in any reserve funds:
CPF wil`1 'be~ paid in accordance ~i°th •fhe attached toble• .upon; receipt of ecuri y
proceeds by the~City. '
The City wi11 -be .responsible for al'I costs •of` printing and: ,mailing legal and;
financial-documents, including, securities, the cost of obtaining. a.dr-ect and
overl`apping' debt; statement from an-independent agency tend any •cost incurred• to -
obtirin economic and demographic data..
In the event the City .approves -out, of state tr-avel for CPF (which: ~ma.y be
necessary' i°n connection with obtaining a "securit.y fisting). the., .City. wi'1''T pay' such _
travel costs:. - _ •
CPF_ will. pay °'.ts own 'overhead and ony o"ther costs no.t detailed atiove>.
This agreement will be' effective for 90 days or unti'1 c11 securi"ti'es required' sto
finance. the projec •are sold and. al l; other services described~~heren are
-
provided.; -unless- the' aime~ period is extended, by mutudl agreement; ,Either 'party
• - may cvncel this agreement, by providing thirty days notce.to the other•panty..
provided CPF must, in the event securties•are sold; provide olI post sale
services (for •any securities. sold error to .cancell?a;tion) described herein prior
to requesting such cance3lati'on.,
In the; event the scope of services to the City dnd fees to be paid ;by the City -
provided for her-ein are acceptgbhe: to. tte City such.. opproval may ;be: indicated
hereon on by any other method acceptable to the City. '
ye,ry,,, r Z,y. yours, _ ~ _ •
~
- F I ORPOR TE
• ~
• :-_~D _
Do a~M.. Van`Dyke
Presdent. ~ '
Fee.SChedule for City bf Retaluma ~:r. "
Certifi'cates'of Pd~ticipation y
Zone,lV Water System Improvements ,
Par/Vdlue Totdl Par Value- Total '
' td be Sold Fee `to 6e Sold Fee
' 51,908,999' ~ • 612,509 66,100,000 ~ 539,345'-
,61,190,999 613,200• 16.,200.;000 • 539,990 •
• ~ $1,299,098 ~ 513,8®~ ~ 66,300,000 640';,320
61,390,,900' 614';309 56,400,000. 640,649
S1„400,000 514;700 66,500,000. E40,950 '
61,500-.000' 615009 ' ,
61,,600,000 615,290
51,709:,999 615,309 July 17, 19.98 •
61,890-,800 515,300
- 51,699,099 61s,20e
3z,099;e99 `s1s,e09 ,
52,19e,9e9 Sse09 r
Sa,zee,ee0 61~,s99
Sz,399,e00 s1e,409 •
62,4ee,e0e 616;299
62;500.900 529,000,
62,600,099 619,509' .
s2,~99,eee s20;se
52;s9e,e99 Szi;eee~
szsee;ee9 621,~5e -
s3,eee:eee a22se9 - .
s3; ee;eee - s23.2se ~ . ~ .
"63r2H0,009 524.;809` ,
53;3@9.000 _ ~ 629..750.
' 63:;409.009 625,,508 .
E3;500,080 526;,250'
63,600.000 525,200 ,
83;709,000, 525,900'-
53,800,908 526,699
53,909,090 527.,300. - _
64, e99 ,;ee0.. Sze, ee9 ~ .
64,1ee,eee' 62e,ee
64,e9,eee ~ Szs;499 ,
s4,309,9ee 53e,109 ~ • . ~ .
64,400,0A9. 630.808
64,500,990 331,508 ~ ,
64,se9,eee Sis,s99
64;700..'900 630.559 ,
s4;ee9,098 _ 531,200
64,900,000. 631:,859
55,099';000 332,588` ~ ,
65,190,009 ' ~ 533,;150
35,'288,008 633;88e
SSe,`399,;889 539.458' ~ . • . -
55.',499.000` ,'s3S;.188
35,508';888 335,758. ~ '
65,60®,080 336,;40®
65,709,008 637,050,
65,880,000' 337,7A0 ,
65,,900,A08 636,359 .
66;009;098. 639;999