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HomeMy WebLinkAboutResolution 2005-132 N.C.S. 08/01/2005 Resolution I~To. Zoos-132N.C.5. of the City of Petaluma, California RESOLUTION OF THE COUNCIL OF THE CITY OF PETALUMA AUTHORIZING THE BORROWING OF FUNDS IN THE AMOUNT OF NOT TO EXCEED $100,000,000 UNDER TWO SEPARATE LINES OF CREDIT TO FINANCE ELLIS CREEK WATER RECYCLING FACILITY CONSTRUCTION AND RELATED EXPENSES, 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. 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 (the "Bond Law") which authorize the City, when the public interest and necessity require, by resolution, to issue its revenue bonds or notes for the purpose of financing or refinancing the acquisition, construction, extension or improvement of any sewer enterprise system or facility of the City. SECTION 3. Proposed Financing. The City, after due investigation and deliberation, has determined it is in the public interest of the City at this time to construct the Ellis Creek Water Recycling Facility (the "Project"). The City intends to finance the Project on a long term basis with loans from the State of California known as State Revolving Fund ("SRF") Loans. SRF Loans are not immediately available at this time, but the City has determined that construction of the Project must commence as soon as practically possible. In the interim, the City has received bids from banks to provide interim financing as a revolving line of credit to begin construction of the Project. It is the intention of the City to repay the lines of credit with SRF Loans, or, if such loans are not available for whatever reason, with long term bond financing. The City received proposals from several banks offering revolving line of credit financing for the Project, and the City has decided to accept the proposals of: BNP Paribas, San Francisco Branch ("BNP") for a revolving line of credit loan (the "BNP Loan"), pursuant to BNP's proposal to the City dated June 3, 2005, in the amount of up to $75,000,000; Zions Bank ("Zions"), for a revolving line of credit loan (the "Zions Loan"), pursuant to Zions' proposal to the City dated May 27, 2005, in the amount of up to $25,000,000. The BNP Loan and the Zions Loan are referred to herein collectively as the "Bank Loans". SECTION 4. Revolving Line of Credit Agreements. The Bank Loans shall be entered into under the Bond Law and pursuant to two separate Revolving Credit Agreements, dated as of August 1, 2005 (the "Revolving Credit Agreements"), between the City and BNP and Zions, respectively. The Revolving Credit Agreements, in substantially the form on file with the City Manager, are hereby approved and the City Manager and the Administrative Services Director Resolution No. 2005-132 N.C.S. (each, an "Authorized Official") is hereby authorized to execute the Revolving Credit Agreements when finalized, and the City Clerk is hereby authorized and directed to attest said Authorized Official's signature. SECTION 5. Severability. All portions of this resolution are severable. Should any individual component of this resolution be adjudged to be invalid and unenforceable by a body of competent jurisdiction, then the remaining resolution portions shall be and continue in full force and effect, except as to those resolution portions that have been .adjudged invalid. The City Council of the City of Petaluma hereby declares that it would have adopted this resolution and each section, subsection, clause, sentence, phrase and other portion thereof, irrespective of the fact that one or more section, subsection, clause, sentence, phrase or other portion maybe held invalid or unconstitutional. SECTION 6. Execution of Documents. The City Manager is 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 delivery of the Revolving Credit Agreements. SECTION 7. Effective Date. This resolution shall be effective upon the date of its adoption. 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 Approved as to Council of the City of Petaluma at a (Regular) (Adjourned) (Special) meeting form on the .........ls` day of ........~,ugust..............................:.., 20.05., by the ~ 7~/ following vote: City Attorney AYES: Canevaro, Mayor Glass, Vice Mayor Harris, Healy, Nau, O'Brien, Torliatt , NOES: None A ABSENT: .None ATTEST: City Clerk Mayor Council File Res. No........~~~.'j_1.3.Z........N.C.S.