HomeMy WebLinkAboutResolution 2012-144 N.C.S. 10/1/2012 Resolution No. 2012-144 N.C.S.
of the City of Petaluma, California
AUTHORIZING THE EXECUTION AND DELIVERY OF A LOAN
AGREEMENT TO REFINANCE OUTSTANDING WATER REVENUE BONDS
OF THE CITY, AND APPROVING RELATED AGREEMENTS AND ACTIONS
WHEREAS, the City of Petaluma (the "City") is authorized pursuant to the provisions
of Chapter 4.08 (commencing with Section 4.08.010) of the Petaluma Municipal Code, as
amended, and enacted pursuant to the charter of the City (the `Revenue Bond Law"), to issue its
revenue bonds for the purposes of financing or refinancing improvements to its water enterprise
(the "Water System"); and,
WHEREAS, under the 2001 Indenture, the City has the right to redeem the 2001
Bonds on any date on or after November 1, 2011; and,
WHEREAS, the City wishes at this time to redeem the 2001 Bonds in accordance
with the 2001 Indenture in order to achieve interest savings; and,
WHEREAS, under the Revenue Bond Law, the term "bonds" includes bonds, notes,
and other forms of obligations, such as loan agreements; and,
WHEREAS, the City Council wishes at this time to authorize the execution and
delivery of a Loan Agreement, between the City and the Municipal Finance Corporation (the
"Loan Agreement") under the Revenue Bond Law to refund the 2001 Bonds; and,
WHEREAS, the Loan Repayments due under the Loan Agreement will be secured by
a pledge of the Net Revenues of the Water System;and,
WHEREAS,the City Council of the City has duly considered such transactions and
wishes at this time to approve said transactions in the public interests of the City.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Petaluma as follows:
Section 1. Approval of Loan Agreement. The City Council hereby authorizes the incurrence of
the Loan under the provisions of the Revenue Bond Law, in a principal amount not to exceed
$8,000,000, for the purpose of providing funds to refund the 2001 Bonds, pursuant to the Loan
Agreement, 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 City Manager,
including changes deleting references to the funding of capital improvements to the Water
System from the proceeds of the Loan. The execution of the Loan Agreement by the City
Manager shall be conclusive evidence of the approval of such changes and additions. The City
Council hereby authorizes and directs the City Manager to execute, and the City Clerk to attest,
said form of the Loan Agreement for and in the name of the City. The City Council hereby
authorizes the delivery and performance of the Loan Agreement.
Resolution No.2012-144 N.C.S. Page 1
Section 2. Refunding of the 2001 Bonds. The City Council hereby authorizes and approves the
refunding of the 2001 Bonds from the proceeds of the Loan. The refunding of the 2001 Bonds
shall beaccomplished as provided in the Loan Agreement and an Escrow Deposit and Trust
Agreement, between the City and Union Bank, N.A., as trustee for the 2001 Bonds, which
Escrow Agreement is hereby approved, in the form on file with the'City Clerk.
Section 3. Official Actions. The Mayor, the City Manager, the City Clerk and any and all other
officers of the City are hereby authorized and directed, for and in the name and on behalf of the
City, to do any and all things and take any and all actions, including execution-and delivery of
any and all assignments, certificates, requisitions, agreements, notices, consents, instruments of
conveyance, warrants and other documents, which they, or any of them, may deem necessary or
advisable in order to consummate the transactions described herein. Whenever in this resolution
any officer of the City is authorized to execute or countersign any document or take any action,
such execution, countersigning or action may be taken on behalf of such officer by any person
designated by such officer to act on his or her behalf if such officer is absent or unavailable.
Section 4. Effective Date. This Resolution'shall take effect from and after the date of its
passage.and 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 proved as to
Council of the City of Petaluma at a Regular meeting on the I"day of October, for h :
2012,by the following vote:
Cityv ttorney
AYES: Mayor Glass, Barris, Healy, Kearney, Vice Mayor Renee
NOES: None
ABSENT: Albertson.Barrett
ABSTAIN: None
ATTEST: eLowx)
City Clerk Mayor
Resolution No. 2012-144 N.C.S. Page 2