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Home My WebLink AboutReso 97-218 - Approve issuance & sale of NTE principal amt of Authority 1997 Reassessment Revenue Bonds ,� „ � � : � RESOLUTION NO.vl1-Z«S RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING ISSUANCE AND SALE OF NOT TO EXCEED $10.0 MILLION PRINCIPAL AMOUNT OF AUTHORITY 1997 REASSESSMENT REVENUE BONDS, SERIES A AND SUBORDINATED SERIES B; APPROVING FORM AND SUBSTANCE OF SERIES A TRUST AGREEMENT AND SERIES B TRUST AGREEMENT, AUTHORIZING MODIFICATIONS THEREOF AND EXECUTION AND DELIVERY AS MODIFIED; APPROVING A PRELIMINARY OFFICIAL STATEMENT, AUTHORIZING CHANGES THERETO AND EXECUTION AND DELIVERY THEREOF AND OF AN OFFICIAL STATEMENT TO BE DERIVED THEREFROM; APPROVING A LOCAL OBLIGATION PURCHASE CONTRACT, A BOND PURCHASE AGREEMENT AND A CONTINUING DISCLOSURE UNDERTAKING, AUTHORIZING MODIFICATIONS THEREOF AND EXECUTION AND DELIVERY OF EACH; AND AUTHORIZING RELATED ACTIONS NECESSARY TO IMPLEMENT THE PROPOSED REFUNDING PROGRAM (1997 Reassessment Revenue Bonds, Series A and Subordinated Series B) WHEREAS, the City Council of the City of Redding (the "City"),by proceedings duly had and taken, provided for the issuance of its Limited Obligation Improvement Bonds (the "Prior Bonds") for each of five separate assessinent districts of the City (the "Prior Assessment Districts") under and pursuant to the conditions and terms of the Iinprovement Bond Act of 1915 (the "1915 Act"), the unmatured portion of which is now outstanding; and WHEREAS, the City Council of the City has, by prior resolution, declared its preliminary intention to issue limited obligation refunding bonds (the "Local Obligations") pursuant to the Refunding Bond Act of 1984 for 191 S Improvement Act Bonds (the "Reassessment Act") for the purpose of refunding the unmatured portion of the Prior Bonds now outstanding under and pursuant to the conditions and terms of the Reassessment Act and to provide for the levy and collection of reassessments as security for the Local Obligations; and WHEREAS, the refunding program recommended by M.L. Stern & Co., Inc., as underwriter(the "Underwriter") for the securities to be offered to the public in connection with the proposed refunding of the Prior Bonds entails issuance by the Authority of its 1997 Reassessment Revenue Bonds, Series A and Subordinated Series B (the "1997 Series A and B Reassessment.Revenue Bonds"), to be issued pursuant to and under the terms of two trust agreements pertaining thereto (the "Series A Trust Agreement" and the "Series B Trust � Agreement"), to be dated as of December 1, 1997, by and among the City, the Authority and `�� First Trust of California, National Association, as trustee (the "Trustee"), with the proceeds of � sale to be derived from the sale to the Underwriter of the 1997 Series A and B Reassessment �\ Revenue Bonds to be used by tlle Autliority to purcl�ase the Local Obligations; and ��L �WHEREAS, in furtllerance of implementing the proposed refunding program, the following documents have becn prepared, reviewed and approved as to form by City staff, and `� filed with the City Clerk: DOCSSF1:210116.1 � ... • 4010 9-2 7—SS4 �:'t�:��1„�;,;� ..� _'`��..'s..� '...��...f.�. i� �„�,t, s'� ... a • • (a) the Preliminary Official Statement, pertaining primarily to the 1997 Series A and B Reassessment Revenue Bonds but also describing tlie refunding program, the Local Obligations and certain other information deemed material to an informed investment decision respecting the 1997 Series A and B Reassessment Revenue Bonds; (b) a Local Obligation Purchase Contract, by which the Authority proposes to purchase the Reassessment Local Obligations from the City; (c) a Bond Purchase Contract, by which the Authority proposes to sell and the Underwriter proposes to purcl�ase the 1997 Series A and B Reassessment Revenue Bonds from the Authority; (d) tlle Series A Trust Agreement; pursuant to which the 1997 Series A Reassessment Revenue Bonds are to be issued and administered by the Trustee, as Series A Trustee; (e) the Series B Trust Agreement, pursuant to which the 1997 Subordinated Series B Reassessment Revenue Bonds are to be issued and administered by the Trustee, as Series B Trustee; and (� a Continuing Disclosure Undertaking of the City, to be executed by the City, pursuant to which the City is providing for continuing disclosure in compliance with the requirements of Rule 15c(2)-12 ("Rule 15c(2)-12"), promulgated by the United States Securities and Exchange Commissions under the Securities Exchange Act of 1934; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redding as follows: Section 1. The foregoing recitals are true and conect, and this City Council so finds and determines. Section 2. This City Council hereby finds and deterniines that the issuance of the Redding Joint Powers Financing Authority 1997 Series A and B Reassessment Revenue Bonds, and the acquisition of the Local Obligations by the Authority will result in significant public benefits, including demonstrable savings in effective interest rate, bond preparation, bond underwriting and bond issuance costs. Section 3. The Preliminary Official Statement, (the "Preliminary Official Statement"), suUmitted to this meeting and on f ile with the City Clerk, is hereby approved, with such changes as the City Manager or designee shall approve. The City Manager is hereby authorized and directed to approve the distribution of the Preliminary Official Statement when satisfied with it and to certify on belialf of the City that the Preliminary Official Statement has been deemed "final" by tlle City, except for certai�i information pursuant to Rule 15c2-12, and the City Manager is hereby autllorized and directed to execute the Official Statement to be derived from the Preliminary Off cial Statement, for and in the name of and on behalf of the City, but only concunently with execution on behalf of the Authority, which shall deliver the Official Statement in final form to the Uncierwriter. The Official Statement may conlain sucli changes as the City Manager shall approve, sucll approval to be conclusively evidenced by the execution thereof on behalf of the City. DOCSSF1:210116.1 4 010 9-27-SS4 2 .::f{::;�"�r.r.; ..�,....,r.:r�::r f.•�•-. ., ..., . � : , : • ... ...• ,.. � : .; � ... ..... , v � . . :• , ... ..�•...�•...+ ... ... .,. � ..._ � � � � � Section 4. The fornl of Local Obligation Purchase Contract (the "Local Obligation Purchase Contract"), submitted to this meeting and on file with the City Clerk, pursuant to which the Authority offers to purchase the Local Obligations from the City, is hereby approved, with such changes as the City Manager or designee shall approve, such approval to be conclusively established by the execution thereof. The City Manager is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver to the Authority the Local Obligation Purchase Contract in substantially said form, providing for the sale of the Local Obligations to the Authority at par, and the City Clerk is authorized and directed to attest such execution. The Local Obligations shall mature in the principal amounts in the years and shall bear interest at the interest rates provided in Exhibit A of the Local Obligation Purchase Contract, which Exhibit A shall be attached thereto prior to execution thereof on behalf of the City. Section 5. The fornl of Bond Purchase Contract (the "Bond Purchase Contract"), submitted to this meeting and on file with the City Clerk, pursuant to which the Authority offers to sell and M.L. Stern & Co., lnc., offers to purchase the 1997 Series A and B Reassessment Revenue Bonds, is hereby approved, with such changes as the Authority shall approve Section 6. The fom� of each of the two Trust Agreements, submitted to this meeting and on file with the City Clerk, is hereby approved, subject to such changes as the City Manager or designee shall approve, such approval to be conclusively established by the execution thereof. The City Manager is authorized and directed to execute the Trust Agreements on behalf of the City. Section 7. Tl�e fonn of Continuing Disclosure Undertaking of the City, submitted to this meeting and on file with tlle City Clerk, is hereby approved, subject to such changes as the City Manager or designee shall approve, such approval to be conclusively established by the execution thereof. The City Manager is authorized and directed to execute the Continuing Disclosure Undertaking of the City on behalf of the City. Section 8. All actions heretofore taken by the officers and agents of the City with respect to notice of advanced redemption to the holders of the outstanding Prior Bonds, the sale, execution and delivery of the Local Obligations, and the other transactions authorized and contemplated herein are llereby approved, conCirmed and ratified. Notwithstanding any provision of this resolution autl�orizing the City Manager to take any action or execute any document to the contrary, in the absence of the City Manager or in lieu of the City Manager, the person designated in writing by t11e City Manager, may take such action or execute such document with like effect as fully as thou�h named in this resolution instead of the City Manager. Section 9. This reso(ution shall take effect immediately upon its adoption. * * * DOCSSF1:210116.1 40109-27-SS4 3 �. ...,... ..._ _..;...,,4:::�ir:. �••;�._�.0 i� ...� .f i'� •_ _.;'•—;l...f`_, s ; •, 1 , � � PASSED AND ADOPTED this 2"d day of December, 1997, by the following vote: AYES: Members Anderson, Kehoe, McGeorQe and Murray NOES: Members None ABSENT: Members None ABSTAIN: Members None — , APPROVED: � AY R ATTEST: CITY CLE I certify tllat the foregoing is a full, true and correct copy of Resolution No. , passed and adopted by the City Council of the City of Redding on December 2, 1997. CITY CLERK DOCSSF1:210116.1 aoio9-z�-ss� 4 ��:�,-�i�:r_:: ....,...,,....,_.. _. ... _ . ., : -••,.-. , , , •; s ,:� .... ... ...�•._• •...�.._�•...• . : ;-• �i t ..., •...� ...! , � - .._