HomeMy WebLinkAboutReso 2020-133 - Approving issuance by the RJPFA Authority of Notes; authorizing execution & Delivery of Revolving Credit agreement & Installment Sale Agreement RESOLUTION NO. 2020-133
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING THE ISSUANCE BY THE REDDING JOINT POWERS
FINANCING AUTHORITY OF NOTES; AUTHORIZING EXECUTION
AND DELIVERY OF A REVOLVING CREDIT AGREEMENT AND AN
INSTALLMENT SALE AGREEMENT; AND AUTHORIZING
EXECUTION OF DOCUMENTS AND THE TAKING OF ALL
NECESSARY ACTIONS RELATING THERETO
WHEREAS, the City of Redding (the "City") and the Housing Authority of the City of
Redding (the "Housing Authority") have heretofore executed a joint exercise of powers
agreement, dated December 6, 1988, and thereafter amended (the "Joint Powers Agreement"), by
and between the City and the Housing Authority, which Joint Powers Agreement creates and
establishes the Redding Joint Powers Financing Authority (the "Authority"); and
WHEREAS, pursuant to Article 4 of Chapter 5 of Division 7 of Title 1 of the
Government Code of the State of California, the Authority is authorized to issue notes for
financing or refinancing public capital improvements whenever there are significant public
benefits; and
WHEREAS, the City has determined that it is desirable and furthers the public purpose
to assist in the financing of the design, acquisition, construction and improvement of the certain
improvements to the electric system of the City (the "Project"); and
WHEREAS, the City desires to approve the Authority's issuance of notes not to exceed
at any time outstanding $25,000,000 in aggregate principal amount (the "Notes") evidencing
repayment obligations under a Revolving Credit Agreement (together with all exhibits attached
thereto, the "Revolving Credit Agreement") to be entered into among the City, the Authority and
U.S. Bank National Association (the "Lender") for the purpose of financing the Project; and
WHEREAS, the Authority and City will enter into a Subordinate Installment Sale
Agreement (the "Installment Sale Agreement") pursuant to which the City will make installment
payments sufficient to pay all obligations outstanding under the Revolving Credit Agreement,
including the principal of and interest on the loans evidenced by the Notes; and
WHEREAS, there have been presented to this meeting proposed forms of the Revolving
Credit Agreement and the Installment Sale Agreement; and
WHEREAS, there have been submitted and are on file with the City Clerk proposed
forms of the Revolving Credit Agreement and the Installment Sale Agreement; and
WHEREAS, the issuance of the Notes by the Authority and the execution and delivery
of the Revolving Credit Agreement and the Installment Sale Agreement will result in significant
public benefits through demonstrable savings in the effective interest rates expected to be paid by
the City; and
WHEREAS, pursuant to Section 5852.1 of the California Government Code, the City
has received certain representations and good faith estimates from PFM Financial Advisors LLC
and has disclosed such good faith estimates as set forth in the staff report posted relating to this
meeting;
NOW THEREFORE, the City Council of the City of Redding hereby finds, determines,
declares and resolves as follows:
Section 1. All of the recitals set forth above are true and correct, and the City
Council so finds and determines.
Section 2. The City Council hereby approves the issuance of the Notes by the
Authority, in an aggregate principal amount at no time to exceed $25,000,000, to finance the
Proj ect.
Section 3. The proposed form of Revolving Credit Agreement by and among
the Authority, the City and the Lender, on file with the City Clerk, is hereby approved. The
Mayor, the City Manager or the Director of Finance/City Treasurer of the City (or other officer
designated by the City Manager or the Director of Finance/City Treasurer) is hereby authorized
and directed, for and in the name and on behalf of the City, to execute and deliver a credit
agreement in substantially said form, with such changes therein as such officer may require or
approve, such approval to be conclusively evidenced by the execution and delivery thereof.
Section 4. The proposed form of Installment Sale Agreement, by and between
the City and the Authority, on file with the City Clerk, is hereby approved. The Mayor, the City
Manager or the Director of Finance/ City Treasurer of the City (or other officer designated by the
City Manager or the Director of Finance/City Treasurer) is hereby authorized and directed, for
and in the name and on behalf of the City, to execute and deliver an installment sale agreement
in substantially said form, with such changes therein as such officer may require or approve,
such approval to be conclusively evidenced by the execution and delivery thereof.
Section 5. The City Clerk is hereby authorized and directed to attest the
signature of the Mayor, City Manager or other officers of the City as may be required in
connection with the execution and delivery of the Notes, the Revolving Credit Agreement and
the Installment Sale Agreement in accordance with this Resolution.
Section 6. The officers and City Council members of the City are hereby
authorized and directed,jointly and severally, to do any and all things and to execute and deliver
any and all documents and certificates which they deem necessary or advisable in order to
consummate the execution and delivery of the documents mentioned herein, and otherwise to
effectuate the purposes of this Resolution and the transactions contemplated hereby.
Section 7. All actions heretofore taken by the officers and agents of the City
with respect to the financing of the Project are hereby ratified, confirmed and approved.
Section 8. This Resolution shall take effect from and after its adoption and
approval.
I HEREBY CERTIFY that the foregoing resolution was introduced and duly passed and
adopted by the City Council of the City of Redding at a regular meeting thereof held on the 20th
day of October, 2020, by the following vote of the members thereof:
AYES: COUNCIL MEMBERS: Resner,Schreder,Winter,and McElwain
NOES: COUNCIL MEMBERS: Dacquisto
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
ADAM McELVAIN, Mayor
ATTEST: FORM APPROVAL:
1 �
PAMELA MIZE, City Cle k BARRY E. De A T, City Mitorney
CERTIFICATE OF THE CLERK
I, Pamela Mize, City Clerk of the City of Redding (the "City"), hereby certify that the
foregoing Resolution No. 2020-133, is a full, true, and correct copy of a resolution duly adopted
at a regular meeting of the City Council of the City duly held in Redding, California, on October
20, 2020, of which meeting all of the members of said City Council had due notice.
I further certify that I have carefully compared the foregoing copy with the original
minutes of said meeting on file and of record in my office; that said copy is a full, true, and
correct copy of the original resolution adopted at said meeting and entered into said minutes, and
that said resolution has not been amended, modified, rescinded, or revoked in any manner since
the date of its adoption, and the same is now in full force and effect.
An agenda of said meeting was posted at least 72 hours before the meeting at 777
Cypress Street, Redding, California 96001, a location freely accessible to members of the public,
and a brief general description of said resolution appeared on said agenda.
Dated: October��, 2020.
City Clerk of the City o dding
4163-8011-8567.4