HomeMy WebLinkAboutReso 95-275 - Approving Installment Sale Agreement for the aquisition of municipal electric system improvements ,T � �
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RESOLUTION NO. 95-� �jr
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING THE FORM OF AN INSTALLMENT SALE AGREEMENT FOR
THE ACQUISITION OF CERTAIN MUNICIPAL ELECTRIC SYSTEM
IMPROVEMENTS AND AUTHORIZING THE EXECUTION AND DELIVERY
THEREOF, AND APPROVING THE ISSUANCE BY THE REDDING JOINT
POWERS FINANCING AUTHORITY OF NOT TO EXCEED $48, 000, 000
AGGREGATE PRINCIPAL AMOUNT OF ELECTRIC SYSTEM REVENUE
BONDS AND BOND ANTICIPATION NOTES RELATED THERETO, AND
APPROVING THE FORM OF AN OFFICIAL STATEMENT FOR THE BONDS
AND RELATED ACTIONS AND MATTERS.
WHEREAS, Article 1 of Chapter 5 of Division 7 of Title
1 of the Government Code of the State of California authorizes
and empowers local agencies to form a joint powers authority, and
Article 4 of Chapter 5 of Division 7 of Title 1 of the Government
Code of the State of California authorizes and empowers such an
authority to issue bonds for the purpose of financing and
refinancing public capital improvements,, working capital,
liability and other insurance needs, or projects whenever there
are significant public benefits, as determined by the local
agency; and
WHEREAS, the City of Redding (the "City") and the
Housing Authority of the City of Redding have created and
established, pursuant to the laws of the State of California, the
Redding Joint Powers Financing Authority (the "Authority") for
the purpose of, among other things, issuing bonds to finance and
refinance public capital improvements, including but not limited
to the municipal electric system of the City (the "Electric y`
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System") ; and �
WHEREAS, the City has determined that it is desirable , !
and furthers the public purpose and that there are significant '�J
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public benefits to be derived from securing the assistance of the
Authority in financing portions of the Electric System, in that
the City and the Authority will benefit from demonstrable savings
in the cost of financing the Electric System as a result of their
participation in the Authority; and
WHEREAS, in order to achieve such public purpose, the
City desires to approve the Authority's issuance of not to exceed
$48, 000, 000 aggregate principal amount of the Redding Joint
Powers Financing Authority Electric System Revenue Bonds, 1996
Series A (the "Bonds") to provide funds for the acquisition of
certain power supply and power exchange arrangements under the
Long-Term Power Sale and Exchange Agreement, Long-Term Power
Purchase Agreement and_Short-Term Power Sale Agreement to be
executed by the City and PacifiCorp (the "1995 Electric System
Project") ; and
WHEREAS, the City further desires to approve the
Authority's issuance of not to exceed $43, 000,000 aggregate
principal amount of Redding Joint Powers Financing Authority
Electric System Revenue Bond Anticipation Notes, Series A (the
"Notes") which Notes will be issued prior to the issuance of the
Bonds and will be payable solely from the proceeds of the Bonds;
and
WHEREAS, there has been presented to this meeting a
proposed form of 1995 Installment Sale Agreement dated as of
December 1, 1995 (the "Agreement") , by and between the City and
the Authority, pursuant to which the Authority will agree to
acquire the 1995 Electric System Project, sell the 1995 Electric
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System Project to the City and the City will agree to make
payments to the Authority for the purchase of the 1995 Electric
System Project; and
WHEREAS, there has also been presented to this meeting
a proposed form of Preliminary Official Statement relating to the
Bonds (the "Preliminary Official Statement") , which the
underwriter for the Bonds will distribute to prospective
purchasers of the Bonds;
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Redding as follows:
Section 1. The City hereby finds and determines that
the foregoing preambles are true and correct.
Section 2. The City hereby approves the issuance of
the Bonds by the Authority in an aggregate principal amount not
to exceed $48,000,000 and the issuance of the Notes by the
Authority in an aggregate principal amount not to exceed
$43, 000, 000.
Section 3. The Agreement, in substantially the form on
file with the City Clerk and incorporated by reference as if •
fully set forth herein, is hereby approved. The Mayor or City
Manager is hereby authorized to execute, and the City Clerk is
hereby authorized to attest, seal and deliver, the Agreement, in
substantially said form with such changes therein as shall be
approved by the City Attorney and the Mayor or City Manager
executing the same, with such execution to constitute conclusive
evidence of such officers' approval and the City's approval of
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any changes or revisions therein from the form of the Agreement
on file with the City Clerk.
Section 4. The proposed form of Preliminary Official
Statement presented to this meeting is hereby approved. The
Mayor or City Manager is hereby authorized, for and in the name
and on behalf of the City, to approve the distribution of the
Preliminary Official Statement in substantially said form, and to
approve the distribution of a final Official Statement in
substantially the form of the Preliminary Official Statement.
Section 5. The approval of the Bonds and the Notes and
the authorization of the execution and delivery of the Agreement
is subject to the following conditions precedent:
1. The final maturity date of the Bonds shall not be
later than December 1, 2016;
2 . The Bonds shall be issued in an aggregate principal
amount not to exceed $48,000,000 and the Notes shall be issued in
an aggregate principal amount not to exceed $43,000, 000; and
3 . The true interest cost of the Bonds (including any
bond insurance premiums) shall not exceed 7.50�.
Section 6. The officers, employees and agents 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, certificates and other instruments which they may deem
necessary or advisable in order to consummate the financing of
the 1995 Electric System Project and the issuance of the Bonds by
the Authority, all as authorized herein, and otherwise to carry
out, give effect to and comply with the terms and intent of this
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resolution and the documents herein approved and authorized to be
executed.
Section 7. This resolution shall take effect
immediately upon its adoption.
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I HEREBY CERTIFY that the foregoing Resolution was introduced
and read at a regular meeting of the City Council of the City of
Redding on the 5th day of December, 1995, and was duly adopted at
said meeting by the following vote:
AYES: P. Anderson, B. Anderson, �1cGeor�e, Murray and Kehoe
NOES: None
ABSENT: None
ABSTAIN: ,Ione
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DAVID A. HOE, May�r
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(SEAL;`
Attes�-,
CONNI� STR H YER, C' Clerk
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CERTIFICATE OF THE CITY CLERK
I, CONNIE STROHMAYER, City Clerk of the City of Redding
(the "City") , hereby certify that the foregoing Resolution No.
95- 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 December 5, 1995, 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 full, true and
correct copy of the original resolution adopted at said meeting
and entered in 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 760 Parkview Avenue, Redding, California
96001-3396, a location freely accessible to members of the
public, and a brief general description of said resolution
appeared on said agenda.
Dated: , 1995.
City Clerk of the City of Redding
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