HomeMy WebLinkAboutReso. 1987 - 137 - Authorizing the substitution of remarketing agents and actions in connection therewith RESOLUTION NO. E7/Z7
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF REDDING AUTHORIZING THE SUBSTITUTION OF
REMARKETING AGENTS AND ACTIONS IN CONNECTION
THEREWITH AND THE REVIEW OF REFINANCING
OPTIONS FOR CERTAIN OBLIGATIONS
WHEREAS, on October 24, 1984, the City of Redding
(the "City" ) effected an installment purchase financing
through the issuance of City of Redding Floating Rate Demand
Certificates of Participation ( 1984 Electric System Project)
(the "1984 Certificates" ) in the aggregate principal amount of
$19, 500, 000;
WHEREAS, on November 27, 1985 the City effected an
installment purchase financing through the issuance of City of
Redding Floating Rate Weekly Demand Certificates of
Participation ( 1985 Electric System Project) Series A and
Series B (the "1985 Certificates" ) in the aggregate principal
amount of $63, 300, 000;
WHEREAS, the City and E . F. Hutton & Company Inc .
( "E. F. Hutton" ) have entered into a Remarketing Agreement,
dated as of October 1, 1984 (the "1984 Remarketing
Agreement" ) , relating to the 1984 Certificates, and the City
and E. F. Hutton have entered into a Remarketing Agreement,
November 1, 1985 (the "1985 Remarketing Agreement" ) , relating
to the 1985 Certificates;
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WHEREAS, it is now desirable to substitute Shearson
Lehman Brothers Inc . ( "Shearson" ) for E. F. Hutton as
remarketing agent under the 1984 Remarketing Agreement and
under the 1985 Remarketing Agreement; and
WHEREAS, it may be advantageous for the City to
refinance the 1985 Certificates with long term fixed rate
obligations;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF REDDING AS FOLLOWS:
Section 1 . The officers 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 notices or
other documents which they may deem necessary or advisable in
order to remove E. F. Hutton as remarketing agent under the
1984 Remarketing Agreement and under the 1985 Remarketing
Agreement and to employ Shearson as remarketing agent under
the 1984 Remarketing Agreement and under the 1985 Remarketing
Agreement.
Section 2 . The City Manager and the Director,
Electric Department of the City are hereby authorized and
directed to consult with Shearson and with Orrick,
Herrington & Sutcliffe to review the possible advantages of
refinancing the 1985 Certificates with long term fixed rate
obligations and to prepare recommendations to the City Council
concerning such a refinancing.
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Section 3 . This resolution shall take effect
immediately upon its passage.
PASSED AND ADOPTED this 5th day of May, 1987, by
the following vote :
AYES: Carter, Fulton, Gard, Johannessen, & Dahl
NOES: None
ABSENT: None
C-1)1,j
Mayor of the City of Redding
( SEAL)
Attest:
��C:IZclG :
City Clerk of the Ci y of Redding
Form Approved:
L-1Z-464
City At or y
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