HomeMy WebLinkAboutReso. 1986 - 046 - Authorizing the execution and delivery of a substitute reimbursement agreement p y 110 •
CITY OF REDDING
RESOLUTION NO. gb 17/6
A RESOLUTION OF THE CITY OF REDDING APPROVING THE FORM AND
AUTHORIZING THE EXECUTION AND DELIVERY OF A SUBSTITUTE
REIMBURSEMENT AGREEMENT AND CERTAIN OTHER ACTIONS IN1
CONNECTION THEREWITH
WHEREAS, the City of Redding, a general law city and
municipal corporation duly organized and existing under and
pursuant to the Constitution and laws of the State ofl!
California (the "City" ) , is authorized under provisions .of the
Constitution and laws of the State of California to operate an
electric system and acquire such property therefor asthe City
may determine is necessary or proper; and
WHEREAS, the City and Security Pacific National
Bank, a national banking association (the "Corporation" ) , have
entered into a certain Installment Payment Contract, dated as
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of October 1, 1984 (the "Installment Payment Contract' ) ,
pursuant to which the City has acquired from the Corporation
certain facilities for the generation, transmission and
distribution of electricity (the "Project" ) ; and
WHEREAS, the Corporation has assigned, inter alia,
all its rights under the Installment Payment Contract to Bank
of America National Trust and Savings Association, a national
banking association, as trustee (the "Trustee" ) , pursuant to a
certain Assignment Agreement, dated as of October 1, 1984, the
"Assignment Agreement" ) ; and
WHEREAS, pursuant to a certain Trust Agreement,
dated as of October 1, 1984 (the "Trust Agreement" ) , among the
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Trustee, Bankamerica Trust Company of New York, as paying
agent, the Corporation and the City, floating rate demand
certificates of participation evidencing proportionate
interests in payments due from the City under the Installment
Payment Contract, such certificates being in the aggregate
principal amount of up to $19, 500, 000 (the "Certificates" )
have been issued to finance a part of the cost acquiring,
constructing, improving, maintaining, equipping and furnishing
the Project; and
WHEREAS, in order that the Certificates receive
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credit ratings that would permit them to be marketed at an
interest rate lower than otherwise available, the City
requested Manufacturers Hanover Trust Company ( "MHTC" )i to
issue, and MHTC issued, its letter of credit (the "MHTC Letter
of Credit" ) satisfying the requirements of the Trust
Agreement; and
WHEREAS, the Trust Agreement provides for an
Alternate Letter of Credit ( as such term is defined in the
Trust Agreement) , and the City has requested The Industrial
Bank of Japan, Limited acting through its Los Angeles Agency
(the "Bank" ) , to issue to the Trustee an irrevocable letter of
credit in the form of Exhibit Y to the hereinafter-described
Reimbursement Agreement (the "Letter of Credit" ) in
substitution for the MHTC Letter of Credit, as permitted
pursuant to Section 5 . 08 of the Trust Agreement; and
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WHEREAS, the City has determined that it will
achieve both cost savings and a higher credit rating on the
Certificates resulting in lower interest rates as a result of
such substitution of the Letter of Credit for the MHTC Letter
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of Credit;
WHEREAS, all acts, conditions and things required by
the Constitution and laws of the State of California to exist,
to have happened and to have been performed precedent to and
in connection with the approval of the form, execution, and
delivery of the Reimbursement Agreement authorized hereby do
exist, have happened and have been performed in regular and
due time, form and manner as required by law, and the City is
now duly authorized and empowered, pursuant to each and every
requirement of law, to consummate such substitution for the
purpose, in the manner and upon the terms herein provided;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF REDDING AS FOLLOWS:
Section 1 . The City hereby specifically finds and
determines that the actions authorized hereby constitute and
are with respect to public affairs of the City and that the
statements, findings and determinations of the City set forth
in the preambles of this resolution and of the documents
approved herein are true and correct.
Section 2 . The form of Reimbursement Agreement,
dated as of March 1, 1986, between the City and the Bank,
presented to this meeting and on file with the City Clerk of
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the City, is hereby approved. The Mayor of the City is hereby
authorized and directed, for and in the name and on behalf of
the City, to execute, acknowledge and deliver to the Bank,
said Reimbursement 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 3 . The City Clerk of the City is hereby
authorized and directed to attest the signature of the Mayor
of the City, and to affix and attest the seal of the City, as
may be required or appropriate in connection with the'
execution and delivery of said Reimbursement Agreement.
Section 4. 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 documents
which they may deem necessary or advisable in order to carry
out, give effect to and comply with the terms and intent of
this resolution and said Reimbursement Agreement. Such
actions heretofore taken by such officers are hereby ratified,
confirmed and approved.
Section 5. This resolution shall take effect
immediately upon its passage.
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PASSED AND ADOPTED this 20th day of February, 1986,
by the following vote:
AYES: Councilmembers Demsher, Fulton, Pugh, & Gard
NOES: None
ABSENT: Kirkpatrick
ABSTAIN: None
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Vice "_'yor of the City'_of jF'edding
(SEAL)
Attest:
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City Clerk of the City of Redding
Form approved:
Cit Attorney /
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