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Home My WebLink AboutReso. 2025-019 - Approving Issuance by RJPFA of Electric System Revenue RESQLUTI(31V�fJ, 2025-019 A RESOLU7CTON (JF THE CITI� +C4�UNC�L (JrF TFIE CITI' {�F REDDING APPRO�II'�G THE ISSUANCE BY THE RED]DING JOINT P't�WE�S .l'.�.11i�l�l.�l\S.7 �V 1�1111�i11T I V.0 L'LL`��l\14... �7 I�.iJ LL'lYl�^�,Y L'1'4 LJ.L'�.[y�l\��.39 AUTHCI Z�I�I'G EXECUTI(?1V ANll DELIVERY tJF AN INSTALLMENT SALE AGItEEMEIVT, A P�7R�'HASE CtJ1YT CT ANIJ► A CONTINUING DISCLt`3�IT AGREEMENT; APPROVIN�G F() t}F OFFICIAL �Tl��'�ME��y �� f�Z�T�t}��a E��UTI{)� {�F 1}��U��NZ'� AND THE TA�ING OF ALL I�tE+CESSARY ACTICINS RELATING TC} THI�FINAI�CIN+� WITH T�IE R:ETIDING Jt)INT PClWERS FIlVANCIN� AUTHt�►RTTY WHEI2EAS, the City af Redding (the "City"} and the H�using Authority t�f the City �f Redding (the "I-�ousing Authority") haVe heretofore executed a joint exercise of powers agreement, dated December 6, 1988, and thereafter amend�d(the "Joint Po�rers Agreement"),by and between the City and tl�e H�using Auth�rity, which Jc�int Powers �greement creates and establishes the Redding 3c�int Power�Financing Authority{the "Authority"), and WHE AS> pursuant to Article 4 of Chapter 5 of Division '� of Title 1 of the C�ov�rnment Code of the State of Califr�rnia, the Authority is authorized tc� issue bands for financing c�r refinan�ing public capital impr�vements vvhenever there are significant publie benefits tr� be realized�and �HE AS, the City h�s determined that it is desirable and furthers the public purpase to assist in the financing of the additions, betterncients, extensions and improvernents to the electric utilit� system af the City set forth in Exhibit A hereto (the ``2025A Electric System Fr�ject;'}; and WI�EFtEAS, the City desires to enter into a 2025A Installment Sale Agreement (the "2425A Installment Sale Agreement"), pursuant to which the City will seil the 2025A Electric System Froject to the Authority and the City will purchase the 2025A Electric System Project fr�m the Autharity, all as more fully set forth in the 2Q25A�nstallment Sa1e Agreem�nts and WI�EREAS, the City desires to approve the Authtsrity''s i�suance of not to exceed $70,OQ0,000 aggregate principal arnount c�f R:edding 1t�int Powers Financing AuthQrity Electric System Revenue Bonds, 202SA Series A (th� "Bonds"), fc�r th� purpose af financing the 2025A Electric Sy�tems Prc�ject; and WHE�EAS, the Authority and City wilt enter into a Purchase Contract (the "Purcha�e Contract"�with J.P. Mc�rgan Securities LL� (the "Ullderwriter"); and WHEREAS, in order to assist the Underwriter in complying with �ecurities and Exchange Commission Rule 1Sc2-12, the City will execute and deliver a Continuing Discic�sure A�reement {the "Cantinuing Disclosure Agr�eme�t"); �nd al�s-Zsso-a��:� WHEREAS, there have been submitted, and are on file with the City Clerk, proposed forms of the 2025A Installment Sale Agreement, Purcl�ase Contract, Contirtuing Disclosure Agreement and an Ufficial Statement with respect to the B�nds praposed to �e issued by the Authc�rity; and a Trust Agreement by and between the Authority and U.S. Bank Trust Campany, National Association, a� Trustee (the "Trust Agreement"); and WHEREA�, pursuant to Section 6586.5 af the California Government Code, this City Cc�uncil hereby determines that there are significant public benefits, including through demonstrable savings in the effective interest r�te� and bond issuance costs expected ta be paid far the Bond� issued to finance the 2025A Electri� System Project, and that it furthers the public purpose ta assist in such financing and zefinancing; NOW THEREFORE, tlle City Cc�uncil of the City of I�edding her�by'finds, determines, declares and resolves as follows. Section 1. All of the recitals set forth abave are true and canect, and the City Cc�uncil so finds and determines. Section 2. The City Cc�uncil �ereby approves the issuance of the �onds by the Authc�rity, in an aggregate principal arriount not tt� exceed �74,OOfl,000, tt� finance the ��25A Electric System Praject. The c�fficers raf the City are hereby directed tc� perfc�rm the duties, if �ny, impc�sed upon the City by the provisions t�f the financing documents approv�d herein; including the Trust Agreement �:nd the 2Q25A Installment �ale Agreement, and the Uirector c�f Finance of the City is hereby authorizecl and directed to hold the funds and accounts created in said financing documents and directed or permitted to be held by the City. Sectit�n 3. The propc�sed form of 2025A Installment Sale Agreement by and between the City and the Authority, on file with the City Clerk, is hereby approved. The Mayor or �ity IVlanager af the City (�r other c�fficer designated by the City Manager} is hereby autharized and directed, f+ar and in the name and t�n behalf of the City, to execute and deliver an instailrnent sale agree�nent in substantially said form, with such changes therein as such officer may require ar apprcrve, such approval ta be canclusiuely evidenced by the executian and delivery thereof; pra�ided, h�wever, that the terrn c�f said installment sale agi•eement shall end no later thar� June 1, 2055 and the interest rates result in a true interest cost for the Bands of not to exceed�f six percent{6.0%)per annum. Section 4. The proposed form �f Purchase Contra�t, by and among the Underwriter, the Authority and the City; an file with the City Clerk, is hereby approved, The Mayor or City Manager of the City (or ather officer designated by the City Manager} is each hereby authorized �nd directed, �n behalf of the City, to execute and delive� a purchase cc�ntract in substantially said form, with such changes therein as such offic�r may requir� or approve, such apprc�val to be concluszvely evidenced by the execution and delivery there�f, provided, however, the underwriting discaunt (not including original issue discaunt} shall nt�t exceed one- haif of on� percent(Q.5%}of the aggregate principal arnount crf the Bands: Section 5. The prapc�sed form af Continuing Disclosure Agreement, by and between the City and U,S. Bank Trust Ct�mpany, Natianal Association, �s trustee and 2 4ias-assa-��.� disseminatic�n agent, on f�le with the City Cierk, is hereby approved. The Mayor or City Manager of the City (or other officer designated by the City Manager) is hereby authoriz�d and directed to and in the name and on the behalf of the City, ta execute and deliver a continuing disclasure agreement in substantially said form with said changes therein as such officer may require t�r apprave, such appraval ta be conclusively evidenced by the execution and delivery theiea£ Sectit�n 6. The prop4sed form c�f Official Statement relating to the F3onds {the "Official Staterrlent"j; on file with the City Clerk, is herebY apprr�ved. The Mayor or City Manager of the City (t�r c�ther c�ffi�er designated by tl�e City Manager}`is hereby authorizeci a�d directed� for and in the narne and �an behalf af the City, to execute and deliver an (�fficial Staterr�ent in substantially said farm, with such changes the�ein as such afficer may require or apprc�ve, such approval to be conclusively evidenced by the execution�nd deli�very thereof. The Underwriter is hereby directed t� ��stribute copies of the �fficial Statement to al1 actual purchasers of the Bands. Distribution by the Underwriter of a pre�iminary Officia� Statement relating ta the ,Bonds is hereby approved and the Mayor or City Manager of the �ity (or other afficer�esignated by the �ity Manager} is hereby autharized and directed tca execute a certificate c�snfirming that the prel�mznary C�fficia� Statement has been "deemed final" by the City for purposes af Sec�xrities and Ex�hange Cammi�sion Rule 1 Sc2-1�'. Section?. The Nlayor or City Manager c�f the �ity(or other c�fficer designated by the City Manager) is hereby authorized, upc�n a deterrninatic�n by such c�fficer that the procurement of such policy is in the best interests of the City, tc�pr�cure and maintain a�olicy of mun�cipal bc�nd insur�nce for the benefit af the registered owners of one or more maturities of the Bonds in such form and on �uch terms as such officer shall require ar approve, such appraval tc� b� conclusively evidenced by the executian anc� delivery of the cc�mrnitrnent for anc! on behalf of the City to the issu�r of such municipal bc�nd insurance policy or surety l�c�nd. Sectir�n$. The City Clerk is he�eby authorized and directed to attest the signature c�f the MayQr, City Manager c�r other afficers of the City as m�y be required in connectian with the execution and delivery of the Bc�nds and the 2025A Installment Sale Agreement, Purchase Contract and�c�ntinuing L)asclosure Agreement in accordance with this Rest�luti�n. Sectic�n 9. The officers and City �ouncil Members 4f the City are hereby authorized and directed,jointly and severally; to d� any and a11 things and to execute and deliver any and all documents and certificates which they deem necessary or advisable in order to cansummate the execution and deli�ery of the dt�cuments mentit�ned herein and otherwise ta effect2aate the purposes of this Resolution and the transacti�ns contemplatec�hereby. Section 1 t}. All acti�ns heretafare taken by the officers and agents of the City witih respect to the financing of the 2025A Electric System Project are her�by ratified; cc�nfirmed and app�oved. Se�tion l l. This Resolution shall take effect from and after its adoption and approval. 3 4145-2850-33 79.3 I HEREBY CERTIFY that the foregoing resolution was introduced and ciuly passed and adopted by the City Councii af the City of R.edding at a regular meeting thereof held on the 18th �ay of March, 2025, by tlle fc�llowing vc�te of the members thereof: AYES: +CC}UN+CIL MEMBERS: -Audette,l�hanuJka,Littau,Resner,and Munns �C1ES; C(}ITl'�CIL ME ERSt -Non� A�SENT; COUIYCIL MEMB]ER�. -None A�3STAII�T; �OUNCIL ME ERS, -1'�crne _� �� '� _�S �,�, . �� .� JACK MTJN S,Mayar § � ATT'EST; APPRt7V�D AS T�D F(} t -� . ,�� :� �a �� ' �,�� ""�� x 'HA �NE TIPTCIN, City Clerk �CH STIAN M. �URTIS, City Attorney 4 4145-2850 33']93 E�HI�IT A 2025A ELECTR.IC SYSTEM F'ROJECT The 2(125A Electric System Project consists of certain additions, betterments, extensions and improvements to the electric utility sy�tem of the City of Redding, including but not limited ta the follawing; • C)verhead/Underground Infrastructure EnhancementslModernization • Substatic�n Security Improvements r R.edding Pawer Plant Maintenance & C}perations Building * Transmission& Distribution Facility Enhancements/tlpgrades * Back-up Power Cc�ntrr�� Center Relocation and Enhancements • �iec�graphic Infflrrnation �ystem Utility Netwoi:k Upgrade/Sc�ftware Replacement � Major Maintenance tc� Redding P�wer Plant � General System Zmprovements A-1 41h5-2854 3379.3