HomeMy WebLinkAboutReso. 2026-041 - Authorizing Issuance of Electric System Refundng Bond OHS Draft
Distributed 5/18I26
S�L�TTIt7►1�l�t�. 2026-04i
SOL�.TT��1�1 �F THE CIT� C4�I11�T�IL f)� T E �IT�' OF D► ING
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PU �HASE ��J►1VT �C'I', A1�1D AN t�FFI�'TAL STATE ENT A1�1
AP'PR�J►VII�tG T E l)IS'� B�:.T'�"I(�N F A � LIMI�IAR� iJFFI4CIAL
S'I'�TE El'�T, r�NID A�T'T' Cl ZI��G T E �XECUTI�DI�t iJ►F
����..T �1�iTS Al�i 'T' E T��Il�G �F AI.L N�CESSAI�Y A�TICINS
�A,T�N�T � TCt�
WHEREAS, pursuant to the 2015 Installment Sale Agreement, dated as of December 1, 2U 15
(the "2015 Installment Sale Agreement"), by and l�etween the City of Redding (the <`City''} and
the Redding Joint Powers Financing Autharity (the "Authority"), the City heretafore deterrnined
to make installment sale payments to the Authc�rity for purchase of the 2005 Electric System
Project and the 2015 Electric System Project (as defined in the 2015 Installment Sale
Agreement); and
�VH� AS, the City has determined that it is in the best interests of the City and its residents to
refund all or a pflrti�n of the City's obligation to make installment sale payments under the 2015
Installment Sale Agreeme�t (the "2�15 Installment Sale Payments") thrQugh the issuance and
sale af electric system revenue bonds tt� be designated "Ciiy of Reddinb Electric System
Refunding Revenue Bonds, Series 2026"{the "Bonds"); and
�V lE AS, to provide for the issuance and payment of the Bonds, the City desires ta enter into
an Indenture {the "�ndenture") with U.S. Bank Trust Company, National Association, as Trustee
(the "Trustee"); and
dV � �S, the City will enter into a Purchase Cantract (the "Purchase Contr�ct") with J.P.
M�rgan Securities LLC (the"Underwriter"); and
W E AS, in order to assist the Underwriter in complying with S�curities and Exchange
C�mmissicrn Rule 15c2-12, the City will e�ecute and deliver a continuing disclosure agreement
(the "Continuing Disclosure Agreement"); and
WHE AS, there have been submitted and are on file with the City Clerk prflposed forms of
the Indenture, Purchase Cantract, Continuing Disclosure Agreement and an {�fficial Statement
(as defined below)with respect to the Bands; and
�E AS,, the City has engaged Orrick, Herrington & Sutcliffe LI,F' as bond counsel,
Stradiing Yacca Car�sc�n & Rauth LLF as disclos�re counsel, and PFM Financial Advisors LLC
as municipal advisar{the "Municipal Advisor")with respect to the Bands; and
W E AS, +Califc+rnia Governrnent C�de Section 5852.1 requires that the City Council obtain
from an underwriter, financial advisor or private lender and disclase, prior to authorization of the
issuance of bonds with a term af greater than 13 manths, good faith estimates of the following
information in a rneeting open ta the public: (a) the true interest cc�st c�f the bands, (b) the sum af
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all fees and charges paid ta third parties with re5pect to the bands, (c) the amount af proceeds caf
the bonds e�pected to be z:eceived net of the fees and charges paid to third parties and any
reserves or capitalized interest paid ar funded with prflceeds c�f the bonds, and (d) the slim total
of all debt service payments on the bonds calculated to the final maturity of the bonds plus the
fees and charges paid to third parties not paid with the procee�is of the bonds; and
�HE A�, in cc�mpli�nce with Government Code Section 5852.1, the City C+�uncil has
obtained from the Municipal Advisor the required good faith estimates and such estimates are
disclosed and set forth on Exhibit A attached hereto;
1�1�:1V� THE FC� , the City Council of the City of Redding hereby finds, deterrnines,
declares and resolves as follc�ws:
Section 1. All of the recitals s�t 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 Bonds, in an
aggregate principal amount not to exceed $28,OOO,Qfl0,�0; to refinance the 2005 Electric System
Pxt�ject and the 2015 Electric System Project. The c�fficers of the City are hereby directed ta
perform the duties, if any; imposed up�n the City by the provisions of the financing documents
approved herein, includrng the Indenture, and the I7irector of Finance of the City is hereby
authorized and directed to hc�ld the funds and accounts created in sald finaneing documents and
directetl�r permitted to be held by the City.
Section 3. The proposed form of Indenture by and between the City and the Trustee,
on file with the City Clerk,is hereby approved. The Mayor c�r City Manager af the City (or ather
officer designated by the City Manager) is each hereby authorized and directed, for and in the
name and on behalf of the City, ta exeeute and deliver an indenture in substantially said form,
with such changes therein as such officer may require or approve, such apprc�val to be
conclusively evidenced by the execution and delivery ther�of; pr�vided, hawever, that the Bonds
shall mature no later than June 1, 2035, and the interest rates result in a true interest cost for the
Bonds of not to exceed six percent{6.00%0}per annum.
Secti�n 4. The proposed form of Purchase Contract, by and between the Underwriter
and the City, on file with the City Clerk, is hereby approved. The Mayor or City Manager of the
City (ar other c�fficer designated by the City Manager) is each hereby authorized and directed, on
behalf of the City, to execute and deliver a purchase contract in substantially said form, with
such changes therein as such afficer may require or approve, such approval to be conclusively
evidenced by the executic�n and delivery thereof; provided, however, the underwriting discount
(not including original issue discount}shall not exceed c�ne-half percent(0.50°fo) of the aggregate
principal amount of the Bonds.
Section 5: The propased form of Continuing Disclosure Agreement, by and between
the City and U.S. Bank Trust Company, National Association, as trustee and dissemination
agent, on file'with the City Clerk; is hereby approved. The Mayar or City Manager of the City
(or other officer designated by the City Manager) is each hereby authorized and directed tc� and
in the name and on the behalf of the City, tc� execute and deliver a continuing disclasure
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agreement in substantially said form with said changes therein as such afficer may require or
approve, such approval to be conclusively evidenced by the execution and delivery thereof.
Section�. Tl1e proposed farm of Official Statement relating ta the Bonds {the
"Official Statement"j, on file with the City Clerk, is hereby approved. The M�iyor or Gity
Manager of the City (or other officer designated by the City Manager}is eac� hereby authorized
and directed, for and in the name �nd on behalf c,f the City, to execttte and deliver an Official
Statement in substantially said it�rm, with such changes therein as such officer may require or
approve, such approval to be conclusively evidenced by the execution and delivery ther�of. The
LJnderwriter is hereby directed to distribute cc�pies of the Official Statement to all actual
purchasers of the Bonds. Distribution by the Underwriter of a preliminary Official Statement
relating to the Bonds is 1z�reby appraved and the Mayor or City Manager of the +�ity (c�r other
officer designated by the City Manager) is each hereby authorized and directed, to execute a
certificate confirming that the prelimin�ry Official Statement has been "deeined final" by the
City for purposes of Securities and Exchange Comrnission Rule 15e2-12:
Section 7. The 1Vlayor or City Manager of the City (or other officer desibnated by the
City Managez) is each hereby authc�rized, upon a dete�-mination by such officer that the
pr�curement af such policy is in ti�e best interests of the City, to procure and rnaintain a policy of
municipal bond insurance fc�r the benefit of the re�istered �wners of ane or more maturities of
the Bonds in such form and �n such terms as such officer shall require or apprave, such approval
t�a be �onclusively evidenced by the execution and delivery of the cc�mmitment for and on behaTf
of the City to the issuer of such municipal bc�nd insurance policy or surety bc�nd.
Sectic�n 8. The 2015 Installment Sale Payments to �ae prepa�d shall be determined by
the officer executin� th� Indenture to be in the best interest of the City. Such determination shall
be conclusively evidenced by the execution and delivery of#l�e Indenture.
5ection 9. The City Clerk is hereby authorized and dxrected to attest the signature of
the Mayor, City Manager or t�ther c�fficers af the City as may be required in connectzon with the
issuance, sale and delivery of the Bands and the execution and delivery of the Indenture,
Purchase Contract and Continuing I�isclosure Agreement in accordance with this Res�lution.
Section 1C1. The officers and City Council members of the City are hereby authorized
and directed,jaintly and severally,to da any and all things and to execute �nd deliver any and a11
documents and certificates which they deem necessary ar advisable in order to consummate the
executio�n and �elivery of the documents mentioned herein including, without limitati�n,
sibnature certificates, no-litigation certificates, tax certificates, investment instructions,
redemption ar defeasance notices, legal services agreernents (with the approval of the City
Attorney) with the firms identified in the recitals hereto and c�tl�erwise ta effectuate the purpases
of this Itesolution and the transactions conternplated hereby.
Section 11. All actions heretc�fore taken by the officers and agents of the City with
respect ta the refinancing of the 2005 Electric System Project and the 2�15 Electric System
Project are het:eby ratified, confirmed and approved,
Section 12. This Resolution shall take effect from and after its ad�ption and approval.
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I hereby ce�ify that the foregoing re�olution was introduced and adc�pted at a regular meeting of
the City Council of the City of Redding on the 2°� day of June 2026, by the following vote of the
members thereof:
AYES: �OUN+CIL MEMSERS: -Audette,IVlunns,Resn�r,antl lLlr.Dhant�ka
1�TC1ES: C4"�ITNCIL M�I�iBERS: -Nane
ABSEN"�'s C�►UNCIY..1'VIEMBERS: -Littaa� r,..,,� �,
�i�S'I'P�IN: �tJITI�ICII.MEM�ERS: -Nane � i'� �� a.. ��,.� N,����'� �
' ' �
���� l� ��� �.�� �����
��
MIKE LITTAU, M�yoa�
t�'TTEST; FQ APPR�VAL:
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; �
n.� SHA ENE �"TPTON, City Cleri� SE JA IN ': STOC�,Interirn City Attorney
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�X IBIT A
G+Q(� FAITH ES'I'IM�T�S
The good faith estimates set forth herein are provided with respect to the Bonds in
compliance with Section 5852.1 of the CalifaY�nia Governmezat Code. Such g�od faith estimates
hat�e been provided to the City by PFM �'inancial Advisc�rs LLC; as municipai advisor ta the City
(the "Municipal Advisor"}.
P��zrrcipal Amount. The Municipal Advisor has infol�rned the City that, based on the �ity's
financinb plan and current market cc�nditions, its good fa�th estimate �f the aggregate principal
atnt�unt of the Bonds to be sold is $22,115,000.00 {th�"Estimated Principal Amc�unt"}.
T�ue Inte�est' Cost a,f the Bonds: The Municipai Advist�r has informed the City that,
assuming that the Estimated Prineipal Amount of the Bonds is sold, and based on market interest
rates prevailing at the time of preparation of such esti�nate, its good faith estimate of the true interest
cost af the Bonds, which means the rate necessary to c�iscaunt the amaunts payable on the
respective principal and interest payrnent dates to the purchase price received fo� the Bonds; is
2.91%0.
Finccnce Cha�-ge of the Bonds. The Municipal Advisor has informed the City that, assuming
that the Estimated Principal Amount of the Bonds is sold, and based on market interest rates
prevailing at the time of preparation af such estimate, its good faith estimate af the finance charge
for the Bonds, which means the sum af all fees and charges paid to third parties (or�os#s associated
with the Bonds), is$410,575.�0.
A'mv�ant o,f'Proceeds to be Rec�zved. The Municipal Advisor has inforrned the City that,
assuming that the Estimated Principal Amount of the Bt�nds is sold, and based on tnarket interest
rates prevailing at the time of preparation of such estimate, �ts gaod faith estimate of the amount of
proceeds expected ta be received by the City for sale of the Bonds, less the finance charge of the
Bonds; as estimated above, and any reserves or capitalized interest paid or funded with proceeds of
the Bonds, is$23,865;809.34.
Total��zyment Am�unt. The Municipal Advisor has informed the City that, assuming that
the Estimated P1-incip�l Amount of the Bands is sold, and based an market interest rates prevailing
at the time of preparation of such estimate, its gflod faith estirnate of the total payment amaunt,
which means the sum total of a11 payments the City will make to pay debt service on the Bonds,plus
the finance charge for the Bonds, as described above, not paid with the prt�ceeds of the Bonds;
calculated ta the final maturity ofthe Bondsa is $27,5�5,353.47.
The faregaing estimates constitute good faith estimates �nly. The actual principal amount
of the Bonds issued and sold, the true interest cost thereof, the finance charges thereof,the amount
of proceeds received therefrom and total payment amount with respeGt thereto may differ from such
goad faith estirnates due to (a) the actual date of the sale of the Bonds being different than the date
assumed for purpc�ses of such estimates, (b) the actual prineipal amount c�f Bonds sold being
different fram the Estisnated Principal Amount; {c) the actual amortization of the Bonds being
different than the amortizatic�n assumed for purposes of such estimates, (d}the actual market interest
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rates at the time of sale of the Bonds being different than those estimated for purposes of such
estirnates, {e) other mark�t conditions, or (f}alterations in the City's financing plan, or a
combination of such factvrs. The actual date af sale of the L�onds and the actual principal amount of
Bonds sold will be d�termined by the City based on the need for project funds and ather factars.
The actual interest rates borne by the Bonds will depend on market interest rates at the time of sale
therec�f. The actual amortization of t1�e Bonds wil� als� de�end, ii1 pa��-t, c�n m�rket inrerest rates at
the tirne of sale there�f. Market interest rates are aff�cted by ecc�nomic and other factors beyond the
control Qf the City. The City Council has approved the issuance of the Br�nds with a ma�mum trr.�e
interest ccrst of 6.00°10.
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eC�RTIFI�ATE O�' TH� CI.�
I, Sharlene Tipton, City Cler1� of the City of Redding (the "City"), hereby certify
that the foregoing Resolution No. 2026-041, is a full, true, and correct copy af a resolution duly
adopted at a regular meeting flf the City Cc�uncil of the City duly held in Redding, California, on
June 2, 2026, of which meeting all of the mernbers 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 cc�py is a full, true;
and correct copy of the original resolution adapted at said meeting and entered intc� said rninutes;
and that said resolution has not been amended, modified, rescinded, c�r revoked in any manner
since the date of its adoption, and the same is nc�w in fu11 f�rce and effect.
An agenda�f said meeting was posted at least 72 hours before the meeting at 777
Cypress Street,Redding, California 96001, a location freely aecessible to members of the public,
and a brief general description of s�id resolution appeared on said agenda.
�ated: June 23, 2026.
�x R � �� .
-- City Clerk of the City of R:edding
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