HomeMy WebLinkAboutReso 2002-182 - Municipal ImprovementsCITY COUNCIL OF THE CITY OF REDDING
RESOLUTION NO. 02-/~a,~
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING THE ISSUANCE BY THE REDDING JOINT POWERS
FINANCING AUTHORITY OF NOT TO EXCEED $14,000,000 AGGREGATE
PRINCIPAL AMOUNT OF REDDING JOINT POWERS FINANCING
AUTHORITY LEASE REVENUE BONDS (2002 CAPITAL PROJECTS);
APPROVING THE FORMS OF AND AUTHORIZING EXECUTION AND
DELIVERY OF AN ACQUISITION AGREEMENT, A FACILITIES LEASE, AN
AMENDMENT TO FACILITIES SUBLEASE, AN OFFICIAL STATEMENT
AND A PURCHASE CONTRACT IN CONNECTION WITH CERTAIN
MLrNICIPAL IMPROVEMENTS; AND AUTHORIZING 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 oft~he
State of California authorizes and empowers such an authority to issue bonds for the purpose of
financing 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 public capital improvements, including, but not limited to,
general municipal improvements; and
WHEREAS, the City has determined that the issuance of Bonds (defined below)
by the Authority is desirable and furthers the public purpose and that there are significant public
benefits to be derived from securing the assistance of the Authority in financing the design,
acquisition, construction and equipping of various recreational improvements within the City,
including the Redding Plunge, a sports field complex and related improvements and refinancing
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certain public safety communications facilities (the "Improvements"), in that the City will
benefit from demonstrable savings in the cost of financing the Improvements; and
WHEREAS, in order to achieve such public purpose, the City desires to approve
the Authority's issuance of not to exceed $14,000,000 aggregate principal amount of the Redding
Joint Powers Financing Authority Lease Revenue Bonds (2002 Capital Projects), including 2002
Series A Bonds in an aggregate principal amount not to exceed $11,100,000 and Series 2002 B
(Taxable) Bonds in an aggregate principal amount not to exceed $219001000 (the "Bohds"); and
WHEREAS, there has been presented to this meeting a proposed form of
Acquisition Agreement by and between the City and the Authority (the "Acquisition
Agreement"), pursuant to which the City will sell to the Authority certain interests in real
property, namely, either (1) the City's police building, certain public safety communications
facilities and the Redding Plunge; or (2) the Redding Convention Center (the "2002 Property"),
as more completely described in the Acquisition Agreement; and
WHEREAS, the. re has been presented to this meeting a proposed form of
Facilities Lease by and between the City and the Authority (the "Facilities Lease"), pursuant to
which the Authority will lease back to the City the 2002 Property;
WHEREAS, th~xe has been presented to this meeting a proposed form of
Amendment to Facilities Sublease by and among the City, as sublessor, and the County of Shasta
and the City of Anderson, as sublessees (the "Amendment to Facilities Sublease"), pursuant to
which the City shall continue the sublease of a portion of the Shascom Project to said County
and said City;
WHEREAS, there has been presented to this meeting a proposed form of'
Preliminary Official Statement describing the Bonds and the financing of the Improvements and
other information (the "Preliminary Official Statement") and a proposed form of Bond Purchase
Contract relating to the sale of the Bonds (the "Purchase Contract"), by and among the
Authority, the City and A.G. Edwards & Sons, Inc. (the "Underwriter");
NOW, THEREFORE, BE IT RESOLVED by the City Council of the Ci~ty of
Redding as follows:
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Section 1.
tree and correct.
Section 2.
The City hereby finds and determines that the foregoing preambles are
The City hereby approves the issuance of the Bonds by the Authority
in an aggregate principal amount not to exceed $14,000,000, including 2002 Series A Bonds in
an aggregate principal amount not to exceed $11,100,000 and 2002 Series B (Taxable) Bonds in
an aggregate principal amount not to exceed $2,900,000.
Section 3. The Acquisition 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, City Manager, Assistant City Manager or Deputy City Manager (each, an "Authorized
City Representative") are hereby authorized to execute, and the City Clerk is hereby authorized
to attest, seal and deliver, the A~xluisition Agreement in substantially said form with such
changes therein as shall be approved by the City Attorney and such Authorized City
Representative executing the same, with such execution to constitute conclusive evidence of
such Authorized City Representative's approval and the City's approval of any changes or
revisions therein from the form of the Acquisition Agreement now on file with the City Clerk.
Section 4. The Facilities Lease, in substantially the form on file with the City
Clerk and incorporated by reference as if fully set forth herein, is hereby approved. Any
Authorized City Representative is hereby authorized to execute, and the City Clerk is hereby
authorized to attest, seal and deliver, the Facilities .Lease in substantially said form with such
changes therein as shall be approved by the City Attorney and such Authorized City
Representative executing the same, with such execution to constitute conclusive evidence of
such Authorized City Representative's approval and the City's approval of any changes or
revisions therein from the form of the Facilities Lease now on file with the City Clerk.
Section 5. The Amendment to Facilities Sublease, in substantially the form on
file with the City Clerk and incorporated by reference as if fully set forth herein, is hereby
approved. Any Authorized City Representative is hereby authorized to execute, and the City
Clerk is hereby authorized to attest, seal and deliver, the Amendment to Facilities Sublease.. in
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DOCSSF1:619910.5
substantially said form with such changes therein as shall be approved by the City Attorney and
such Authorized City Representative executing the same, with such execution to constitute
conclusive evidence of such Authorized City Representative's approval and the City's approval
of any changes or revisions therein from the form of the Amendment to Facilities Sublease now
on file with the City Clerk.
Section 6. The approval of the Bonds and the authorization of the execution and
delivery of the Acquisition Agreement, the Facilities Lease and the Amendment to Facilities
Sublease is subject to the following conditions precedent:
(A) The final rnamfity date of the Bonds shall not be later than March l, 2033;
The Bonds shall be issued in an aggregate principal amount not to exceed
(B)
$14,000,000; and
(C) The tree interest cost of the Bonds (including any bond insurance premiums)
shall not exceed five and one-half percent (5.5%) in the case of the 2002 Series A Bonds and
seven percent (7%) in the case of the 2002 Series B (Taxable) Bonds.
Section 7. The Preliminary Official Statement relating to the Bonds, in
substantially the form on file with the City Clerk and incorporated by reference as if fully set
forth herein, is hereby approved, and the Underwriter is hereby authorized and directed to
distribute the Preliminary Official Statement in connection with the offering and sale of the
Bonds in substantially said form with such changes therein as an Authorized City Representative
may require or approve. Any Authorized City Representative is hereby authorized to certify that
such Preliminary Official Statement is "deemed final" by the City for purposes of Rule 15c2-12
of the Securities Exchange Commission.
Section 8. Any Authorized City Representative is hereby authorized and directed
for and in the name and on behalf of the City, to execute and deliver an Official Statement (the
"Official Statement"), in substantially the form of the Preliminary Official Statement, with such
changes therein as such Authorized City Representative may require or approve, such approval
to be conclusively evidenced by the execution and delivery thereof. The Underwriter is hereby
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authorized and directed to distribute copies of said final official statement, as finally executed, to
all actual purchasers of the Bonds.
Section 9. The proposed form of Purchase Contract on file with the City Clerk
and incorporated by reference as if fully set forth herein is hereby approved. Any Authorized
City Representative is hereby authorized and directed to execute and deliver to the Underwriter
said purchase contract in substantially said form, with such changes as shall be approved by the
Authorized City Representative executing such agreement, such approval to be conclusiw,qy
evidenced by the execution and delivery thereof.
Section 10. 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
(including, without limitation, a continuing disclosure agreement, a tax certificate and a financial
guaranty agreement, if any, relating to any reserve fund surety) in order to consummate the
financing and refinancing of the Improvements, the execution and delivery of the Acquisition
Agreement, the Facilities Lease and the Amendment to Facilities Sublease and the issuance of
the Bonds by the Authority, and the procurement of a policy of municipal bond insurance or
reserve fund surety, if available or deemed by any of them to be desirable, all as authorized
herein, and otherwise to carry out:, give effect to and comply with the terms and intent of this
resolution and the documents herein approved and authorized to be executed.
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Section 11. This resolution shall take effect immediately upon its adoption.
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 17th day of December 2002,
and was duly adopted at said meeting by the following vote:
AYES: Kight, Mathena, Pohlmeyer, Stegall and Cibula
NOES: None
ABSENT: None
ABSTAIN: None
[SEAL]
Mark H.
~ibul~4
Attest: · ~ . ·
ConvS. e Strohmaydr, City Clerk
APPROVED XS';I'O FORM:
L
Brad L. Fuller, City Attorney
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