HomeMy WebLinkAboutReso 2013-072 - Redding Joint Powers Financing Authority
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RESOLUTION NO. 2013-072
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING APPROVING THE ISSUANCE BY THE REDDING
JOINT POWERS FINANCING AUTHORITY OF LEASE
REVENUE BONDS; AUTHORIZING EXECUTION AND
DELIVERY OF AN ACQUISITION AGREEMENT; A FACILITIES
LEASE; A LEASE TERMINATION AGREEMENT; AN
AMENDMENT TO FACILITIES SUBLEASE; A BOND
PURCHASE AGREEMENT; AND A CONTINUING DISCLOSURE
AGREEMENT; APPROVING FORM OF OFFICIAL
STATEMENT; AND AUTHORIZING EXECUTION OF
DOCUMENTS AND THE TAKING OF ALL NECESSARY
ACTIONS RELATING TO THE FINANCING WITH THE
REDDING JOINT POWERS FINANCING AUTHORITY
WHEREAS, the City of Redding (the "City") and the Housing Authority of the
City of Redding (the "Housing Authority") have heretofore executed a joint exercise of powers
agreement, dated December 6, 1988, and thereafter amended (the "Joint Powers Agreement"), by
and between the City and the Housing Authority, which Joint Powers Agreement creates and
establishes the Redding Joint Powers Financing Authority (the "Authority"); and
WHEREAS, pursuant to Article 4 of Chapter 5 of Division 7 of Title I of the
Government Code of the State of California, the Authority is authorized to issue bonds for
financing or refinancing public capital improvements whenever there are significant public
benefits to be realized; and
WHEREAS, the City has determined that it is desirable and furthers the public
purpose to finance the design, acquisition, construction and improvement of a new police facility
on City owned property adjacent to City Hall and related site improvements (the ~'Project"); and
WHEREAS, the City desires to approve the Authority's issuance of not to exceed
$15,000,000 aggregate principal amount of Redding Joint Powers Financing Authority Lease
Revenue Bonds (2013 Capital Projects), 2013 Series Band 2013 Series C (Taxable) (the
"Bonds"), for the purpose of refunding all or a portion of the Authority's Redding Joint Powers
Financing Authority Lease Revenue Bonds, 2003 Series A and 2003 Series B (Taxable) (the
"Prior Bonds") and for the purpose of financing the Project; and
WHEREAS, the Authority and City will enter into a Bond Purchase Agreement
(the "Bond Purchase Agreement") with RBC Capital Markets, LLC (the "Underwriter); and
WHEREAS, in order to assist the Underwriter in complying with Securities and
Exchange Commission Rule 15c2-12, the City will execute and deliver a Continuing Disclosure
Agreement (Lease) (the "Continuing Disclosure Agreement"); and
WHEREAS, in order to refund the Prior Bonds and finance the Project, the City
desires to enter into an Acquisition Agreement (the "Acquisition Agreement") with the
Authority, a Facilities Lease (the "Facilities Lease") with the Authority and a Lease Termination
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Agreement and Quitclaim Deed (the "Lease Termination Agreement") with the Authority and
U.S. Bank National Association, as Trustee; and
WHEREAS, in connection with the refunding of the Prior Bonds, the City will
enter into an Amendment to Facilities Sublease (the "Amendment to Facilities Sublease") with
the County of Shasta of the City of Anderson; and
WHEREAS, there have been submitted and are on file with the City Clerk
proposed forms of the Acquisition Agreement, Facilities Lease, Lease Termination Agreement,
Amendment to Facilities Sublease, Bond Purchase Agreement, Continuing Disclosure
Agreement and Official Statement with respect to the Bonds proposed to be issued by the
Authority, and a Trust Agreement by and between the Authority and U.S. Bank National
Association, as Trustee (the "Trust Agreement"); and
WHEREAS, the issuance of the Bonds by the Authority and the execution and
delivery of the Acquisition Agreement and Facilities Lease will result in significant public
benefits through demonstrable savings in the effective interest rates and bond issuance costs
expected to be paid for the Bonds, and that it furthers the public purpose to assist in such
financing;
NOW THEREFORE, the City Council of the City of Redding hereby finds,
determines, declares and resolves as follows:
Section 1. All of the recitals set 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 by the
Authority, in an aggregate principal amount not to exceed $15,000,000, to refund the Prior
Bonds and to finance the Project. The officers of the City is hereby directed to perform the
duties, if any, imposed upon the City by the provisions of the financing documents approved
herein, including the Trust Agreement and the Facilities Lease, and the Director of Finance of
the City is hereby authorized and directed to hold the funds and accounts created in said
financing documents and directed or permitted to be held by the City.
Section 3. The proposed form of Acquisition Agreement by and between the
City and the Authority, on file with the City Clerk, is hereby approved. The Mayor or City
Manager of the City (or other officer designated by the Cjty Manager) is hereby authorized and
directed, for and in the name and on behalf of the City, to execute and deliver an acquisition
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 4. The proposed form of Facilities Lease by and between the
Authority and City, on file with the City Clerk, is hereby approved. The Mayor or City Manager
of the City (or other officer designated by the City Manager) is hereby authorized and directed,
for and in the name and on behalf of the City, to execute and deliver a facilities lease 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; provided, however,
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that the term of said facilities lease (including extensions, if any) shall end no later than October
1, 2054, and the annual base rental payment shall not exceed $1,200,000.
Section 5. The proposed form of Lease Termination Agreement and
Quitclaim Deed, by and among the Authority, the City and the trustee for the Prior Bonds, on file
with the City Clerk, is hereby approved. The Mayor or City Manager (or other officer
designated by the City Manager) is hereby authorized and directed, for and in the name and on
behalf of the Authority, to execute and deliver a lease termination 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 6. The proposed form of Amendment to Facilities Sublease by and
among the City, the County of Shasta and the City of Anderson, on file with the City Clerk, is
hereby approved. The Mayor or City Manager (or other officer designated by the City Manager)
is hereby authorized and directed, for and in the name and on behalf of the Authority, to execute
and deliver an amendment to facilities sublease in substantially said form, with such changes as
such officer may require or approve, such approval to be conclusively evidenced by the
execution and delivery thereon.
Section 7. The proposed form of Bond Purchase Agreement, by and among
the Underwriter, the Authority and the City, on file with the City Clerk, is hereby approved. The
Mayor or City Manager of the City (or other officer designated by the City Manager) is each
hereby authorized and directed, on behalf of the City, to execute and deliver a bond purchase
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;
provided, however, the underwriting discount (not including original issue discount) shall not
exceed sixty-five hundredths of one percent (0.65%) of the aggregate principal amount of the
Bonds:
Section 8. The proposed form of Continuing Disclosure Agreement, by and
between the City and U.S. Bank National Association, as trustee and dissemination agent, on file
with the City Clerk, is hereby approved. The Mayor or City Manager of the City (or other
officer designated by the City Manager) is hereby authorized anq directed to and in the name and
on the behalf of the City, to execute and deliver a continuing disclosure agreement in
substantially said form with said changes therein as such officer may require or approve, such
approval to be conclusively evidenced by the execution and delivery thereof.
Section 9. The proposed form of Official Statement relating to the Bonds (the
"Official Statement"), on file with the City Clerk, is hereby approved. The Mayor or City
Manager of the City (or other officer designated by the City Manager) is hereby authorized and
directed, for and in the name and on behalf of the City, to execute and deliver an Official
Statement 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. . The
Underwriter is hereby directed to distribute copies 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 hereby approved and the Mayor or City Manager of the City (or other
officer designated by the City Manager) hereby authorized and directed, to execute a certificate
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confirming that the preliminary Official Statement has been "deemed final" by the City for
purposes ofS.ecurities and Exchange Commission Rule 15c2-12.
Section 10. The City Clerk is hereby authorized and directed to attest the
signature of the Mayor, City Manager or other officers of the City as may be required in
connection with the execution and delivery of the Bonds and the Acquisition Agreement,
Facilities Lease, Lease Termination Agreement, Amendment to Facilities Sublease, Bond
Purchase ContraCt and Continuing Disclosure Agreement in accordance with this resolution.
Section 11. The officers and City Council members 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 and certificates which they deem necessary or advisable in order to
consummate the execution and delivery of the documents mentioned herein and otherwise to
effectuate the purposes of this Resolution and the transactions contemplated hereby.
Section 12. All actions heretofore taken by the officers and agents of the City
with respeCt to the refunding of the Prior Bonds and the financing of the Project are hereby
ratified, confirmed and approved.
Section 13. This Resolution shall take effect from and after its adoption and
approval.
. I hereby certify that the foregoing is a full, true and correct copy of a resolution
duly passed and adopted by the City Council of the City Qf Redding at a regular meeting thereof
. held on the 6th day of August, 2013, by the following vote of the members thereof:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
Cadd, Sullivan, & Bosetti
Jones
McArthur
None
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RICK BOSETTI, Mayor
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FORM APPROVAL:-
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CERTIFICATE OF THE CLERK
I, Pamela Mize, City Clerk ofthe City of Redding (the "City"), hereby certify that
the foregoing Resolution No. 2013-072, is a full, true, and correct copy of a resolution duly
adopted at a special meeting of the City Council of the City duly held in Redding, California, on
August 6,2013, of which meeting all ofthe members 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 copy is a full, true,
and correct copy of the original resolution adopted at said meeting and entered into said minutes,
and that said resolution has not been amended, modified, rescinded, or revoked in any manner
since the date of its adoption, and the same is now in full force and effect.
An agenda of said meeting was posted at least 72 hours before the meeting at 777
Cypress Street, Redding, California 96001, a location freely accessible to members of the public,
and a brief general description of said resolution appeared on said agenda.
Dated: ~~vJ- 1:/-,2013.
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