HomeMy WebLinkAbout2015-49 CC Reso - Approving Potential Refunding of Water Revenue Bonds1
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RESOLUTION NO. 2015- 49
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING ACTIONS
IN CONNECTION WITH A POTENTIAL REFUNDING OF WATER REVENUE BONDS
WHEREAS, in accordance with Articles 10 and 11 of Chapter 3 of Part 1 of Division 2 of
Title 5 of the California Government Code (commencing with Section 53550 thereof) (the
"Refunding Law "), the City of Ukiah (the "City ") is authorized to issue its bonds for the purpose
of refunding its bonds; and
WHEREAS, the Association of Bay Area Governments (the "Authority ") issued 2005
Water and Wastewater Revenue Bonds, Series A (the "2005 Water Bonds ") on behalf of the
City to finance the acquisition and construction of capital improvements to water and /or
wastewater systems of the City in the principal amount of $17,900,000, of which $11,845,000 is
presently outstanding; and
WHEREAS, the City entered into an Installment Purchase Agreement (the "2005
Installment Purchase Agreement "), dated as of September 1, 2005, between the City and the
Authority, pursuant to which the City made installment payments to the Authority in the amounts
sufficient to make debt service payments on the 2005 Water Bonds; and
WHEREAS, the City wishes at this time to issue Water Revenue Refunding Bonds,
Series 2016 (the "Series 2016 Refunding Bonds ") for the purpose of refunding the 2005 Water
Bonds in order to realize cash flow savings; and
WHEREAS, prepaying the 2005 Water Bonds is reasonably expected to result in
anticipated net cash flow savings of approximately $35,000 in annual debt service from lower
interest rates through the final maturity in 2035 or total estimated present value savings of
approximately $543,800 over the life of the bonds which will result an in improved bond
coverage ratio for the City's water system; and
WHEREAS, the Series 2016 Refunding Bonds, upon issuance, will be payable from the
net revenues derived from the City's water system available after payment of operation and
maintenance costs of the water system; and
WHEREAS, the City has solicited proposals from Bond and Disclosure Counsel and
Underwriters, whose services will be required for the execution of the refunding transaction; and
WHEREAS, the City has received proposals for Bond and Disclosure Counsel and for
Underwriter services which were evaluated based on the quality of response and the proposed
cost of services; and
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WHEREAS, based on these evaluations, the City has determined to contract with
Stradling Yocca Carlson and Rauth, P.C. as Bond and disclosure Counsel and Raymond
James & Associates, Inc. as the Underwriter for Series 2016 Refunding Bonds; and
WHEREAS, the proceeds from the issuance of the 2016 Refunding Bonds and /or
discounts provided in connection with the issuance of the bonds will be lawfully used to pay the
fees and expenses of Bond and Disclosure Counsel and the Underwriter.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Ukiah as
follows:
Section 1. The City Manager is hereby authorized and directed to enter into contracts
with Stradling Yocca Carlson and Rauth, P.C. as Bond and Disclosure Counsel and Raymond
James & Associates, Inc. as the Underwriter for the refunding transaction, provided the terms of
such contracts are consistent with the provisions of this Resolution and the fees and /or
discounts called for in said contracts are approved by the City Council.
Section 2. This Resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED this 16th day of December 2015, by the following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Councilmembers Crane, Mulheren, Doble, Brown, and Mayor Scalmanini
None
None
None
ATTEST:
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Kristine Lawler, City Clerk
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Stephen G. Scalmanini, Mayor
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