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HomeMy WebLinkAbout2006-11 financing of water system improvementsRESOLUTION NO. 2006-11 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH AUTHORIZING DOCUMENTS AND ACTIONS RELATING TO FINANCING OF WATER SYSTEM IMPROVEMENTS WHEREAS, 1, The City presently owns and operates facilities and property for the supply, treatment and distribution of water within the service area of the City (the "Water System"), and the City wishes to provide funds at this time to finance improvements to the Water System, consisting generally of the construction of additional water tanks to increase the City's storage capacity by 3.3 million gallons, installing two additional treatment modules in the City's water treatment plant, installing additional pumps and associated equipment, and fixing cracks in the concrete foundation of the treatment plant reservoir (the "Project"); and 2. The Association of Bay Area Governments (the "Authority") is authorized to assist local agencies in the financing of facilities and property such as the Project, and the Authority has proposed to enter into an Installment Sale Agreement (the "Installment Sale Agreement") with the City and Wells Fargo Bank, National Association, as trustee (the "Trustee"), under which the Authority agrees to provide funding for the Project and to sell the completed Project to the City in consideration of the agreement by the City to pay the purchase price of the Project in semiannual installments (the "Installment Payments"), to be secured by a pledge of and lien on the net revenues from the Water System; and 3. For the purpose of obtaining the moneys required to finance the Project, the Authority proposes to assign and transfer certain of its rights under the Installment Sale Agreement to the Trustee under an Indenture of Trust (the "Authority Bond Indenture"), between the Authority and the Trustee, under which the Authority will authorize the issuance and sale of its 2005 Water and Wastewater Revenue Bonds, Series A (the "Authority Bonds") which are secured by a pledge of certain revenues including the Installment Payments; NOW, THEREFORE, the City Council of the City of Ukiah hereby resolves as follows: Section 1. Approval of Installment Sale Agreement. The City Council hereby approves the financing of the Project as described herein. To that end, the City Council hereby approves the Installment Sale Agreement in substantially the form on file with the City Clerk, together with any changes therein or additions thereto approved by the City Manager. The Mayor or the City Manager is hereby authorized and directed for and in the name and on behalf of the City to execute the final form of the Installment Sale Agreement, and the City Clerk is hereby authorized and directed to attest to the final form of the Installment Sale Agreement. The schedule of installment payments attached to the Installment Sale Agreement shall be determined based on the payments of principal of and interest on the Authority Bonds. The principal amount of the Installment Payments shall be an amount which is sufficient to provide not to exceed $15,000,000 for the Project, and the interest rate at which the Installment Payments are computed shall not exceed 5.50% per annum. Section 2. Issuance and Sale of Authority Bonds. The City Council hereby approves the issuance of the Authority Bonds for the purpose of providing funds to finance the Project, under and in accordance with the Authority Bond Indenture in substantially the form on file with the City Clerk. The City Council approves the sale of the Authority Bonds by competitive sale of the Bonds among a limited number of bidders as provided by resolution of the governing board of the Authority. Section 3. Official Statement. The City Council hereby approves and deems nearly final within the meaning of Rule 15c2-12 of the Securities Exchange Act of 1934, the portions of the preliminary Official Statement relating to the Authority Bonds which describe the City, the Water System and the Project, in the form on file with the City Clerk. The City Manager or Finance Director (an "Authorized Officer") is hereby authorized, at the request of the purchaser of the Authority Bonds, to execute an appropriate certificate affirming the completeness and accuracy of such portions of the Official Statement. The City does not assume any responsibility or liability for the Official Statement other than those portions which describe the City, the Water System and the Project. Section 4. Official Actions. The Mayor, the City Manager, the Finance Director, the City Clerk, and all other officers of the City, are authorized and directed in the name and on behalf of the City to make any and all assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and other documents, which they or any of them might deem necessary or appropriate in order to consummate any of the transactions contemplated by the agreements and documents approved under this Resolution. Whenever in this Resolution any officer of the City is directed to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf in the case such officer is absent or unavailable. Section 5. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption. PASSED AND ADOPTED on August 17, 2005, by the following roll call vote: AYES: NOES: None ABSTAIN: None ABSENT: Councilmember Rodin Councilmembers Crane, McCowen, Baldwin, and Mayor Ashiku ~ ~~.~~TTEST: , Marie Ulvila, City Clerk k Ashiku, Mayor