HomeMy Public PortalAbout2014.001 (01-07-14)RESOLUTION NO. 2014.001
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
APPROVING THE ISSUANCE AND SALE BY THE LYNWOOD UTILITY
AUTHORITY OF ITS LYNWOOD UTILITY AUTHORITY ENTERPRISE
REFUNDING REVENUE BONDS, 2013 SERIES A, AND AUTHORIZING AND
DIRECTING THE EXECUTION THEREOF AND AUTHORIZING ACTIONS
RELATED THERETO
WHEREAS, the Lynwood Utility Authority (the "Authority ") has heretofore
authorized, issued and sold $6,930,000 principal amount of its Lynwood Utility Authority
Enterprise Revenue Bonds, 2003 Series (the "2003 Bonds "), for the purpose of
financing an upfront lease payment pursuant to a lease agreement, dated as of
November 1, 2003 (the "Lease Agreement'), by and between the City and the Authority
whereby the City leased its combined water and sewer enterprise (the "Enterprise ") to
the Authority and the Authority leased the Enterprise from the City;
WHEREAS, pursuant to the Lease Agreement, the Authority assumed all rights
and obligations with.respect to the Enterprise, although the City retained control of the
operation and maintenance of the Enterprise on behalf of the Authority pursuant to an
enterprise management agreement, dated as of November 1, 2003, by and between the
Authority and the City;
WHEREAS, the 2003 Bonds were issued under and pursuant to an indenture of
trust, dated as of November 1, 2003, by and between the Authority and BNY Western
Trust Company, since succeeded by The Bank of New York Mellon Trust Company,
N.A., as trustee (the "Trustee ");
WHEREAS, the payment of the principal of and interest on the 2003 Bonds by
the Authority is secured by a pledge of the net revenues derived from the operation of
the Enterprise;
WHEREAS, the Authority has also heretofore authorized, issued and sold its
$9,755,000 Lynwood Utility Authority Enterprise Revenue Bonds, 2008 Series A (the
"2008 Bonds "), to (a) refund bonds issued in 1995 to finance Enterprise improvements,
(b) finance certain new improvements to the Enterprise, (c) fund a reserve fund for such
bonds, and (d) pay the costs of issuance of such bonds;
WHEREAS, the Authority has also heretofore authorized, issued and sold its
$5,735,000 Lynwood Utility Authority Enterprise Revenue Refunding Bonds, 2009
Series A (the "2009 Bonds "), to (a) refund bonds issued in 1999 to finance Enterprise
improvements, (b) fund a reserve fund for such bonds, and (c) pay the costs of issuance
of such bonds;
WHEREAS, the Authority has determined, after due investigation and
deliberation, that it is in the interests of the Authority at this time to provide for the
issuance of additional bonds under the Bond Law to (a) refund, on a current basis, the
2003 Bonds, and (b) pay the costs of issuance of such bonds;
WHEREAS, to that end, the Authority has determined to issue its revenue, bonds,
to be designated as the Lynwood Utility Authority Enterprise Refunding Revenue Bonds,
2013 Series A (the "2013 Bonds "), to be secured by a pledge of the net revenues
derived from the operation of the Enterprise, on a parity with the 2008 Bonds' and the
2009 Bonds;
WHEREAS, the firm of Western Alliance Bank (the "Purchaser') has proposed to
purchase and underwrite the 2013 Bonds;
WHEREAS, the Council has duly considered such transactions and wishes at
this time to approve said transactions in the public interests of the City;
WHEREAS, the Council has on this date held a duly noticed public hearing on
the financing, as required by section 6586.5(a) of the California Government Code; and
WHEREAS, the Council now desires to make a finding of significant' public
benefit, pursuant to section 6586.5(a)(2) of the California Government Code, and to
approve the issuance and sale of the 2013 Bonds;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES
HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Findings and'Determinations. The Council hereby finds that significant public
benefits will arise from the financing in accordance with section 6586 of the California
Government Code, in that the financing will result in demonstrable savings in effective
interest rates, bond preparation, bond underwriting, bond issuance costs and other fixed
costs.
Section 2. Approval of the 2013 Bonds. The Council hereby approves the issuance of
the 2013 Bonds. The maximum aggregate principal amount of the 2013 Bonds is not
limited but the debt service payments with respect to the 2013 shall not exceed the debt
service payments of the 2003 Bonds.
Section 3. Approval of Sale of 2013 Bonds. The Council hereby approves the sale of
the 2013 Bonds by the Authority by negotiation with the Purchaser.
Section 4. Official Actions. The Mayor, the Mayor Pro, Tem, the City Treasurer, the
Finance Director, the City Clerk and any and all other officers of the Authority are
hereby authorized and directed, for and in the name and on behalf of the City, to do any
and all things and take any and all actions, including execution and delivery of'any and
all assignments, certificates, requisitions, agreements, notices, consents, instruments of
conveyance, warrants and other documents, which they, or any of them, may deem
necessary or advisable in order to consummate the lawful issuance and sale of the
2013 Bonds and the consummation of the transactions as described herein.
Section 5. Effective Date. This Resolution shall take effect from and after the date of its
passage and adoption.
PASSED, APPROVED and ADOPTED this 7th day of January, 2014.
ATTEST:
aria Quinonez, City Clerk
APPROVED AS TO FORM:
Galante, City Attorney
i
Aide Castro, Mayor
APPROVED AS TO CONTENT:
wul
Richard N. Warne,
Interim City Manager
Amanda Roberson, Director
Finance
STATE OF CALIFORNIA )
) SS.
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the
foregoing Resolution was passed and adopted by the City Council of the City of
Lynwood at a regular meeting held on the 7th day of January, 2014.
AYES: COUNCIL MEMBERS ALATORRE, SANTILLAWBEAS, SOLACHE
HERNANDEZ AND CASTRO
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
ara Quinonez, City Clerk
STATE OF CALIFORNIA )
) SS.
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, and the Clerk of the City
Council of said City, do hereby certify that the above foregoing is a full, true and correct
copy of Resolution No. 2014.001 on file in my office and that said Resolution was
adopted on the date and by the vote therein stated. Dated this 7th day of January,
2014.
Ma is Quinonez, City Clerk