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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