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HomeMy Public PortalAbout2016.202 (09-20-16)RESOLUTION NO. 2016.202 A RESOLUTION OF THE CITY COUNCIL OF LYNWOOD APPROVING THE ISSUANCE AND SALE BY THE LYNWOOD UTILITY AUTHORITY OF NOT TO EXCEED $16,000,000 PRINCIPAL AMOUNT OF ITS LYNWOOD UTILITY AUTHORITY ENTERPRISE REVENUE BONDS, 2016 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 $9,755,000 principal amount of its Lynwood Utility Authority Enterprise Revenue Bonds, 2008 Series A (the "2008 Bonds "), for the purpose of refunding, on a current basis, outstanding Lynwood Public Financing Authority Water Revenue Bonds (Water System Improvement Project), Series 1995 and for the purpose of financing certain new improvements to the water distribution system of the City of Lynwood and certain capital improvements for the City of Lynwood (the "City"); and WHEREAS, the Authority has heretofore authorized, issued and sold $5,735,000 principal amount of its Lynwood Utility Authority Enterprise Refunding Revenue Bonds, 2009 Series A (the "2009 Bonds "), for the purpose of refunding, on a current basis, outstanding Lynwood Public Financing Authority Water Revenue Bonds (Water System Improvement Project), Series 1999; and WHEREAS, payment of the principal of and interest on the 2008 Bonds and 2009 Bonds was secured by a pledge of net revenues received by the Authority from the operation by the City of its combined water and sewer system (the "Enterprise "); and WHEREAS, the Authority has previously issued its $5,660,000 Lynwood Utility Authority Enterprise Refunding Revenue Bonds, 2014 Series A (the "2014 Bonds "); and WHEREAS, the Authority is authorized pursuant to the provisions of section 6546 of the Act (the 'Bond Law "), to issue its revenue bonds for the purpose of financing facilities for the production, storage, transmission, or treatment of water or waste water; and WHEREAS, the Authority, after due investigation and deliberation, has determined 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 an advance basis, the 2008 Bonds and 2009 Bonds, (b) finance certain improvements to the Enterprise, (c) fund a reserve fund for such bonds, and (d) pay the costs of issuance of such bonds; and WHEREAS, to that end, the Authority has determined to issue its revenue bonds, to be designated as the Lynwood Utility Authority Enterprise Revenue Bonds, 2016 Series A, in the principal amount not to exceed $16,000,000 (the "2016 Bonds "), to be secured by a pledge of the net revenues derived from the operation of the Enterprise, on a parity with the 2014 Bonds; and WHEREAS, the firm of Ramirez & Co., Inc. (the "Underwriter ") has proposed to purchase and underwrite the 2016 Bonds; and WHEREAS, the Council has duly considered such transactions and wishes at this time to approve said transactions in the public interests of the City; and 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 2016 Bonds. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, ORDER, AND RESOLVE 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 2016 Bonds. The Council hereby approves the issuance of the 2016 Bonds in a principal amount not to exceed $16,000,000. Section 3. Approval of Sale of 2016 Bonds. The Council hereby approves the sale of the 2016 Bonds by the Authority by negotiation with the Underwriter. Section 4. Official Actions. The Mayor, the Mayor Pro Tem, the City Manager, the City Treasurer, 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 2016 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. Section 6. The City Clerk shall certify as to the adoption of this City Council Resolution. [THIS SECTION INTENTIONALLY LEFT BLANK] 2 PASSED, APPROVED AND ADOPTED this 20th day of September, 2016. ATTEST: Z4 494 City Clerk APPROVED AS TO FORM: UAA David A. Garcia, City Attorney &`{- / r Edwin Hernandez, Mayor APPROVED AS TO CONTENT: Lj\C-�V J. Arnoldo Beltran, City Manager STATE OF CALIFORNIA ) ) SS. COUNTY OF LOS ANGELES ) I, Maria Quinonez, 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 20th day of September, 2016, and passed by the following vote: AYES: COUNCIL MEMBERS ALATORRE, SANTILLAN -BEAS, SOLACHE, CASTRO AND MAYOR HERNANDEZ NOES: NONE ABSENT: NONE ABSTAIN: NONE U Maria Quinonez, City Clerk STATE OF CALIFORNIA ) ) SS. COUNTY OF LOS ANGELES ) I, Maria Quinonez, 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. 2016.202 on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 20th day of September, 2016. Maria Quinonez, City Clerk I:!