HomeMy Public PortalAbout2008.155 (10-07-08)RESOLUTION NO. 2008.156
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD APPROVING
THE ISSUANCE AND SALE BY THE LYNWOOD UTILITY AUTHORITY OF NOT TO
EXCEED $17,500,000 PRINCIPAL AMOUNT OF ITS LYNWOOD UTILITY
AUTHORITY ENTERPRISE REVENUE BONDS, 2008 SERIES A, AND
AUTHORIZING AND DIRECTING THE EXECUTION THEREOF AND AUTHORIZING
ACTIONS RELATED THERETO
WHEREAS, the Lynwood Utility Authority (the "Authority") is a joint powers
authority duly organized and existing under and pursuant to that certain Joint Exercise
of Powers Agreement, dated as of September 1, 2003, by and between the City and the
Lynwood Redevelopment Agency (the "Agency" and, with the City, the "Members"), and
under the provisions of Articles 1 through 4(commencing with section 6500) of Chapter
5 of Division 7 of Title 1 of the California Government Code (the "AcY'), and is
authorized pursuant to Article 4 of the Act to borrow money for the purpose of financing
the acquisition of bonds, notes and other obligations of, or for the purpose of making
loans to, public entities, including the Members, and to provide financing for public
capital improvements of public entities, including the Members; and
WHEREAS, the Lynwood Public Financing Authority (the "Financing Authority")
has heretofore authorized, issued and sold $4,500,000 principal amount of its Lynwood
Public Financing Authority Water Revenue Bonds (Water System Improvement Project),
Series 1995, of which $3,175,000 remains outstanding (the "1995 Bonds"), for the
purpose of financing the improvement, betterment, renovation and expansion of certain
facilities within the water distribution system of the City (the "Water System"); and
WHEREAS, payment of the principal of and interest on the 1995 Bonds is
secured by a pledge of revenues received by the Financing Authority, being comprised
' primarily of installment payments made by the City to the Financing Authority (the "1995
Installment Payments") pursuant to an installment purchase agreement, dated as of
October 1, 1995, by and between the Financing Authority and the City (the "1995
Installment Purchase AgreemenY'); and
WHEREAS, the payment of the 1995 Installment Payments by the City was
secured by a pledge of the net revenues derived from the operation by the City of its
combined water and sewer system (the "Enterprise"); and
WHEREAS, the Financing Authority has also heretofore authorized, issued and
sold $5,850,000 principal amount of its Lynwood Public Financing Authority Water
Revenue Bonds (Water System Improvement Project), Series 1999, of which
$5,410,000 remains outstanding (the "1999 Bonds"), for the purpose of financing the
improvement, betterment, renovation and expansion of certain facilities within the Water
System; and
WHEREAS, payment of the principal of and interest on the 1999 Bonds is
secured by a pledge of revenues received by the Financing Authority, being comprised
primarily of installment payments made by the City to the Financing Authority (the "1999
Installment Payments") pursuant to the 1995 Installment Purchase Agreement, as
supplemented by a supplement to the 1995 Instaliment Purchase Agreement, dated as
of October 1, 1999 (as so supplemented, the "Installment Purchase Agreement"); and
WHEREAS, the payment of the 1999 Installment Payments by the City was
secured by a pledge of the net revenues derived from the operation of the Enterprise,
on a parity with its obligation to make the 1995 Installment Payments; and
WHEREAS, pursuant to a lease agreement, dated as of November 1, 2003 (the
"Lease AgreemenY'), by and between the City and the Authority, the City leased the
Enterprise to the Authority and the Authority leased the Enterprise from the City; and
WHEREAS, pursuant to the Lease Agreement, the Authority assumed all rights
and obligations with respect to the Enterprise, including the City's obligations with
respect to making the 1995 Installment Payments and the 1999 Installment Payments
under the Installment Purchase Agreement, 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; and
WHEREAS, the Authority is authorized pursuant to the provisions of section
6546 of the Act (the "Bond Law"), to issue its revenue bonds (the "Bonds) for the
purpose of financing facilities for the production, storage, transmission, or treatment of
water or waste water; and
WHEREAS, the Authority has heretofore authorized, issued and sold $6,930,000
principal amount of its Lynwood Utility Authority Enterprise Revenue Bonds, 2003
Series, of which $6,180,000 remains outstanding (the "2003 Bonds"), for the purpose of
financing an upfront lease payment paid to the City for the lease of the Enterprise
pursuant to the Lease Agreement; and
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"); and
WHEREAS, the payment of the principal of and interest on the 2003 Bonds by
the Authority was secured by a pledge of the net revenues derived from the operation of
the Enterprise, on a parity with its assumed obligation to make the 1995 Instaliment
Payments and the 1999 Installment Payments; 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 bonds under the Bond Law to (a) refund, on a current basis, the 1995
Bonds and discharge its obligations to make the 1995 Installment Payments, (b) refund,
on an advance basis, the 1999 Bonds and discharge its obligations to make the 1999
Installment Payments, (c) finance certain new improvements to the Enterprise (the
"Improvements"), (d) fund a reserve fund for such bonds, and (e) 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, 2008
Series A(the "2008 Bonds"), to be secured by a pledge of the net revenues derived
from the operation of the Enterprise, on a parity with the 2003 Bonds; and
WHEREAS, the firms of Wedbush Morgan Securities and Stone & Youngberg
LLC (the "Underwriters") have proposed to purchase and underwrite the 2008 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 2008 Bonds.
NOW, THEREFORE, the City Council of the City of Lynwood does hereby find,
order, and resolve as follows:
Section 1. Findinqs 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 2008 Bonds. The Council hereby approves the
issuance of the 2008 Bonds.
Section 3. Apqroval of Sale of 2008 Bonds. The Council hereby approves the
sale of the 2008 Bonds by the Authority by negotiation with the Underwriters.
Section 4. Official Actions. The Mayor, the Mayor Pro Tem, the City Manager,
the City Treasurer, the Assistant City Manager-Administrative and Community Services,
the Assistant City Manager-Development, 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 2008 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 7~' day of October, 2008.
ATTEST:
i ~
Maria Quinonez
City Clerk
APPROVED AS TO FORM:
~~~1 ~
Fred Galante
City Attorney
C~c~ O~G~Gf'~-
Mar a T. Santillan
Mayor
APPROVED AS TO CONTENT:
Roger L. Haley
City Manager
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )
) SS.
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 7~' day of October, 2008.
AYES: COUNCIL MEMBERS, CASTRO, FLORES, MORTON, RODRIGUEZ,
AND SANTILLAN
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
~~~ ~
Maria Quinonez, City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )
) SS.
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. 2008.155 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 October,
2008
/
l
Maria Quinonez, City Clerk