HomeMy Public PortalAbout99.6 LPFALYNWOOD PUBLIC FINANCING AUTHORITY
RESOLUTION NO. 99.6
RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF THE
AUTHORITY'S WATER REVENUE BONDS (WATER SYSTEM IMPROVEMENT
PROJECT) SERIES 1999; AUTHORIZING THE EXECUTION AND DELIVERY OF AN
INDENTURE AND INSTALLMENT AGREEMENT; AND AUTHORIZING AND
APPROVING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH.
WHEREAS, the Lynwood Public Financing Authority (the "Authority") is authorized
under that certain Joint Exercise of Powers Agreement (the "JPA Agreement"), by and between
the City of Lynwood (the "City") and the Lynwood Redevelopment Agency, and the
Marks-Roos Local Bond Pooling Act of 1985, constituting Article 4, Chapter 5, Division 7,
Title 1 (commencing with Section 6584) of the California Government Code (the "Bond Pooling
Act"), among other things, to issue and sell at public or negotiated sale bonds to pay the cost of
any public capital improvement and to acquire, dispose of, and lease real and personal property;
WHEREAS, the Authority has been organized for the purpose, among other things, of
assisting the City in the financing of public projects which are of benefit to the City;
WHEREAS, the City desires to arrange for the financing of the acquisition and
construction and equipping of improvements to the City's system (the "System") for the
treatment and distribution of water (the "1999 Project Improvements");
WHEREAS, the City is requesting the Authority to issue its Water Revenue Bonds
(Water System Improvement Project) Series 1999 (the "Bonds") pursuant to an Indenture (the
"Indenture"), by and between the Authority and a qualified trustee (the "Trustee") to be
appointed by the chairman, chief executive officer or the treasurer of the Authority (each an
"Authorized Officer");
WHEREAS, the issuance of the Bonds by the Authority will have significant public
benefits within the meaning of California Government Code Section 6586, including, but not
limited to, demonstrable savings in effective interest rate, bond preparation, bond underwriting,
and bond issuance costs, as compared to alternative financing solutions;
WHEREAS, the Authority wishes at this time to authorize all proceedings related to such
financing and the execution and delivery of all agreements and documents related thereto; and
WHEREAS, all acts, conditions and things required by the Constitution and laws of the
State of California to exist, to have happened and to have been performed precedent to and in
connection with the consummation of the transactions authorized hereby do or will exist, have
happened or will happen, and have been or will be performed in regular and due time, form and
manner as required by law, and the Authority is now duly authorized and empowered, pursuant
to each and every requirement of law, to consummate such transactions for the purpose, in the
manner and upon the terms herein provided;
NOW, THEREFORE, THE GOVERNING BOARD OF THE LYNWOOD PUBLIC
FINANCING AUTHORITY DOES RESOLVE AS FOLLOWS:
SECTION 1. Declaration of Governine Board. This Governing Board hereby
speci£cally finds and declares that the statements, findings and determinations of the Authority
set forth in the preambles above and in the preambles of the documents approved herein are true
and correct.
SECTION 2. Approval of Indenture and Supplement No. 1 to InstallmenC Purchase
Agreement. The forms of the Indenture and Supplement No. 1 to Installment Purchase
Agreement (such documents collectively referred to as the "Authority Documents") presented to
this meeting and on file with the Secretary of the Authority (the "Secretary") are hereby
approved. The Authorized Officers are each authorized and directed, for and in the name and on
behalf of the Authority, to execute and deliver the Authority Documents in substantially said
forms, with such changes therein (and additions thereto to reflect the terms of sale of the Bonds)
as such Authorized Officer may require or approve after consultation with the Authority's
general counsel and with Brown & Wood t.t,P, the Authority's Bond Counsel with respect to the
Bonds, such approval to be conclusively evidenced by the execution and delivery thereof.
SECTION 3. Issuance of Bonds. The issuance of the Bonds on the terms and conditions
set forth in, and subject to the limitations specified in, the Indenture is authorized and approved.
The Bonds will be dated, will bear interest at the rates, will mature on the dates, will be issued in
the form, will be subject to redemption, and will be as otherwise provided in the Indenture as
finally executed. The proposed form of the Bonds, as set forth in the Indenture, is approved and
the Authorized Officers are each authorized and directed to execute for and on behalf of the
Authority the Bonds in substantially such form, the Secretary is authorized and directed to attest
r thereto, and the Trustee is authorized and directed to authenticate and deliver the Bonds to the
Il original purchasers thereof in accordance with the Indenture as finally executed; provided,
however, that the aggregate principal amount of the Bonds shall not exceed $6,000,000, the true
interest cost of the Bonds shall not exceed 7.00%, and the final maturity of the Bonds shall not
be later than 30 years from the date of issuance thereof.
SECTION 4. Sale of Bonds. The sale of the Bonds at negotiated sale is approved. The
Bonds shall be sold pursuant to a bond purchase agreement, the form of which is presented to
this meeting and is hereby approved; provided, however, that the underwriting discount of The
Chapman Company (the "Underwriter") shall not exceed 1.7%. The Authorized Officers are
each authorized to execute and deliver said agreement so long as the conditions set forth herein
have been met.
SECTION 5. Preliminar~Official Statement and Official Statement. The form of
preliminary official statement (the "Preliminary Official Statement") related to the Bonds
presented to this meeting and on file with the Secretary is approved. The delivery of the
Preliminary Official Statement in substantially said form, with such changes thereto as the
Authorized Officers may require or approve, such approval to be conclusively evidenced by the
delivery thereof, is hereby authorized. Each Authorized Officer is authorized (1) to certify that
the Preliminary Official Statement (as finally delivered) is "deemed final" as of its date for
purposes of Rule 15c2-12 of the Securities and Exchange Commission and (2) to cause to be
prepared for and on behalf of the Authority an official statement to be executed and delivered in
accordance with the Notice of Sale. The Underwriter is authorized and directed to cause copies
'- of the Preliminary Official Statement (as finally delivered) to be mailed to prospective bidders
for the Bonds, with such changes thereto as shall be approved by an Authorized Officer.
SECTION 6. Other Actions. The Authorized Officers and such other proper officers of
the Authority are authorized and directed, individually and collectively, to take all actions and to
execute and deliver any and all documents which they may deem necessary or advisable in order:
(1) to engage the Trustee under the Indenture; (2) to arrange for the funding of the Reserve
Account (as defined in the Indenture) with a letter of credit, surety bond or insurance policy or
alternatively to arrange for any liquidity facility, including without limitation liquidity, put,
purchase or hedge agreements, for the purpose of providing liquidity or redemption options with
respect to any Permitted Investments (as defined in the Indenture) held in the Reserve Account
if, upon the advice of the Underwriter, such letter of credit, surety bond, insurance policy or
liquidity facility will be economically beneficial to the Authority and the City; (3) to arrange for
the insuring of all or any portion of the Bonds through one or more municipal bond insurance
companies, if, upon the advice of the Underwriter, such insurance will result in a lower true
interest cost to the Authority; (4) to obtain a rating on the Bonds if advised to do so by the
Underwriter; and (5) to consummate the sale, execution and delivery of the Bonds and otherwise
to carry out, give effect to and comply with the terms and intent of this Resolution, the Bonds,
the Authority Documents, the Preliminary Official Statement and the Official Statement. Such
actions heretofore taken by such officers or their designees are hereby ratified, confirmed and
approved.
SECTION 7. Continuing Disclosure Agreement. The form of Continuing Disclosure
Agreement presented to this meeting is hereby approved. Each Authorized Officer is hereby
authorized and directed, for and in the name and on behalf of the Authority, to execute and
deliver said Continuing Disclosure Agreement in substantially said form, with such changes
therein as such officer may require or approve, such approval to be conclusively evidenced by
the execution and delivery thereof.
SECTION 8. Effect. This Resolution shall take effect immediately upon its passage.
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PASSED AND ADOPTED this 26`h day of August, 1999 by the following vote:
AYES: MEMBERS BYRD, RICHARDS, SANCHEZ
NOES: MEMBER REYES
ABSENT: MEMBER REA
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ATTEST:
ANDREA L. HOOPER
APPROVER' S TO ORM:,/ ,/
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CITY P.TTORNE`d
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SANCHEZ,
APPROVED AS TO CONTENT:
RALPH W DAVIS III, INTERIM
ADMINISTRARIVE OFFICER
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