The URL can be used to link to this page

Home My Public Portal About2009.024 (02-17-09)RESOLUTION NO. 2009.024 A RESOLUTION OF THE CITY COUNCIL OF LYNWOOD APPROVING THE ISSUANCE AND SALE BY THE LYNWOOD UTILITY AUTHORITY OF NOT TO EXCEED $5,800,000 PRINCIPAL AMOUNT OF ITS LYNWOOD UTILITY AUTHORITY ENTERPRISE REFUNDING REVENUE BONDS, 2009 SERIES A, AND AUTHORIZING AND DIRECTING THE EXECUTION THEREOF AND AUTHORIZING ACTIONS RELATED THERETO 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 (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 was 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 Agreement"); 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 was 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 Installment 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 Agreement"), by and between the City and the Lynwood Utility Authority (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 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 (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 Installment Payments and the 1999 Installment Payments; and WHEREAS, the Authority has also heretofore authorized, issued and sold its Lynwood Utility Authority Enterprise Revenue Bonds, 2008 Series A (the "2008 Bonds"), to (a) refund, on a current basis, the 1995 Bonds and discharge its obligations to make the 1995 Installment Payments, (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; 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 a current basis, the 1999 Bonds and discharge its obligations to make the 1999 Installment Payments, (b) fund a reserve fund for such bonds, and (c) 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 Refunding Revenue Bonds, 2009 Series A (the "2009 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 the 2008 Bonds; and ' WHEREAS, the firms of Wedbush Morgan Securities and Stone & Youngberg LLC (the "Underwriters") have proposed to purchase and underwrite the 2009 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 2009 Bonds. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, ORDER, AND RESOLVE AS FOLLOWS: Section 1. Findinos 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 2009 Bonds. The Council hereby approves the issuance of the 2009 Bonds in a principal amount not to exceed $5,800,000. Section 3. Approval of Sale of 2009 Bonds. The Council hereby approves the sale of the 2009 Bonds by the Authority by negotiation with the Underwriters. Ir 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 2009 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 17th day of February, 2009. ATTEST: Maria Quinonez, ity Clerk APPROVED AS TO FORM: ~~-~2~ Fre Galante, City Attorney aria T. Santillan, Mayor APPROVED AS TO CONTENT: Roger .Hale ity Manager 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 17th day of February, 2009. AYES: COUNCIL MEMBERS CASTRO, FLORES, MORTON, RODRIGUEZ, AND SANTILLAN NOES: NONE ABSENT: NONE ABSTAIN: NONE / ~~ ~-- Maria Quinonez, City 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. 2009.024 on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 17th day of February, 2009. Maria Quinonez,