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HomeMy WebLinkAboutResolution No. 4830 RESOLUTION NO. 4b30 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY APPROVING THE PARTICIPATION OF THE CITY OF ALHAMBRA, CALIFORNIA IN THE ICRMA CAPITALIZED POOLED LIABILITY SELF - INSURANCE PROGRAM AND AUTHORIZING THE EXECUTION AND DELIVERY OF A PURCHASE AGREEMENT AND AN OFFICIAL STATEMENT AND CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH WHEREAS, the City of Downey (the "City ") is a municipality duly organized and existing under the Constitution and laws of the State of California (the "State ") and the Charter of the City; WHEREAS, the Independent Cities Risk Management Authority (the "Provider ") is a joint exercise of powers agency of which the City is a member; WHEREAS, the Provider has previously determined to assist the City and certain other cities which are members of the Provider to obtain self- insurance for liability risks (the "Coverage ") through and on the terms set forth in the Liability Risk Coverage Agreement (the "Agreement "), in substantially the form previously approved by this Council, by and among the Provider, and the Cities of Arcadia, Azusa, Baldwin Park, Bell, Culver City, Downey, El Monte, Glendora, Hawthorne, Hermosa Beach, Huntington Park, Indio, Inglewood, Lynwood, Manhattan Beach, Monterey Park, Redondo Beach, San Fernando, South Gate, Vernon, West Covina and Whittier, California (each of the City and such Cities set forth in this paragraph being referred to herein individually as a "Providee" and collectively as the "Providees "); WHEREAS, this Council has previously authorized the execution of the Agreement for the purpose of providing Coverage for the City for the benefit of the City's residents and taxpayers and for the health and safety of the public; WHEREAS, the City has previously authorized the sale and delivery pursuant to the Trust Agreement (the "Trust Agreement ") in substantially the form previously authorized by this Council, with an effective date of the date of execution thereof, among the Provider, the Providees and Seattle -First National Bank (the "Trustee "), of Certificates RESOLUTION NO. 4630 of Participation (the "Certificates ") evidencing undivided and proportionate interests in Basic Premium to be paid by the City and the other Providees under the Agreement in order to fund reserves initially in an amount determined sufficient to pay Settlements (as defined in the Agreement) when due and to provide the Coverage described in the terms set forth in the Agreement and in the Memorandum of Liability Coverage attached thereto at Exhibit B (the "Memorandum "); WHEREAS, the City of Alhambra, California ( "Alhambra "), which is a member of ICRMA, has amended the terms of its City Charter by the requisite popular vote at the general election on November 4, 1986 in order to participate with the Providees in obtaining the Coverage, and desires to be a party to the Agreement and Trust Agreement, and this Council hereby finds and determines that the advantages of risk - sharing and pooling of losses support the addition of Alhambra as a Providee; WHEREAS, all acts, conditions and things required by the Constitution and laws of the State to exist, to have happened and to have been performed precedent to and in connection with the consummation of the financing authorized hereby do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the City is now duly authorized and empowered, pursuant to each and every requirement of law, to consummate such financing for the purpose, in the manner and upon the terms _ herein provided; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DOWNEY AS FOLLOWS: SECTION 1. Declaration of Council. This Council hereby specifically finds and declares that the actions authorized hereby constitute and are with respect to public affairs of the City, and that the statements, findings and determinations of the City set forth in the preambles above and of the documents approved herein are true and correct. -2- RESOLUTIOiN NO. 4830 iSECTION 2. Approval of Alhambra; Allocable Proportion. The participation of Alhambra in the capitalized pooled liability self- insurance program contemplated by the Agreement and the Trust Agreement, and inclusion of Alhambra as a party to such agreements in substantially the forms previously approved by this Council, and as a Providee as that term is used hereinafter, are hereby approved. As a result of the participation of Alhambra, the Allocable Proportions (as that term is used in the Agreement) for each Providee, which equal the percentages payable by each City of total interest and principal represented by the Certificates previously authorized to be sold pursuant to the terms of the Trust Agreement, will be as set forth in Exhibit A hereto. SECTION 3. Purchase Agreement. The form of Purchase Agreement, among the Providees, the Provider and Drexel Burnham Lambert Incorporated (the "Underwriter "), presented to this meeting and on file with the Clerk of the City Council, is hereby approved. The Mayor, City Manager and Finance Director and any other City officer or official of the City authorized by the Mayor are hereby authorized and directed, for and in the name and on behalf of the City, to execute, acknowledge and deliver to the Underwriter said Purchase 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; provided, however, that the aggregate principal amount of the Certificates to be sold shall not exceed $30,450,000, and that the principal amount of the Certificates allocated to the City shall not exceed $1,000,000; and provided further, that the interest rate with respect to the Certificates shall not exceed 8.75% and the underwriter's discount shall not exceed 3.0 %. SECTION 4. Preliminary Official Statement. The form of Preliminary Official Statement ( "Preliminary Official Statement ") relating to the Certificates presented to this meeting and on file with the Clerk of the City Council, is -3- RESOLUTION NO. 4630 hereby approved. The Preliminary Official Statement in substantially said form, with such changes as the above - described officers may require or approve, which approval shall be conclusively evidenced by the execution and delivery thereof shall hereinafter be referred to as the "Official Statement ". The above - described officers or any such officer's designee are hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver to the Underwriter said Official Statement. The Underwriter is hereby authorized to distribute copies of the Preliminary Official Statement and the Official Statement to persons who may be interested in the purchase of the Certificates and is directed to deliver copies of any final Official Statement to all actual purchasers of the Certificates. SECTION 5. Attestation and Seal. The Clerk of the City Council is hereby authorized and directed to attest the signature of the authorized signatory, and to affix and attest the seal of the City, as may be required or appropriate in connection with the execution and delivery of said Purchase Agreement and Official Statement. SECTION 6. Further Actions. Officers of the City Council and the Mayor, City Manager and Finance Director and any other officer or official of the City authorized by the Mayor, are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they may deem necessary or advisable in order to proceed with the execution and delivery of the Purchase Agreement and the Official Statement and the sale, execution and delivery of the Certificates by the Trustee and otherwise to carry out, give effect to and comply with the terms and intent of this resolution, the Purchase Agreement and the Official Statement. Such actions heretofore taken by such officers are hereby ratified, confirmed and approved. SECTION 7. Effective Date. This resolution shall take effect immediately upon its passage. -4- RESOLUTION NO., 4630 PASSED AND ADOPTED this 9th day of December , 1986, by the following vote: AYES: 5 Council Members: Boggs, Cormack, Barb, Paul, Santangelo NOES: 0 Council Members: None ABSENT: 0 Council Members: None I li w ''''''],' ,--'''-- ,,I.v 0- .mes S. Santan•elo, Mayor [SEAL] Attest: 341_ / k., Iri-v7/ : , 7//".-- City Clerk I HEREBY CERTIFY THAT the foregoing Resolution was auopted by the City Council of the City of Downey at a regular meeting held on the 9th uay of Uecember, l9bb, // ✓-_, /� City Clerk -5- RESOLUTION NO. 4330 EXHIBIT A ALLOCABLE CITY PROPORTION Alhambra 6.64% Arcadia 3.09% Azusa 3.72% Baldwin Park 4.40% Bell 3.10% Culver City 5.08% Downey 3.29% El Monte 6.81% Glendora 4.25% Hawthorne 7.37% Hermosa Beach 3.55% Huntington Park 3.44% Indio 2.96% Inglewood 2.65% Lynwood 2.75% Manhattan Beach 3.41% Monterey Park 4.60% Redondo Beach 7.57% San Fernando 2.51% South Gate 5.10% Vernon 2.89% West Covina 7.12% Whittier 3.70% Note: Percentages may not add to 100% due to rounding.