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HomeMy WebLinkAboutResolution No. 4938 RESOLUTION NO. 4938 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY PROVIDING FOR THE SALE OF $12,000,000 AGGREGATE PRINCIPAL AMOUNT OF CITY OF DOWNEY CERTIFICATES OF PARTICIPATION (WATER SYSTEM IMPROVEMENT PROJECT) WHEREAS, the City of Downey (the "City ") and the City of Downey Water Facilities Corporation, a California nonprofit corporation (the "Corporation ") propose to enter into an Installment Purchase Agreement, dated as of November 1, 1987 (the "Installment Purchase Agreement "), pursuant to which the Corporation will sell to the City certain improvements to certain facilities within the City's water system (the "Project ") in consideration for which the City will make installment payments (the "Installment Payments ") as the purchase price for the Project; and WHEREAS, the Corporation will assign and transfer to a trustee (the "Trustee ") certain of its right, title and interest in and to the Installment Purchase Agreement, including its right to receive the Installment Payments, by entering into an Assignment Agreement, dated as of November 1, 1987; and WHEREAS, the Corporation, the City and the Trustee will enter into a trust agreement pursuant to which the Trustee will execute and deliver certificates of participation in an aggregate principal amount not to exceed $12,000,000 (the "Certificates ") representing undivided fractional interests in the right to receive the Installment Payments; and WHEREAS, it is desirable that the Certificates be offered for public sale; WHEREAS, the City is authorized to undertake all of the above pursuant to its Charter and the Constitution and applicable laws of the state of California; -- NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES RESOLVE AS FOLLOWS: SECTION 1. The City Council hereby authorizes the sale on Tuesday, October 27, 1987 of not to exceed $12,000,000 aggregate principal amount of certificates of participation to be sold as "City of Downey Certificates of Participation (Water System Improvement Project)" to provide moneys to finance the costs of acquiring, constructing and installing the Project, provided that if no bid received for the Certificates on October 27, 1987 at the time and place specified in Section 2 hereof is awarded, bids will be received for the Certificates at the same time and place on succeeding Tuesdays until the Certificates are awarded. SECTION 2. The form of proposed Official Notice of Sale inviting bids for the Certificates, in substantially the form set forth as Exhibit A hereto, is hereby approved and adopted as the Official Notice of Sale inviting bids for the Certificates. Sealed proposals shall be received by the Mayor of the City or his designee at the offices of Seidler- Fitzgerald Public Finance, 515 South Figueroa Street, Suite 600, Los Angeles, California 90071, up to the hour of 8:30 o'clock a.m. California time on October 27, 1987, or such other dates as may be designated pursuant to Section 1 hereof and the proposed Official Notice of Sale, for the purchase of not less than all of the Certificates offered for sale and accrued interest to the date of delivery, plus such premium as is offered or less such discount as is specified in the bid, provided that the amount of discount specified in any bid shall not exceed four percent (4 %) of the principal amount of the Certificates, the interest rate or rates to be designated in the bid, the City Council reserving the right to reject any and all bids, in accordance with the terms and conditions of said Official Notice of Sale. Seidler - Fitzgerald Public Finance (the "Financial Advisor ") is hereby authorized and directed to cause to be mailed to prospective bidders for the Certificates copies of said Official Notice of Sale, subject to such corrections, revisions or additions as may be acceptable to the City Attorney of the City or to Orrick, Herrington & Sutcliffe, special counsel to the City. SECTION 3. The form of proposed Notice of Intention to Sell, in substantially the form set forth as Exhibit B hereto, is hereby approved and adopted as the Notice of Intention to Sell, and the City Clerk of the City is hereby authorized and directed to cause said Notice of Intention to Sell, subject to such corrections, revisions or additions as may be acceptable to the City Attorney of the City or to Orrick, Herrington & Sutcliffe, special counsel to the City, to be published once at least fifteen days before the date of sale in THE BOND BUYER. SECTION 4. The form of proposed Official Statement describing the Certificates heretofore submitted to the City Council is hereby approved and adopted as the Official Statement describing the Certificates, with such additions, corrections and revisions as may be determined to be necessary or desirable by the City Attorney of the City or by the Financial Advisor, and the Mayor is hereby authorized and directed to sign said Official Statement as so added to, corrected or revised. The Financial Advisor is hereby authorized and directed to cause to be printed and mailed to prospective bidders for the Certificates copies of the Official Statement in substantially the form approved and adopted as the Official Statement describing the Certificates, as so added to, corrected or revised. SECTION 5. The appropriate officers, employees, agents and representatives of the City are authorized and directed to take all actions called for by this Resolution or necessary or convenient to carry out its purposes, and all such actions heretofore taken are hereby ratified, confirmed and approved by this City. SECTION 6. This Resolution shall take effect from and after its adoption and approval. SECTION 7. The City Clerk shall certify to the adoption of this Resolution and provide for appropriate distribution thereof. APPROVED AND ADOPTED this 22nd day of September 1987. / ' ) 7, i Diane P. Boggs, 4 ytr ATTEST: JrnY ' Youn & - i ty C1.e__k I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City Council of the City of Downey at a regular meeting hereof, held on the 22nd day of September by the following vote, to wit: AYES: 4 COUNCIL MEMBERS: Barb, Cormack, Paul, Boggs NOES: 0 COUNCIL MEMBERS: None ABSENT: 0 COUNCIL MEMBERS: None ABSTAIN: 1 COUNCIL MEMBERS: Santangelo d w A d ..�errri ou ,- C i ty k