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HomeMy WebLinkAboutReso 1994-17433RESOLUTION NO. 17433 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE SALE OF BONDS IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED ~ 18,000,000 TO REFINANCE THE OUTSTANDING OBLIGATIONS OF THE CITY TO THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM, APPROVING FINAL FORM OF OFFICIAL STATEMENT AND OTHER LEGAL DOCUMENTS, AND AUTHORIZING OFFICIAL ACTIONS WHEREAS, the City of Chula Vista (the "City") has previously adopted its Resolution No. 17319 on December 14, 1993, authorizing the issuance of bonds of the City in the aggregate principal amount of not to exceed ~18,000,000 (the "Bonds") pursuant to the provisions of Articles 10 and 11 of Chapter 3 of Part 1 of Division 2 of Title 5 of the California Government Code, commencing with Section 53570 of said Code, for the purpose of refunding certain obligations of the City which are due and payable to the California Public Employees' Retirement System ("PERS"), known as document number C094-045, a copy of which is on file in the office of the City Clerk, consisting of the total amount of the unfunded actuarial liability to PEPS (the "Unfunded Liability") and the remaining normal contributions for the current fiscal year (the "Normal Contributions"); and, WHEREAS, the City has recently received a favorable judgment of the Superior Court upholding the validity of the Bonds, and the City Council wished at this time to authorize the sale of the Bonds and approve the final form of the various documents relating thereto. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista as follows: SECTION 1. Sale of Bonds. The City Council hereby approves the sale of the Bonds to Grigsby Brandford & Co., Inc. as underwriter (the "Underwriter") pursuant to that certain Bond Purchase Agreement (the "Purchase Agreement"), known as document number C094-046, a copy of which is on file in the office of the City Clerk, by and between the City and the Underwriter in substantially the form thereof on file with the City Clerk together with any additions thereto or changes therein deemed necessary or advisable by the City Manager, and the execution and delivery thereof by the City Manager shall be conclusive evidence of the approval of such additions and changes. The Bonds shall be sold at such prices and interest rates as shall be acceptable to the City Manager, provided that the net present value savings to the City in refinancing its obligations to PERS shall be at least equal to five percent (5%) of the aggregate amount of the Unfunded Liability to be refunded. SECTION 2. Official Statement. The City Council hereby approves, and hereby authorizes the City Manager to deem final within the meaning of Rule 15c2-12 of the Securities Exchange Act of 1934 except for permitted omissions, a preliminary Resolution No. 17433 Page 2 form of Official Statement describing the Bonds in the form on file with the City Manager. Distribution of such preliminary Official Statement by the Underwriter to prospective purchasers of the Bonds is hereby approved. The City Manager is hereby authorized to execute the final form of the Official Statement, including as it may be modified by such additions thereto and changes therein as the City Manager shall deem necessary, desirable or appropriate, and the execution of the final Official Statement shall be conclusive evidence of the approval of any such additions and changes. The City Council hereby authorizes the distribution of the final official Statement by the Underwriter. The final Official Statement shall be executed in the name and on behalf of the City by the City Manager. SECTION 3. Final Form of Documents. The City Council hereby approves each of the following documents required to implement the financing plan to be accomplished by the Bonds, in substantially the respective forms on file with the City Clerk together with any changes therein or additions thereto deemed advisable by the City Manager, and the execution thereof by the Mayor shall be conclusive evidence of the approval of any such changes or additions. The Mayor is hereby authorized and directed for and in the name and on behalf of the City to execute, and the City Clerk is hereby authorized and directed to attest and affix the seal of the City to, the final form of each such document: (a) Indenture of Trust by and between the City and First Interstate Bank of California, as trustee, known as document number C094-047, a copy of Which is on file in the office of the City Clerk, prescribing the terms and conditions upon which the Bonds are to be issued; and (b) Debenture, payable and evidencing the obligation of the City to PERS to be refunded from the proceeds of the Bonds. SECTION 4. Authorization to Pay Costs. The City Council hereby authorizes the appropriate of amounts from the General Fund to pay the costs of issuing the Bonds, in such respective amounts and to such payees as shall be required in connection therewith. The aggregate amount of costs of issuance to be paid shall not exceed the aggregate amount of the Bond proceeds which are applied to pay the Normal Contributions for the current fiscal year, it being the intent of the financing plan that by applying the Bond proceeds to pay such Normal Contributions, a sufficient amount will be available in the General Fund to pay the costs of issuing the Bonds. Section 5. Official Actions. The Mayor, the City Manager, the Director of Finance, the City Clerk and all other officers of the City are each authorized and directed in the name and on behalf of the City to make any and all assignments, certificates, requisitions, agreements, notices, consents, instruments,. of Resolution No. 17433 Page 3 conveyance, warrants and other documents, which they or any of them night deem necessary or appropriate in order to consummate the issuance and sale of the Bonds and any of the other transactions contemplated by this Resolution. Whenever in this Resolution any officer of the City is authorized to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer shall be absent or unavailable. SECTION 6. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption. Presented by Assistant City Manager A~ as to form12 I]1 1 Resolution No. 17433 Page 4 PASSED, APPROVED and ADOPTED by the City Council of the City of Chula Vista, California, this 22nd day of March, 1994, by the following vote: YES: NOES: ABSENT: Councilmembers: Councilmembers: Councilmembers: Fox, Horton, Moore, Rindone, Nader None None ABSTAIN: Councilmembers: None Tim Nader, Mayor ATTEST: Beverly A. Authelet, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) SS. I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that the foregoing Resolution No. 17433 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 22nd day of March, 1994. Executed this 22nd day of March, 1994. Beverly A. Authelet, City Clerk