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HomeMy WebLinkAboutReso - CC - 005-2016RESOLUTION NO. 5-2016 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME APPROVING THE ISSUANCE BY THE BURLINGAME FINANCING AUTHORITY OF NOT TO EXCEED $11,000,000 AGGREGATE PRINCIPAL AMOUNT OF STORM DRAINAGE REVENUE BONDS TO FINANCE CAPITAL IMPROVEMENTS TO THE STORM DRAINAGE SYSTEM OF THE CITY, AUTHORIZING EXECUTION AND DELIVERY OF AN INSTALLMENT SALE AGREEMENT AND A BOND PURCHASE AGREEMENT; APPROVING FORM OF OFFICIAL STATEMENT; AND AUTHORIZING EXECUTION OF DOCUMENTS AND THE TAKING OF ALL NECESSARY ACTIONS RELATING TO THE FINANCING WITH THE BURLINGAME FINANCING AUTHORITY WHEREAS, the City of Burlingame (the "City") and the Redevelopment Agency of the City of Burlingame (the "Agency") have heretofore executed a Joint Exercise of Powers Agreement, dated as of May 15, 1995 (the "Joint Powers Agreement"), by and between the City and the Agency, which Joint Powers Agreement creates and establishes the Burlingame Financing Authority (the "Authority"); and WHEREAS, pursuant to Article 4 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the "Marks -Roos Local Bond Pooling Act of 1985") and the Joint Powers Agreement, the Authority is authorized to issue bonds for financing public capital improvements whenever there are significant public benefits to be realized; and WHEREAS, in accordance with Government Code Section 6586.5, the City has published notice of a public hearing in a newspaper of general circulation and on the date hereof held a public hearing concerning the financing of the Project by the Authority through the issuance of the Bonds as required by Government Code Section 6586.5(a)(2); and WHEREAS, the City desires to approve the Authority's issuance of not to exceed $11,000,000 aggregate principal amount of Burlingame Financing Authority Storm Drainage Revenue Bonds, Series 2016 (the "Bonds") for the purpose of financing improvements to the storm drainage system of the City (the "Projects"); and WHEREAS, in order to finance the Projects, the City desires to execute and deliver an installment sale agreement (the "Installment Sale Agreement") with respect to the Projects; and WHEREAS, the Authority and City will enter into a Bond Purchase Agreement (the "Bond Purchase Agreement") with Stifel, Nicolaus & Company, Incorporated (the "Underwriter); and WHEREAS, there have been submitted and are on file with the City Clerk proposed forms of the Installment Sale Agreement, Bond Purchase Agreement, an Official Statement with respect to the Bonds proposed to be issued by the Authority, and a Trust Agreement by and between the Authority and The Bank of New York Mellon Trust Company, N.A. (the "Trust Agreement"); and OHSUSA:763796035.3 WHEREAS, the issuance of Bonds by the Authority pursuant to the Trust Agreement and the execution and delivery of the Installment Sale Agreement will result in significant public benefits through demonstrable savings in the effective interest rates and bond issuance costs expected to be paid for the Bonds issued to finance the Projects, and that it furthers the public purpose to assist in such financing; NOW THEREFORE, the City Council of the City of Burlingame hereby finds, determines, declares and resolves as follows: Section 1. All of the recitals set forth above are true and correct, and the City Council so finds and determines. Section 2. The City Council hereby approves the issuance of Bonds, titled "Burlingame Financing Authority Storm Drainage Bonds, Series 2016" (the "Bonds") by the Authority, in an aggregate principal amount not to exceed $11,000,000, to finance improvements to the storm drainage system of the City. Section 3. The proposed form of Installment Sale Agreement by and between the Authority and City, on file with the City Clerk, is hereby approved. The City Manager and Finance Director/Treasurer, jointly and severally, are hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver an installment sale agreement in substantially said form, with such changes therein as such officers may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof; provided, however, that the term of said installment sale agreement shall end no later than July 1, 2038 and the interest rate or rates shall not exceed a true interest cost of six and one-half percent (6.5%) per annum. Section 4. The proposed form of Bond Purchase Agreement, by and among the Underwriter, the Authority and the City, on file with the City Clerk, is hereby approved. The City Manager and the Finance Director/Treasurer, jointly and severally, or any such officer's designee, are each hereby authorized and directed, on behalf of the City, to execute and deliver a bond 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, the underwriting discount (not including original issue discount) shall not exceed one percent (1%) of the aggregate principal amount of the Bonds. Section 5. The proposed form of Official Statement relating to the Bonds (the "Official Statement"), on file with the City Clerk, is hereby approved. The City Manager and the Finance Director/Treasurer, jointly and severally, are hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver an Official Statement 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. The Underwriter is hereby directed to distribute copies of the Official Statement to all actual purchasers of the Bonds. Distribution by the Underwriter of a preliminary Official Statement relating to the Bonds is hereby approved and the City Manager and Finance Director/Treasurer, jointly and severally, are hereby authorized and directed, to execute a certificate confirming that the preliminary Official -2- OHSUSA:763796035.3 Statement has been "deemed final" by the City for purposes of Securities and Exchange Commission Rule 15c2-12. Section 6. The City Manager and Finance Director/Treasurer, jointly and severally, are hereby authorized on behalf of the City to execute a Continuing Disclosure Certificate containing such covenants of the City as shall be necessary to comply with the requirements of Securities and Exchange Commission Rule 15c2-12. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of such Continuing Disclosure Certificate. Section 7. The officers and City Council members of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents and certificates which they deem necessary or advisable in order to consummate the execution and delivery of the documents mentioned herein and otherwise to effectuate the purposes of this Resolution and the transactions contemplated hereby. Section 8. All actions heretofore taken by the officers and agents of the Council of the City with respect to the financing of the Projects are hereby ratified, confirmed and approved. approval. Section 9. This Resolution shall take effect from and after its adoption and av� "Lt,� Mayor Ann Keighran I hereby certify that the foregoing is a full, true and correct copy of a resolution duly passed and adopted by the City Council of the City of Burlingame at a regular meeting thereof held on the 19`x' day of January, 2016, by the following vote of the members thereof: AYES: COUNCILMEMBERS: BEACH, BROWNRIGG, COLSON, KEIGHRAN, ORTIZ NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ATTEST -3- OHSUSA:763796035.3 CLERK'S CERTIFICATE I, Meaghan Hassel -Shearer, City Clerk of the City of Burlingame, do hereby certify as follows: The foregoing resolution is a full, true and correct copy of a resolution duly adopted by a vote of a majority of the City Council of the City of Burlingame at a regular meeting of said Council duly and regularly and legally held at the Council Chambers, 501 Primrose Road, Burlingame, California, on January 19, 2016, of which all of such members had due notice, as follows: AYES: BEACH, BROWNRIGG, COLSON, KEIGHRAN, ORTIZ NOES: NONE ABSENT: NONE An agenda of said meeting was posted at least 72 hours before said meeting at 501 Primrose Road, Burlingame, California, a location freely accessible to members of the public, and a brief description of said resolution appeared on said agenda. I have carefully compared the foregoing with the original minutes of said meeting on file and of record in my office, and the foregoing is a full, true and correct copy of the original resolution adopted at said meeting and entered in said minutes. Said resolution has not been amended, modified or rescinded since the date of its adoption and the same is now in full force and effect. Dated:SFri 1 -�1 , 2016. OHSUSA:763796035.3