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HomeMy WebLinkAboutReso - CC - 022-2010RESOLUTION NO. 22-2010 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME APPROVING THE ISSUANCE BY THE BURLINGAME FINANCING AUTHORITY OF STORM DRAINAGE REVENUE BONDS TO FINANCE CAPITAL IMPROVEMENTS TO THE STORM DRAINAGE SYSTEM OF THE CITY; AUTHORIZING EXECUTION AND DELIVERY OF INSTALLMENT SALE AGREEMENTS; 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, the City desires to approve the Authority's issuance, from time to time, of Burlingame Financing Authority Storm Drainage Revenue Bonds (the "Bonds") for the purpose of financing or refinancing 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, from time to time, installment sale agreements (the "Installment Sale Agreements") with respect to the Projects; and WHEREAS, there have been submitted and are on file with the City Clerk a proposed form of the Installment Sale Agreements and a proposed form of the trust agreements by and between the Authority and The Bank of New York Mellon Trust Company, N.A. (the "Trust Agreements") securing the Bonds; and WHEREAS, the issuance of Bonds by the Authority pursuant to the Trust Agreements and the execution and delivery of the Installment Sale Agreements 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: OHS West260813036.6 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 the first series of Bonds, titled `Burlingame Financing Authority Storm Drainage Bonds, Series 2010" (the "Series 2010 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. The Series 2010 Bonds may be issued in one or more subseries, and all or a portion of the Series 2010 Bonds may be issued as `Build America Bonds." Section 3. The proposed form of Installment Sale Agreement relating to the Series 2010 Bonds (the "2010 Installment Sale Agreement"), by and between the City and the Authority, 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 installment sale agreement in substantially said form, with such changes therein as such officers may require or approve (including changes as may be necessary to obtain municipal bond insurance for the Series 2010 Bonds or that may result in lower borrowing costs), such approval to be conclusively evidenced by the execution and delivery thereof; provided, however, the principal amount of the purchase price shall not exceed $11,000,000 and the term of the 2010 Installment Sale Agreement shall end no later than July 1, 2039. Section 4. The City Council hereby approves the issuance, from time to time, of additional series of Bonds pursuant to trust agreements, substantially in the form of Trust Agreement on file with the City Clerk, for the purpose of financing or refinancing Projects. The City Council hereby approves the execution and delivery of additional installment sale agreements, substantially in the form of Installment Sale Agreement on file with the City Clerk, for the purpose of financing or refinancing the Projects. Section 5. The City Manager and the Finance Director/Treasurer, jointly and severally, are hereby authorized and directed to do any and all things, including bringing a validation action under Section 860 of the California Code of Civil Procedure with respect to the validity of this Resolution, the Bonds, the Trust Agreements and the Installment Sale Agreements, and to take any and all actions (including any required publications of summons or other notice) and execute and deliver any and all documents which they or any of them deem necessary or advisable in order to consummate the transactions contemplated by this Resolution, the Bonds, the Trust Agreements and the Installment Sale Agreements (including but not limited to obtaining bond insurance) and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution, the Trust Agreements and the Installment Sale Agreements. Section 6. 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. Section 7. This Resolution shall take effect from and after its adoption and approval. OHS West: 260813036.6 -2- 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 19th day of April, 2010, by the following vote of the members thereof: AYES: NOES ABSENT: COUNCILMEMBERS: BAYLOCR, BROWNRIGG, DEAL, REIGHRAN, NAGEL COUNCILMEMBERS: NONE COUNCILMEMBERS: NONE ATTEST: City Cl6k OHS West260813036.6 -3- RESOLUTION NO. 22_2010 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME APPROVING THE ISSUANCE BY THE BURLINGAME FINANCING AUTHORITY OF STORM DRAINAGE REVENUE BONDS TO FINANCE CAPITAL IMPROVEMENTS TO THE STORM DRAINAGE SYSTEM OF THE CITY; AUTHORIZING EXECUTION AND DELIVERY OF INSTALLMENT SALE AGREEMENTS; AND AUTHORIZING EXECUTION OF DOCUMENTS AND THE TAIUNG 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, the City desires to approve the Authority's issuance, from time to time, of Burlingame Financing Authority Storm Drainage Revenue Bonds (the `Bonds") for the purpose of financing or refinancing 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, from time to time, installment sale agreements (the "Installment Sale Agreements") with respect to the Projects; and WHEREAS, there have been submitted and are on file with the City Clerk a proposed form of the Installment Sale Agreements and a proposed form of the trust agreements by and between the Authority and The Bank of New York Mellon Trust Company, N.A. (the "Trust Agreements") securing the Bonds; and WHEREAS, the issuance of Bonds by the Authority pursuant to the Trust Agreements and the execution and delivery of the Installment Sale Agreements 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: OHS West260813036.6 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 the first series of Bonds, titled `Burlingame Financing Authority Storm Drainage Bonds, Series 2010" (the "Series 2010 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. The Series 2010 Bonds may be issued in one or more subseries, and all or a portion of the Series 2010 Bonds may be issued as `Build America Bonds." Section 3. The proposed form of Installment Sale Agreement relating to the Series 2010 Bonds (the "2010 Installment Sale Agreement'), by and between the City and the Authority, 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 installment sale agreement in substantially said form, with such changes therein as such officers may require or approve (including changes as may be necessary to obtain municipal bond insurance for the Series 2010 Bonds or that may result in lower borrowing costs), such approval to be conclusively evidenced by the execution and delivery thereof, provided, however, the principal amount of the purchase price shall not exceed $11,000,000 and the term of the 2010 Installment Sale Agreement shall end no later than July 1, 2039. Section 4. The City Council hereby approves the issuance, from time to time, of additional series of Bonds pursuant to trust agreements, substantially in the form of Trust Agreement on file with the City Clerk, for the purpose of financing or refinancing Projects. The City Council hereby approves the execution and delivery of additional installment sale agreements, substantially in the form of Installment Sale Agreement on file with the City Clerk, for the purpose of financing or refinancing the Projects. Section 5. The City Manager and the Finance Director/Treasurer, jointly and severally, are hereby authorized and directed to do any and all things, including bringing a validation action under Section 860 of the California Code of Civil Procedure with respect to the validity of this Resolution, the Bonds, the Trust Agreements and the Installment Sale Agreements, and to take any and all actions (including any required publications of summons or other notice) and execute and deliver any and all documents which they or any of them deem necessary or advisable in order to consummate the transactions contemplated by this Resolution, the Bonds, the Trust Agreements and the Installment Sale Agreements (including but not limited to obtaining bond insurance) and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution, the Trust Agreements and the Installment Sale Agreements. Section 6. 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. Section 7. This Resolution shall take effect from and after its adoption and approval. OHS West260813036.6 —2— 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 19th day of April, 2010, by the following vote of the members thereof: AYES: COUNCILMEMBERS: BAYLOCK, BROWNRIGG, DEAL, KEIGHRAN, NAGEL NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ATTEST: L�A,�4 V�Z-4-� City Clbrk I hereby certify this to be a full, true and correct copy of the document it purports to be, the original of which is on file in my office. Dated, " 2 City Cle k City of Burlingame OHS West260313036.6 -�-