HomeMy WebLinkAbout94-71 - Water Revenue BondsRESOLUTION NO. 94 -71
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH APPROVING THE FORMS OF AND
AUTHORIZING THE EXECUTION OF AN INDENTURE OF TRUST,
BOND PURCHASE CONTRACT, NOTICE INVITING BIDS AND
OFFICIAL STATEMENT RELATING TO THE ISSUANCE OF THE
CITY'S WATER REVENUE BONDS, SERIES 1994 AND APPROVING
• CERTAIN ACTIONS IN CONNECTION THEREWITH
WHEREAS, the City of Newport Beach (the "City") is a chartered city (a public body,
corporate and politic) duly created, established and authorized to transact business and exercise
its powers, all under and pursuant to the City Charter and the Constitution and laws of the State
of California; and
WHEREAS, the City Council of the City has previously adopted by ordinance Chapter
3.27 of the Newport Beach City Code, known as the City of Newport Beach Municipal Facilities
Revenue Bond Code (the "Code ") authorizing the issuance of revenue bonds for certain
"Enterprises" of the City, including the system of the City for the acquisition, storage, treatment
and distribution of water; and
WHEREAS, the City has embarked upon a water services capital improvement program
for its water enterprise, more particularly described in the staff report and documents presented
herewith; and
WHEREAS, for the corporate purposes of the City, the City deems it necessary to issue
at this time its Water Revenue Bonds, Series 1994 (Water Services Capital Improvement
Program), in a principal amount of not to exceed Seventeen Million One Hundred Thousand
Dollars ($17,100,000) (the "Bonds "), and to use the proceeds of such Bonds to pay costs in
connection with the issuance of the Bonds and to make certain other deposits as required in
connection with the issuance of the Bonds and to finance the Project described therein; and
WHEREAS, the purposes stated above will be accomplished by issuing at this time such
bonds pursuant to the Trust Indenture described below, the Code and this resolution of the City;
and
WHEREAS, the City has chosen to sell the Bonds at competitive bid following
publication of notice of intention to sell such securities;
WHEREAS, there have been prepared and submitted to this meeting forms of:
(1) a draft of the Indenture of Trust between the City and the Trustee, identified in
Section 3, setting forth the terms of the Bonds (the "Indenture "); and
(2) a draft of the Preliminary Official Statement to be used in connection with the sale
of the Bonds (such Preliminary Official Statement in the form presented at this
meeting with such changes, insertions and omissions as are made pursuant to this
Resolution, being referred to herein, as "Preliminary Official Statement "); and
(3) a draft of the proposed Notice Inviting Bids to be used in connection with the
competitive sale of the Bonds.
• WHEREAS, the City now desires to authorize the execution of such documents and the
performance of such acts as may be necessary or desirable to effect the issuance and sale of the
Bonds.
NOW, THEREFORE, BE IT RESOLVED by the City of Newport Beach, as follows:
Section 1. Subject to the provisions of Section 2 hereof, the issuance of the Bonds in the
aggregate principal amount of not to exceed Seventeen Million One Hundred Thousand Dollars
($17,100,000) on the terms and conditions set forth in, and subject to the limitations specified in
the Indenture, is hereby authorized and approved. The Bonds will be dated, will bear interest at
the rates, will mature on the dates, will be issued in the forms, will be subject to redemption, and
will be as otherwise provided in the Indenture as the same will be completed as provided in this
Resolution. The proceeds of the sale of the Bonds shall be applied as provided in the Indenture.
Section 2. The Indenture, in substantially the form submitted at this meeting and made a
part hereof as though set forth in full herein, is hereby approved. The Mayor and the City Clerk
of the City are hereby authorized and directed to execute and deliver the Indenture in the form
presented at this meeting with such changes insertions and omissions as may be requested by
Bond Counsel and approved by the City Manager, said execution being conclusive evidence of
• such approval.
Section 3. Meridian Trust Company of California is hereby appointed to act as Trustee
for the Bonds and the Mayor of the City, or his written designee, is hereby authorized to enter
into agreements with said bank to provide such services.
Section 4. The Notice of Intention to Sell Securities attached hereto as Exhibit A is
hereby approved subject to such changes as requested by Bond Counsel. The City Manager shall
cause said Notice of Intention to Sell Securities (a) to be published in a newspaper published and
of general circulation in the City of Newport Beach, California, by at least one (1) insertion at
least ten (10) days prior to the day fixed for the receipt of bids; and (b) to be published in a
financial publication generally circulated throughout the State, namely The Bond Buyer, by at
least one (1) insertion at least fifteen (15) days prior to the day fixed for the receipt of bids.
The City Manager of the City and the Financial Consultant are hereby authorized and
directed to cause to be prepared and furnished to prospective bidders a reasonable number of
copies of the notice inviting bids (including the bid form) substantially in the form attached hereto
as Exhibit B, with such changes thereto as may be approved by the City Manager, together with
a reasonable number of copies of the Official Statement.
At the time and place shown in the Notice Inviting Bids for receipt of bids, the City
Manager or his designee shall open the bids and shall accept the responsible bid offering to
purchase the Bonds at the lowest net interest cost, provided the net interest cost does not exceed
9% per annum and the discount does not exceed 2 %, and provided further the City Manager may
reject all bids if in his judgment it is prudent to do so based on general financial considerations
and the advice of the Financial Advisor.
Section 5. The preparation and delivery of Official Statements, and their use by Miller &
Schroeder Financial, Inc. (the "Financial Advisor "), and others in connection with the offering
and sale of the Bonds is hereby authorized and approved. The Official Statement shall be in
substantially the form of the Preliminary Official Statement with such changes, insertions and
omissions as may be requested by Bond Counsel or the Financial Advisor and approved by the
City Manager of the City, such approval to be conclusively evidenced by the execution and
delivery thereof. The City Manager is hereby authorized and directed to execute each final
Official Statement and any amendment or supplement thereto, in the name of and on behalf of the
City, and thereupon to cause each final Official Statement and any such amendment or
supplement to be delivered to the successful bidder for the Bonds.
Section 6. The Mayor of the City, the City Manager, the City Clerk of the City, and any
other proper officer of the City, acting singly, are hereby authorized and directed to execute and
deliver any and all documents and instruments relating to the Bonds, and to do and cause to be
done any and all acts and things necessary or proper for carrying out the transactions
contemplated by the Indenture, the Official Statements, this Resolution and any related
agreements, including, but not limited to, obtaining bond insurance which results in a net present
value savings to the City.
• Section 7. This Resolution shall take effect immediately upon its adoption.
PUBL:16226_11171B2459.1 2 07/28/94
ADOPTED this 25th day of July , 1994.
Mayor, C' f Newport Beach
ATTEST:
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• City Clerk, City of Newpor� ch �� B
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PUBS: 16226_11171 B2459.1 3 07/28/94
EXHIBIT A
NOTICE OF INTENTION TO SELL SECURITIES
Notice is hereby given that on August _, 1994, at 11:00 A.M., Pacific Time, or at
such time on August _, 1994 or August _, 1994 until bids are accepted, in the offices of
Stradling, Yocca, Carlson & Rauth, 660 Newport Center Drive, Suite 1600, Newport Beach,
• California 92660, the City of Newport Beach will receive bids for the sale of its City of Newport
Beach Water Revenue Bonds, Series 1994 (Water Services Capital Improvement Program) in the
aggregate principal amount of not to exceed Seventeen Million One Hundred Thousand Dollars
($17,100,000). Copies of the Complete Notice Inviting Bids and other information concerning
said bonds may be obtained from Miller & Schroeder Financial, Inc., 505 Lomas Santa Fe
Drive, Suite 100, Solana Beach, California 92705 -0819, Telephone (619) 481 -5894.
•
City Clerk, City of Newport Beach
PUBL: 16226_1117 1 82459.1 4 07/28/94