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'CITY OF SAN BER~RDINO - REQUEST C))R COUNCIL ACTION
From:
Mayor and Common Council
Subject:
Approval of Documents to Issue
$41,750,000 certificates of
Participation by the Public
Safety Authority for Water
Reclamation Facilities
Dept:
Bernard C. Kersey
Water Department
Date:
December 13, 1991
Synopsis of Previous Council action:
December 16, 1991 - Staff report advising Mayor and Common
Council of proposed financinq.
Recommended motion:
Adopt Resolution
Signature
Contact person:
Bernard C. Kersey
Phone:
384-5091
Supporting data attached:
Yes
Ward:
All
FUNDING REQUIREMENTS:
Amount:
Source: (Acct. No.)
(Acct. DescriPtion)
Finance:
Council Notes:
75-0262
Aqenda Item No.H
'CITY OF SAN BEIORDINO - REQUESTOOR COUNCIL ACTION
STAFF REPORT
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On December 16, 1991 the Mayor and Common Council received a report
from the Water Department which summarized the proposed sale of
Certificates of Participation through the Public Safety Authority
for several projects at the Water Reclamation Facility, and
defeasance of the 1986 Refunding Sewer Revenue Bonds.
The projects/facilities to be financed are as follows:
Primary Hydraulic Reliability Project
Phase 3A Secondary Expansion Design
(7.5 million gallons per day capacity)
Water Reclamation Lab, Operations Control
Center and Administration
Defeasance of 1986 Sewer Bonds
Reserve Fund
Underwriter's Discount Allowance
Issuance Cost Allowance
Less: Interest Earnings on
Construction Funds
Total Amount of Issue
$32,025,000
2,400,000
(1%)
2,375,000
2,200,000
3,673,000
417,500
433,000
n. 773 . 500'
$41,750,000
The term of the Certificates of Participation is twenty-five years
with an annualized debt service for principal and interest of
$3,670,000. Sewer service charges and sewer connection fees
designated for wastewater facility construction are the pledge of
revenues for debt service. The current sewer service rates and
connections fees are established to cover this additional debt
service.
It is recommended that the Mayor and Common Council adopt the
resolution approving the form of Installment Purchase Agreement,
Trust Agreement, Assignment Agreement, Escrow Agreement and
Preliminary Official Statement relating to the San Bernardino
Public Safety Authority 1992 Sewer certificates of Participation
and authorizing certain actions related to the sale of Certificates
of Participation by the San Bernardino Public Safety Authority.
The Board of Water commissioners, at a regular adjourned meeting
held on December 11, 1991, unanimOUSly voted to approve Resolution
No. 441 approving the same documents and actions.
75-0264
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ST~"'OLING. vOCCA,
CARLSON & RAUT..-.
l....WYl!:"S
NEWPORT !lEACH, CA
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF
THE CITY OF SAN BERNARDINO, A MUNICIPAL
CORPORATION, AUTHORIZING THE SALE, EXECUTION
AND DELIVERY OF APPROXIMATELY $41,750,000
PRINCIPAL AMOUNT OF CERTIFICATES OF
PARTICIPATION OF THE SAN BERNARDINO PUBLIC
SAFETY AUTHORITY AND APPROVING CERTAIN
DOCUMENTS IN CONNECTION THEREWITH
WHEREAS, City of San Bernardino. a municipal corporation.
organized and existing under the laws of the State of
California (the "City"), desires to have constructed certain
improvements to its sewer system including acquisition of
(i) improvements to its sewage treatment plant, (ii) plans and
specifications for its Phase 3A, secondary sewer project,
(iii) the renovation of a City property for its wastewater
reclamation project office and laboratory, and (iv) to use the
proceeds to be received from the sale of certain City property
to the Authority to refund its "City of San Bernardino.
California, Sewer Revenue Refunding Bonds, Issue of 1986
(Wastewater Treatment Project)" (the "Project"); and
WHEREAS, the San Bernardino Public Safety Authority, a
joint exercise of powers authority organized and existing under
the laws of the State of California (the "Authority"), has the
authority to assist in the financing of the Project on behalf
of the City; and
WHEREAS, the City and the Authority desire to enter into
(i) an installment purchase agreement titled "Installment
Purchase Agreement" dated as of February 1, 1992, by and
between the City and the Authority relating to San Bernardino
Public Safety Authority, San Bernardino Municipal Water'
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ST~AOI..ING. voceA,
CARLSON oS ~AUTH
L AWYE ~s
"'EWI'OO"'T ilEAC"', CA
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Department. 1992 Sewer Certificates of Participation (the
"Installment Purchase Agreement") whereby the City will sell to
the Authority a portion of the Project site (the "Purchase
Site") and grant the right of entry to a portion of the Project
site (the "Right of Entry Site"). (said real property is
described in Exhibit A of the Installment ~urchase Agreement)
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the Authority will acquire and construct the Project and sell
the Project site acquired from the City and the improvements to
the Ci ty; and
WHEREAS. the City and the Authority desire to enter into a
trust agreement by and among the Authority, the City and Bank
of America National Trust and Savings Association (the
"Ttustee") titled "Trust Agreement" dated as of February 1.
1992, relating to San Bernardino Public Safety Authority, San
Bernardino Municipal Water Department, 1992 Sewer Certificates
of Participation (the "Trust Agreement"); and
WHEREAS, the City desires to refund its outstanding Sewer
Revenue Bond Issue of 1986 (Wastewater Treatment Plant Project)
(the "1986 Bonds"); and
WHEREAS, upon receipt of the proceeds by the City from the
sale of a portion of the Project site to the Authority said
money will be deposited with Bank of America National Trust and
Savings Association. the Escrow Bank, and pursuant to an
agreement dated as of February 1, 1992, by and between the City
and the Escrow Bank titled "Escrow Agreement For the 1986 Sewer
Revenue Refunding Bonds of the City of San Bernardino. the
Escrow Bank will deposit said money in the Escrow Fund to
redeem the 1986 Bonds; and
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WHEREAS, the Authority wishes to cause the sale, execution
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and delivery of approximately $41,750,000 (the exact amount to
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be determined on or before the sale date of the Certificates
based on the amount needed to refund the 1986 Bonds) in the
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principal amount of Certificates of Participation to be secured
by the installment purchase payments to be made by the City
pursuant to the Installment Purchase Agreement (the
"Certificates"); and
WHEREAS, all right, title and interest of the Authority
under the Installment Purchase Agreement will be assigned to
the Trustee pursuant to an assignment agreement by and between
the Authority and the Trustee, titled "Assignment Agreement"
dated as of February 1, 1992 relating to San Bernardino Public
Safety Authority, San Bernardino Municipal Water Department,
1992 Sewer Certificates of Participation (the "Assignment
Agreement"); and
WHEREAS, a preliminary official statement with respect to
the Bonds (the "Preliminary Official Statement"). has been
prepared by Bartle Wells Associates; and
WHEREAS, Section 40(a) of the City Charter provides that
21 the Purchase Site be sold after competitive bids are taken
22 however, the sale of the Purchase Site will be sold only if the
23 sale is subject to the terms set forth of the Installment
24 Purchase Agreement; and
25 WHEREAS, the Authority has approved the concept of the
26 financing and the purchase of the Purchase Site and therefor
27 the draft Installment Purchase Agreement has been presented
28 showing the Authority as the purchaser of the Purchase Site
ST"'AOLlNG. yOCCA,
CARLSON & RAUTH
~"'Wy~"S
NEWPORT BI!:"'Ct-l, CA
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however, the designation of the Authority as the purchaser does
2 not preclude the acquisition of the Purchase Site by another
3 party and the designation of that party as the purchase of the
4 Purchase Site; and
5 WHEREAS, there then has been presented to this Common
6 Council copies of each of the aforementioned documents and
7 certain other documents relating to the foregoing;
8 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
9 OF SAN BERNARDINO AS FOLLOWS:
SECTION 1.
The foregoing recitals, and each of them,
11 are true and correct.
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SECTION 2.
The Installment Purchase Agreement, Trust
13 Agreement, the Assignment Agreement and the Escrow Agreement
14 are approved in substantially the form presented at this
15 meeting. The Commissioners and General Manager of the San
16 Bernardino Municipal Water Department (the "Department") are
17 directed to modify said agreements as may be necessary to carry
18 our the intent of this Common Council as herein set forth and
19 to approve the Installment Purchase Payments when the interest
20 rates are known upon receipt of the bids for the Certificates.
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SECTION 3.
The preparation and distribution of the
22 Preliminary Official Statement in substantially the form
23 presented at this meeting, with such changes, insertions and
24 omissions as may be approved by the General Manager of the
25 Department, is hereby approved. The General Manager of the
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5T~AOLING. vOCCA,
CARI..SON & RAUn-l
......WYERS
"'EWPOFl'T' IIE...C.... C...
Department is hereby authorized to sign a certificate pursuant
to Rule 15c2-12 promulgated under the Securities Exchange Act
of 1934 relating to the Preliminary Official Statement.,' The
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1 General Manager of the Department is further authorized and
2 directed to approve, execute and deliver the final Official
3 Statement with respect to the Certificates, which final
4 Official Statement shall be in the form of the Preliminary
5 Official Statement with such changes, insertions and omissions
6 as may be approved by the General Manager of the Department,
7 such approval to be conclusively evidenced by the execution and
8 delivery thereof. The Authority is hereby authorized to
9 distribute copies of the Preliminary Official Statement to
10 persons who may be interested in the initial purchase of
11 Certificates and is directed to deliver copies of the final
12 Official Statement to all actual initial purchasers of the
13 Certificates.
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Pursuant to Section 40(a) of the City
SECTION 4.
15 Charter, the General Manager of the Department is authorized to
take competitive bids for the sale of the Purchase Site. The
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ST~AOLING. 'l'OCCA.
CARL..SON & RAUTl-l
L"wYER$
NEWPO"''' I!IE"CM, CA
sale of the Purchase Site shall be made subject to the terms
set forth in the Installment Purchase Agreement which terms
shall be set forth in the notice inviting bids. The minimum
bid price for the Purchase Site shall be $2,030,000. The
Commission of the Department is authorized to accept the best
offer for the Purchase Site upon the terms and conditions
herein set forth.
11111
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IIIII
IIIII
11111
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SECTION 5.
The Mayor, the
Ci ty QHk and
any other
2 proper officer of the City and of the Department are hereby
3 authorized and directed, jointly and severally, to do any and
4 all things and to execute and deliver any and all documents
5 necessary or proper for carrying out the transactions
6 contemplated by this Resolution.
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SECTION 6.
This Resolution shall take effect from and
8 after its date of adoption.
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STRADLING. YOeCA,
CARLSON & RAUTH
L.,",WVER5
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NEWPORT BEACH, CA
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RESOLUTION AUTHORIZING THE SALE, EXECUTION AND DELIVERY OF
APPROXIMATELY $41,750,000 PRINCIPAL AMOUNT OF CERTIFICATES OF
PARTICIPATION OF THE SAN BERNARDINO PUBLIC SAFETY AUTHORITY AND
APPROVING CERTAIN DOCUMENTS IN CONNECTION THEREWITH.
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19 of
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I HEREBY CERTIFY that' the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of
San Bernardino at a
meeting thereof, held on the
day of
, 1992, by the following vote, to wit:
Council Members:
NAYS
AYES
ABSTAIN
ABSENT
ESTRADA
REILLY
HERNANDEZ
MAUDSLEY
MINOR
POPE-LUDLAM
MILLER
City Clerk
The foregoing resolution is hereby approved this
, 1991.
day
W. R. Holcomb, Mayor
City of San Bernardino
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Approved as to
form and legal content:
JAMES F. PENMAN,
City Attorney
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26 By: v1.N:--> 'I I ~/...v,
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STRAOL.!NG. VOCCA.
CARLSON & RAUTl-l
I.AWYERS
i'OE.....POAT l!Ilt""CH, CA
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STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO
CITY OF SAN BERNARDINO
)
) Ss.
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I,
, City Clerk in and for the City of
6 San Bernardino DO HEREBY CERTIFY that the foregoing and
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attached copy of San Bernardino City Resolution No.
r is
a full, true and correct copy of that now on file in this
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office.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
the official seal of the City of San Bernardino this
day of
, 1992.
City Clerk of the City of San Bernardino
(SEAL)
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