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HomeMy WebLinkAboutRES NO 078-15RESOLUTION NO. 078-1.9 A RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF NOT TO EXCEED $177,000,000 IN AGGREGATE PRINCIPAL AMOUNT OF CITY OF BAKERSFIELD, CALIFORNIA WASTEWATER REVENUE REFUNDING BONDS SERIES 2015A, APPROVING A FOURTH SUPPLEMENTAL TRUST INDENTURE, AN OFFICIAL STATEMENT, A BOND PURCHASE CONTRACT, AN ESCROW AGREEMENT, AND A CONTINUING DISCLOSURE CERTIFICATE AND AUTHORIZING AND DIRECTING ADDITIONAL ACTIONS IN CONNECTION WITH THE ISSUANCE OF THE REVENUE REFUNDING BONDS. (Wastewater Revenue Refunding Bonds Series 2015A) WHEREAS, the City of Bakersfield (the "City ") is a charter city organized and existing under the laws of the State of California (the "State "); and WHEREAS, the City now owns and operates a municipal sewer system (the "Enterprise "); and WHEREAS, the City Council (the "Council ") of the City, acting under and pursuant to the powers reserved to the City under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California and Section 33.3 of the Charter of the City, has enacted the City of Bakersfield Enterprise Revenue Bond Law (the "Law "), being Chapter 3.55 of the Municipal Code of the City, which incorporates, to the extent made applicable by the Law, the Revenue Bond Law of 1941, being Chapter 6 of Division 2 of Title 5 of the California Government Code, as enacted and as thereafter amended; and WHEREAS, the Law authorizes the City to issue enterprise revenue bonds for the purposes set forth therein; and WHEREAS, the City has determined that it is necessary and advisable to issue, from time to time, one or more series of Bonds (as defined in the Master Trust Indenture, dated as of August 1, 2007 (the "Master Trust Indenture "), by and between the City and U.S. Bank National Association (the "Trustee ")) for the purposes set forth in the Law and the Master Trust Indenture, and that such Bonds be payable from and secured by Net Revenues (as defined in the Master Trust Indenture); and WHEREAS, the City previously issued its City of Bakersfield, California Wastewater Revenue Bonds Series 2007A (the "Series 2007A Bonds ") in the initial aggregate principal amount of $190,695,000; and WHEREAS, the City has determined that it is in its best interest to issue one or more series of Bonds in an aggregate principal amount not to exceed $177,000,000 for the purpose of refunding all or a portion of the outstanding Series 2007A Bonds (the "Series 2007A Refunded Bonds "), which the City expects will result in debt service savings to the City; and 4827 - 2060 - 6241.4 WHEREAS, the City has determined that the bonds issued to refund the Series 2007A Refunded Bonds shall be designated as City of Bakersfield, California Wastewater Revenue Refunding Bonds, Series 2015A (the "Series 2015A Bonds "); and WHEREAS, the City has previously entered into the State Revolving Fund Loan Program Contract No. 7- 806 - 550 -0, dated as of September 3, 1997 (the "State Loan "), by and between the City, and the State, acting through the State Water Resources Control Board (the "State Water Board ") whereby the City borrowed $14,954,054 from the State Revolving Fund Loan Program to pay a portion of the costs and expenses of an upgrade and expansion to the Enterprise's Wastewater Treatment Plant 2; and WHEREAS, pursuant to the State Loan, the City has granted to the State a first lien (but not necessarily an exclusive lien) on and pledge of the Net Revenues; and WHEREAS, under the terms of the State Loan, the City may create a charge or lien on the Net Revenues on a parity with or subordinated to the charge or lien of the State Loan; and WHEREAS, the City previously issued, pursuant to the terms of the Master Indenture, and a third supplement thereto, its City of Bakersfield, California Wastewater Revenue Bonds Series 2012A (the "Series 2012A Bonds ") in the initial aggregate principal amount of $25,000,000 and such Series 2012A Bonds are secured by a pledge of Net Revenues; and WHEREAS, the Series 2015A Bonds will be issued on a parity with the State Loan, the Series 2007A Bonds (that remain outstanding after the issuance of the Series 2015A Bonds) and the Series 2012A Bonds; and WHEREAS, the Series 2015A Bonds will be issued pursuant to the Law, certain other provisions of the laws of the State (including Section 53580 et seq. of the California Government Code), the Master Trust Indenture and the Fourth Supplemental Indenture (as hereinafter defined); and WHEREAS, the Series 2015A Bonds will be issued so that the interest paid on the Series 2015A Bonds will be excluded from the gross income of the recipients thereof under the varying provisions of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder or related thereto (collectively, the "Code "); and WHEREAS, City staff has recommended the selection of U.S. Bank National Association to act as escrow agent (the "Escrow Agent ") under the Escrow Agreement (as hereinafter defined); and WHEREAS, City staff has recommended the selection of Citigroup Global Markets Inc. (senior book runner), Merrill Lynch, Pierce, Fenner & Smith Incorporated (co- manager) and Morgan Stanley & Co. LLC (co- manager) to act as underwriters of the Series 2015A Bonds (the "Underwriters "); and WHEREAS, there have been prepared and submitted to the City Clerk for consideration of this Council forms of the following documents: 2 4827 - 2060 - 6241.4 (a) a form of the Fourth Supplemental Trust Indenture (the "Fourth Supplemental Indenture ") by and between the City and the Trustee; (b) a form of the final Official Statement (the "Official Statement ") relating to the issuance of the Series 2015A Bonds; (c) a form of the Bond Purchase Contract (the "Bond Purchase Contract ") by and among the Underwriters and the City with respect to the purchase and sale of the Series 2015A Bonds; (d) a form of the Escrow Agreement (the "Escrow Agreement "), by and between the City and U.S. Bank National Association, as Trustee and Escrow Agent, to be entered into with respect to the Series 2007A Bonds; and (g) a form of a Continuing Disclosure Certificate (the "Continuing Disclosure Certificate ") by the City; and WHEREAS, said documents will be modified and amended to reflect the various details applicable to the Series 2015A Bonds and said documents are subject to completion to reflect the results of the sale of the Series 2015A Bonds; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Bakersfield as follows: Section 1. Issuance of Series 2015A Bonds; Terms of Series 2015A Bonds. For the purposes set forth in the foregoing recitals, the City hereby authorizes the issuance of its Series 2015A Bonds in an aggregate principal amount not to exceed $177,000,000, plus the amount of any original issue premium (subject to the limitations set forth in this Resolution) at which the Series 2007A Bonds may be sold. The proceeds from such Series 2015A Bonds, and any other moneys made available in connection with the advance refunding of the Series 2007A Refunded Bonds, may be used to pay the costs of issuance and fund an escrow fund to pay the principal and interest on the Series 2007A Bonds on the applicable redemption date. In addition to the above use of the Series 2015A Bonds proceeds, the proceeds from such Series 2015A bond proceeds may be used to fund a reserve fund for the Series 2015A Bonds and/or purchase a reserve fund surety policy, and pay for a municipal bond insurance policy relating to the Series 2015A Bonds, if it is determined by the Finance Director of the City that bond insurance results in savings to the City. The Series 2015A Bonds shall be in fully registered form and may be issued as Book Entry Bonds as provided for in the Master Trust Indenture and the Fourth Supplemental Indenture. Payment of principal of and interest on the Series 2015A Bonds shall be made at the place or places and in the manner provided in the Master Trust Indenture and the Fourth Supplemental Indenture. The Series 2015A Bonds shall be issued as current interest bonds and shall be initially available in denominations of $5,000 and integral multiples thereof. The Series 2015A Bonds shall, when issued, be in the aggregate principal amounts and shall be dated as shall be provided in the final form of the Fourth Supplemental Indenture. The Series 2015A Bonds may be issued 3 4827 - 2060 - 6241.4 as serial bonds and /or term bonds or as both serial and term bonds, all as set forth in the Master Trust Indenture and the Fourth Supplemental Indenture. Except as otherwise permitted under this Resolution, each maturity of the Series 2015A Bonds shall bear interest at a rate not in excess of 5.5% per annum. Interest on the Series 2015A Bonds shall be paid on the dates set forth in the Master Trust Indenture and the Fourth Supplemental Indenture. The Series 2015A Bonds shall mature no later than September 15, 2033. The Series 2015A Bonds shall be sold in a manner by which the interest thereon is excludable from gross income under the Code. The Series 2015A Bonds shall be subject to redemption at the option of the City on such terms and conditions as shall be set forth in the Master Trust Indenture and the Fourth Supplemental Indenture. The Series 2015A Bonds which are term bonds shall also be subject to mandatory sinking fund redemption as shall be set forth in the Master Trust Indenture and the Fourth Supplemental Indenture. Section 2. Pledge to Secure the Series 2015A Bonds. The pledge to secure the Series 2015A Bonds as set forth in the Master Trust Indenture and the Fourth Supplemental Indenture is hereby approved. Net Revenues are hereby irrevocably pledged in accordance with the terms of the Master Trust Indenture and the Fourth Supplemental Indenture and the pledge to secure the Series 2015A Bonds as set forth in the Master Trust Indenture and the Fourth Supplemental Indenture is hereby approved. Section 3. Special Obligations. The Series 2015A Bonds shall be special obligations of the City, secured by, and payable from, Net Revenues and from the funds and accounts held by the Trustee and the City under the Master Trust Indenture and the Fourth Supplemental Indenture, as and to the extent therein described. The Series 2015A Bonds shall also be secured by and be paid from such other sources as the City may hereafter provide. Section 4. Forms of Series 2015A Bonds. The Series 2015A Bonds and the Trustee's Certificate of Authentication to appear thereon shall be in substantially the form set forth in Exhibit A to the Fourth Supplemental Indenture with necessary or appropriate variations, omissions and insertions as permitted or required by the Master Trust Indenture or the Fourth Supplemental Indenture or as appropriate to adequately reflect the terms of the Series 2015A Bonds and the obligation represented thereby. Section 5. Execution of the Series 2015A Bonds. Each of the Series 2015A Bonds shall be executed by the Mayor or the City Manager of the City (each a "Designated Officer ") and attested by the Finance Director or Clerk of the City. Any such signatures may be by manual or facsimile signature and the seal of the City may be impressed or printed on the Series 2015A Bonds. Additionally, each of the Series 2015A Bonds shall be authenticated by the signature of the Trustee or an agent of the Trustee as required and permitted by the Master Trust Indenture and the Fourth Supplemental Indenture. Any facsimile signature of such Designated Officer of the City shall be of the same force and effect as if such signature were manually placed on such Series 2015A Bonds. Section 6. Approval of Documents; Authorization for Execution. The form, terms and provisions of the Fourth Supplemental Indenture, the Escrow Agreement and the Continuing Disclosure Certificate (collectively, the "Documents ") are in all respects approved and the Mayor of the City, the City Manager, the Finance Director of the City, the City Attorney 4 4827 - 2060 - 6241.4 and such other officers as are specified by each of the respective Documents (together with any designee in writing of any such officer; all references hereinafter in this resolution to any officer of the City shall be deemed to include any designee in writing of such officer) are hereby authorized, empowered and directed to execute, acknowledge and deliver each of the Documents including counterparts thereof, in the name and on behalf of the City. The Documents, as executed and delivered, shall be in substantially the forms now before this meeting and hereby approved, or with such changes therein (including any changes required by a municipal bond insurer or insurers in order to obtain a municipal bond insurance policy or policies with respect to the Series 2015A Bonds or a reserve fund surety policy or policies) as shall be approved by the officer or officers of the City executing the same; the execution thereof shall constitute conclusive evidence of the City's approval of any and all changes or revisions therein from the forms of the Documents now before this meeting; and from and after the execution and delivery of the Documents, the officers, agents and employees of the City are hereby authorized, empowered and directed to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the Documents. Section 7. Sale of the Series 2015A Bonds. The sale of the Series 2015A Bonds is hereby approved through a private, negotiated sale to the Underwriters. The Mayor of the City, the City Attorney, the City Manager and the Finance Director of the City, or any one of them, are hereby authorized to approve the final terms of the sale of the Series 2015A Bonds subject to the terms, conditions and restrictions set forth in this Resolution. The Series 2015A Bonds shall be sold with an underwriters' discount and /or underwriting fee as set forth in the Bond Purchase Contract, in an amount not to exceed 0.2% of the aggregate principal amount of the Series 2015A Bonds, and subject to the terms and conditions set forth in the Bond Purchase Contract. Additionally, the Series 2015A Bonds may be sold to the Underwriters at a discount or a premium. The form, terms and provisions of the Bond Purchase Contract now before this meeting are in all respects hereby approved and the Mayor of the City, the City Attorney, the City Manager and the Finance Director of the City are hereby authorized and empowered, either alone or in combination, to execute and deliver the Bond Purchase Contract, including counterparts thereof, in the name and on behalf of the City. The Bond Purchase Contract, as executed and delivered, shall be in substantially the form now before this meeting and hereby approved, or with such changes therein as shall be approved by the officer(s) executing the same; the execution thereof shall constitute conclusive evidence of the City's approval of any and all changes or revisions therein from the form of the Bond Purchase Contract now before this meeting; and from and after the execution and delivery of the Bond Purchase Contract, the officers, agents and employees of the City are hereby authorized, empowered and directed to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the Bond Purchase Contract. Section 8. Official Statement. The form of the Official Statement now before this meeting is in all respects hereby approved to be used in connection with the sale of the Series 2015A Bonds to the public. The Official Statement shall be in substantially the form now before this meeting and hereby approved, or with such changes therein as shall be approved by the Mayor of the City, the City Manager and the Finance Director of the City, or any one of 5 4827 - 2060 - 6241.4 them. The Mayor of the City, the City Manager, the Finance Director of the City, or any one of them, are hereby authorized and directed to execute the Official Statement in the name and on behalf of the City. The execution thereof shall constitute conclusive evidence of the City's approval of any and all changes or revisions therein from the form of the Official Statement now before this meeting. The Official Statement shall be circulated (via printed format and/or electronic means) for use in selling the Series 2015A Bonds at such time or times as the Mayor of the City, the City Manager, the Finance Director of the City, or any one of them, (after consultation with the City's bond counsel and disclosure counsel and such other advisors the City believes to be useful) shall determine that each Official Statement is a "final official statement" within the meaning of Rule 15c2 -12 promulgated under the Securities Exchange Act of 1934, as amended ( "Rule 15c2 -12 "), and any such action previously taken is hereby confirmed, ratified and approved. The Underwriter is hereby authorized to distribute (via printed format and /or electronic means) the Official Statement, in connection with the sale of the Series 2015A Bonds to the public. Section 11. Paying Agent and Registrar. The City hereby appoints U.S. Bank National Association as paying agent (the "Paying Agent ") and as registrar (the "Registrar ") for the Series 2015A Bonds. Such appointments shall be effective upon the issuance of the Series 2015A Bonds, respectively, and shall remain in effect until the City shall, by supplemental agreement or by resolution, name a substitute or successor thereto. Section 12. Escrow Agent. The City hereby appoints U.S. Bank National Association, as the Escrow Agent, in connection with the advanced refunding and defeasance of the Series 2007A Refunded Bonds. Such appointment shall be effective upon the execution and delivery of the Escrow Agreement and shall remain in effect until the City shall, by resolution, name a substitute or successor thereto. Section 13. Authorization for Provision for Reserve Funds. A portion of the proceeds of the Series 2015A Bonds may be used to fund a reserve fund for the Series 2015A Bonds, or to pay costs of a surety bond or any other surety device for the reserve fund as may be set forth in the Fourth Supplemental Indenture. Section 14. Additional Authorization. The Mayor of the City, the City Manager, the Finance Director of the City, the City Attorney and all officers, agents and employees of the City, for and on behalf of the City, be and they hereby are authorized and directed to do any and all things necessary to effect the execution and delivery of the Series 2015A Bonds, the Documents, the Official Statement and the Bond Purchase Contract and to carry out the terms thereof. The Mayor of the City, the City Manager, the Finance Director of the City, the City Attorney and all other officers, agents and other employees of the City are further authorized and directed, for and on behalf of the City, to execute all papers, documents, certificates and other instruments that may be required in order to carry out the authority conferred by this Resolution and by the Series 2015A Bonds, the Documents, the Official Statement and the Bond Purchase Contract or to evidence the same authority and its exercise. The foregoing authorization includes, but is in no way limited to, authorizing City staff to pay costs of issuance of the Series 2015A Bonds and the underwriting fees; authorizing the Finance Director of the City to direct the investment of the proceeds of the Series 2015A Bonds in one or more of the permitted investments provided for under the Master Trust Indenture and the Fourth Supplemental 6 4827 - 2060 - 6241.4 Indenture (including, but not limited to, investment agreements) and to execute any documents relating to such investments; and authorizing the execution by the Mayor of the City, the City Manager, the Finance Director of the City, or any of them, of a tax compliance certificate as required by the Master Trust Indenture and the Fourth Supplemental Indenture for the purpose of complying with the arbitrage and rebate requirements of the Code, any documents required by The Depository Trust Company in connection with the Book -Entry Bonds (as defined in the Fourth Supplemental Indenture) and any notices of the advance refunding and defeasance of the Series 2007A Refunded Bonds required pursuant to the Master Trust Indenture and the First Supplemental Indenture. Section 15. Costs of Issuance. The City authorizes funds of the City, together with the proceeds of the Series 2015A, to be used to pay costs of issuance of the Series 2015A Bonds, including, but not limited to, costs and expenses of attorneys, accountants and financial advisors, underwriting fees, costs associated with rating agencies, the Trustee, the Escrow Agent, bond issuance and surety bonds, printing, publications and mailing expenses; and any related filing fees thereof. Section 16. Severability. The provisions of this Resolution are hereby declared to be severable and, if any section, phrase or provisions shall for any reason be declared to be invalid, such declaration shall not affect the validity of the remainder of the sections, phrases and provisions hereof. Section 17. Governing Law. This resolution shall be construed and governed in accordance with the laws of the State of California. Section 18. Repeal of Inconsistent Resolutions. All other resolutions of the City, or parts of resolutions, inconsistent with this Resolution, are hereby repealed to the extent of such inconsistency. Section 19. Effective Date of Resolution. This Resolution shall take effect immediately upon its passage. 7 4827 - 2060 - 6241.4 HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the City Council of the City of Bakersfield at a regular meeting thereof held on June 24, 2015, by the following vote: RIVERA, MAXWELL, WEIR, SMITH, HANSON, SULLIVAN, PARLIER AYE COUNCILMEMBER P,%%J 1'G. tAC%XW j1 uJ¢ ✓. SM1 St4l I I AN �eA. f� NOES: COUNCILMEMBER NQNL ABSTAIN: COUNCILMEMBER NONA- (BSEN : OUNCILMEMBER City Clerk and Ex Officio Cle of the Council of the City of Bakersfield APPROVED this 24`" day of June, 2015. HARVEY L. HALL Mayor of the City of APPROVED AS TO FORM: VIRGINIA GENNARO City Y�I't By: VIRGIAIA GE ARO City Attorney 8 4827 - 2060 - 6241.4