Resolution No. GPFFA 2019-02 | Issuance of $17,000,000 Lease Revenue Refunding Bonds; Series 2020A | Adopted 11/04/2019RESOLUTION NO. PFFA 2019-02
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
GILROY PUBLIC FACILITIES FINANCING AUTHORITY
AUTHORIZING THE ISSUANCE OF NOT TO EXCEED
$17,000,000 OF GILROY PUBLIC FACILITIES FINANCING
AUTHORITY LEASE REVENUE REFUNDING BONDS, SERIES
2020A; APPROVING THE EXECUTION AND DELIVERY OF
VARIOUS RELATED DOCUMENTS IN CONNECTION WITH
THE OFFERING AND SALE OF SUCH BONDS; AND
AUTHORIZING THE TAKING OF CERTAIN OTHER MATTERS
RELATED THERETO
WHEREAS, the Gilroy Public Facilities Financing Authority (the "Authority")
was established for the purpose, among others, of providing for the financing and refinancing of
public capital improvements for the City of Gilroy (the "City"); and
WHEREAS, the Authority has previously issued its Gilroy Public Facilities
Financing Authority Refunding Lease Revenue Bonds, Series 2010, in the aggregate principal
amount of $24,475,000 (the "Series 2010 Bonds"); and
WHEREAS, the Authority and the City have determined, that it is necessary and
desirable in order to refund the Series 2010 Bonds to authorize the issuance, sale and delivery of
the Gilroy Public Facilities Financing Authority Lease Revenue Refunding Bonds, Series 2020A
(the "Series 2020A Bonds") in the aggregate principal amount of not to exceed 17,000,000; and
WHEREAS, in connection with the issuance of the Series 2020A Bonds, the
Authority desires to approve the form and distribution of a preliminary official statement (the
"Preliminary Official Statement"); and
WHEREAS, the Authority also desires to approve in connection with the sale of
the Series 2020A Bonds, the form of a Forward Delivery Bond Purchase Agreement (the
"Forward Agreement"), among the Authority, the City and Hilltop Securities Inc. (the
"Underwriter"); and
WHEREAS, there have been presented to this meeting the proposed forms of the
following documents:
RESOLUTION NO. PFFA 2019-02
(a) the Indenture, dated as of August 1, 2020 (the "Indenture"), among the
Authority, the City and MUFG Union Bank, N.A., as trustee (the "Trustee");
(b) the Third Amendment to Lease Agreement, dated as of August 1, 2020
(the "Third Amendment") between the City and the Authority;
(c) the Preliminary Official Statement; and
(d) the Forward Agreement.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE
GILROY PUBLIC FACILITIES FINANCING AUTHORITY AS FOLLOWS:
SECTION 1. Approval of Issuance of Series 2020A Bonds by the Authority. The
issuance of the Series 2020A Bonds by the Authority on the terms and conditions set forth in,
and subject to the limitations specified in the Indenture and this Resolution, is hereby approved;
provided, however, that (i) the aggregate principal amount of Series 2020A Bonds shall not
exceed $17,000,000, (ii) the maturity of the Series 2020A Bonds shall not exceed November 1,
2033 and (iii) there shall be present value savings with respect to the refunding of the Series
2010 Bonds of at least 3% of the principal amount of the Series 2010 Bonds using the yield on
the Series 2020A Bonds as the discount rate.
SECTION 2. Approval of Indenture. The form of Indenture presented at this
meeting is hereby approved and the Chairman, the Vice -Chairman, the Executive Director, the
Treasurer, the Secretary of the Authority (each an "Authorized Officer") are hereby authorized
and directed, for and in the name of and on behalf of the Authority, to execute, acknowledge and
deliver the Indenture in substantially the form presented at this meeting with such changes
therein as the officers executing the same may approve, such approval to be conclusively
evidenced by the execution and delivery thereof. The City Administrator of the City shall serve
as the Executive Director of the Authority.
SECTION 3. Approval of Third Amendment. The form of Third Amendment
presented at this meeting is hereby approved and each Authorized Officer is hereby authorized
and directed, for and in the name of and on behalf of the Authority, to execute, acknowledge and
deliver the Third Amendment in substantially the form presented at this meeting with such
changes therein as the Authorized Officer executing the same may approve, such approval to be
conclusively evidenced by the execution and delivery thereof.
SECTION 4. Approval of Forward Agreement. The Authority is hereby
authorized to enter into the Forward Agreement and each Authorized Officer is hereby
authorized and directed to execute and deliver the Forward Agreement on behalf of the
Authority, in substantially the form presented to this meeting, with such changes therein,
deletions therefrom and additions thereto as the Authorized Officer shall approve in consultation
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RESOLUTION NO. PFFA 2019-02
with the Authority's financial and legal consultants, which approval shall be conclusively
evidenced by the execution and delivery thereof, provided, that the underwriting discount
payable pursuant to the Forward Agreement shall not exceed 0.65% of the principal amount of
the Series 2020A Bonds.
SECTION 5. Approval of Official Statement. The Preliminary Official Statement
is hereby approved and the same may be used and is hereby authorized to be used and distributed
in the market by the Underwriter incident to the marketing of the Series 2020A Bonds. Each
Authorized Officer is hereby authorized to (a) make such changes in such form of the
Preliminary Official Statement as such officer, in consultation with the Authority's financial and
legal consultants and the Underwriter, shall determine to be appropriate, and (b) on behalf of the
Authority, to deem such Preliminary Official Statement "final" pursuant to Rule 15c2-12 under
the Securities Exchange Act of 1934 (the "Rule"). Each Authorized Officer is authorized and
directed to prepare a final Official Statement, with such additional information as may be
permitted to be excluded from the Preliminary Official Statement pursuant to the Rule, which
final Official Statement shall be executed and delivered in the name and on behalf of the
Authority by an Authorized Officer, and such Authorized Officer is authorized and directed to
prepare, execute and deliver in the name and on behalf of the Authority any supplemental filings
related to such final Official Statement, including any supplemental filings required in
connection with the delivery of the Series 2020A Bonds.
SECTION 6. SB 450 and SB 1029 Representation. The Authority adopts and
approves the Good Faith Estimates required by Senate Bill 450 (Chapter 625 of the 2017-2018
Session of the California Legislature) ("SB 450") and obtained by the City from the Underwriter
and the Municipal Advisor.
The Authority confirms, that to the extent applicable, it adopts the City's stated debt
management policies required by Senate Bill 1029 ("SB 1029"), and further represents that it is
in compliance with the applicable SB 1029 pre -issuance requirements and that it expects to
comply with all post -issuance requirements of SB 1029 applicable to the Series 2020A Bonds.
SECTION 7. Other Acts. The officers and staff of the Authority are hereby
authorized and directed, jointly and severally, to do any and all things, to execute and deliver any
and all documents, which in consultation with Authority Counsel and with Nixon Peaobdy LLP,
the Authority's bond counsel, they may deem necessary or advisable in order to effectuate the
purposes of this Resolution, and any and all such actions previously taken by such officers or
staff members are hereby ratified and confirmed. Any one of the Authorized Officers is hereby
authorized and directed, for and in the name and on behalf of the Authority, to evaluate and
select one or more municipal bond insurers for all or any portion of the Series 2020A Bonds and
to execute and deliver such contracts and agreements with such bond insurers as may be
approved by the Authorized Officer executing the same, subject to the provisions of this
Resolution, such approval to be conclusively evidenced by such execution and delivery.
SECTION 8. Effective Date. This Resolution shall take effect upon adoption.
PASSED AND ADOPTED this 4"' day of November 2019 by the following roll call vote:
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RESOLUTION NO. PFFA 2019-02
AYES:
NOES:
ABSENT:
BOARDMEMBERS:
BOARDMEMBERS:
BOARDMEMBERS:
A TEST:
Sha reels, Boecretary�
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BLANKLEY, BRACCO,
MUNOZ, MARQUES,
TUCKER and VELASCO
NONE
NONE
LEROE-
TOVAR,
Koland V elasco, Board Chairperson
RESOLUTION NO. PFFA 2019-02
I, SHAWNA FREELS, Secretary of the Gilroy Public Facilities Financing Authority, do
hereby certify that the attached Resolution No. PFFA 2019-02 is an original resolution, or true
and correct copy of a city Resolution, duly adopted by the Board of the Gilroy Public Facilities
Financing Authority at a meeting of said Board held on the 0 day of November, 2019, at which
meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this 51h day of November, 2019.
I�
\I
Sha a Freels, MMC
Secretary of the Gilroy Public Facilities Financing Authority
(Seal)