Resolution 1992-51
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RESOLUTION NO. 92 - 51
A RESOLUTION OF THE CITY OF GILROY AUTHORIZING AND
APPROVING THE ISSUANCE BY THE SOUTH COUNTY REGIONAL
WASTEWATER AUTHORITY OF REVENUE BONDS (REGIONAL
WASTEWATER FACILITIES PROJECT) GILROY SERIES 1992A;
APPROVING THE FORM AND AUTHORIZING THE EXECUTION OF
AN INSTALLMENT PURCHASE AGREEMENT RELATING TO
CAPACITY RIGHTS IN REGIONAL WASTEWATER FACILITIES, AN
OFFICIAL STATEMENT AND A BOND PURCHASE AGREEMENT; AND
AUTHORIZING THE EXECUTION AND DELIVERY OF AND
APPROVING OTHER RELATED DOCUMENTS AND ACTIONS IN
CONNECTION THEREWITH.
WHEREAS, pursuant to the provisions of Chapter 5 of
Division 7 of Title 1 of the Government Code of the State of
California, the City of Gilroy (the "City") and the City of
Morgan Hill ("Morgan Hill" and together with t'he City, the
"Member Agencies") have executed and entered into the Joint
Exercise of Powers Agreement Creating the South County Regional
Wastewater Authority, dated May 19, 1992 (the "Joint Exercise
of Powers Agreement"), pursuant to which Joint Exercise of
Powers Agreement the South County Regional Wastewater Authority
(the "Authority") has been created and established;
WHEREAS, the aforesaid Joint Exercise of Powers Agreement
provides that the Authority, in its own name, or for the
benefit of the Member Agencies, has the power to acquire by
purchase, lease, contribution, eminent domain or otherwise,
real or'personal property, and to plan for, develop, contract
for, own, acquire, construct, finance, operate and maintain any
systems, plants, buildings, works and other facilities for the
collection, treatment and disposal of sewage, waste and storm
water, including sewage treatment and disposal plants and works
and facilities in connection therewith, and reclamation
facilities;
WHEREAS, the Member Agencies have determined that their
existing jointly owned sewage treatment plant which each Member
Agency is currently using for the treatment and disposal of its
wastewater, is not sufficient to serve their respective needs
and that it is necessary to construct new wastewater facilities
(the "Project") in order to serve such needs;
RESOLUTION NO. 92 - 51
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WHEREAS, the Authority has determined to undertake the
acquisition and construction of such Project;
WHEREAS, the Authority has determined to reserve certain
wastewater treatment capacity in the Project in the name of and
for the benefit of the Authority and to sell the remaining
capacity rights in the Project to the Member Agencies in
consideration of the payment therefor by the Member Agencies;
WHEREAS, the City desires to enter into an Installment
Purchase Agreement with the Authority to provide for the
purchase by the City from the Authority of the City's share of
such capacity rights in the Project;
WHEREAS, the City has determined that it is desirable to
secure the assistance of the Authority in financing the costs
of acquisition and construction of its share of the Project and
to pay other related expenses through the issuance of revenue
bonds of the Authority;
WHEREAS, the City now desires to authorize the issuance by
the Authority of not to exceed $40,000,000 of its Revenue Bonds
(Regional Wastewater Facilities Project) Gilroy Series 1992A
for the purpose of financing the costs of acquisition and
construction of the City's share of the Project;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF GILROY AS FOLLOWS:
Section 1. Authorization of Bonds. Pursuant to Article V
of the Joint Exercise of Powers Agreement, the City hereby
consents to the issuance of bonds or other obligations by the
Authority for the purpose of financing all or a portion of the
costs of acquisition and the construction of the Project.
Further, the City hereby authorizes and approves the issuance
by the Authority of the South County Regional Wastewater
Authority Revenue Bonds (Regional Wastewater Facilities
Project) Gilroy Series 1992A (the "Series 1992A Bonds") for the
purpose of financing the costs of acquisition and construction
of the City's share of the Project.
Section 2. Installment Purchase Aareement. The Mayor or
the City Administrator or the duly authorized designee of
either of such officers are hereby authorized and directed to
execute for and on behalf of the City the Installment Purchase
Agreement Relating to Capacity Rights in Regional Wastewater
Facilities, dated as of July 1, 1992, by and between the City
and the Authority, in substantially the form filed with the
minutes of this meeting, with such changes therein and
additions thereto as such officers shall require or approve,
such approval to be evidenced by the execution and delivery
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RESOLUTION NO. 92 - 51
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thereof; provided that the aggregate purchase price in such
Installment Purchase Agreement shall be in an aggregate
principal amount not to exceed $40,000,000 and that the true
interest cost shall not exceed 7.50%.
Section 3. Bond Purchase Aoreement. The Mayor or the City
Administrator or the duly authorized designee of either of such
officers are hereby authorized and directed to execute for and
on behalf of the City a Bond Purchase Agreement among the
Authority, the City and J.P. Morgan Securities Inc. (the
"Underwriter"), in the form filed with the minutes of this
meeting, with such changes therein (and additions thereto to
reflect the terms of the sale of the Series 1992A Bonds) as
such officers shall require or approve, such approval to be
evidenced by the execution and delivery thereof.
Section 4. Official Statement. The form of preliminary'
official statement relating to the Series 1992A Bonds is hereby
approved, and the City Clerk is hereby directed to file said
form of preliminary official statement with the minutes of this
meeting. The Mayor or the duly authorized designee thereof is
hereby authorized and directed to execute for and on behalf of
the City a final official statement, in substantially the form
of the preliminary official statement, with such changes
therein (and additions thereto to reflect the terms of the sale
of the Series 1992A Bonds) as such officers shall approve, such
approval to be evidenced by the execution and delivery thereof.
Section 5. Attestations. The City Clerk is hereby
authorized and directed to attest the signature of the Mayor,
the City Administrator or such other officers and to affix and
attest the seal of the City, as may be required or appropriate
in connection with the execution and delivery of said
Installment Purchase Agreement or related documents.
Section 6. Other Actions. The Mayor, the City
Administrator, the City Clerk and the other officers of the
City are hereby authorized and directed jointly and severally
to do any and all things and to execute and deliver any and all
documents which they may deem necessary or advisable in order
to consummate the acquisition and construction of the Project
and the issuance of the Series 1992A Bonds by the Authority and
otherwise to carry out, give effect to and comply with the
terms and intent of this Resolution. Such actions heretofore
taken by such officers are hereby ratified, confirmed and
approved.
Section 7. Effective Date. This Resolution shall take
effect from and after its date of passage and adoption.
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PASSED AND ADOPTED THIS 6th DAY OF July 1992, BY THE
FOLLOWING VOTE:
AYES: COUNCILMEMBERS: GILROY, HALE, KLOECKER, NELSON, ROWLISON,
VALDEZ and GAGE.
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ABSTAIN: N/A
[SEAL]
ATTEST:
Clerk
RESOLUTION NO, 92 - 51
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I, SUSANNE E. STEINMETZ, City Clerk of the City of Gilroy, do
hereby certify that the attached Resolution No. 92-51 is an original
resolution, duly adopted by the Council of the City of Gilroy at an
adjourned regular meeting of said Council held on the 6th day of
July , 19~, 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 7th day of July ,1992.
Gilroy
(Seal)