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Resolution 2002-70 RESOLUTION NO. 2002-70 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY CONSENTING TO THE ISSUANCE BY THE SOUTH COUNTY REGIONAL W ASTEW ATER AUTHORITY OF REFUNDING BONDS TO REFUND THE SOUTH COUNTY REGIONAL WASTEWATER AUTHORITY REVENUE BONDS (REGIONAL WASTEWATER FACILITIES AND CAPITAL IMPROVEMENTS PROJECT), MORGAN HILL SERIES 1992B BONDS AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH WHEREAS, the South County Regional Wastewater Authority (the "Authority") was duly established as a joint exercise of powers authority pursuant to Section 6500 et sea of the California Government Code and the Joint Exercise of Powers Agreement Creating the South County Regional Wastewater Authority, dated May 19, 1992 (the "Agreement") by and between the City of Morgan Hill and the City of Gilroy (separately, a "Member Agency", and together, the "Member Agencies"). WHEREAS, the 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 purchased certain wastewater treatment capacity rights in a regional wastewater facility (the "Project") in the City of Gilroy from the Authority and the Authority has sold such capacity rights in the Project to the Member Agencies in consideration of the payment therefore by the Member Agencies. WHEREAS, the Authority has determined pursuant to Article VII of the Agreement that 0.25 percent of the capacity rights in the Project shall be reserved in the name of and for the benefit of the Authority. With respect to the remaining 99.75 percent of capacity rights in the Project, the Authority, pursuant to Article VII of the Agreement, has allocated 41.9 percent thereof to the City of Morgan Hill and 58.1 percent to the City of Gilroy. WHEREAS, the City of Morgan Hill has heretofore entered into an Amended and Restated Installment Purchase Agreement relating to Capacity Rights in Regional Wastewater Facilities, dated September l, 1992 (the "1992 Installment Purchase Agreement"), pursuant to which the Authority sold capacity rights in the Project to the City of Morgan Hill and the City of Morgan Hill provided funds for the acquisition and construction of its share of the Project, being 41.9 percent, based upon its proportionate share of capacity rights in the Project and the same proportionate share of the capacity rights to be retained by the Authority (the sum of such amounts being herein referred to as the "City of Morgan Hill's Share"). RESOLUT10NNO.2002-70 -1- WHEREAS, the Authority has issued its Revenue Bonds (Regional Wastewater Facilities and Capital Improvements Project) Morgan Hill Series 1992B (the "1992 Bonds"), secured by Installment Payments received by the Authority from the City of Morgan Hill pursuant to the 1992 Installment Purchase Agreement, for the purpose of financing the City of Morgan Hill's Share ofthe costs of the Project, thereby (i) refinancing the City of Morgan Hill's Share of the costs of the Project financed with the proceeds of the City of Morgan Hill's Certificates of Participation (1988 Wastewater Facilities Expansion Project) and reimbursing the City of Morgan Hill for the costs of the Project financed in cash, (ii) financing the acquisition and construction of certain capital improvements to the Project (the "Capital Improvements"), and (ill) other related expenses. WHEREAS, the City of Morgan Hill has now determined that it is desirable to secure the assistance of the Authority in refinancing the City of Morgan Hill's Share of the cost of the Project and the Capital Improvements through the issuance of refunding revenue bonds by the Authority (the "Series 2002 Bonds"). NOW, THEREFORE, BE IT RESOLVED: 1. Section Recitals. The above recitals, and each of them, are true and correct. 2. Section Approval of Financing. Pursuant to Article V ofthe Agreement, the City hereby consents to the issuance of the Series 2002 Bonds by the Authority for the purpose of refinancing the City of Morgan Hill's Share of the cost of the Project and the Capital Improvements. 3. Section Other Acts. The 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 effectuate the purposes of this Resolution, and any such actions previously taken by such officers are hereby ratified and confirmed. 4. Section Effective Date. This Resolution shall take effect immediately upon adoption. PASSED AND ADOPTED this 16th day of September, 2002, by the following vote: AYES: COUNCILMEMBERS: ARELLANO, DILLON, GARTMAN, MORALES, PINHEIRO, VELASCO, and SPRINGER NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE RESOLUTION NO. 2002-70 -2- APPROVED: ~ ThornasVV. Springer, /'--.. Rlionda Pellin City RESOLUTION NO. 2002-70 -3- I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certifY that the attached Resolution No. 2002-70 is an original resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 16th day of September, 2002, 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 25th day of September, 2002. ?Z.. lerk ofthe-City of Gilroy (Seal)