HomeMy WebLinkAbout1989-10-03; City Council; 10281; Encina financing documentsOF CARLSBAD — AGENPA BILL
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MTG. 10/3/89
DEPT. FIN
TITLE:
RATIFICATION OF DOCUMENTS FOR THE
ENCINA FINANCING
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CITY ATTYVAQ
CITY MQR- *fyu
RECOMMENDED ACTION:
Adopt Resolution No. Ff-J*/?ratifying documents related to the Encina
Financing Joint Powers Authority bond issue.
ITEM EXPLANATION:
Several months ago, the City of Carlsbad joined with the City of Vista,
Leucadia County Water District, and Buena Sanitation to form the Encina
Financing Joint Powers Authority. This Authority then issued bonds in the
amount of $33.5 million to finance a portion of the Phase IV expansion costs
at the Encina Water Pollution Control Facility.
As part of this issue, the EFJPA prepared several documents including an
Installment Purchase Agreement, an Assignment Agreement, a Trust Indenture
and an Official Statement. These documents were approved by the City
Council in substantially the form presented at earlier meetings. At this
time, the City Council is being asked to ratify these documents in their
final form. There are no significant changes from the previous form of each
document. Copies of each document are on file with the Finance Department
for review.
FISCAL IMPACT:
The adoption of the Resolution has no fiscal impact for the City of
Carlsbad. The bond issue was successfully completed on August 22, 1989.
Funds have been deposited with the Trustee and have been made available to
the EAA for construction of the Phase IV project.
EXHIBITS:
Resolution No. //--/^y7 ratifying documents related to the EFJPA bond issue.
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RESOLUTION NO. 89-347
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, RATIFYING THE INSTALLMENT PURCHASE AGREEMENT,
ASSIGNMENT AGREEMENT, TRUST INDENTURE AND OFFICIAL
STATEMENT PERTAINING TO THE ENCINA PHASE IV EXPANSION AND
APPROVING CERTAIN ACTIONS RELATED TO THE SALE OF REVENUE
BONDS BY THE ENCINA FINANCING JOINT POWERS AUTHORITY
WHEREAS, the City of Carlsbad, a municipal corporation organized and
existing under the laws of the State of California (the "City"), has the
authority to acquire capacity in the Encina Water Pollution Control
Facility ("EWPCF") Phase IV Expansion (the "Capacity"); and
WHEREAS, the Cities of Carlsbad and Vista, the Buena Sanitation
District and the Leucadia County Water District (the "Participants") have
formed the Encina Financing Joint Powers Authority (the "Authority") for
the purpose of financing the Participants' share of the current expansion
of Capacity of and other improvements to the EWPCF; and
WHEREAS, the financing structure of the Phase IV Expansion requires
a conveyance and assignment of the City's Capacity, pursuant to an
assignment agreement, dated as of June 1, 1989, by and between the City
and the Authority (the "Assignment Agreement"), with a concurrent
repurchase of the Capacity by the City pursuant to the Installment
Purchase Agreement described below; and
WHEREAS, the City and the Authority have entered into an installment
purchase agreement, dated as of June 1, 1989, by and between the City and
the Authority (the "Installment Purchase Agreement") pursuant to which the
City will acquire the Capacity described in the Installment Purchaser
Agreement from the Authority; and
1 WHEREAS, the Authority issued Wastewater Revenue Bonds (Phase IV
2 Expansion Project) 1989 Series A (the "Bonds") pursuant to the terms set
3 forth in the trust indenture, dated as of June 1, 1989, by and between the
4 Authority and State Street Bank and Trust Company of California, N.A. (the
5 "Trustee") (the "Trust Indenture"), in an amount sufficient to finance the
6 payment obligations of the City and the other Participants for the
7 Capacity; and
8 WHEREAS, the Bonds are secured by the Installment Purchase Payments
9 made pursuant to the Installment Purchase Agreement, and all right, title
10 and interest of the Authority under the Installment Purchase Agreement are
11 assigned to the Trustee pursuant to the Trust Indenture; and
12 WHEREAS, the Authority authorized the sale of the Bonds to Stone &
13 Youngberg (the "Underwriter") and the Underwriter has distributed an
14 Official Statement to the purchasers of the Bonds; and
15 WHEREAS, the City Council of the City desires to ratify the
15 Installment Purchase Agreement, the Indenture, the Assignment Agreement
17 and the Official Statement; and
18 WHEREAS, copies of each of the aforementioned documents have been
19 presented to this City Council.
20 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
21 Carlsbad, California as follows:
22 !• That the above recitations are true and correct.
23 2. That the Installment Purchase Agreement, the Indenture and the
24 Assignment Agreement are each ratified and approved and the Mayor and City
25 Clerk are authorized to have executed each agreement.
26 3. That the Official Statement is ratified and approved and the
27 Underwriter is authorized to have distributed the Official Statement to
28 the purchasers of the Bonds.
4. That such actions of the Mayor, the City Clerk and other
officers of the City done to consummate the sale and delivery of the Bonds
and otherwise effectuate the purposes of this Resolution are hereby
ratified and confirmed.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City
Council of the City of Carlsbad, California, held on the 3rd day
of October , 1989, by the following vote, to wit:
AYES: Council Members Lewis, Pettine, Mamaux and Larson
NOES: None
ABSENT: Council Member Kulc
ALETHA L. RAUTENKRANZ, City Clerk
(SEAL)
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CLASOrA. LEWIS, MSyo
12 ATTEST:
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