HomeMy WebLinkAboutAgenda Report - December 4, 1991 (67)ON
0 AL CITY OF LODI
Carnegie Forum
sus west Pine Street, Lodi
Lodi Public improvement Corporation
of the Lodi City Council
DATE: Wednesday, December 4, 1991
\TIME: 7:30 p.m.
ANNUAL MEETING OF THE
LODI PUBLIC IMPROVEMENT CORPORATION
1. Call to order - President James W. Pinkerton, Jr.
2. Roll call to be recorded by Secretary Alice M. Reimche
3. Approve minutes of meeting of September 4, 1991
4. Refinance Certificates of Participation for White Slough Water Pollution
Control Facility project (Resolution No. 91-3)
5. Adjournment
Pursuant to Section 54956.2(a) of the Government Code of the State of California,
his Agenda was posted at a public place freely accessible to the public 24 hours
day.
/14- &042 .
ice N. Relfthe, Secretary
Lodi Public Improvement Corporation
of the City of Lodi
For information concerning this Agenda
please contact Alice M. Re i rgche , City Clerk,
Telephone - 333-6702
AGN9#48/TXTA.02J/AGEN0AS
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of
CITY OF LODI COUNCIL COMMUNICATION
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AGENDA TITLE: Annual Meeting of Lodi Public Improvement Corporation
MEETING DATE: December 4, 1991
PREPARED BY: City Clerk
RECOMMENDED ACTION: That the Lodi Pub?ic Improvement Corporation hold its annual
meeting.
BACKGROUND INFORMATION: On May 2, 1990, the Lodi Public Improvement Corporation
Board of Directors adopted Resolution No. 90-1 amending the
date of the annual meeting of the Lodi Public Improvement
Corporation to the first Wednesday in December. This
action was taken so that the date of the Annual Meeting would be consistant with the
certification of general municipal elections.
The. order of business for this meeting as set forth in Section 9 of Article 11 of
the bylaws of the to di Public Improvement Corporation sets forth the order of
business as .follows:
a) Report on the number of Directors present in person in order to determine
the existence of a quorum.
b) Reading of the notice of the meeting and proof of the delivery or mailing
thereof, or the waiver or waivers of notice of the meeting then filed, as
the case may be.
cj Reading of unapproved minutes of previous meetings of the Board of
Directors and the taking of action with respect to approval thereof.
:d) Presentation and consideration of reports of officers and committees.
e) Unfinished business.
f) New business.
9) Adjournment.
FUNDING: None required.
AMR/
Alice M. Rei he
City Clerk
APPROVED:
THOMAS A. PETERSON
City Manager
cc -i
MINUTES
LODI PUBLIC IMPROVEMENT CORPORATION
CARNEGIE FORUM
305 WEST PINE STREET
LODI, CALIFORNIA
WEDNESDAY, SEPTEMBER 4, 1991
The meeting of the Lodi Public Improvement Corporation was called to order by
President David M. Hnxlnnan at 11:10 p.m.
Roll was recorded by the Secretary Alice M. Reiunche as follows:
Present: Corporation Board Members - Pennino, Pinkerton,
Sieglock, Snider and
Hinchman (President)
Absent: Corporation Board Meanbers - Nene
Also Present: City Manager Peterson, Treasurer Dixon Flynn
and Secretary Alice Reunche
Treasurer Dixon Flynn advised the Corporation Board Members that the Local
Agency Investment Fund (LAIF) is a voluntary investment program for local
governments administered by the California State Treasurer. Legislation
permits a governmental unit, such as the LPIC, with consent of the governing
body of that agency, to deposit monies in this special fund.
Currently, the Treasurer invests monies in a variety o f instruments including
LAIF (City of Lodi account), moncy market funds, certificates of deposit,
bankers acceptances and treasury notes. The authorization of the LPIC to
utilize a LAIF account will provide an additional toll for the investment of
monies .
The benefits of investing in LAIF include:
1. Frig�_h_e�r fi���elds
LAIF combines large pools of cash. Because of the size of its investment
pportfolio, LAIF not mal ly provides higher yields than other investments made
by the City. LAIF currently pays the highest interest rate for funds
invested (6.96%) in comparison to the other types of investments (with
rates ranging from 5.30% to 7.00%).
2. Liu i d i t/ No Nkmiiin Investment Period
allows withdrawal o f momes to meet cash requirements in 24 hours or
less. Most other investments require a maturity date defined by staff
based on the projection of cash needs. This does not allow for any
unexpected requirements.
Continued Septemtt-r 4,"'""q'i
r-
3. Lower Investment Costs
L I r seldom has investment costs associated with transactions because of
its ability to pool cash balances and invest much larger amounts.
Normally, there is a charge by transaction or administrative fee for
purchases of other investment instruments.
4. Investment Expertise
The State Treasurer's office is in constant touch with investment markets
and handles a large volume of transactions for local agencies in
California. Their staff is devoted to investment activities including
discussing any questions regarding the pool or our accounts.
5. tower Risk
his considered one of the safest instruments for the investment of City
funds because of its diversity.
Following discussion with questions being directed to Mc Flynn, the Lodi
Publ i cA�pprr vement Corporation on motion o f Board Maw Pinkerton, Hmdx=
second, adopoted Resolution No. 91-2 authorizing the deposit and withdrawal of
monies in the Local Agxy Investment Fund of the State Treasury and the
persons authorized to order the deposit or withdrawals of monies from this
account.
There being no further business to oome before the Corporation, President
Hirschman adjourned the meeting at approximately 11:15 p.m.
Attest:
I S
Alice M. Re niche
Secretary
Lodi Public hnpmvement Corporation
2
OCITY OF LODI COUNCIL COMMUWCATgW
AGEMDA TITLE: Refinance Certificates of Participation for White Slough Water
Pollution Control Facility Expansion Project
MEETING DATE: December 4, 1991
PREPARED BY: City Manager
RECOMMENDED ACTION: That the Lodi Public Improvement Corporation adopt
Resolution No. 91-3 {Exhibit A) authorizing the
President, the Executive Director or the Treasurer to
execute the appropriate documents to accomplish the
refinancing of the Certificates of Participation issued to fund the White
Slough Water Pollution Control Facility expansion project, with the proviso
that the minimum net return to the City's Sewer Fund be $900,000, and with an
extension of the bond redemption retirement date from the year 2018 to 2026.
BACKGROUMD INFORMATION: The City of Lodi is in a position to refinance the
Certificates of Participation issued in July, 1988 to
fund the expansion of the White Slough Water Pollution
Control Facility which has now been essentially
completed. There is the potential to recover a minimum of $900,000 net to the
City to be placed in the Sewer Fund for purposes of reserve and future use as
may be determined from time to time by the City Council. With the Corporation's
approval, it is further recommended that this refinancing be closed no later
than December 20, 1991. The significance of closing in this calendar year is
that it leaves 1992 clear for the issuance of any other financing up to
$5,000,000 which would not be subject to arbitrage restrictions. While no such
financings are contemplated at this time for 1992, it is in the City's best
interest to retain the flexibility afforded by moving into the new year
unencumbered in this regard.
The City's Financial Advisor, John Fitzgerald, will be in attendance at
Wednesday night's meeting to assist in this presentation and to answer any
questions the Corporation's ofticers may have.
APPROVED:
THOMAS A PETERSON
City Manager
I^at
Myciea Paper
22028-07 �' JHNW.BDQ:ft 11re591
LODI PUBLIC IMPROVEMENT CORPORATION
RESOLUTION NO. 91- 3
A RESOLUTION APPROVING, AUTHORIZING AND
DIRECTING EXECUTION OF CERTAIN INSTALLMENT SALE
FINANCING DOCUMENTS AND AUTHORIZING AND DIRECTING
CERTAIN ACTIONS WITH RESPECT THERETO
RESOLVED, by the Lodi Public Improvements Corporation (the "Corporation"):
WHEREAS, the City of Lodi the "City"), working together with the Corporation, has
caused Certificates of Participation (1 88 Wastewater Treatment Plant Expansion Project the
"Prior Certificates? to be executed and delivered in the aggregate principal amount of $9,415„
the proceeds of which were used to finance the construction of certain improvements to its
municipal sewer system (the"Project"); and
WHEREAS, the City proposesto refinancethe Project and it is in the public interest and
for the public benefit that the Corporation authorize and direct execution of the installment Sale
Agreement (as hereinafter defined) and certain other financing documents in connection therewith;
and
WHEREAS, the documents below specified shall be filed with the Corporation, and the
members of the Corporation, with the aid of its staff, shall review said documents;
NOW, THEREFORE, it is hereby ORDEREDand DETERMINED, as follows:
S�cticn 1. The President, the Executive Director or the Treasurer is hereby authorized and
directed to have prepared, and to review upon preparation thereof, the below -enumerated
documents, the review and execution thereof as herein provided being conclusive evidence of
tho approval of such documents by the City, and any one of the President, the Executive
Director or the Treasurer is hereby authorized and directedto execute said documents, with such
changes, insertions and omissions as may be approved by such official, and the Secretary is
herebyauthorized and directedto attestto such official's signature:
(a) an acquisition agreement, relatingto the Project, betweenthe City, as seller, and the
Corporation, as purchaser;
(b) an installment sale agreement, relating to the Project, between the Corporation, as
seller, and the City, as purchaser (the "Installment Sale Agreement");
(c) an assignment agreement, by and between the Corporation and the Trustee as
hereinafter defined, pursuantto which the Corporation will assign certain of its rights under the
Installment Sale Agreement, includingits rightto receive tnstallment Payments thereunder, tothe
Trustee; and
(d) a trust agreement, by and among the Corporation, the Ci and a trustee to be named
therein, as trustee (the"Trustee"), relating to the financing and the execution and delivery of
certificates of participation evidencing the direct, undivided fractional interests of the owners
thereof in installment payments to be made bythe City underthe InstallmentSale Agreement.
Section 2. The President, the Executive Director, the Treasurer, the Secretary and other
officials of the Corporation are hereby authorized and directed to execute such other agreements,
documents and certificates as may be necessaryto effect the purposes cf this resolution and the
lease financing herein authorized.
Secfion a This Resolution shall take effect upon its adoption by this Board.
wwwwwwww
I,the undersigned Secretary of the Lodi Public improvement Corporation, herelpy certify
that the fore oing Is a full, tru and co est co a esol do dul do ted V the Boarq of
Directors of he Corporation aef a mee ing the o on he 4 day o �ec�mber, 1991, by the
fopowing vote of the members thereof:
AYES Corporation Members - Hinchman, Pennino, Sieglock,
Snider and Pinkerton (President)
NOES: Corporation Members - None
ABSTAIN ID: Corporation Members - None
ABSENT: Corporation Members - Mone
1
ATTEST � President
Secretdry
The foregoing document is
certified to be a correct
copy of the original on
file .in this office.
Alice M.,RVImche-
Secretary
Lodi Public Improvement Corporation
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OF
CITYOFLODI
COUNCIL COMMUNICATION
AGENDA TITLE: Refinance Certificates of Participation for White Slough Water
Pollution Control Facility Expansion Project
MEETING DATE: December 4, 1991
PREPARED BY: City Manager
RECOMMENDED ACTION: That the City Council adopt Resolution No. 91-227
(Exhibit A) authorizing the Mayor, the City Manager or
the Finance Director to execute the appropriate
documents to accomplish the refinancing of the
Certificates of Participation issued to fund the White Slough Water Pollution
Control Facility expansion project, with the proviso that the minimum net
return to the City's Sewer Fund be $900,000, and with an extension of the bond
redemption retirement date from the year 2018 to 2026.
BACKGROUND INFORMATION: The City of Lodi is in a position to refinance the
Certificates of Participation issued in July, 1988 to
fund the expansion of the White Slough Water Pollution
Control Facility which has now been essentially
completed. There is the potential to recover a minimum of $900,000 net to the
City to be placed in the Sewer Fund for purposes of reserve and future use as
may be determined from time to time by the City Council. With City Council
approval, it is further recommended that this refinancing be closed no later
than December 20, 1991. The significance of closing in this calendar year is
that it leaves 1992 clear for the issuance of any other financing up to
$5,000,000 which would not be subject to arbitrage restrictions. Cities can
annually issue bonds and/or certificates up to a maximum of $5,000,000 without
incurring arbitrage penalties. While no such financings are contemplated at
this time for 1992, it is in the City's best interest to retain the flexibility
afforded by moving into the new year unencumbered in this regard.
The City's Financial Advisor, John Fitzgerald, will be in attendance at
Wednesday night's meeting to assist in this presentation and to answer any
questions Counci lmembers may have.
APPROVED:
■ _ THO%e q, PETERSON
City Manager
—'s -'w
CO -1
I
Refinance Certificates of Participation for White Slough Water Pollution
Control Facility Expansion Project
December 4, 1991
Page Two
FUNDING: None required.
Respectfully submitted,
Thomas A. Peterson
City Manager
TAP _tp
CCCOM371/TXTA-07A
22028.07 �' JHHW:BDD:nce 1WWI
RESOLUTION NO.
91-227
A RESOLUTION APPROVING, AUTHORIZING AND DIRECTING
EXECUTION OF CERTAIN INSTALLMENT SALE FINANCING
DOCUMENTS IN CONNECTION WITH THE OFFERING AND SALE CE'
CERTIFICATES OF PARTICIPATION RELATING THERETO AND
DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO
RESOLVED, by the City Council of the City of Lodi, California (the "City"):
WHEREAS, the City, working togetherwith the Lodi Public Improvement Corporation the
"Corporation"), has caused Certificates of Participation 1988 Wastewater Treatment Plant
Expansion Project the "Prior Certificates") to be executed and delivered in the aggregate
principal amount of $9,415,000, the proceeds of which were used to finance the construction of
certain improvementsto its municipalsewer system (the "Project");
WHEREAS, the City proposesto refinancethe Project and it is in the public interestand
for the public benefit that the City authorize and direct execution of the hereinafter defined
Installment Sale Agreement and certain otherfinancing documents in connectiontherewith;
WHEREAS, Seidler -Fitzgerald Public Finance (A Division of SeidlerAmdec Securities Inc.)
(the "Underwriter") has been directed to prepare areliminary official statement containing
Information materialto the offering and sale of the Certifpcatesof Participation described below (the
"Preliminary Official Statement"); and
WHEREAS, the documents below specified shall be filed with the City and the members
of the Cky Council, with the aid of its staff, shot review said documents;
NOW, THEREFORE, it is hereby ORDERED and DETERMINED, as follows:
Soction 7. Certificates of Participation (1991 Wastewater Treatment Plant mansion
Refinancing Project) (the "1991 Certificates") are hereby authorized to be executed and delivered
pursuant to the provisions of the Trust Agreement hereinafter defined; provided, however, the
payments of principal and interest with respect to the 1991 Certificates shall create a present
value savings in comparison to the payments of principal and interest with respect to the Prior
Certificates of not less than $900,000. The Mayor, the City Manager or the Finance Director is
hereby authorized and directed to establish the principal amount of 1991 Certificates to be
executed and delivered and to establish any other terms and provisions with respect to the 1991
Certificates, so long as such terms and provisions are substantially similar to the terms and
provisions of the Prior Certificates.
Section 2 The Mayor, the City Manager or the Finance Director is hereby authorized and
directed to have prepared, and to review upon preparation thereof, the beellow-enumerated
documents, the review and execution thereof as herein provided being conciusive evidence of
the approval of such documents by the City, and any one of the Mayor, the City Manager or the
Finance Director is hereby authorized and directed to execute said documents, with such
changes, insertions and omissions as may be a proved by such official, and the City Clerk is
hereby authorized and directed to attest to such oicial's signature:
fa) an acqusition agreement, relating to the Project, between the City, as seller, and the
Corporation, as purchaser,
r --
(b) an installment sale agreement, relating to the Project, between the Corporation, as
seller, and the City, as purchaser (the "Installment Sale Agreement');
(c) a trust agreement, by and among the Corporation, the City and an institution to be
named therein, as trustee(the 'Trust Agreement"), relating to the financing, and the execution and
deliveP7 of the 1991 Certificatesevidencingthe direct undivided fractional interests cf the owners
thereo 1n Installment payments to be maCe by the City under the Installment Sale Agreement;
and
(d) an escrow trust and deposit agreement, b and between the City and the trustee for
the Prior Certificates pursuantto which the Prior Certifiycateswi I I be defeased.
Section a The City hereby approves the preparation of a Preliminary Official Statement
descn'bing the financing, together with any changes therein or additions thereto deemed advisable
the Mayor, the City Manager or the Finance Director. The City authorizes and directs the
finance Director, on behalf of the City, to deem "final" pursuant to Rule 150-12 under the
Securities Exchange Act of 1934 (the "Rule") the Preliminary Official Statement prior to its
distribution by the Underwriter.
Section 4 The Underwriter, on behalf of the City, is authorized and directedto cause the
Preliminary Official Statement to be distributedto sucFi investors an3 other persons as may be
interested in purchasing the 1991 Certificates therein offered for sale if, in its judgment, such
distribOlon would enhancethe marketing of the 1991 Certificates.
Section 5 The Mayor, the City Managerorthe Finance Directoris herebyauthorized and
directed to have prepared, and to review upon preparation thereof, a contract of purchase, by
and betAteen the Underwnter and the City, pursuantto which the Underwriter agreesto purchase
the 1991 Certificates, the review and execution thereof as herein providedbeing conclusive
evidence of the approval of such contract of purchase hereby, and the Mayor, the City Manager
or the Finance Director is hereby authorized and directed to execute said document, with such
changes, insertions and omissions as may be approved by such official.
Section 6 The Mayor, the City Manageror the Finance Director is authorized and directed
to cause the Preliminary Official Statementto be brought into the form of a final official statement
(the "Final Official Statement") and to execute said Final Official Statement, dated as of the date of
the sale of the 1991 Certificates, and a statement that the facts contained in the Final Official
Statement, and any supplement or amendment thereto (which shall be deemed an original part
thereof for the purposeof such statement) were, at the time of sale of the 1991 Certificates, true
and correct in all material respects and that the Final Official Statement did not, on the date of sale
of the 1991 Certificates, and does not, as of the date of delivery of the 1991 Certificates, contain
any untrue statement of a material fact with respect to the City or omit to state material facts with
re9pectto the City required to be stated where necessary to make any statement made therein
not misleading in the light of the circumstances under which it was made. The Mayor, the City
Manager or the Finance Director shall take such further actions priorto the signing of the Final
Official Statement as are deemed necessary or approp�dre to venfy the accuracy thereof. The
execution of the final Official Statement, which shall include such changes and additions thereto
deemed advisable by the Mayor, the City Manafo or the Finance Director and such information
permitted to be excluded from the Preliminary OfficiafStatement pursuant to the Rule, shall be
conclusive evidence of the approval of the final Official Statement by the City.
Section 7. The Final Official Statement, when prepared, is approved for distribution in
connection with the offeringand sale of the 1991 Certificates.
Secdon & The Mayor, the City Manager, the Finance Director, the City Clerk and all other
appropriate officials of the City are hereby authorized and directed to execute such other
-2-
agreements, documents and certificates as may be necessary to effect the purposes o! this
resolution and the financing herein authorized.
Section 9. This Resolution shall take effectupon its adoption by this City Council -
1, the undersigned City Clerk of the City of Lodi, hereby certify that the foregoing is a full,
true and correct coot' Cf 3 resolution duly adopted by the City Council of the City at a meeting
thereof on the 4th day of December, 1991, by the followingvote of the members thereof:
AYES: Council Members - Hinchman, Pennino, Sieglock,
Snider and Pinkerton (Mayor)
NOES: Council Members - None
ABSTAIN ED: Council Mennbes - None
ABSENT: Council Nl bw,
ATTEST:
City {erK
The Foregoing Docament i s Certified
To Be A Correct Copy Of The Original
On File In This Office.
Jennifer M. Perrin
Deputy City, Clerk, City f Lodi .
By
Dated:
CITY,COUNCIL
JAMES W. PINKERTON, Mayor
PHILLIP A PENNING
Mayor Pro Tempore
DAVID M. HINCHMAN
JACK A SIEGtOCK
JOHN R (Randy) SNIDER
Mr. Brian D. Quint
Jones Hall Hill & White
Attorneys -at -Law
Four Embarcadero Center
Nineteenth Floor
San Francisco, CA 94111
Dear Mr. Quint:
CITY OF LODI
CITY HALL, 221 WEST PINE STREET
PIQ BOX 3006
LODI, CALIFORNIA 952414910
(209) 334-5634
FAX (209) 333.6795
December 6, 1991
r—•
THOMAS A. PETERSON
City M -Mager
ALICE M. REIMCHE
City Clerk
BOB McNATT
City Attorney
Pursuant to our telephone conversation of this date, enclosed please
find six certified copies of each of the following documents:
a) Resolution No. 91-3 entitled, "A Resolution Approving,
Authorizing and Directing Execution of Certain Installment
Sale Financing Documents and Authorizing and Directing Certain
Actions with Respect Thereto"; and
b) Resolution No. 91-227 entitled, "A Resolution Approving,
Authorizing and Directing Execution of Certain Installment
Sale Financin Documents in Connection with the Offering and
Sale of Certificates of Participation Relating Thereto and
Directing Certain Actions with Respect Thereto".
Should you have any questions regarding this matter, please do not
hesitate to call this office.
Very truly yours,
Alice M. Rei the
city Clerk
AMR/imp
Enclosures
a