HomeMy WebLinkAboutResolutions - No. 2002-15RESOLUTION NO. 2002-15
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LODI
APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND
DELIVERY OF A STANDBY PURCHASE AGREEMENT RELATING TO
ELECTRIC SYSTEM REVENUE VARIABLE RATE DEMAND CERTIFICATES
OF PARTICIPATION, 2002 SERIES A
WHEREAS, the City of Lodi, a municipal corporation duly organized and existing under
and by virtue of the Constitution and laws of the State of California (the "City") owns and
operates a municipal electric system (the "Electric System"), to provide the City and its
inhabitants with electricity; and
WHEREAS, the City and the Lodi Public Improvement Corporation, a non-profit, public
benefit corporation duly organized and existing under and by virtue of the laws of the State of
California (the "Corporation") propose to execute and enter into an Installment Purchase
Contract (the "Installment Purchase Contract"), whereby the Corporation will acquire from the
City certain improvements to the Electric System, as more fully described in the Installment
Purchase Contract (the "Facilities"), and whereby the Corporation will sell such Facilities back to
the City as provided in the Installment Purchase Contract; and
WHEREAS, pursuant to the Installment Purchase Contract, the City will be obligated to
make installment payments to the Corporation for the purchase of the Facilities; and
WHEREAS, the City has approved and authorized the refinancing of the Facilities with
the proceeds of the sale of Electric System Revenue Variable Rate Demand Certificates of
Participation, 2002 Series A (the "Certificates") evidencing the proportionate interests of the
owners thereof in certain installment payments to be made by the City pursuant to the
Installment Purchase Contract; and
WHEREAS, the Certificates will be subject to optional and mandatory tender for
purchase on the terms and conditions set forth in the Trust Agreement (the "Trust Agreement")
pursuant to which the Certificates are to be delivered; and
WHEREAS, the City proposes to execute and deliver a Standby Purchase Agreement
(the "Agreement") with BNP Paribas (the "Bank"), pursuant to which the Bank will purchase
Certificates tendered or deemed tendered for purchase pursuant to the Trust Agreement and
not remarketed.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LODI, AS FOLLOWS:
Section 1. The Agreement, in the form presented at this meeting and on file with the
City Clerk, and the performance by the City of its obligations thereunder, are hereby approved,
and the City Manager and the Director of the Electric Utility, each acting singly, are hereby
authorized and directed, for and in the name and on behalf of the City, to execute and deliver to
the Bank the Agreement in substantially said form, with such changes therein as the officer
executing such document may approve, such approval to be conclusively evidenced by the
execution and delivery thereof.
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Section 2. The City Clerk is hereby authorized and directed to attest the signature of
the City Manager or the Director of the Electric Utility and to affix and attest the seal of the City,
as may be required or appropriate, in connection with the execution and delivery of the
Agreement.
Section 3. 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 desirable in order to consummate the transactions authorized hereby
and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution
and the Agreement, including without limitation the entry into an agreement to indemnify and
reimburse the bond insurer with respect to the Certificates for amounts advanced or incurred by
such bond insurer, and the entry into and performance under such agreement are hereby
authorized and approved; and all such actions heretofore taken by such officers are hereby
ratified, confirmed and approved.
Section 4. This Resolution shall take effect immediately upon its passage.
Date: January 16, 2002
I hereby certify that Resolution 2002-15 was passed and adopted by the City Council of
the City of Lodi in a regular meeting held January 16, 2002 by the following votes:
AYES: COUNCIL MEMBERS — Hitchcock, Howard, Land, Nakanishi, and
Mayor Pennino
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
Approved As to Form:
RANDALL A. HAYS
City Attorney
SUSAN J. BLACKSTON
City Clerk
2002-15