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HomeMy WebLinkAboutResolutions - No. 2018-71RESOLUTION NO. 2018-71 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT FOR LEGAL SERVICES WITH JONES HALL, A PROFESSIONAL LAW CORPORATION, OF SAN FRANCISCO, FOR BOND COUNSEL SERVICES IN CONNECTION WITH THE REFINANCING OF CERTAIN OUTSTANDING OBLIGATIONS OF THE CITY ------------------------------------------------------------------------ ------------------------------------------------------------------------ WHEREAS, City previously entered into an Installment Purchase Contract, dated as of July 1, 2008 with the Lodi Public Improvement Corporation (the "Corporation"), pursuant to which the Client agreed to make certain installment payments in the aggregate principal amount of $60,685,000 (the "2008 Installment Payments"), and caused execution and delivery of Electric System Revenue Certificates of Participation, 2008 Series A (the "2008 Certificates"). The proceeds of the 2008 Certificates were used to (i) refund the then -outstanding $46,760,000 principal amount of Electric System Revenue Certificates of Participation 2002 Series A Variable Rate Certificates (the "2002 Certificates") and (ii) fund certain costs relating to termination of the swap agreement relating to the 2002 Certificates; and WHEREAS, the proceeds of the 2002 Certificates were used to refund, on an advance basis, the 1999 Series A Current Interest Certificates and the 1999 Series B Capital Appreciation Certificates (together, the "1999 Obligations"), and the proceeds of the 1999 Obligations were used to finance the improvements to the Electric System; and WHEREAS, under current economic conditions, it is possible for the City to refinance on a tax-exempt basis the 2008 Installment Payments and the related 2008 Certificates maturing on and after July 1, 2019 for the purpose of achieving savings for the benefit of the customers of the Electric System; and WHEREAS, in order to provide funds that are sufficient (along with other available City funds) to refinance the 2008 Installment Payments and cause a current prepayment of the 2008 Certificates, the City wishes to ask the Lodi Public Financing Authority (the "Authority") to issue its 2018 Electric System Revenue Refunding Bonds (the "Bonds") under the provisions of Article 4 of Chapter 5, Division 7, Title 1 of the Government Code of the State of California, commencing with Section 6584 of said Code (the "Bond Law"); and WHEREAS, in order to accomplish the proposed refunding, the City requires the services of a nationally recognized bond counsel; and WHEREAS, staff recommends authorizing the City Manager to execute an Agreement for Professional Services with Jones Hall, a Professional Law Corporation, of San Francisco, for bond counsel services in connection with the refinancing of certain outstanding obligations of the City as set forth above. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute an Agreement for Professional Services with Jones Hall, of San Francisco, California, for bond counsel services in connection with the refinancing of certain outstanding obligations on the City as set forth above, in the amount of $75,000, Dated: April 18, 2018 ------------------- ------------------- I hereby certify that Resolution No. 2018-71 was passed and adopted by the City Council of the City of Lodi in a regular meeting held April 18, 2018, by the following vote: AYES: COUNCIL MEMBERS — Chandler, Johnson, Mounce, and Mayor Nakanishi NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Kuehne ABSTAIN: COUNCIL MEMBERS — None NIFER . FERRAIOLO City Clerk 2018-71