Res 95-114RESOLUTION NO. 95-114
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY
AUTHORIZING THE PREPARATION, SALE AND DELIVERY OF NOT TO
EXCEED $6,300,000 PRINCIPAL AMOUNT OF 1995 GENERAL
OBLIGATION REFUNDING BONDS OF CITY OF POWAY AND
APPROVING CERTAIN DOCUMENTS AND AUTHORIZING CERTAIN
ACTIONS IN CONNECTION THEREWITH
WHEREAS, pursuant to the Municipal Water District Law of 1911, as amended, and
pursuant to an order of the Board of Supervisors of the County of San Diego, the Poway
Municipal Water District was formed for the purpose of the acquisition, construction,
completion, repair and improvement of facilities useful and necessary for the acquisition, storage,
distribution and of water, for the lands and inhabitants within the exterior boundaries of the
Poway Municipal Water District and including expenses of all proceedings for the authorization,
issuance and sale of bonds, and bonds in the amount of $6,300,000 were authorized for said
purpose; and
WHEREAS, the Board of Directors of the Poway Municipal Water District was
authorized and empowered to provide for the form of bonds and for the issuance of any part
thereof for the purpose provided for in the aforesaid resolution, payable, as to principal and
interest, from taxes levied exclusively upon the taxable property within said Poway Municipal
Water District except to the extent that such principal and interest may be paid from water
revenues as permitted or required by law; and
WHEREAS, the Poway Municipal Water District has issued $6,300,000 of said
authorized bonds designated "1975 Water Bonds" (the "1975 Water Bonds"); and
WHEREAS, effective February 1, 1981, the Poway Municipal Water District was
dissolved and the City of Poway (the "City") succeeded to all rights, duties and obligations of the
extinguished water district with respect to enforcement, performance or payment of any
Resolution No. 95-114
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outstanding voter -approved bonds, and implied or expressed contracts and obligations of Poway
Municipal Water District pursuant to that certain "Poway Reorganization" certified by the Local
Agency Formation Commission on November 25, 1980 (the "Reorganization Document").
WHEREAS, this City Council (the "Council") fmds and determines that prudent
management of the fiscal affairs of the City requires that it issue refunding bonds to refund the
outstanding 1975 Water Bonds; and
WHEREAS, pursuant to Articles 9 and 11 (commencing at Sections 53550 and 53580,
respectively) of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code of the
State of California (the "Refunding Law") the City has the authority to issue refunding bonds
without an election and at private sale; and
WHEREAS, it is proper and the necessity therefor appears that refunding bonds in the
amount not to exceed $6,300,000 (the "Bonds") should be issued for the purpose hereinabove
stated, and in the form and manner hereinafter provided; and
WHEREAS, pursuant to Section 53552 of the Government Code of the State of California
the principal amount of refunding bonds may be more than the principal amount of the bonds to
be refunded and therefore the City is authorized to issue a principal amount of bonds in excess of
the 1975 Water Bonds to be refunded; and
WHEREAS, the bonds will be issued pursuant to a resolution of issuance titled
"Resolution of the City Council of City of Poway Providing for the Issuance of Refunding Bonds
of said City (Poway Municipal Water District Improvement Area) " (the "Resolution of
Issuance"); and
WHEREAS, pursuant to Section 53583 of the Government Code of the State of California
this City Council determines that a lower interest cost may be achieved if the bonds are sold on a
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Resolution No. 95-114
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negotiated basis thereby permitting the underwriter and the City to price the bonds on a date
when the market is believed to be most favorable; and
WHEREAS, the City desires to negotiate a sale of the bonds with Grigsby Brandford &
Co., Inc. (the "Underwriter") pursuant to the terms of a Contract of Purchase by and between the
City and the Underwriter (the "Bond Purchase Agreement"); and
WHEREAS, in connection with the offering of the bonds for sale there has been prepared
a Preliminary Official Statement (the "Preliminary Official Statement"); and
WHEREAS, a portion of the bond proceeds will be deposited into an escrow fund to be
held by an escrow bank as provided in the proposed escrow agreement titled "Escrow Agreement
for the 1975 Refunded Bonds of the Poway Municipal Water District" (the "Escrow
Agreement"); and
WHEREAS, the City Council desires to approve the form of the Resolution of Issuance,
the Escrow Agreement, and the Bond Purchase Agreement (the "Financing Documents") with the
adoption of the Financing Documents to occur following the pricing of the bonds by the
Underwriter; and
WHEREAS, the City Council desires to approve the Preliminary Official Statement and to
authorize its distribution to prospective purchasers of the bonds; and
WHEREAS, there has been presented to this City Council at this meeting copies of the
Financing Documents and the Preliminary Official Statement;
NOW, THEREFORE, the City Council of the City of Poway does hereby RESOLVE,
DETERMINE AND ORDER as follows:
SECTION 1: The Financing Documents are approved in substantially the form presented
at this meeting.
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Resolution No. 95-114
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,SECTION 2: This City Council requests the Underwriter to present to it for its approval
a Bond Purchase Agreement in substantially the form approved in Section 1 hereof incorporating
the final terms of sale of the bonds, including the sale price and the rates of interest to be paid by
the City on the unpaid principal of the bonds.
SECTION 3: The Preliminary Official Statement is approved in substantially the form
presented at this meeting and the distribution of the Preliminary Official Statement (with such
changes thereto as may be approved by either the City Manager of the City or the Assistant City
Manager of the City) to prospective purchasers of the bonds is authorized, provided that either
the City Manager of the City or the Assistant City Manager of the City shall have first approved
such distribution.
SECTION 4: Bank of America National Trust and Savings Association is hereby
appointed to act as Trustee and as Escrow Bank with respect to the issuance of the Bonds and the
refunding of the 1975 Water Bonds pursuant to the terms of the Resolution of Issuance and the
Escrow Agreement, respectively. Stradling, Yocca, Carlson & Rauth, a Professional
Corporation, is hereby engaged to act as Bond Counsel pursuant to the terms of that certain
Agreement re Bond Counsel Services dated October 12, 1995 regarding the Bonds, the form of
which is on file with the City Clerk and the City Manager is hereby authorized to execute and
deliver said Agreement.
SECTION 5: The City Manager of the City, the Assistant City Manager and each and
every other officer of the City is 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 and
advisable in order to consummate the sale of the bonds and otherwise effectuate the purposes of
this Resolution.
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Resolution No. 95-114
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SECTION 6: This Resolution shall take effect from and after its date of adoption.
ADOPTED, SIGNED AND APPROVED this 17th day of October , 1995.
Don Higginson, M
City of Poway
ATTEST:
Marjorie K\Wahlsten, City Clerk
City of y
STATE OF CALIFORNIA )
) ss.
COUNTY OF SAN DIEGO )
I, Marjorie K. Wahlsten, City Clerk of the City of Poway, do hereby certify under penalty of
perjury that the foregoing Resolution No. 95-114 was duly adopted by the City Council at a meeting
of said City Council held on the 17th day of October, 1995, and that it was so adopted by the
following vote:
AYES: CAFAGNA, CALLERY, EMERY, REXFORD, HIGGINSON
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
Marjo. Wahlsten, City Clerk
City o ' • ay
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