RESOLUTION NO. 2023-18
RESOLUTION OF THE CITY OF HESPERIA APPROVING INSTITUTION OF PROCEEDINGS TO REFINANCE OUTSTANDING LEASE REVENUE BONDS OF THE HESPERIA JOINT PUBLIC FINANCE AUTHORITY, AND ENGAGING PROFESSIONAL SERVICES RELATING THERETO WHEREAS, the City of Hesperia (the “City”) and the Hesperia Water District (the “Water District”) entered into a Joint Exercise of Powers Agreement, dated as of October 2, 2012, establishing the Hesperia Joint Public Finance Authority (the “Finance Authority”) for the purpose, among others, of providing assistance to the City with its financing programs; and WHEREAS, in order to finance acquisition and construction of a new Civic Plaza and related on-site improvements (the “2005 Project”), the City previously caused execution and delivery of its 2005 Variable Rate Demand Certificates of Participation (Civic Plaza Financing) (the “2005 Certificates”) pursuant to a Trust Agreement, dated as of May 1, 2005 (the “2005 Trust Agreement”), among the City, the Hesperia Public Financing Authority (the “Financing Authority”) and a corporate trustee; the 2005 Certificates represented interests in lease payments made by the City to the Financing Authority pursuant to a Lease Agreement, dated as of May 1, 2005; and WHEREAS, for the purpose of refinancing the 2005 Certificates, the City subsequently caused the Finance Authority to issue its 2013 Lease Revenue Bonds (Refinancing of 2005 Civic Plaza Financing) in the aggregate principal amount of $12,445,000,000 (the “2013 Bonds”), under an Indenture dated as of October 1, 2013; the 2013 Bonds are payable from lease payments made by the City under a Property Lease dated as of October 1, 2013 (the “2013 Lease Agreement”), between the Finance Authority as lessor and the City as lessee; and WHEREAS, the 2013 Bonds maturing on or after October 1, 2024 are subject to optional redemption, without premium, prior to maturity on any date on or after October 1, 2023, at the option of the Finance Authority; and WHEREAS, the Finance Authority is authorized to issue its refunding lease revenue bonds (the “Refunding Bonds”) for the purpose of refinancing the 2013 Bonds and thereby providing debt service savings to the Finance Authority and the City; and WHEREAS, the City Council has considered a financing plan for such purposes and wishes at this time to authorize and direct City staff to implement such financing plan and to engage the necessary professional services therefor; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hesperia, as follows:
Section 1. The City Council hereby authorizes and directs the City Manager and the Director of Administrative Services to initiate proceedings for the issuance of Refunding Bonds by the Finance Authority under the applicable provisions of California law, for the purpose of refinancing the 2013 Bonds. Such officers and staff shall cause the necessary documentation relating to the issuance and sale of the Refunding Bonds to be prepared and presented to the City Council and to the governing board of the Finance Authority for consideration at a future meeting of the City Council and the Finance Authority.
Section 2. In connection with the issuance and sale of the Refunding Bonds, the City Council hereby designates the following professional firms to participate in the transaction: (a) Fieldman, Rolapp & Associates as municipal advisor; (b) Jones Hall, A Professional Law Corporation, as bond counsel and disclosure counsel; and (c) Stifel, Nicolaus & Company, Incorporated, as underwriter. The City Manager or the Administrative Services Director, each acting alone, is hereby authorized and directed to execute agreements for said services with Fieldman, Rolapp & Associates and Jones Hall, A Professional Law Corporation, in the respective forms on file with the City Clerk. The City Council will approve a bond purchase agreement among the City, the Finance Authority and the Underwriter in connection with approving the Refunding Bonds. The City Manager or the Administrative Services Director, each acting alone, is hereby authorized and directed to select a state or national bank to act as trustee for the Refunding Bonds and to execute an agreement with such bank.
Section 3. Effective Date. This Resolution shall take effect immediately upon its passage and adoption. * * * * * * * * * * * *
PASSED, APPROVED AND ADOPTED by the City Council of the City of Hesperia at a regular meeting held this _____ day of March, 2023.
AYES: Councilmember:
NOES: Councilmember:
ABSENT: Councilmember:
ABSTAIN: Councilmember
Brigit Bennington, Mayor
ATTEST:
Erin Baum, Assistant City Clerk
Resolution No. 2023-18