R 4751 RESOLUTION NO. 4751
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ARROYO GRANDE, CALIFORNIA,
PROVIDING FOR THE OPTIONAL REDEMPTION
OF ITS GENERAL OBLIGATION BONDS, SERIES A
OF 2003 (FIRE STATION PROJECT)
WHEREAS, pursuant to the provisions of Chapter 4 of Division 4 of Title 4 of the
California Government Code (Sections 43600 et seq.), as amended, and pursuant
to Ordinance No. 532 adopted by the City Council of the City of Arroyo Grande (the
"City") on July 9, 2002 (the "Ordinance"), a special election was duly and regularly
held on November 5, 2002 within the City (the "Election") at which Election there
was submitted to the qualified voters of the City a proposition providing for general
obligation bonds not to exceed $1,900,000 (the "Proposition") to upgrade and
expand the Fire Station located on Traffic Way (the "Project"); and
WHEREAS, more than two-thirds of the votes cast at the Election were in favor of
the incurring of such indebtedness, and the City adopted Resolution No. 3648 on
January 28, 2003 ("Resolution No. 3648") providing for the issuance of bonds to
finance the Project;
WHEREAS, pursuant to Resolution No. 3648, as supplemented by Supplement to
Resolution No. 3648, dated as of February 1, 2003 ("Supplement to Resolution
No. 3648"), the City issued the City of Arroyo Grande General Obligation Bonds,
Series A of 2003 (Fire Station Project) in the original aggregate principal amount of
$1,900,000 (the "Bonds") to finance the Project; and
WHEREAS, the Project has been completed; and
WHEREAS, $855,000 aggregate principal amount of the Bonds is currently
outstanding; and
WHEREAS, pursuant to Section 8 of Supplement to Resolution No. 3648, the
Bonds are subject to redemption, at the option of the City, in whole or in part on any
date commencing August 1, 2012, at a redemption price equal to the principal
amount thereof, together with accrued interest to the date fixed for redemption,
without premium, commencing August 1, 2014; and
WHEREAS, approximately$786,275 in property tax assessments deposited in the
Debt Service Fund with respect to the Bonds and approximately $180,700 of Fire
Protection Impact Fees are available to the City to cause the redemption of the
Bonds; and
RESOLUTION NO. 4751
PAGE 2
WHEREAS, Wells Fargo Bank, National Association (the "Fiscal Agent") acts as
the Fiscal Agent with respect to the Bonds pursuant to the Supplement to
Resolution No. 3648 and a Fiscal Agent Agreement between the City and the
Fiscal Agent, dated as of February 1, 2003 (the "Fiscal Agent Agreement"); and
WHEREAS, it is found and determined by this City Council that it is prudent in the
management of the fiscal affairs of the City to cause the defeasance and/or
optional redemption of the Bonds;
NOW, THEREFORE, the City Council of the City of Arroyo Grande, California,
DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows:
SECTION 1. Each of the above recitals is true and correct.
SECTION 2. The Mayor of the City, the Acting City Manager, the Director of
Administrative Services, or their written designee, is hereby authorized and
directed to enter into any agreements or take any actions necessary to achieve the
defeasance and/or optional redemption of the Bonds and the purposes of this
Resolution, including without limitation, engaging Stradling Yocca Carlson and
Rauth to advise the City with respect to the defeasance and/or optional redemption
of the Bonds, as Bond Counsel, engaging Fieldman, Rolapp & Associates to
advise the City with respect to the defeasance and/or optional redemption of the
Bonds, as Financial Advisor, engaging Grant Thornton LLP to conduct the final
rebate arbitrage report with respect to the Bonds, and notifying the Fiscal Agent of
the defeasance and/or optional redemption of the Bonds and instructing the Fiscal
Agent to provide the notices of Bond redemption required pursuant to Section 8 of
the Supplement to Resolution No. 3648 and to establish the Redemption Fund for
the purposes of redeeming the Bonds, in accordance with the Supplement to
Resolution No. 3648.
On motion of Council Member Brown, seconded by Mayor Hill, and on the
following roll call vote, to wit:
AYES: Council Members Brown, Guthrie, Barneich, Harmon, and Mayor Hill
NOES: None
ABSENT: None
the foregoing Resolution was passed and adopted on this 23rd day of August,
2016.
RESOLUTION NO. Lt75 l
PAGE 3
- i st'Th
JIM LL, MAYOR
AT EST:
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KELL WET A ORE, CITY CLERK
APPROVED AS TO CONTENT:
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GEOF.:-.111.:-.111..P71r7 SH, ACTI�• CITY MANAGER
APPROVED AS TO FORM:
HEATHER WHITHAM, CITY ATTORNEY
OFFICIAL CERTIFICATION
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis
Obispo, State of California, do hereby certify under penalty of perjury, that the attached
Resolution No.,4751 was passed and adopted at a regular meeting of the City Council
of the City of Arroyo Grande on the 23rd day of August, 2016.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 24th day of
August, 2016.
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KELLY-WE ORE, CITY CLERK