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HomeMy WebLinkAboutCity Council - 5948 i i RESOLUTION NO. 59-48 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING AND AUTHORIZING MAXIMUM BASIC PREMIUM OBLIGATIONS UNDER A LIABILITY RISK COVERAGE AGREEMENT AND AUTHORIZING THE CITY 'S REPRESENTATIVES TO THE BIG INDEPENDENT CITIES EXCESS POOL JOINT POWERS AUTHORITY TO APPROVE THE ISSUANCE OF BONDS, THE EXECUTION OF A PURCHASE CONTRACT AND THE EXECUTION AND DISTRIBUTION OF AN OFFICIAL STATEMENT BY THE BIG INDEPENDENT CITIES EXCESS POOL JOINT POWERS AUTHORITY AND CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH WHEREAS, the City Council of the City of Huntington Beach on September 19, 1988 duly adopted Resolution No. 5929 (the "First Program Resolution" ) approving and authorizing execution and delivery of a Joint Powers Agreement Creating the Big Independent Cities Excess Pool Joint Powers Authority, I authorizing the execution and delivery of a Liability Risk II, Coverage Agreement and the filingof a validation proceeding P 9 and certain other actions in connection therewith; and Pursuant to the First Program Resolution, the City of Huntington Beach (the "City" ) duly executed the Joint Powers Agreement Creating the Big Independent Cities Excess Pool Joint Powers Authority, effective September 22, 1988 (the "Joint Powers Agreement" ) , by and among the cities of Huntington Beach, Oxnard, Pomona, San Bernardino and Santa Ana, California (the "Initial Participants" ) , which established the Big Independent Cities Excess Pool Joint Powers Authority (the "Authority" ) ; and The Authority was formed to jointly develop and fund programs of excess liability and other coverages, such programs to include the creation of joint insurance funds, the purchase of reinsurance, and the provision of necessary administrative -1- 5948 services; and Pursuant to the First Program Resolution and the Joint Powers Agreement, the City executed a Liability Risk Coverage Agreement, dated as of October 1, 1988 ( the "Liability Risk Coverage Agreement" ) , by and among the Initial Participants and the Authority, pursuant to which the Authority's pooled excess liability program (the "Program" ) was established; and The Authority has implemented a pooled self-insurance program for certain levels of coverage and has purchased a policy of excess liability insurance for the Initial Participants for coverage of $8 million in excess of $2 million for the period of I October 1, 1988 to October 1, 1989; and Full implementation of the Program requires the Authority to issue bonds to establish larger claims payment reserves in accordance with the recommendations of an actuary retained by the Authority; and The Authority has executed a Trust Indenture, dated as of October 1, 1988 , by and between the Authority and Seattle-First National Bank, as trustee thereunder, pursuant to which the Trustee is holding certain funds of the Authority and pursuant to which the Authority proposes to issue its first series of Insurance Program Revenue Bonds (the "Bonds" ) ; and In order for the Authority to issue the Bonds, the Initial Participants must execute a First Amendment to Liability Risk Coverage Agreement ( the "First Amendment to Liability Risk Coverage Agreement" ) establishing the obligations of the Initial Participants to pay Basic Premium under the Liability Risk Coverage Agreement to provide for payment of principal of and -2- 5948 interest on the Bonds; and The City approved the form of the First Amendment to Liability Risk Coverage Agreement in the First Program Resolution and the City proposes to authorize execution of the First Amendment to P Liability Risk Coverage Agreement containing a specified maximum annual Basic Premium obligation; and In order to complete the Bond financing, the Authority must execute and deliver the First Amendment to Trust Indenture, the First Amendment to Liability Risk Coverage Agreement, a Purchase Contract with municipal underwriters relating to the sale of the Bonds and an Official Statement relating to the public offering of the Bonds; and The City Council desires to specifically authorize the representatives of the City to the Authority to approve the issuance of the Bonds and the execution and delivery by the Authority of such related agreements and documents, subject to certain limitations, in order to establish a record that the City Council has been informed of, and has approved, the issuance of the Bonds by the Authority, although the City Council acknowledges that the representatives of the City to the Authority was duly authorized to so act by the First Program Resolution; and All acts, conditions and things required by the Constitution and laws of the State to exist, to have happened and to have been performed precedent to and in connection with the execution of the First Amendment to Liability Risk Coverage Agreement as authorized hereby do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the City is now duly authorized and empowered, pursuant to each and every -3- 5948 requirement of law, to execute the First Amendment to Liability Risk Coverage. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF HUNTINGTON BEACH AS FOLLOWS: SECTION 1 . Declaration of Council . This Council hereby specifically finds and declares that the actions authorized hereby constitute and are with respect to public affairs of the City, and that the statements, findings and determinations of the City set forth in the preambles above, in the First Program Resolution and of the document approved herein are true and correct . SECTION 2 . Basic Premium Obligation Under First Amendment to Liability Risk Coverage Agreement . Subject to City Attorney approval, the Mayor, City Manager (or City Administrator) and Finance Director are hereby authorized and directed, for and in the name and on behalf of the City to execute acknowledge and deliver to the Authority the First Amendment to Liability Risk Y Coverage Agreement in substantially the form approved by this City Council by Resolution No . 5929 and on file wth the Clerk of the City Council, with such changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof; provided, however, that the maximum annual Basic Premium obligation of the City established thereunder shall not exceed $540,000 and the aggregate principal component of Basic Premium established thereunder shall not exceed $4,800 ,000 . SECTION 3 . Authorization of Representatives to Authorize Issuance of Authority Bonds . The representatives of the City to the Big Independent Cities Excess Pool Joint Powers Authority (the "Authority" ) are hereby authorized and directed to authorize, as -4- 5948 representatives of the City of the Authority, the issuance of the first series of Insurance Program Revenue Bonds ( the "Bonds" ) by the Authority; provided that the principal amount of the Bonds shall not exceed $18,800 ,000 and the interest rate per annum on the Bonds shall not exceed 9% . SECTION 4 . Authorization of Representative to Approve Purchase Contract Relating to Authority Bonds . The representatives of the City of the Authority are hereby authorized and directed to approve, as representatives of the City to the Authority, the execution and delivery by the Authority of a Purchase Contract relating to the Bonds with municipal bond underwirters; provided that the underwriters ' discount thereunder shall not exceed 2 .35% of the aggregate principal amount of the Bonds . SECTION 5 . Authorization of Representatives to approve Official Statement Relating to Authority Bonds . The representatives of the City to the Authority are hereby authorized and directed to do any and all things which they may deem necessary or advisable in order to consummate the issuance, sale and delivery of the Bonds, including approval of execution by the Authority of the First Amendment to Liability Risk Coverage Agreement and a First Amendment to Trust Indenture relating to the Bonds . SECTION 6 . Authorization of Representatives to Take Further Actions Relating to Authority Bonds . The representatives of the City to the Authority are hereby authorized and directed to do any and all things which they may deem necessary or advisable in order to consummate the issuance, sale and delivery of the Bonds, _5_ 5948 including approval of execution by the Authority of the First Amendment to liability Risk Coverage Agreement and a First Amendment to Trust Indenture relating to the Bonds . SECTION 7 . Attestation and Seal . The Clerk of the City Council is hereby authorized an directed to attest the signature of the authorized signatory, and to affix and attest the seal of the City, as may be required or appropriate in connection with the execution and delivery of said First Amendment to Liability Risk Coverage Agreement. SECTION 8 . Further Actions . Subject to City Attorney approval, Officers of the City Council and the Mayor, City Manager and Finance Director and any other officer of or official of the City authorized by the Mayor, 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 advisable in order to consummate the issuance, sale and delivery of the Bonds by the Authority and otherwise to carry out, give effect to and comply with the terms and intent of this resolution, the Bonds, the Joint Powers Agreement, the Liability Risk Coverage Agreement ( including the First Amendment to Liability Risk Coverage Agreement) and the Trust indenture ( including the First Amendment to Trust Indenture) relating to the Bonds. Such actions heretofore taken by such officers are hereby ratified, confirmed and approved. PAGE END -6- 5948 SECTION 9 . Effective Date. This resolution shall take effect immediately upon its passage. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Huntington Beach held on the 21st day of November , 1988 . M ATTEST: APPROVED AS TO FORM: I City Clerk City Attorney REVIEWED AND APPROVED: INITIATED AND APPROVED: City Administrator Deputy City dm ' strator be -7- 5948 Res. No. 5948 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly `,�lv!cted . qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 21st day of November 1988 by the following vote: AYES: Councilmembers: Kelly, Green, Finley, Erskine, Mays, Winchell , Bannister NOES: Councilmembers: None ABSENT: Councilmembers: None City Clerk and ex-offici Jerk of the City Council of the City of Huntington Beach, California 5948