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06-10-2008 CC Rpt A15 COUNCIL AGENDA STAFF REPORT CITY CLERK USE ONLY Meeting Date: June 1O, 2008 ri L.• -4:1"--:=• Public Hearing: 0 • — Discussion Item: FK no Consent Item: JUNE 3, 2008 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: CITY MANAGER SUBJECT: RESOLUTION OF THE CITY COUNCIL RELATING TO THE CHINO BASIN DESALTER AUTHORITY DESALTER REVENUE REFUNDING BOND, SERIES 2008A, AND APPROVING CERTAIN OTHER MATTERS IN CONNECTION THEREWITH RECOMMENDATION: liOdopt a resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO HILLS, APPROVING CERTAIN INFORMATION FOR INCLUSION IN AN OFFICIAL STATEMENT RELATING TO THE CHINO BASIN DESALTER AUTHORITY DESALTER REVENUE REFUNDING BONDS, SERIES 2008A, AND APPROVING CERTAIN OTHER MATTERS IN CONNECTION THEREWITH. BACKG ROUND/ANALYSIS: The City of Chino Hills is a member agency of the Chino Basin Desalter Authority. On March 25, 2008, the Council authorized the City of Chino Hills to continue to participate on the issuance of the Chino Basin Desalter Authority Desalter Revenue Refunding Bonds, Series 2008A to facilitate the refinancing of the 2002 Project by refunding all of the outstanding 2004 Bonds, fund a debt service reserve fund, and to pay the costs of issuance of the Bonds. The attached resolution resolves to provide authorization to the Finance Director or the designee to sign a certificate pursuant to Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 relating to the information regarding the City of Chino Hills. The resolution also authorizes the Mayor, Finance Director or the designee to execute and deliver fany and all documents and instruments required to carry out the transactions related to Chino ills. Ai5 GENDA DATE: JUNE 10, 2008 BJECT: RESOLUTION OF THE CITY COUNCIL RELATING TO THE CHINO BASIN DESALTER AUTHORITY DESALTER REVENUE REFUNDING BOND, SERIES 2008A, AND APPROVING CERTAIN OTHER MATTERS IN CONNECTION THEREWITH PAGE TWO In addition, the resolution also ratifies any and all acts and things previously done by any officer of the City of Chino Hills which have been necessary or proper for carrying out the transactions related to Chino Hills for the issuance of the Chino Basin Desalter Authority Desalter Revenue Refunding Bonds, Series 2008A Bonds. REVIEW BY OTHERS: This agenda item has been reviewed by the City Attorney and the City's financial advisor, Harrell & Company. FISCAL IMPACT: There is no fiscal impact to this agenda item. .espectfully submitted, Recommended by: 17-:4-2-=--e:,---eez-o .7) 411, jeeo,e_A4,k) Douglas I�I`'La Belle, City"Manager � J ty R. /ncaster, Finance Director DLB:JRL:ddk 0 RESOLUTION NO. 08R- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO HILLS, APPROVING CERTAIN INFORMATION FOR INCLUSION IN AN OFFICIAL STATEMENT RELATING TO THE CHINO BASIN DESALTER AUTHORITY DESALTER REVENUE REFUNDING BONDS, SERIES 2008A, AND APPROVING CERTAIN OTHER MATTERS IN CONNECTION THEREWITH. WHEREAS, the City of Chino Hills (the "Member") is a member of the Chino Basin Desalter Authority (the "Authority"); and WHEREAS, in February, 2002, in order to provide funds to finance the acquisition and construction of the Chino I Desalter, the Chino I Desalter Expansion and the Chino 2 Desalter (the "2002 Project"), the Authority issued its Chino Basin Desalter Authority Variable Rate Demand Desalter Revenue Bonds, Series 2002A in the aggregate principal amount of$100,000,000 (the "2002 Bonds"); and WHEREAS, in June, 2004, in order to provide additional funds to finance the 2002 Project and to refinance the 2002 Project by refunding all of the outstanding 2002 Oil Bonds, the Authority issued its Chino Basin Desalter Authority Adjustable Rate Desalter Revenue Refunding Bonds, Series 2004A-1 in the aggregate principal amount of $55,250,000 (the "Series 2004A-1 Bonds") and its Chino Basin Desalter Authority Adjustable Rate Desalter Revenue Refunding Bonds, Series 2004A-1 in the aggregate principal amount of $55,250,000 (the "Series 2004A-2 Bonds," and, together with the Series 2004A-1 Bonds, the "2004 Bonds"); and WHEREAS, the Authority has approved the issuance of its Chino Basin Desalter Authority Desalter Revenue Refunding Bonds, Series 2008A (the "Bonds") in order to (I) refinance the 2002 Project by refunding all of the outstanding 2004 Bonds, (ii) fund a debt service reserve fund and (iii) pay the costs of issuance for the Bonds; and WHEREAS, the Member wishes to approve of the use of certain information with respect to the Member contained in the Preliminary Official Statement relating to the Bonds (the "Preliminary Official Statement"). NOW THEREFORE, the Member finds, determines, declares and resolves as follows: SECTION 1. Appendix C of the Preliminary Official Statement, in the form on file with the Member (the "Member Information"), be and the same is hereby approved. The Finance Director or the designee thereof is hereby authorized to sign a certificate dopursuant to Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 relating to the Member Information. The Mayor, Finance Director or the designee thereof is hereby authorized and directed to execute and deliver any and all documents Page 1 of 3 and instruments and to do and cause to be done any and all acts and things necessary • or proper for carrying out the transactions contemplated with respect to the Member. SECTION 2. Each proper officer of the Member, acting singly, is hereby authorized and directed to execute and deliver any and all documents and instruments and to do and cause to be done any and all acts and things necessary or proper for carrying out the transactions contemplated by this Resolution. Any and all acts and things previously done by any officer of the Member which are necessary or proper for carrying out the transactions contemplated by this Resolution are hereby ratified. SECTION 3. This Resolution shall take effect immediately. SECTION 4. The City Clerk shall certify as to the adoption of this resolution. PASSED, APPROVED, AND ADOPTED this 10th day of June 2008. CURT HAGMAN, MAYOR ATTEST: 41110 MARY M. McDUFFEE, CITY CLERK APPROVED AS TO FORM: MARK D. HENSLEY, CITY ATTORNEY 411 Page 2 of 3