HomeMy WebLinkAbout88-074RESOLUTION NO. 88- 74
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
ANA 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 BONDSt 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 Santa Ana on
September 19, 1988 duly adopted Resolution No. 88-67 (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, authorizing the execution and delivery of a
Liability Risk Coverage Agreement and the filing of a
validation proceeding and certain other actions in
connection therewith;
WHEREAS, pursuant to the First Program Resolution, the
city of Santa Ana 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");
WHEREAS, the Authority was formed to jointly develop and
fund programs of excess liability and other coverages, such
programs to include the creation
the purchase of reinsurance, and
administrative services;
of joint insurance funds,
the provision of necessary
443
Resolution No.
Page 2
88-74
WHEREAS, 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;
WHEREAS, 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 October 1, 1988 to
October 1, 1989;
WHEREAS, 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;
WHEREAS, the Authority has executed a Trust Indenture,
dated as of October 1, 1988, by and between the Authority
and Seattle-First
pursuant to which
the Authority and
to issue its first series
Bonds (the "Bonds");
National Bank, as trustee thereunder,
the Trustee is holding certain funds of
pursuant to which the Authority proposes
of Insurance Program Revenue
Resolution No. 88-74
Page 3
WHEREAS, 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
interest on the Bonds;
WHEREAS, 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 Liability
Risk Coverage Agreement containing a specified maximum
annual Basic Premium obligation;
WHEREAS, 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;
WHEREAS, 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
Resolution NO. 88-74
Page 4
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 were duly
authorized to so act by the First Program Resolution;
WHEREAS, 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 requirement of law, to execute the First
Amendment to Liability Risk Coverage Agreement, in the
manner and upon the terms herein provided;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE
CITY OF SANTA ANA 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.
Resolution No. 88- 7~
Page 5
SECTION 2. Basic Premium Obligation Under First
Amendment to Liabilit~ Risk Coverage Agreement. The Mayor,
City Manager 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 Coverage Agreement in
substantially the form approved by this City Council by
Resolution NO. 88-67 and on file with 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 ~735,000
and the aggregate principal component of Basic Premium
established thereunder shall not exceed ~6,600,000.
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 representatives of the City to the
Authority, the issuance of
Program Revenue Bonds (the
provided that the principal
exceed %18,800,080 and the interest
Bonds shall not exceed 9%.
the first series of Insurance
"Bonds") by the Authority;
amount of the Bonds shall not
rate per annum on the
448
Resolution
Page 6
No. 88- 74
SECTION 4. Authorization of Representative to Approve
Purchase contract Relating to Authorit~ 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 underwriters; provided that the underwriters'
discount thereunder shall not exceed 2.35% of the aggregate
principal amount of the Bonds.
SECTION 5. Authorization of Representatives
Official Statement Relating
representatives of the city
authorized and directed
to Authorit~ Bonds.
to the Authority are
to approve, as representatives
to Approve
The
hereby
the City to the Authority, the
the Authority of a Preliminary
Official Statement relating to
execution and distribution by
Official Statement and an
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, 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.
of
Resolution No. 88- 74
Page 7
SECTION 7. Attestation and Seal. The clerk of the City
Council is hereby authorized and 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. Officers of the City
Council and the Mayor, City Manager and Finance Director and
any other officer 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.
SECTION 9. Effective Date. This resolution shall take
effect immediately upon its passage.
449
RESOLUTION NO. 88-74
PAGE 8
450
PASSED AND ADOPTED this
the following vote:
21st day of November, 1988, by
AYES:
COUNCILMEMBERS: Acosta, Griset, Hart, May, McGu~gan, Pulido, Youn9
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
(SEAL)
ATTEST:
nice C. Guy, Cl~r~ of.F6~Council
APPROVED ASTO FORM