Loading...
HomeMy WebLinkAbout24616RESOLUTION NO. 24616 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING THE ISSUANCE AND SALE OF NOT TO EXCEED $30,000,000 PRINCIPAL AMOUNT OF 2019 AIRPORT PASSENGER FACILITY CHARGE REVENUE BONDS (PALM SPRINGS INTERNATIONAL AIRPORT) TO PROVIDE FINANCING FOR APPROVED AIRPORT PROJECTS AND APPROVING RELATED DOCUMENTS AND ACTIONS. WHEREAS, the City of Palm Springs (the "City") owns and operates the Palm Springs International Airport (the "Airport") and the Federal Aviation Administration (the "FAA") has issued its letter dated November 30, 2017, as amended by a letter dated April 6, 2018, approving an application of the City to impose and use a Passenger Facility Charge ("PFC") for the purpose, among others, of funding various approved projects for the Airport (the "Approved Airport Projects"); and WHEREAS, one of the Approved Airport Projects is the design, construction and financing of a reconfigured and improved portion of the terminal building to add 10 airline ticket counter positions and an efficient in -line baggage screening system, as well as expanded passenger circulation and queuing areas (the "Terminal Building Approved Project"); and WHEREAS, the City Council has adopted its Ordinance No. 1989 on May 22, 2019 (the "Authorizing Ordinance"), as an exercise of the municipal affairs powers of the City as a charter city under the Constitution and laws of the State of California, authorizing the City to issue its revenue bonds which are secured by PFC revenues for the purpose of financing projects which have been approved by the FAA; and WHEREAS, the City Council wishes at this time to authorize the sale of its revenue bonds under the Authorizing Ordinance, to be designated the "City of Palm Springs 2019 Airport Passenger Facility Charge Revenue Bonds (Palm Springs International Airport)" in the aggregate principal amount of not to exceed $30,000,000 (the "Bonds"), to be payable from and secured by a pledge on the PFC revenues, for the purpose of providing financing for a portion of the cost of the Terminal Building Approved Project, as described in the Notice of Public Hearing attached hereto as Exhibit A; and WHEREAS, in order for interest on the Bonds to be tax-exempt, section 147(f) of the Internal Revenue Code of 1986 (the "Code") requires that the Bonds be approved by the applicable elected representative after a public hearing following reasonable public notice; and WHEREAS, the City Council is the elected legislative body of the City and is an "applicable elected representative" under Section 147(f) of the Code; and Resolution No. 24616 Page 2 WHEREAS, notice of a public hearing with respect to the proposed issuance of the Bonds was published in a newspaper of general circulation in the City on Sunday, May 26, 2019; and WHEREAS, the public hearing was held on June 5, 2019, and an opportunity was provided for interested persons to express their views on the issuance of the Bonds and on the nature and location of the Terminal Building Approved Project; and WHEREAS, as required by Government Code Section 5852.1 enacted January 1, 2018 by Senate Bill 450, attached hereto as Exhibit B is the information relating to the Bonds that has been obtained by the City Council and is hereby disclosed and made public; and WHEREAS, the City Council has previously approved a Debt Management Policy which complies with Government Code Section 8855, and the delivery of the Bonds will be in compliance with said policy; and WHEREAS, the City Council of the City has duly considered such transactions and wishes at this time to approve said transactions in the public interests of the City. NOW, THEREFORE, THE CITY COUNCIL DETERMINES, RESOLVES AND APPROVES AS FOLLOWS: SECTION 1. Authorization of Bonds. The City Council, as the applicable elected representative under section 147(f) of the Code, hereby authorizes the issuance of the Bonds pursuant to the Authorizing Ordinance and the municipal affairs powers of the City as a charter city under the Constitution and laws of the State of California, for the purpose of providing funds to finance the Terminal Building Approved Project. The Bonds will be issued as exempt facility bonds for an airport pursuant to Section 142(a)(1) of the Code, and shall be payable from and secured by a pledge of and lien on the PFC revenues. SECTION 2. Approval of Bond Indenture. The Bonds shall be issued pursuant to an Indenture of Trust between the City and U.S. Bank National Association, as trustee (the "Bond Indenture"), in substantially the form presented at this meeting and on file with the City Clerk. The City Council hereby authorizes and directs the City Manager to execute and deliver, and the City Clerk to attest, the final form of the Bond Indenture in the name and on behalf of the City. SECTION 3. Sale of the Bonds. The City Council hereby approves the sale of the Bonds on a negotiated basis to Stifel, Nicolaus & Company, Incorporated, as underwriter (the "Underwriter"). Such sale shall be accomplished pursuant to the Bond Purchase Agreement in substantially the form presented at this meeting and on file with the City Clerk. The City Council hereby delegates to the City Manager the authority to accept an offer from the Underwriter to purchase the Bonds, provided that the true interest rate represented by all of the Bonds (taking into account any original issue discount or original issue premium on the sale of the Bonds) shall not exceed 5.00% and the amount of the Underwriter's discount on the sale of the Bonds shall not exceed 0.60% of the par amount Resolution No. 24616 Page 3 of the Bonds. The City Council hereby authorizes and directs the City Manager to execute and deliver, and the City Clerk to attest, the final form of the Bond Purchase Agreement in the name and on behalf of the City. SECTION 4. Approval of Official Statement. The City Council hereby approves the Preliminary Official Statement describing the Bonds, in substantially the form presented at this meeting and on file with the City Clerk. Distribution of the Preliminary Official Statement by the Underwriter is hereby approved. Prior to the distribution of the Preliminary Official Statement, the City Manager is hereby authorized and directed, on behalf of the City, to deem the Preliminary Official Statement "final' within the meaning of Rule 15c2-12 under the Securities Exchange Act of 1934 (the "Rule"). The Final Official Statement, which shall include such changes and additions thereto deemed advisable by the City Manager, and such information permitted to be excluded from the Preliminary Official Statement pursuant to the Rule, is hereby approved for delivery to the purchasers of the Bonds. The City Manager is authorized and directed to execute and deliver the Final Official Statement for and on behalf of the City, to deliver to the Underwriter a certificate with respect to the information set forth therein and to execute and deliver a Continuing Disclosure Certificate substantially in the form appended to the Final Official Statement. SECTION 5. Official Actions. The Mayor, the City Manager, the City Clerk, the Director of Finance and Treasurer, and any and all other officers of the City are hereby authorized and directed, for and in the name and on behalf of the City, to do any and all things and take any and all actions, which they, or any of them, may deem necessary or advisable to implement the sale and delivery of the Bonds. Whenever in this Resolution any officer of the City is directed to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf in the case such officer is absent or unavailable. SECTION 6. Effective Date. This Resolution shall take effect from and after the date of approval and adoption thereof. PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 5th DAY OF JUNE, 2019. EST: 1 ony J. I e City Clerk t David H. Ready, Esq., P City Manager Resolution No. 24616 Page 4 CERTIFICATION STATE OF CALIFORNIA ) COUNCIL OF RIVERSIDE) ss. CITY OF PALM SPRINGS) I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, hereby certify that Resolution No. 24616 is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on the 5t" day of June, 2019, by the following vote: AYES: Councilmembers Holstege, Middleton, Roberts, Mayor Pro Tern Kors, and Mayor Moon NOES: None ABSENT: None ABSTAIN: None IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this 2—It day of ?sfti . 6✓V ony J. Me) a, City Clerk Resolution No. 24616 Page 5 Exhibit A NOTICE OF PUBLIC HEARING CITY OF PALM SPRINGS PUBLIC NOTIFICATION Date: May 28, 2019 Subject: Airport Exempt Facility Bonds AFFIDAVIT OF PUBLICATION I, Cynthia A. Berardi, CMC, Chief Deputy City Clerk, of the City of Palm Springs, Califomia, do hereby certify that a copy of the attached Notice of Public Hearing was published in the Desert Sun on May 26, 2019. I declare under penalty of perjury that the foregoing is true and correct. Cynthia A. erardi, CMC Chief Deputy City Clerk AFFIDAVIT OF POSTING I, Cynthia A. Berardi, CMC, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice of Public Hearing was posted at City Hall, 3200 E. Tahquitz Canyon Drive, on the exterior legal notice posting board, and in the Office of the City Clerk on May 23, 2019. I declare under penalty of perjury that the foregoing is true and correct. Cynthia A. erardi, CMC Chief Deputy City Clerk 254 CITY COUNCIL CITY OF PALM SPRINGS NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the City Council of the City of Palm Springs, California, will hold a public hearing at its meeting of June 5, 2019 (the "Public Hearing"). The City Council meeting begins at 6:00 PM, in the Council Chamber at City Hall, 3200 E. Tahquitz Canyon Way, Palm Springs, California. This Public Hearing as required by Section 147(f) of the Internal Revenue Code of 1986 (the "Code") will be held with respect to the proposed issuance by the City of Palm Springs (the "City") of its revenue bonds in one or more series in an amount not to exceed $30,000,000, as park of a plan to finance the facilities described herein (the "Bonds"). The Bonds will be issued as exempt facility bonds for an airport pursuant to Section 142(a)(1) of the Code. The proceeds of the Bonds will be used to: (1) finance various improvements approved by the Federal Aviation Administration for the Palm Springs International Airport located at 3400 E. Tahquitz Canyon Way, Suite 1, Palm Springs, California 92262, (2) fund a reserve fund for the Bonds and (3) pay certain expenses incurred in connection with the issuance of the Bonds. The facilities are to be owned and operated by the City. The Bonds and the obligation to pay principal of and interest thereon and any redemption premium with respect thereto do not constitute indebtedness of the City, the State of California or any political subdivision thereof, within the meaning of any constitutional or statutory debt limitation, or a charge against the general credit or taxing powers of any of them. The Bonds shall be a special obligation of the City, payable from and secured by a pledge of and first lien on passenger facility charges imposed by the City under the authority of the Aviation Safety and Capacity Expansion Act of 1990, codified as 49 U.S. §40117, as amended or replaced from time to time (the "PFC Act") and certain regulations promulgated underthe PFC Act. REVIEW OF INFORMATION: The staff report and other supporting documents regarding this Public Hearing are available for public review at City Hall between the hours of 8:00 a.m. and 6:00 p.m. Monday through Thursday. Please contact the Office of the City Clerk at (760) 323- 8204 if you would like to schedule an appointment to review these documents. COMMENTS: Response to this notice can be made verbally at the Public Hearing and/or in writing before the hearing. Written comments can be made to the City Council by letter (for mail or hand delivery) to: Anthony J. Mejia, City Clerk 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Any challenge of the proposed in court may be limited to raising only those issues raised at the Public Hearing described in this notice, or in written correspondence delivered to the City Clerk at, or prior to, -the Public Hearing. (Government Code Section 65009(b)(2)). An opportunity will be given at said Public Hearing for all interested persons to be heard. Questions regarding this case may be directed to Nancy Pauley, Director of Finance and Treasurer, at (760) 323-8229. Si necesita ayuda con esta carta, favor de Ilamar a la Ciudad de Palm Springs y comuniquese con Ariana Muniz al (760) 323-8229. A Abfthony Me'i City Cler Resolution No. 24616 Page 6 Exhibit B REQUIRED DISCLOSURES PURSUANT TO GOVERNMENT CODE SECTION 5852.1 True Interest Cost of the Bonds (Estimated): 2.75%. 2. Finance charge of the Bonds, being the sum of all fees and charges paid to third parties, in the amount of approximately $435,000. 3. Proceeds of the Bonds expected to be received by the City, net of proceeds for Costs of Issuance in (2) above and reserves (if any) paid from the principal amount of the Bonds (Estimated): $22,613,000. 4. Total Payment Amount for the Bonds, being the sum of all debt service to be paid on the Bonds to final maturity, together with annual bond administration expenses not included in (2) above (Estimated): $30,100,000. 'All amounts and percentages are estimates, and are made in good faith by the City based on information available as of the date of adoption of this Resolution. Estimates include certain assumptions regarding tax-exempt rates available in the bond market at the time of pricing the Bonds.