HomeMy WebLinkAboutResolution 2013-054 financing for wastewater treatment facility and the lease purchase of a portion of the MMCRESOLUTION NO. 2013-054
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF TOWN OF
MARANA, ARIZONA, APPROVING THE SALE AND EXECUTION AND
DELIVERY OF NO�' TO EXCEED $39,000,000 AGGREGATE PRINCIPAL
AMOUNT OF PLEDGED EXCISE TAX REVENUE AND REVENUE
REFUNDING OBLIGATIONS EVIDENCING A PROPORTIONATE
INTEREST OF THE OWNERS THEREOF IN A FIRST PURCHASE
AGREEMENT; APPROVING THE FORM AND AUTHORIZING THE
EXECUTION AND DELIVERY OF SUCH PURCHASE AGREEMENT, A
FIRST TRUST AGREEMENT, A CONTINUING DISCLOSURE
UNDERTAKING, AN OBLIGATION PURCHASE CONTRACT AND OTHER
NECESSARY AGREEMENTS; DELEGATING AUTHORITY TO THE
MAYOR, MANAGER AND FINANCE DIRECTOR OF THE TOWN TO
DETERMINE CERTAIN MATTERS AND TERMS WITH RESPECT TO THE
FOREGOING; AUTHORIZING THE TAKING OF ALL OTHER ACTIONS
NECESSARY TO THE CONSUMMATION OF THE TRANSACTIONS
CONTEMPLATED BY THIS RESOLUTION AND DECLARING AN
EMERGENCY
WHEREAS, the Mayor and Common Council of the Town of Marana, Arizona
(the "Town"), have determined (i) to finance the costs to acquire certain wastewater treatment
facilities for the Town and to make certain improvements thereto and (2) to refinance the lease
purchase of a portion of the new municipal complex (MPC Series 2003) (together, the
"Projects"), by entering into a First Purchase Agreement, to be dated as of the first day of the
month of the dated date of the hereinafter described Obligations established as provided herein
(the "Purchase Agreement"), with Wells Fargo Bank, N.A., as trustee (the "Trustee"), in its
separate capacity as "Seller"; and
WHEREAS, in connection with the Purchase Agreement, the Mayor and
Common Council of the Town have deemed it necessary and desirable to provide for the sale and
execution and delivery of pledged revenue and revenue refunding obligations, provided for by
this Resolution (the "Obligations"), evidencing proportionate interests of the owners of the
Obligations in payments to be made by the Town to the Trustee pursuant to the First Trust
Agreement, to be dated as of the first day of the month of the dated date of the Obligations (the
"Trust AgreemenY'), between the Trustee and the Town, such payments to be made pursuant to
the Purchase Agreement; and
WHEREAS, the payments represented by the Obligations will be secured by
amounts received under the Purchase Agreement pursuant to which the Town will pledge Excise
Tax Revenues and State Shared Revenues (as such terms are defined in the Purchase
Agreement); and
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WHEREAS, there have been presented to the Mayor and Common Council of
the Town at the meeting at which this Resolution is being adopted (1) the proposed form of the
Purchase Agreement; (2) the proposed form of the Trust Agreement; (3) the proposed farm of a
Continuing Disclosure Undertaking, to be dated the date of delivery of the Obligations (the
"Undertaking"), from the Town necessary for purposes of compliance with Securities and
Exchange Commission Rule 15c2-12; (4) the proposed form of the Obligation Purchase
Contract, to be dated the date of the sale of the Obligations (the "Purchase Contract"), by and
between the Town and Stifel, Nicolaus & Company, Incorporated (the "Underwriter"), for the
purchase of the Obligations and (5) the proposed form of the Preliminary Official Statement, to
be dated the date of the dissemination thereof (the "Preliminary Official Statement"), relating to
the Obligations, which, as to be revised after the sale of the Obligations, shall constitute the
Official Statement, to be dated the date of sale of the Obligations (the "Official Statement"),
relating to the Obligations; and
WHEREAS, this resolution was originally presented to the Mayor and Common
Council of the Town at its May 22, 2013 meeting as Marana Resolution No. 2013-049, where it
was approved by a vote of five in favor and none opposed with two Council members absent,
which did not meet the three-fourths vote requirement of A.R.S. § 19-142 paragraph B for the
adoption of an emergency measure; and
WHEREAS, this resolution is intended to readopt Marana Resolution No.
2013-049 with a sufficient vote to enable it to be adopted as an emergency measure; and
WHEREAS, financing and refinancing of the eosts of the Projects pursuant to the
Purchase Agreement is in furtherance of the purposes of the Town and in the public interest;
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND
COMMON COUNCIL OF THE TOWN OF MARANA, ARIZONA, THAT:
Section 1. (a) The execution and delivery of the Obligations by the Trustee is
approved.
(b) The Manager or Finance Director of the Town are each authorized
to determine on behalf of the Town the series name and designation of the Obligations; the date
the Obligations are to be sold to the Underwriter; the total aggregate principal amount of the
Obligations which are to be executed and delivered but not to exceed in the aggregate principal
amount of $39,000,000; the date the Obligations are to be dated; the dates on which interest on
the Obligations is to be payable and the interest rates per annum the Obligations are to bear; the
dates the Obligations are to mature but not later than twenty-one (21) years from the date of the
execution and delivery of the Obligations, the principal amounts to mature on such dates and the
provisions for redemption thereof in advance of such dates; the obligations to be refinanced with
proceeds of the sale of the Obligations and the exercise of prepayment and redemption
provisions with respect thereto and the terms upon which the Obligations are to be sold to the
Underwriter (including determinations of price, original issue discount and premium and
underwriting compensation); provided, however, that the foregoing determinations shall not
result in the yield on the Obligations, as calculated in accordance with Section 148 of the Code
exceeding four and one-half percent (4.5%).
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(c) The Manager and Finance Director of the Town are further each
authorized to determine on behalf of the Town whether the purchase of an insurance policy
securing payment of the Obligations or a surety bond or other reserve fund guaranty which
would be a"qualified guarantee" for purposes of the Code would be advantageous to the Town
or the terms of the financing represented by the Obligations. The Manager and Finance Director
of the Town are each authorized to negotiate with and secure, with proceeds of the Obligations
or otherwise, such an insurance policy or a reserve fund guaranty, or both, from one or more
institutions, the claims-paying ability of which are then assigned one of the two highest rating
categories by a nationally recognized credit rating agency. The Mayor, Manager and Finance
Director of the Town are each authorized to execute and deliver any instruments or documents
necessary in connection with the purchase of any such insurance policy and/or reserve fund
guaranty, including those making provision for the repayment of amounts advanced by the
institutions issuing such insurance policy and/or reserve fund guaranty.
(d) The forms and other terms of the Obligations, including the
provisions for the signatures, authentication, payment, registration, transfer, exchange,
redemption and number shall be as set forth in the Trust Agreement and are approved.
Section 2. The Obligations are to be sold to the Underwriter pursuant to the
terms of the Purchase Contract as such terms are to be determined as provided hereinabove.
Section 3. The form, terms and provisions of the Purchase Agreement, the Trust
Agreement, the Purchase Contract and the Undertaking, in substantially the forms of such
documents (including the Obligations and other exhibits thereto) presented at the meeting of the
Mayor and Common Council of the Town at which this Resolution is being adopted are
approved, with such final provisions, insertions, deletions and changes as determined as provided
hereinabove and shall be approved by the Mayor of the Town, any other member of the Council,
and, in the case of the Purchase Contract, the Manager of the Town, the execution of each such
document being conclusive evidence of such approval, and the Mayor of the Town or any other
member of the Council and, in the case of the Purchase Contact, the Manager of the Town, or the
Clerk of the Town, where applicable, are authorized and directed, for and on behalf of the Town,
to execute and deliver and attest or approve the Purchase Agreement, the Trust Agreement, the
Purchase Contract and the Undertaking and to take all action to carry out and comply with the
terms of such documents.
Section 4. The distribution of the Preliminary Official Statement by the
Underwriter is approved, and the Final Official Statement in substantially the form of the
Preliminary Official Statement, with such changes or revisions therein from the form of the
Preliminary Official Statement as may be approved by the Mayor of the Town or any other
member of the Council executing the same, is approved, and the Mayor of the Town or any other
member of the Council is authorized, empowered and directed, in the name and on behalf of the
Town, to execute and deliver the same to the Underwriter and to execute and deliver instruments
confirming that the Preliminary Official Statement is "deemed final" in accordance with
Securities and Exchange Commission Rule 15(c)2-12.
Section 5. The Trustee (including in its separate capacities as Seller and the
Escrow Trustee) is requested to take any and all action necessary in connection with the
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execution and delivery of the Purchase Agreement, the Trust Agreement, the Purchase Contract
and the Undertaking and the sale and execution and delivery of the Obligations and is further
authorized and directed to take such action as may be reasonable for the administration of the
trusts so held by it.
Section 6. The covenants and agreements contained the Purchase Agreement as
to the pledge of and the lien on Excise Tax Revenues and State Shared Revenues and the
restriction on the issuance of further parity obligations secured by Excise Tax Revenues and
State Shared Revenues are approved and confirmed.
Section 7. The Mayor, the Manager, the Finance Director and other officers of
the Town, on behalf of the Town, are authorized and directed, without further order of the Mayor
and Common Council of the Town, to do all such acts and things and to execute and deliver all
such certificates, proceedings, agreements and other documents as may be necessary or
convenient to be executed and delivered on behalf of the Town, to evidence compliance with, or
further the purposes of, all the terms and conditions of this Resolution and the consummation of
the transactions contemplated by the Preliminary Official Statement and the Official Statement
and as may be necessary to carry out the terms and intent of this Resolution.
Section 8. All actions of the officers and agents of the Town which conform to
the purposes and intent of this Resolution and which further the sale and execution and delivery
of the Obligations as contemplated by this Resolution, whether heretofore or hereafter taken, are
ratified, confirmed and approved.
Section 9. If any section, paragraph, clause or phrase of this Resolution shall for
any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such
section, paragraph, clause or phrase shall not affect any of the remaining provisions of this
Resolution. All orders, resolutions and ordinances or parts thereof inconsistent herewith are
hereby waived to the extent only of such inconsistency. This waiver shall not be construed as
reviving any order, resolution or ordinance or any part thereof.
Section 10. The immediate operation of the provisions of this Resolution is
necessary for the preservation of the public peace, health and safety, particularly to immediately
sell the Obligations to secure the best, available economic terms therefor, and an emergency is
hereby declared to exist, and this Resolution will be in full force and effect from and after its
passage by the Mayor and Common Council of the Town and it is hereby excepted from the
referendum provisions of the Constitution and laws of the State of Arizona. After any of the
Obligations are delivered by the Trustee to the Underwriter and upon receipt of payment
therefor, this Resolution shall be and remain irrepealable until the Obligations and the interest
and premium, if any, thereon shall have been fully paid, cancelled and discharged.
Section 11. Upon the adoption of this Resolution by a vote sufficient to satisfy
the three-fourths vote requirement of A.R.S. § 19-142 paragraph B for the adoption of an
emergency measure, Marana Resolution No. 2013-049 shall be replaced by this Resolution.
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PASSED AND ADOPTED by the Council and approved by the Mayor of the
Town of Marana, Arizona, this 4 day of June, 2013.
Mayor
ATTEST:
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APPROVED AS TO FORM:
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CERTIFICATION
I hereby certify that the foregoing Resolution No. 2013-054 was duly passed and
adopted by the Mayor and Common Council of the Town of Marana, Arizona, at a regular
meeting held on the 4 day of June, 2013, and the vote was 6 ayes and 0 nays and 1 absent or not
voting.
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