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Resolution No. 2022-010RESOLUTION NO. 2022-10 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON AUTHORIZING AND APPROVING AN UPDATED OFFICIAL STATEMENT FOR CERTAIN ELECTRIC SYSTEM REVENUE BONDS; AND AUTHORIZING CERTAIN OTHER MATTERS RELATING THERETO SECTION 1. Recitals. A. The City of Vernon (the “City”) is a municipal corporation and a chartered city of the State of California organized and existing under its Charter and the Constitution of the State of California. B. Pursuant to Resolution No. 2021-43 (the “2021 Resolution”), the City previously authorized the issuance of not to exceed $65,000,000 of refunding revenue bonds. C. On December 7, 2021, and in accordance with the 2021 Resolution, the City executed a forward delivery purchase contract, dated December 7, 2021 (the “Forward Purchase Contract”) with Goldman Sachs & Co. LLC (the “Underwriter”) with respect to the sale of $52,070,000 City of Vernon Electric System Revenue Bonds, 2022 Series A (the “2022 Bonds”). D. One of the conditions to the issuance of the 2022 Bonds set forth in the Forward Purchase Contract is the delivery of an updated Official Statement (the “Updated Official Statement”) to the Underwriter. E. There has been prepared and submitted to this meeting the form of an Updated Official Statement to be delivered by the City to the Underwriter. F. The City Council now desires to authorize and approve the form and the execution and delivery of the Updated Official Statement and the performance of such acts as may be necessary or desirable in connection with the execution and delivery of the Updated Official Statement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 2. The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct. SECTION 3. The City Council of the City of Vernon hereby approves the Updated Official Statement relating to the 2022 Bonds, in substantially the form attached hereto as Exhibit A, and made a part hereof as though set forth in full herein. Each of the Mayor, the Mayor Pro Tem, the City Administrator, the Treasurer and the Finance Director (each an “Authorized Officer”), acting singly, is hereby authorized to execute and deliver the Resolution No. 2022-10 Page 2 of 152 _______________________ Updated Official Statement, in the name of and on behalf of the City, in substantially the form attached hereto with such changes, insertions and deletions as may be approved by the Authorized Officer executing the Updated Official Statement, said execution being conclusive evidence of such approval. Each Authorized Officer is authorized to sign a certificate pursuant to Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 relating to the Updated Official Statement. Upon execution of such certificate, the Underwriter is directed to deliver copies of the Updated Official Statement to all actual initial purchasers of the 2022 Bonds. SECTION 4. The Mayor, the Mayor Pro Tem, the City Administrator, the Treasurer, the Finance Director, the City Clerk, the City Attorney, the Director of Public Utilities and any other proper official, officer or employee of the City, acting singly, be and each of them hereby is authorized 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 convenient in carrying out the actions authorized by this Resolution and the transactions contemplated by the documents and instruments approved or authorized by this Resolution, and the authorization, execution, delivery and performance by the City of its obligations under such documents and instruments, including, without limitation, making any determinations or submission of any documents or reports which are required by any rule or regulation of any governmental entity in connection with the execution and delivery of the Updated Official Statement or any other documents referred to in this Resolution or related to the 2022 Bonds, providing for the giving of written directions and notices, and the securing of any necessary third party approvals in connection with the issuance of the 2022 Bonds or as required by the Updated Official Statement or any other documents referred to in this Resolution or related to the 2022 Bonds. SECTION 5. All actions heretofore taken by any committee of the City Council, or any official, officer, employee, representative or agent of the City, in connection with the issuance and sale of the 2022 Bonds or the authorization, execution, delivery, or performance of the City’s obligations under the documents and instruments approved or authorized by this Resolution including but not limited to the delivery of redemption and defeasance notices in connection therewith, and the other actions contemplated by this Resolution, are hereby ratified, approved and confirmed. / / / / / / / / / Resolution No. 2022-10 Page 3 of 152 _______________________ SECTION 6. The City Clerk shall certify the passage and adoption of this resolution and enter it into the book of original resolutions. APPROVED AND ADOPTED this 19th day of April, 2022. ________________________ LETICIA LOPEZ, Mayor ATTEST: LISA POPE, City Clerk (seal) APPROVED AS TO FORM: ZAYNAH N. MOUSSA, Interim City Attorney I CERTIFY THAT THE FOREGOING RESOLUTION NO. 2022-10 was passed and adopted by the City Council of the City of Vernon at the Regular meeting on April 19, 2022 by the following vote: AYES: Council Members: Davis, Merlo, Ybarra, Larios NOES: 0 ABSENT: 1 Council Member: Lopez ABSTAIN: 0 ________________________________ LISA POPE, City Clerk (seal) EXHIBIT A Resolution No. 2022-10 Page 4 of 152 ________________________ Stradling Yocca Carlson & Rauth Draft of 4/12/22 Y 1(:,668(²)8//%22.(175<21/< 5DWLQJV6HHWKHFDSWLRQ³5$7,1*6´ In the opinion of Stradling Yocca Carlson & Rauth, a Professional Corporation, Bond Counsel, under existing statutes, regulations, rulings and judicial decisions, and assuming the accuracy of certain representations and compliance with certain covenants and requirements described in this Official Statement, interest (and original issue discount) on the 2022 Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals. In the further opinion of Bond Counsel, interest (and original issue discount) on the 2022 Bonds is exempt from State of California personal income tax. 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Certain legal matters will be passed upon for the City by Stradling Yocca Carlson & Rauth, a Professional Corporation, as Disclosure Counsel, and by the City Attorney, for the Underwriter by its counsel, Chapman and Cutler LLP, and for the Trustee by its counsel. It is anticipated that the 2022 Bonds will be available for delivery through the facilities of The Depository Trust Company on or about May 5, 2022. *ROGPDQ6DFKV &R//& 'DWHG$SULOBB Resolution No. 2022-10 Page 6 of 152 ________________________ Y 0$785,7<6&+('8/( &,7<2)9(5121 (/(&75,&6<67(05(9(18(%21'66(5,(6$ %$6(&86,3 Maturity Date (August 1) Principal Amount Interest Rate Yield CUSIP Suffix (3 (4 (5 (6 (7 (8 (9 (: (; (< &(= &)$ &)% &)& &)' &)( &)) &)* &)+ ) Y ) Y † CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf of the American Bankers Association by FactSet Research Systems Inc. All rights reserved. CUSIP® data herein is provided by CUSIP Global Services. This data is not intended to create a database and does not serve in any way as a substitute for the CGS database. CUSIP® numbers are provided for convenience of reference only. Neither the City nor the Underwriter takes any responsibility for the accuracy of such numbers. C Yield to first optional redemption date of August 1, 2032 at par. Resolution No. 2022-10 Page 7 of 152 ________________________ Y &,7<2)9(5121 &2817<2)/26$1*(/(6 67$7(2)&$/,)251,$ &,7<&281&,/ 0HOLVVD<EDUUD0D\RU :LOOLDP³%LOO´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esolution No. 2022-10 Page 8 of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³)25:$5'/22.,1* 67$7(0(176´ 12 $6685$1&( &$1%(*,9(17+$77+()8785(5(68/76',6&866('+(5(,1:,//%($&+,(9('$1'$&78$/ 5(68/760$<',))(50$7(5,$//<)5207+()25(&$676'(6&5,%('+(5(,1,17+,65(63(&7 7+(:25'6³(67,0$7(´³352-(&7´³$17,&,3$7(´³(;3(&7´³,17(1'´³%(/,(9(´$1'6,0,/$5 (;35(66,216 $5( ,17(1'(' 72 ,'(17,)< )25:$5'/22.,1* 67$7(0(176 :,7+,1 7+( 0($1,1* 2) 7+( 35,9$7( 6(&85,7,(6 /,7,*$7,21 5()250 $&7 2) 6(&7,21 ( 2) 7+( 81,7(' 67$7(6 6(&85,7,(6 (;&+$1*( $&7 2) $6 $0(1'(' $1'6(&7,21 $ 2) 7+( 81,7(' 67$7(6 6(&85,7,(6 $&7 2) $6 $0(1'(' $// 352-(&7,216 )25(&$676 $668037,216 (;35(66,216 2) 23,1,216 (67,0$7(6 $1' 27+(5 )25:$5'/22.,1* 67$7(0(176$5((;35(66/<48$/,),(',17+(,5(17,5(7<%<7+(&$87,21$5<67$7(0(176 6(7)257+,17+,62)),&,$/67$7(0(17 The 2022 Bonds have not been registered under the Securities Act of 1933, as amended, in reliance upon an exemption contained in such act. The 2022 Bonds have not been registered or qualified under the securities laws of any state. The Indenture has not been qualified under the Trust Indenture Act of 1939, as amended, in reliance upon an exemption contained in such act. 7KH&LW\PDLQWDLQVDZHEVLWH+RZHYHUWKHLQIRUPDWLRQSUHVHQWHGWKHUHLVQRWSDUWRIWKLV2IILFLDO6WDWHPHQW DQGVKRXOGQRWEHUHOLHGXSRQLQPDNLQJDQLQYHVWPHQWGHFLVLRQZLWKUHVSHFWWRWKH%RQGV8QOHVVVSHFLILHG RWKHUZLVHUHIHUHQFHVWRZHEVLWHVLQFOXGHGKHUHLQDQGWKHLQIRUPDWLRQRUOLQNVFRQWDLQHGWKHUHLQDUHQRWLQFRUSRUDWHG LQWRDQGDUHQRWSDUWRIWKLVILQDORIILFLDOVWDWHPHQWIRUSXUSRVHVRIDQGDVWKDWWHUPLVGHILQHGLQ5XOHFRIWKH 8QLWHG6WDWHV6HFXULWLHVDQG([FKDQJH&RPPLVVLRQ Resolution No. 2022-10 Page 9 of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esolution No. 2022-10 Page 10 of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± $33(1',;% 6800$5<2)&(57$,13529,6,2162)7+(,1'(1785(%± $33(1',;& 352326(')25062)23,1,2162)%21'&2816(/&± $33(1',;' ,1)250$7,21&21&(51,1*'7&'± $33(1',;( )2502)&217,18,1*',6&/2685($*5((0(176(± Resolution No. 2022-10 Page 11 of 152 ________________________ Y 2)),&,$/67$7(0(17 &,7<2)9(5121 (/(&75,&6<67(05(9(18(%21'66(5,(6$ ,1752'8&7,21 This Introduction is qualified in its entirety by reference to the more detailed information that is included and referred to elsewhere in this Official Statement. The offering of the 2022 Bonds to potential investors is made only by means of the entire Official Statement. All capitalized terms used in this Official Statement and not otherwise defined herein have the meanings set forth in the Indenture. See Appendix B. 3XUSRVHRI2IILFLDO6WDWHPHQW 7KHSXUSRVHRIWKLV2IILFLDO6WDWHPHQWZKLFKLQFOXGHVWKHFRYHUSDJHDQGWKHDSSHQGLFHVDWWDFKHG KHUHWRLVWRSURYLGHLQIRUPDWLRQFRQFHUQLQJWKHVDOHDQGGHOLYHU\E\WKH&LW\RI9HUQRQ&DOLIRUQLDWKH ³&LW\´RILWV(OHFWULF6\VWHP5HYHQXH%RQGV6HULHV$WKH³%RQGV´ 7KH%RQGVZHUHVROGWRWKH8QGHUZULWHUSXUVXDQWWRDIRUZDUGGHOLYHU\SXUFKDVHFRQWUDFWGDWHG 'HFHPEHUWKH³)RUZDUG'HOLYHU\3XUFKDVH&RQWUDFW´EHWZHHQWKH&LW\DQG*ROGPDQ6DFKV &R //& DV WKH XQGHUZULWHU RI WKH %RQGV WKH ³8QGHUZULWHU´ 7KLV 2IILFLDO 6WDWHPHQW LV EHLQJ SURYLGHGLQFRQQHFWLRQZLWKWKHGHOLYHU\RIWKH%RQGVRQRUDERXW0D\LQRUGHUWRXSGDWHWKH 2IILFLDO6WDWHPHQWGDWHG'HFHPEHUGHOLYHUHGE\WKH&LW\DWWKHWLPHRIVDOHRIWKH%RQGV6HH ³)25:$5''(/,9(5<2)7+(%21'6´ $XWKRULW\ 7KH%RQGVDUHEHLQJLVVXHGSXUVXDQWWR$UWLFOH,,RIWKH&LW\¶V&KDUWHUWKH&LW\RI9HUQRQ 0XQLFLSDO)DFLOLWLHV5HYHQXH%RQG/DZFRQVWLWXWLQJ$UWLFOH;,RIWKH9HUQRQ&LW\&RGHFROOHFWLYHO\WKH ³%RQG/DZ´DQGDQ,QGHQWXUHRI7UXVWGDWHGDVRI6HSWHPEHUWKH³0DVWHU,QGHQWXUH´DQGDV 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The City has not independently verified such information and neither makes any representations nor expresses any opinion as to the accuracy of the information that has been provided by CalPERS. The comprehensive annual financial reports of CalPERS are available on CalPERS’ Internet website at www.calpers.ca.gov. The CalPERS website also contains CalPERS’ most recent actuarial valuation reports and other information that concerns benefits and other matters. The textual reference to such Internet website is provided for convenience only. None of the information on such Internet website is incorporated by reference herein. The City cannot guarantee the accuracy of such information. Actuarial assessments are “forward-looking” statements that reflect the judgment of the fiduciaries of the pension plans, and are based upon a variety of assumptions, one or more of which may not materialize or be changed in the future. 7KH&LW\¶V0LVFHOODQHRXVSODQKDGDWRWDOQHWSHQVLRQOLDELOLW\RIDSSUR[LPDWHO\IRUWKH )LVFDO<HDUHQGHG-XQHDQGDSSUR[LPDWHO\IRUWKH)LVFDO<HDUHQGHG-XQH7KH QHWSHQVLRQOLDELOLW\LVWKHGLIIHUHQFHEHWZHHQWKHWRWDOSHQVLRQOLDELOLW\DQGWKHIDLUPDUNHWYDOXHRISHQVLRQ DVVHWV7KH&LW\¶VWRWDOSHQVLRQDVVHWVLQFOXGHIXQGVWKDWDUHKHOGE\&DO3(56DQGLWVQHWSHQVLRQDVVHWRU OLDELOLW\LVEDVHGRQVXFKDPRXQWV )RU )LVFDO <HDUV DQG WKH &LW\ LQFXUUHG 0LVFHOODQHRXV SODQ SHQVLRQ H[SHQVHV RI DQGUHVSHFWLYHO\ $VXPPDU\RISULQFLSDODVVXPSWLRQVDQGPHWKRGVXVHGWRGHWHUPLQHWKHWRWDOSHQVLRQOLDELOLW\IRU )LVFDO<HDULVVKRZQEHORZ &,7<2)9(5121 $FWXDULDO$VVXPSWLRQVIRU&DO3(560LVFHOODQHRXV3HQVLRQ3ODQ $FWXDULDO&RVW0HWKRG (QWU\$JH1RUPDOLQDFFRUGDQFHZLWKWKHUHTXLUHPHQWVRI*$6% $VVHW9DOXDWLRQ0HWKRG 0DUNHW9DOXHRI$VVHWV Actuarial Assumptions 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ZLOOEHDQRULJLQDOEXWVXFKFRXQWHUSDUWVZLOOWRJHWKHUFRQVWLWXWHEXWRQHDQGWKHVDPHLQVWUXPHQW Resolution No. 2022-10 Page 138 of 152 ________________________ & Y $33(1',;& 352326(')2502)23,1,212)%21'&2816(/ On the date of delivery of the 2022 Bonds, subject to the terms and conditions of the Forward Delivery Purchase Contract (as defined in the Official Statement), Stradling Yocca Carlson & Rauth, a Professional Corporation, Bond Counsel, proposes to render its final approving opinion in substantially the following form: 0D\BB &LW\RI9HUQRQ 6RXWK6DQWD)H$YHQXH 9HUQRQ&DOLIRUQLD Re: City of Vernon Electric System Revenue Bonds, 2022 Series A 0HPEHUVRIWKH&LW\&RXQFLO :HKDYHH[DPLQHGDFHUWLILHGFRS\RIWKHUHFRUGRIWKHSURFHHGLQJVRIWKH&LW\RI9HUQRQWKH³&LW\´ UHODWLYHWRWKHLVVXDQFHRIWKHBBBBBBB&LW\RI9HUQRQ(OHFWULF6\VWHP5HYHQXH%RQGV6HULHV$WKH ³%RQGV´GDWHGWKHGDWHKHUHRIDQGVXFKRWKHULQIRUPDWLRQDQGGRFXPHQWVDVZHFRQVLGHUQHFHVVDU\WR UHQGHU WKLV RSLQLRQ ,Q UHQGHULQJ WKLV RSLQLRQ ZH KDYH UHOLHG XSRQ FHUWDLQ UHSUHVHQWDWLRQV RI 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5HIHUHQFH&LW\RI9HUQRQ(OHFWULF%RQGV 6HFWLRQ %HQHILFLDULHV7KLV'LVFORVXUH$JUHHPHQWVKDOOLQXUHVROHO\WRWKHEHQHILWRIWKH &LW\WKH'LVVHPLQDWLRQ$JHQWWKH7UXVWHHWKH3DUWLFLSDWLQJ8QGHUZULWHUDQGKROGHUVDQG%HQHILFLDO2ZQHUV IURPWLPHWRWLPHRIWKH%RQGVDQGVKDOOFUHDWHQRULJKWVLQDQ\RWKHUSHUVRQRUHQWLW\ Resolution No. 2022-10 Page 150 of 152 ________________________ ( Y 6HFWLRQ &RXQWHUSDUWV7KLV'LVFORVXUH$JUHHPHQWPD\EHH[HFXWHGLQPXOWLSOHFRXQWHUSDUWV DOORIZKLFKVKDOOFRQVWLWXWHRQHDQGWKHVDPHLQVWUXPHQWDQGHDFKRIZKLFKVKDOOEHGHHPHGWREHDQRULJLQDO 'DWHBBBBBBBB &,7<2)9(5121 %\ &LW\$GPLQLVWUDWRU 7+(%$1.2)1(:<25.0(//2175867 &203$1<1$ DV'LVVHPLQDWLRQ$JHQW %\ $XWKRUL]HG6LJQDWRU\ Resolution No. 2022-10 Page 151 of 152 ________________________ ) Y Resolution No. 2022-10 Page 152 of 152 ________________________ City Council Agenda Item Report Submitted by: Angela Melgar Submitting Department: Finance/Treasury Meeting Date: April 19, 2022 SUBJECT Updated Official Statement for City of Vernon Electric System Revenue Bonds, 2022 Series A Recommendation: Adopt Resolution No. 2022-10 authorizing and approving an updated Official Statement for certain Electric System Revenue Bonds; and authorizing certain other matters relating thereto. Background: On November 30, 2021, the City Council adopted Resolution No. 2021-43 authorizing the issuance of its Electric System Revenue Bonds, 2022 Series A (the 2022 Bonds) for the purpose of refunding the outstanding Electric System Revenue Bonds, 2012 Series A, and a portion of the City's outstanding Electric System Revenue Bonds, 2012 Taxable Series B, issuance not to exceed $65,000,000. In accordance with Resolution No. 2021-43 and pursuant to the terms of a Forward Delivery Contract of Purchase with the City’s underwriter, Goldman Sachs & Co. LLC, executed on December 7, 2021, the $52,070,000 sale of 2022 Bonds is required to be issued on May 5, 2022. In connection with the issuance of the 2022 Bonds on May 5, 2022, the Forward Delivery Contract of Purchase requires that the City disseminate an Updated Official Statement in order to revise the Official Statement that the Underwriter used to market the 2022 Bonds at the time that the Forward Delivery Contract of Purchase was executed. By adopting Resolution No. 2022-10, the City Council is approving the form of the Updated Official Statement. Fiscal Impact: There is no fiscal impact associated with this report. Attachments: 1. Resolution No. 2022-10 1