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HomeMy WebLinkAbout88-290 - Resolutions RESOLUTION NO. 88-290 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCMO CU CAM~NGA. CAL I~ORNIA, APPROVING, AUTHORIZING AND DIRECTING EXEOJTION OF CERTAIN LEASE FINANCING DOO3MENTS. AUTHORIZING AND DIRECTING EXEO3TION OF A PURCMAME AGREE~NT, APPROVING A PRELIMINARY OFFICIAL STATE~NT AND AUTHORIZING AND DIRECTING (~RTAIN ACTIONS WITH RESPECT THERETO RESOLVED. by the City Council of the City of Rancho Cucamonga (the "City"): WHEREAS. the City, working together with the Rancho Cucamonga Redevelopment Agency (the "Agency"), is proposing to proceed with a lease financing; and WHEREAS, in connection therewith, the City proposes to finance the acquisition of certain sites, the construction of certain new fire stations. the acquisition of fire apparatus and the acquisition of equipment relating thereto (the "Project") and it is in the public interest and for the public benefit that the City authorize and direct execution of the Lease Agreement and certain other financing documents in connection therewith; and WHEREAS, pursuant to Section 33679 of the California Health and Safety Code, before the Agency commits to use its tax increment revenues for the purposes contemplated by the hereinafter described Reimbursement Agreement, the City must hold a public hearing, notice of the time and place of which shall be published in a newspaper of general circulation in the community for at least two successive weeks two weeks prior to the public hearing; and WHEREAS, such publication has properly been given in the Daily Report on May 4, 1988, and May 11, 1988; and WHEREA~, a public hearing as required pursuant to Section 33679 of the California Health and Safety Code has been held on this date; and WHEREA~, pursuant to the City's authorization, Stone & Youngberg (the "Underwriter") proposes to underwrite the financing and has prepared and presented to the City a form of preliminary official statement containing information material to the offering and sale of the certificates of participation described belo~ (the "Preliminary Official Statement"); and WHEREAS, the documents below specified have been filed with the City, and the members of the City Council, with the aid of its staff, have reviewed said documents; Resolution No. 88-290 Page 2 NOW. T~EREFORE, it is hereby ORDERED and DETERMINED, as follows: SECTION 1. The below-en~erated documents be and are hereby approved, and the Mayor or the City Manager is hereby authorized and directed to execute said documents, with such changes, insertions and omissions as may be approved by such official, and the City Clerk is hereby authorized and directed to attest to such official's signature: (a) A lease agreement, relating to the Project, between the Agency. as lessor, and the City, as lessee (the "Lease Agreement"), so long as the stated term of the Lease Agreement does not exceed thirty (30) years, so long as the principal amount of the Lease Agreement does not exceed $10,000,000 and so long as the lease payments payable by the City under the Lease Agreement in any twelve-month period, beginning on June 2 and ending on the succeeding June l. do not exceed $900,000; (b) a trust agreement, by and among the Agency. the City and Bank of America National Trust and Savings Association, Los Angeles. California, as trustee (the "Trustee"), relating to the financing and the execution and delivery of certificates of participation evidencing the fractional interests of the owners thereof in lease payments to be made by the City under the Lease Agreement (the "Certificates of Participation"); (c) an agency agreement, by and between the Agency and the City, pursuant to which the Agency will appoint the City to act as its agent for the purposes of the construction of the Project; and (d) a reimbursement agreement, by and between the Agency and the City, pursuant to which the Agency agrees to make certain payments to the City from Tax Increment Revenues (as defined therein) for payment of lease payments payable by the City under the Lease Agreement. SECTION 2. A purchase agreement by and between the Underwriter and the City relating to the purchase by the Underwriter of the Certificates of Participation, be and is hereby approved, and the Mayor or the City Manager is hereby authorized and directed to execute said agreement, with such changes. insertions and omissions as may be approved by such official, so long as the interest rate with respect to the Certificates of Participation wLll not produce annual lease payments payable under the Lease Agreement in any twelve-month period, beginning on June 2 and ending on the succeeding June !. in excess of $900,000. so long as the principal amount of the Certificates of Participation will not exceed $10,000.000 and so long as the Underwriter's discount with respect to the Certificates does not exceed 2~. SECTION 3. The Mayor, the City Manager, the City Clerk and other officials of the City are hereby authorized and directed to execute such other agreements, documents and certificates as may be necessary to effect the purposes of this resolution and the lease financing herein authorized. Resolution No. 88-290 Page 3 SECTION 4. To the best of the City's knowledge, information and belief, the Preliminary Official Statement contains no untrue statement of a material fact with respect to the City or omits to state a material fact with respect to the City required to be stated where necessary to make any statement made therein not misleading in the light of the circumstances under which it was made. SECTION 5. The Preliminary Official Statement is approved for distribution in connection with the offering and sale of the Certificates of Participation. SECTION 6. The Mayor or the City Manager is authorized to approve corrections and additions to the Preliminary Official Statement by supplement or amendment thereto, or otherwise as appropriate, provided that any such corrections or additions shall be necessary to cause the information contained therein to conform with facts material to the Certificates of Participation, or to the proceedings of the City or such corrections or additions are in form rather than in substance. SECTION 7. The Mayor or the City Manager is authorized and directed to cause the Preliminary Official Statement to be brought into the form of a final official statement (the "Final Official Statement") and the execute said Final Official Statement, dated as of the date of the sale of the Certificates of Participation, and the City Manager is authorized and directed to execute a statement that the facts contained in the Final Official Statement, and any supplement or amendment thereto (which shall be deemed an original part thereof for the purpose of such statement) were, at the time of sale of the Certificates of Participation, true and correct in all material respects and that the Final Official Statement did not, on the date of sale of the Certificates of Participation, and does not, as of the date of delivery of the Certificates of Participation, contain any untrue statement of a material fact with respect to the City or omit to state material facts with respect to the City required to be stated where necessary to make any statement made therein not misleading in the light of the circumstances under which it was made. The Mayor or the City Manager shall take such further actions prior to the signing of the Final Official Statement as are deemed necessary or appropriate to verify the accuracy thereof. SECTION 8. The Final Official Statement, when prepared, is approved for distribution in connection with the offering and sale of the Certificates of Participation. SECTION 9. In accordance with the provisions of Section 33445 of the California Health and Safety Code and in furtherance of the execution of the Reimbursement Agreement permitting the use of Tax Increment Revenues for the payment of Lease Payments, the City hereby determines that (i) the Project is of benefit to the Rancho Redevelopment Project and (ii) no other reasonable means of financing the Project are available to the City, other than the City's General Fund, which is expected to be sufficient. Resolution No. 88-290 Page 4 PASSED. APPROVED, and ADOPTED this 18th day of ~ay, 1988. AYES: Brown, Buquet, Stout, King, WriSt NOES: None AB SENT: No ne Dennis L. Stout, Nayor ATTEST: Beverly ~. ~-thelet,- City Clerk I. BEVERLY A. AU~HELET, CITY CLERK of the City of Rancho Cucamonga. California, do hereby certify that the foregoing Resolution was duly passed, approved, and adopted by the City Council of the City of Rancho CucamonEa. California, at a regular meeting of said City Council held on the 18th day of May, 1988. Executed this 19th day of May, 1988 at Rancho Cucamonga, California. Be%~ly A. /~thelet. -City Clerk