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HomeMy WebLinkAbout1999-157 r 1 RESOLUTION NO. 1999-157 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, REGARDING THE HOLDING OF A PUBLIC HEARING, APPROVING THAT CERTAIN LEASE IN AN AMOUNT NOT TO EXCEED $12,000,000 IN CONNECTION WITH THE SALE AND DELIVERY OF CERTIFICATES OF PARTICIPATION, AND APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE FORM OF LEGAL DOCUMENTS RELATED THERETO 3 4 5 6 7 8 WHEREAS, the City of San Bernardino (the "City") is a 9 municipal corporation and a charter city duly created and existing pursuant to the Constitution and the laws of the State 10 of California; and 11 12 13 WHEREAS, the San Bernardino Joint Powers Financing 14 Authority (the "Authority") is a joint powers authority organized and existing under Article 1, Chapter 5, Division 7, Title 1 of 15 the Government Code (commencing with Section 6500) and has full 16 right, power and authority to purchase, sell and lease both 17 personal and real property to assist the City of San Bernardino 18 in the financing of capital projects; and 19 20 21 WHEREAS, the City has requested that the Authority assist the City in the refunding of Refunding Certificates of 22 Participation (South Valle Public Improvements Project) dated 23 April 1, 1987 (the "South Valle Certificates") and the 24 25 Certificates of Participation (1995 Police Station Financing Project) dated April 1, 1995 (the "Police Station COP's" and 26 collectively with the South Valle Certificates the "Prior 27 Certificates"); and 28 - 1 - 1999-157 , 1 2 WHEREAS, pursuant to two Site and Facility Leases (the 3 "Site and Facility Leases"), the City will lease to the Authority 4 the City police station (the "Police Station") and various street 5 improvements in the South Valle Redevelopment Project Area (the 6 "South Valle Improvements" and with the Police Station the 7 "Project"); and 8 9 WHEREAS, the Authority will lease the Project back to 10 the City pursuant to two Lease Agreements by and between the 11 Authority and the City (the "Lease Agreements"), and assign its 12 participation rights to receive lease payments under the Lease 13 Agreements (the "Certificates of Participation") to a trustee; 14 and 15 16 WHEREAS, Miller & Schroeder Financial, Inc., as 17 prospective underwriter of the Certificates of Participation (the 18 "Underwriter") has informed the City that it intends to submit an 19 offer to purchase the Certificates of Participation; and 20 21 WHEREAS, pursuant to California Government Code Section 22 6586.5, the sale and delivery of the Certificates of 23 Participation must be approved after a public hearing held by the 24 member jurisdiction within which territorial limits the Project 25 is located; and 26 27 28 - 2 - 1999-157 1 WHEREAS, the City Clerk has caused the publication of 2 a notice of public hearing which has been held in accordance with 3 the requirements of the aforementioned law; and 4 5 WHEREAS, the City deems it advisable to approve the 6 Lease Agreements and the transactions contemplated thereby 7 including the sale and delivery of not to exceed $12,000,000 8 Certificates of Participation (Police Station and South Valle 9 Projects) (the "Certificates of Participation") and seeks at this 10 time to approve said transactions and documentation in the public 11 interests of the City; and 12 13 WHEREAS, in the event that the market interest rate 14 will not support the refunding of the Police Station Certificates 15 at a net interest cost of 5.50% or less, then the Police Station 16 Certificates and the South Valle Certificates will be refunded at 17 different times rather than as one transaction, but in no event 18 later than November 1, 1999. 19 20 NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE 21 CITY OF SAN BERNARDINO, CALIFORNIA, DO HEREBY FIND, RESOLVE, 22 DETERMINE AND ORDER, AS FOLLOWS: 23 24 Section 1. Findinas: Sale and Deliverv of the 25 Certificates of Participation: Approval of Form of Trust 26 Aareement: Authorization and Direction of Preparation of Final 27 Form Thereof. The Mayor and Common Council hereby approve the 28 - 3 - , 1999-157 1 financing described above and find and determine that said , 2 financing will result in significant public benefits to the City 3 and its residents in accordance with Section 6586 of the 4 California Government Code. The City hereby authorizes the sale 5 and delivery of the Certificates of Participation under and 6 pursuant to the Act and the trust agreement on file with the City 7 Clerk (the "Trust Agreement") in the principal amount not to 8 exceed $12,000,000 and the preparation of certain financing 9 documents related thereto which are necessary to carry out the 10 sale and delivery of the Certificates of Participation by the 11 City. The City hereby approves the form of Trust Agreement as 12 presently on file with the City Clerk with such changes thereto 13 as may be approved by the City Attorney or Special Counsel and as 14 necessary to incorporate such other terms and conditions with 15 respect to the Certificates of Participation when such terms and 16 conditions have been ascertained. The City hereby further 17 authorizes and directs that the form of Trust Agreement presently 18 on file with the City Clerk be converted into the final form of 19 Trust Agreement, authorizing the sale and delivery of the 20 Certificates of Participation together with such changes or 21 modifications as deemed necessary or desirable by the City 22 Attorney or Special Counsel. The Mayor or such other authorized 23 officer of the City is hereby authorized and directed to execute 24 and deliver, and the City Clerk is hereby authorized and directed 25 to attest to, the final form of the Trust Agreement when the same 26 has been prepared for and in the name of the City, and such 27 execution and delivery shall be deemed to be conclusive evidence 28 - 4 - 1999-157 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 of the approval thereof. The City hereby authorizes the delivery and performance of the Trust Agreement. Section 2. Approval of Final Forms of Site and Facility Leases and Lease Agreements. The City hereby approves the forms of Site and Facility Leases and Lease Agreements presently on file with the City Clerk together with any changes therein or additions thereto as may be approved by the City Attorney or Special Counsel. The City hereby further authorizes and directs that the forms of Site and Facility Leases and Lease Agreements presently on file with the City Clerk be converted into the final forms thereof, together with such changes or modifications as deemed necessary or desirable by the City Attorney or Special Counsel. The Mayor or such other authorized officer of the City is hereby authorized and directed to execute and deliver, and the City Clerk is hereby authorized and directed to attest to, the final forms of the Site and Facility Leases and Lease Agreements when the same have been prepared and such execution and delivery shall be deemed to be conclusive evidence of the approval thereof. The City hereby authorizes the delivery and performance of the Site and Facility Leases and the Lease Agreements. Section 3. Preliminary Official Statement and Official Statement. The City hereby approves the form of the Preliminary Official Statement (the ~Preliminary Official Statement") presently on file with the City Clerk and - 5 - 1999-157 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 acknowledges that said document is in substantially final form in accordance with Rule l5c2-12 of the Securities Exchange Act of 1934. The City further authorizes the distribution of the Preliminary Official Statement as shall be necessary or required in connection with the sale of the Certificates of Participation to prospective purchasers thereof. The City hereby authorizes and directs that the Preliminary Official Statement be converted to a final Official Statement together with such changes or modifications as deemed desirable or necessary in the sale and marketing of the Bonds and as approved by the Mayor upon the recommendation of Special Counsel. The City hereby authorizes distribution of the Preliminary Official Statement and the final Official Statement by the Underwriter when the same have been prepared. The Mayor is hereby authorized and directed to execute the final form of said Official Statement in the name and on behalf of the City and to deliver the same upon execution thereof, together with modifications approved by the Mayor. to the Underwriter the changes or Section 4. ADDroval of Final Form of Continuing Disclosure Aareement. The City hereby approves the form of Continuing Disclosure Agreement presently on file with the City Clerk together with any changes therein or additions thereto as may be approved by the Mayor and as necessary to incorporate certain terms and conditions when such terms and conditions have been ascertained. The City hereby further authorizes and directs that the form of Continuing Disclosure Agreement presently on - 6 - 1999-157 1 file with the City Clerk be converted into the final form 2 thereof, together with such changes or modifications as deemed 3 necessary or desirable by the Mayor upon the recommendation of 4 Special Counsel. The Mayor or such other authorized officer of 5 the City is hereby authorized and directed to execute and 6 deliver, and the City Clerk or Assistant City Clerk is hereby 7 authorized and directed to attest to, the final form of the 8 Continuing Disclosure Agreement when the same has been prepared 9 and such execution and delivery shall be deemed to be conclusive 10 evidence of the approval thereof. 11 12 Section 5. ADDroval of Purchase Aareement. The 13 City hereby approves the sale of the Certificates of 14 Participation, pursuant to the purchase agreement prepared by the 15 Underwriter and on file with the City Clerk (the "Purchase 16 Agreement"), and the sale of the Certificates of Participation 17 pursuant to the Purchase Agreement is hereby approved. The City 18 hereby further approves the form of Purchase Agreement as 19 presently on file with the City Clerk, together with any changes 20 therein or additions thereto approved by the City Attorney or 21 Special Counsel, and as necessary to incorporate such other terms 22 and conditions when such terms and conditions have been 23 ascertained. The City hereby authorizes and directs the 24 Underwriter to cause the preparation of the final Purchase 25 Agreement of which such terms are a part, and the Mayor or such 26 other authorized officer of the City is hereby authorized and 27 directed to evidence the City's acceptance of the offer made by 28 - 7 - 1999-157 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 the Purchase Agreement by executing and delivering the Purchase Agreement in said form as on file with such changes therein as the officer or the officers executing the same may approve, such approval to be conclusively evidenced by the execution and delivery thereof. Section 6. ApDroval of Reimbursement Aareement. The City hereby approves the Reimbursement Agreement between the City and the Redevelopment Agency of the City of San Bernardino (the "Agency") in the form on file with the City Clerk (the "Reimbursement Agreement") together with any changes therein or additions thereto approved by the officer executing the same and the City Attorney or Special Counsel, and as necessary to incorporate such other terms and conditions when such terms and condi tions have been ascertained. The Mayor or such other authorized officer of the City is hereby authorized and directed to execute the final Reimbursement Agreement when the same has been prepared and said execution shall be conclusive evidence of the execution and delivery thereof. Section 7. Official Action. The Mayor, City Clerk, City Attorney, Special Counsel 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, including execution and delivery of any and all assignments, certificates, requisitions, agreements, notices, instruments consents, of conveyance, warrants and other - 8 - 1999-157 1 documents, which they, or any of them, may deem necessary or 2 advisable in order to consummate the lawful sale and delivery of 3 the Certificates of Participation as described herein. Whenever 4 in this Resolution any officer of the City is authorized to 5 execute or countersign any document or take any action, such 6 execution, countersigning or action may be taken on behalf of 7 such officer by any person designated by such officer to act on 8 his or her behalf in the case such officer shall be absent or 9 unavailable. The City hereby appoints its Mayor as agent of the 10 City for purposes of executing any and all documents and 11 instruments which any officer of the City is authorized to 12 execute hereunder. 13 14 Section 8. Approval of Financina Team. The City 15 hereby approves the following firms for the financing described 16 herein: 17 18 19 20 21 III 22 III 23 III 24 III 25 26 27 28 Sabo & Green, P.C. Special Counsel Miller & Schroeder Financial Underwriter Hinshaw & Culbertson Underwriter's Counsel U.S. Bank Trust Nat'l Assoc. Trustee - 9 - 1999-157 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, REGARDING THE HOLDING OF A PUBLIC 2 HEARING, APPROVING THAT CERTAIN LEASE IN AN AMOUNT NOT TO EXCEED $12,000,000 IN CONNECTION WITH THE SALE AND DELIVERY OF 3 CERTIFICATES OF PARTICIPATION, AND APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE FORM OF LEGAL DOCUMENTS RELATED 4 THERETO 5 Section 9. Effective Date. The findings and 6 determinations herein shall be final and conclusive. This 7 Resolution shall take effect upon the date of its adoption. 8 I HEREBY CERTIFY that the foregoing Resolution was duly 9 adopted by the Mayor and Common Council of the City of 10 San Bernardino at a jnint- r""qnl::llr meeting 11 thereof, held on the 21st day of June 12 1999, by the following vote, to wit: 13 ABSTAIN ABSENT x ~~.h<~ i Clerk hereby approved this of