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HomeMy WebLinkAboutCC Reso No 2013-033 City Council ResoRESOLUTION NO. 2013 -033 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE ISSUANCE OF LAKE ELSINORE RECREATION AUTHORITY LEASE REVENUE REFUNDING BONDS (PUBLIC FACILITIES PROJECT) SERIES 2013 IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $15,000,000, AND APPROVING A SITE AND FACILITY LEASE, A LEASE AGREEMENT, A BOND PURCHASE CONTRACT, A CONTINUING DISCLOSURE AGREEMENT, A PRELIMINARY OFFICIAL STATEMENT AND A FINAL OFFICIAL STATEMENT IN CONNECTION THEREWITH, AND AUTHORIZING THE TAKING OF CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH WHEREAS, the Lake Elsinore Recreation Authority (the "Authority') is a joint exercise of powers authority duly organized and existing under and pursuant to that certain Joint Exercise Powers Agreement by and between the City of Lake Elsinore (the "City ") and the Redevelopment Agency of the City of Lake Elsinore (the "Agency "), under the provisions of Articles 1 through 4 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the "Act'), and is authorized pursuant to Article 4 of the Act to borrow money for the purpose of financing the acquisition of bonds, notes and other obligations to provide financing and refinancing for capital improvements of member entities of the Authority; and WHEREAS, the Authority has previously issued its Variable Rate Revenue Refunding Bonds, 2000 Series A (Public Facilities Project) (the "Prior Bonds "), which payments of principal of and interest (but not any premium) on the Prior Bonds are supported by an irrevocable direct -pay letter of credit (the "Letter of Credit") issued by Union Bank of California, N.A. (the "Credit Entity "); and WHEREAS, the Credit Entity has notified the Authority of its intent not to renew the Letter of Credit upon its expiration on August 8, 2013; and WHEREAS, the Authority desires to refund the Prior Bonds and has determined to issue its Lease Revenue Refunding Bonds (Public Facilities Project) Series 2013 (the "Bonds ") for such purpose; and WHEREAS, the City will lease to the Authority certain properties of the City comprising three fire stations and certain parks within the City limits (the "Leased Property ") pursuant to a Site and Facility Lease (the "Site Lease "); and WHEREAS, the Authority, concurrently with the execution of the Site Lease, will lease the Leased Property back to the City pursuant to a Lease Agreement (the "Lease "), in consideration for Base Rental payments equal to the principal and interest coming due on the Bonds; NOW, THEREFORE, the City Council of the City of Lake Elsinore does hereby resolve as follows: City Council Resolution No. 2013 -033 Page 2 of 3 Section 1. The foregoing recitals are true and correct and the City hereby so finds and determines. Section 2. The City Council hereby approves the issuance of the Bonds by the Authority in the aggregate principal amount not to exceed $15,000,000. Section 3. The City Council hereby approves the Site Lease, in substantially the form on file with the City Clerk and presented to the City Council at this meeting. Any one of the Mayor, the City Manager, Director of Administrative Services and the City Clerk of the City, and each of them, and any designee of any of them (collectively, the "Authorized Officers "), is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Site Lease, with such insertions and changes as may be approved by the Authorized Officer executing the same, subject to the provisions of this Resolution, such approval to be conclusively evidenced by such execution and delivery. Section 4. The City Council hereby approves the Lease, in substantially the form on file with the City Clerk and presented to the City Council at this meeting. Any one of the Authorized Officers is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Lease, with such insertions and changes as may be approved by the Authorized Officer executing the same, subject to the provisions of this Resolution, such approval to be conclusively evidenced by such execution and delivery. Section 5. The City Council hereby approves the Continuing Disclosure Agreement, in substantially the form on file with the City Clerk and presented to the City Council at this meeting. Any one of the Authorized Officers is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Continuing Disclosure Agreement, with such insertions and changes as may be approved by the Authorized Officer executing the same, subject to the provisions of this Resolution, such approval to be conclusively evidenced by such execution and delivery. Section 6. The City Council hereby authorizes the sale of the Bonds to the Underwriter pursuant to and in accordance with the Bond Purchase Contract, in substantially the form on file with the City Clerk and presented to the Board at this meeting. Any one of the Authorized Officers is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Bond Purchase Contract, with such insertions and changes as may be approved by the Authorized Officer executing the same, subject to the provisions of this Resolution, such approval to be conclusively evidenced by such execution and delivery. The underwriter's discount for the Bonds specified in the Bond Purchase Contract shall not exceed 1.5 %, exclusive of original issue discount. The true interest cost on the Bonds shall not exceed 6.00 %. The maturity date of the Bonds shall not extend beyond the final maturity date of the Prior Bonds. City Council Resolution No. 2013 -033 Page 3 of 3 Section 7. The City Council hereby approves the form of the Preliminary Official Statement (the "Preliminary Official Statement'), in substantially the form on file with the City Clerk and presented to the City Council at this meeting, with such changes and modifications as shall be necessary or appropriate for completion to the satisfaction of any Authorized Officer. Any one of the Authorized Officers is authorized and directed, on behalf of the City to deem the Preliminary Official Statement "final' pursuant to Rule 15c2 -12 under the Securities and Exchange Act of 1934. The City Council further approves distribution of the Preliminary Official Statement by the Underwriter to persons who may be interested in purchasing the Bonds. Any one of the Authorized Officers is authorized and directed to execute and deliver a final Official Statement in substantially the form of the Preliminary Official Statement hereby approved, with such additions thereto and changes therein as are consistent with this Resolution and recommended or approved by disclosure counsel to the City and approved by an Authorized Officer, such approval to be conclusively evidenced by the execution and delivery thereof. Section 8. The Authorized Officers, the other officers and employees of the City, the members of the City Council, Bond Counsel, Disclosure Counsel and the other consultants to and agents of the City, are each hereby authorized and directed to do all things and take all actions necessary or desirable to effectuate the transactions contemplated by this Resolution, and to execute such other assignments, agreements, certificates, receipts, endorsements, orders, opinions and other documents in connection with such transactions, including, without limitation, closing documents in connection with the issuance of the Bonds, and all actions heretofore taken by the officers, employees and agents of the City in connection with the issuance of the Bonds are hereby ratified, approved and confirmed in every respect. Section 9. This Resolution shall become effective immediately upon adoption. PASSED, APPROVED AND ADOPTED at a regal r meeting of the City Council of the City of Lake Elsinore, California, this 25th day of Jun�,,?y013. CITY CLERK CITY ATTORN 1AY6. STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Virginia J. Bloom, City Clerk of the City of Lake Elsinore, California, hereby certify that Resolution No. 2013 -033 was adopted by the City Council of the City of Lake Elsinore, California, at a regular meeting held on the 25 day of June 2013, and that the same was adopted by the following vote: AYES: Council Member Tisdale, Council Member Manos, Council Member Hickman, Mayor Pro Tern Johnson and Mayor Magee NOES: None ABSENT: None ABSTAIN: None irginia J.($loom /, Oity Clerk