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