HomeMy WebLinkAboutRA Reso No. 2013-02RESOLUTION NO. LERA 2013 -02
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE LAKE
ELSINORE RECREATION AUTHORITY 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 AN INDENTURE, A SITE AND
FACILITY LEASE, A LEASE AGREEMENT, AN ASSIGNMENT
AGREEMENT, A BOND PURCHASE CONTRACT, AN ESCROW
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;
Resolution No. LERA 2013 -02
Page 2 of 4
NOW, THEREFORE, the Board of Directors of the Lake Elsinore Recreation
Authority does hereby resolve as follows:
Section 1. The foregoing recitals are true and correct and the Authority hereby
so finds and determines.
Section 2. The Authority hereby approves the issuance of the Bonds in the
aggregate principal amount not to exceed $15,000,000 pursuant to the Indenture (the
"Indenture "), in substantially the form on file with the Secretary of the Authority and
presented to the Board at this meeting. Subject to satisfaction of the express condition
set forth in Section 11 herein, any one of the Chairperson, the Executive Director and
the Secretary of the Authority, 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 Authority, to execute and deliver the Indenture, 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 3. The Authority hereby approves the Site Lease, in substantially the
form on file with the Secretary of the Authority 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 Authority, 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 Authority hereby approves the Lease, in substantially the form
on file with the Secretary of the Authority 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 Authority, 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 Authority hereby approves the Assignment Agreement, in
substantially the form on file with the Secretary of the Authority 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 Authority, to execute and deliver the
Assignment 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.
Resolution No. LERA 2013 -02
Page 3 of 4
Section 6. The Authority 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 Secretary of the Authority 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 Authority, 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.
Section 7. The Authority hereby approves the Escrow Agreement, in
substantially the form on file with the Secretary of the Authority 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 Authority, to execute and deliver the
Escrow 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 8. The Authority hereby approves the form of the Preliminary Official
Statement (the "Preliminary Official Statement "), in substantially the form on file with the
Secretary of the Authority and presented to the Board 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 Authority to deem the Preliminary Official Statement "final"
pursuant to Rule 15c2 -12 under the Securities and Exchange Act of 1934. The
Authority 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 Authority and
approved by an Authorized Officer, such approval to be conclusively evidenced by the
execution and delivery thereof.
Section 9. Any one of the Authorized Officers is hereby authorized and
directed, for and in the name and on behalf of the Authority, to evaluate and select one
or more municipal bond insurers for all or any portion of the Bonds and to execute and
deliver such contracts and agreements with such bond insurers 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.
Resolution No. LERA 2013 -02
Page 4 of 4
Section 10. The Authorized Officers, the other officers and employees of the
Authority, the members of the Authority's Board of Directors, Bond Counsel, Disclosure
Counsel and the other consultants to and agents of the Authority, 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 Authority in connection
with the issuance of the Bonds are hereby ratified, approved and confirmed in every
respect.
Section 11. The issuance, sale and delivery of the Bonds shall be conditioned
upon the effectiveness of the First Amendment to Consolidated and Restated
Reimbursement Agreement, by and between the Successor Agency of the
Redevelopment Agency of the City of Lake Elsinore and the City.
Section 12. This Resolution shall become effective immediately upon adoption.
PASSED, APPROVED AND ADOPTED at a regular meeting of the Board of
Directors of the Lake Elsinore Recreation Authority this _250 day ofJune, 2013.
Am-
M
VIRGINIfl}1. B
SECRETARY
APPROVED AS TO FORM:
BARBARA Z ID LEIBOLD
COUNSEL TO AUTHORITY
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
LERA Resolution No. 2013 -02 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:
NOES:
ABSENT:
ABSTAIN
Council Member Manos, Council Member Tisdale,
Hickman, Mayor Pro Tern Johnson and Mayor Magee
None
None
None
Council Member