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HomeMy WebLinkAboutCC Reso No 1996-64RESOLUT'ION NO. 96- G4 A RESOLUTTON OF THE CTTY COUNCIL OF THE CTI'Y OF LAKE ELSINORE PROVIDING FOR APPROVAL OF A LEASE AGREEIvIENT IN~ONNECIION WITH THE ISSUANCE OF CEATAIN BONDS BY THE LAKE ELSINORE RECREATION AUTHORTIY, APPROVING ISSUANCE OF SUCH BONDS, APPROVING A BOND PURCHASE CONTRACT AND AN OFFICIAL STATEMENT, ELECTING TO GUARANTEE LEASE PAYMENTS WITH AMOUNI'S IN THE CTI'Y'S MOTOR VEHICLE LICENSE FEE ACCOUNT, AND PROVIDING OTHER MATTERS PROPERLY RELATTNG THIItETO WHEREAS, the City and the Redevelopment Agency of the City of Lake Elsinore (the "Agency") have formed the Authority under and pursuant to a joint exercise of powers agreement, dated as of December 1, 1996, by and between the City and the Agency under the provisions of Articles ] through 4(commencing with section 6500) of Chapter 5 of Division 7 of Title 1 of the Califomia Government Code (the "Act"); WHEREAS, the Authority is authorized under the Marks-Roos Local Bond Pooling Act of 7985 (commencing with section 6584 of the Act) to incur indebtedness to finance public capital improvements (as such term is defined in the Act) and to lease and lease back such public capital improvements to its members, as further provided in the hereinafter described Lease Agreement, dated as of December ], 1996, by and between the Authority and the City (the "Lease Agreement"); WHEREAS, for the purpose of providing financing for the ]ease payment by the Authority to the City for lease to the Authority of the ]and and facilities commonly known as "Lake Elsinore" (the "Lake Facility"), inciuding the Site thereof, more particularly described in Exhibit A to the Lease Agreem~nt and to provide funds to make certain improvement to the Lake Facility described in Exhibit B to the Lease Agreement (the "Improvements") (the Lake Facility and the Improvements being referred to together as the "ProjecY'), the Authority has determined to issue its Lake Elsinore Recreation Authority Revenue Bonds, 1996 Series A (Public Facilities Project), in the aggregate principal amount of not to exceed $27,000,000 (the "Bonds"); WHEREAS, the Authority desires to lease the Project back to the City pursuant to the Lease Agreement and the City desires to make lease payments (the "Lease Payments") for the Project pursuant to the Lease Agreement sufficient in amount to pay debt service payable on the Bonds; WHEREAS, the City wIl] use the proceeds of the Authority's lease payment for the Lake Facility to prepay in full its lease payment obligations under a Lease Agreement (the "Prior Lease Agreement"), dated as of September 1, 7994, by and between the City and the Lake Elsinore Public Financing Authority (the "Financing Authority") relating to the land and facilities commorily known as the Lake Elsinore Municipal Stadium; WHEREAS, the Financing Authority will use the proceeds of the City's lease prepayments to refund and pay in ful] its outstanding ]994 Revenue Bonds (Lake Elsinore Redevelopment Projects), Series A(the "Prior Bonds"); WHEREAS, the proceeds of the Prior Bonds were used to finance certain public improvements which are also public capital improvements, as that term is defined in the Act; and WHEREAS, the City Council has, by Ordinance No.1022, adopted December 10, 1996, approved the ac~t of entering into the Lease Agreement; WHEREAS, the Authority proposes to sell the Bonds to O'Connor & Company Securities (the "Underwriter"), for offer and sale by the Undenvriter to members of the general public, and the Underwriter has caused to be prepared and presented to the Authority Board a form of contract for the purchase of the Bonds by the Underwriter (the "Bond Purchase Contract"); and ~ WHEREAS, in connection with the offering of the Bonds, Rod Gunn Associates, the Authority's financia] advisor (the "Financial Advisor") has caused to be prepared an Official Statement (the "Officia] Statement") describing, among other things, the Authority, the City, the Lease Agreement and the Bonds, a preliminary form of which is on file with the City Clerk; and WHEREAS, the City Council desires to provide for a guarantee of the Lease Payments to be made with respect to the Lease Agreement as authorized by Section 37351.5 of the Califomia Government Code; and WHEREAS, the City Council desires to approve the Lease Agreement, to approve the issuance of the Bonds by the Authority and to approve the Bond Purchase Contract and the Official Statement and for such purpose has, with the aid of its staff, reviewed the Lease. Agreement, the Bond Purchase Contract, the Official Statement and related proceedings; NOW, THEREFORE, IT IS HEREBY ORDERED, as follows: Section 1. Approval of Lease Agreement. The City Council hereby approves the lease of the Lake Facility to the Authority and the lease back of the Project to the City pursuant to and in accordance with the Lease Agreement in substantially the form on file with the City Clerk together with any additions thereto or changes therein deemed necessary or advisable by the Mayor (upon advice of the City Attorney or the Financial Advisor), whose execution thereof shall be conclusive evidence of approval of any such additions and changes. The Mayor is hereby authorized and directed to execute, and the City Clerk is hereby authorized and directed to attest and affix the seal ot the City to the final form of the Lease Agreement for and in the name and on behalf of the City. The City Council hereby authorizes the delivery and performance of the Lease Agreement. Section 2. Authority Bond Issue. Issuance of the Bonds by the Authority, is hereby approved. Section 3. Official Statement. The City Council hereby approves the matters contained in the preliminary Officia] Statement describing the City and the Bonds in substantially the form submitted by the Financial Advisor and on file with the City Clerk, with such changes and modifications as shall be necessary or appropriate and when completed to the satisfaction of the City Manager, the City Manager is authorized and directed, on behalf of the City to deem the preliminary Official Statement "final" pursuant to Rule 75c2-12 under the Security and Exchange Act of 7934. The City Council further approves distribution of the preliminary Official Statement by the Underwriter to persons who may be interested in purchasing the Bonds. The City Council hereby approves the final Official Statement describing the Bonds. Distribution of the final Official Statement by the Underwriter is hereby approved. The City Manager is hereby authorized and d'uected to approve any changes in or additions to the final form of said Official Statement to conform to the requirements of the Bonds, and the related proceedings. The City Manager is hereby authorized to execute and deliver the final Official Statement and the form of Continuing Disclosure Certificate relating to the Bonds appended to the Official Statement. -2- Section 4. Bond Purchase Contract. The City hereby authorizes the sa]e 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 together with any additions thereto or changes therein approved by the City Manager (upon advice of the City Attorney or the Financial Advisor), the City Manager's execution thereof to be conclusive evidence of such approval. The City hereby delegates to the City Manager the authority to accept an offer from the Underwriter to purchase the Bonds from the Authority and to execute the Bond Purchase Contract for and in the name and on behalf of the City; provided, however, that the stated average annual interest rate payable with respect to the Bonds shall not exceed eight percent (8%) per annum, and the purchase price to be paid by the Underwriter for the purchase of Bonds shall be not less than ninety-seven percent (97%) of the par amount thereof exclusive of origina] issue discount. Section 5. Election to Guazantee From Motor Vehicle In Lieu Fees. In accordance with the provisions of Section 37357.5 of the California Govemment Code, the City Counci] hereby elects to guarantee the Lease Payments required to be made under the Lease Agreement from moneys credited to the Motor Vehicle License Fee Account in the Transportation Tax Fund to which the City is entitled under Chapter 5(commencing with Section 11007) of Part 5 of Division 2 of the California Revenue and Taxation Code. The City Manager shall, prior to execution of the Lease Agreement, provide notice to the State Controller of such election, which , notice shall include a schedule for payments to be made by the City under the Lease Agreement and shal] identify the trustee selected by the City for the purposes of such Section (the "Trustee"). In the event that, for any reason, the funds otherwise available to the City will not be sufficient to make any payment under any of the Lease Agreement at the time that payment is required, the City Manager shall so notify the Trustee which shall immediately communicate that information to the affected owners of the Bonds and to the State Controller. Section 6. Official AcHon. The Mayor, Mayor Pro Tem, City Manager, Assistant City , Manager, the City Clerk, the Director of Administrative Services, the City Attomey and any and all other officers of the Authority are hereby authorized and directed, for and in the name and on behalf of the Authority, to do any and all things and take any and all actions, including execution and delivery of any and all assignments, certificates, requisitions, agreements, ~ consents, instruments of conveyance, warrants and other documents, which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance, sale and delivery of the Bonds, the termination of the Prior Lease Agreement and the refunding of the Prior Bonds, and the lease of the Lake Facility to the Authority and the lease of the Project back to the City. Any officer of the City herein authorized or directed to take any action may designate another officer of the City to take such action on his or her behalf, such designation to be approved or ratified in writing upon the taking of the applicable action -3 Section 7. This Resolution shall be eEfective immediately upon adoption. PASSED AND ADOPTED this 3rd day of December, 1996, by the following vote: AYES: COUNCILMEMBERS: BRINLEY, METZE, KELLEY NOES: COUNCILMEMBERS: ALC ABSENT: COUNCILMEMBERS: PAE (SEAL) /~ '~ST: ~ ~~ ~ City Clerk City of Lake Elsinore APPROVED AS TO FORM & LEGALITY: ~`--(.iYVVIi John R. Harper, City t orney City of Lake Elsi e ~ STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE ) I, VICKI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE, CALIFO1tNIA, DO HEREBY CERTIFY that the foregoing Resolution duly adopted by the City Council of the City of Lake Elsinore at a Special meeting of said Council on the 3rd day of December, 1996, and that it was so adopted by the following vote: AYES: COUNCILMEMBERS: BRINLEY, KELLEY, METZE NOES: COUNCILMEMBERS: ALONGI ABSENT: COUNCILMEMBERS: PAPE ABSTAINs COUNCILMEMBERS: NONE ~'~ ~~ ~~~ ~ `F7ICKff KASA~, CITY CLERK ~Y11'I' OF Y,AKE ELSINORE (SF.AL) STATE OF CALIFO1tNIA ) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE) I, VICKI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE, DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of Resolution No. 96-64 of said Council, and that the same has not been amended or repealed. D. ~E: December 6, 1996 C ~~~~ 4?ICHI KASLiIy, CITY CLERK C~iTY OF ~i.A,KE ELSINORE (SFA3,j~