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HomeMy WebLinkAboutReso 2002-162- RESOLUTION NO. 2002-162 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CI-IULA VISTA AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUMENTS RELATING TO THE SALE AND DELIVERY OF NOT TO EXCEED $62,000,000, 2002 CERTIFICATES OF PARTICIPATION, (POLICE FACILITY PROJECT), APPROPRIATING $44,734,190 TO THE POLICE HEADQUARTERS PROJECT (PS149) AND $5,205,000 AS REIMBURSEMENT TO THE GENERAL FUND FOR MONIES PREVIOUSLY SPENT ON THE PROJECT BASED ON ANTICIPATED PROCEEDS FROM THE SALE OF THE CERTIFICATES OF PARTICIPATION AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS IN CONNECTION THEREWITH WHEREAS, the City of Chula Vista (the "City") is a municipal corporation and a chartered city duly organized and existing under and pursuant to the Constitution and laws of the State of Caiifomia (the "State"); and WHEREAS, the City desires to acquire, construct, and equip a new police facility for the City (the "Project"); and WHEREAS, the City wishes to enter into certain leases and authorize the sale of 2002 Certificates of Participation (Police Facility Project) (the "Certificates") under the Trust Agreement described below in order to finance the Project; and WHEREAS, the City, in order to facilitate the issuance of the Certificates intends to lease to the Authority certain real property (collectively, the "Site") set forth in Exhibit "A' to the Site Lease (as defined below) and to lease the Site back fi.om the Authority pursuant to the Lease (as defined below); and WHEREAS, all acts, conditions and things required by the Constitution and laws of the State to exist, to have happened and to have been performed precedent to and in connection with the consummation of the financing authorized hereby do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the City is now duly authorized and empowered, pursuant to each and every requirement of law, to consummate such financing for the purpose, in the manner, and upon the terms herein provided; and WHEREAS, the City approved Resolution No. 2000-437 on December 5, 2000, regarding the City's intention to issue tax exempt obligations to finance this project and to seek reimbursement from said issuance for certain costs incurred prior to the sale; and WHEREAS, to date the City has spent $5,205,000 from the General Fund on the project for which it now seeks reimbursement fi.om the proceeds of this sale; and WHEREAS, said reimbursement is consistent with and in compliance with any and all regulations of Internal Revenue Services relating to qualification for reimbursement of Issuer expenditures prior to the issuance of said bonds; and Resolution 2002-162 Page 2 WHEREAS, the total cost of project, including financing, is anticipated to be approximately $66,000,000; and WHEREAS, Staff is requesting the Capital Improvement Project (CIP) budget for the Project be amended to authorize the expenditure of $44,734,190 in proceeds from the issuance to fund the Project. NOW, THEREFORE, it is resolved by the City Council of the City of Chula Vista as follows: SECTION 1. Findings. The City Council hereby specifically finds and declares that each of the statements, findings and determinations of the City set forth in the recitals set forth above and in the preambles of the documents approved herein, are true and correct and that the financing of the Project will result in significant public benefits for the residents of the City. SECTION 2. Authorization of Certificates. The City Council hereby expresses its intention of financing all or a portion of the acquisition, construction, and installation of the Project through the preparation, sale, and delivery of Certificates in an amount not to exceed $62,000,000. SECTION 3. Lease/Purchase Agreement. The form of the Lease/Purchase Agreement between the City and the Chula Vista Public Financing Authority (the "Authority"), dated as of June 1, 2002 (the "Lease"), presented to this meeting and on file with the City Clerk (the "Clerk"), is hereby approved. Each of the Mayor of the City (the "Mayor"), the City Manager of the City (the "City Manager") and the Assistant City Manger/Director of Finance of the City (the "Assistant City Manager") or their designees (collectively, the "Authorized Officers"), is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver to the Authority the Lease in substantially said form, with such changes therein as such officer or person or persons may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof by one or more of such officers. SECTION 4. Appointment. U.S. Bank, N.A. is appointed trustee (the "Trustee") under the Trust Agreement (defined below). SECTION 5. Trust Agreement. The form of the Trust Agreement, dated as of June 1, 2002 (the "Trust Agreement"), among the City, the Authority and the Trustee, presented to this meeting and on file with the Clerk, is hereby approved. Each of the Authorized Officers is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver to the Authority and the Trustee the Trust Agreement in substantially said form, with such changes therein as the Authorized Officers executing the Trust Agreement may require or approve, such approval to be conclusively evidenced by the execution and delivery thereofi SECTION 6. Assignment Agreement. The Assignment Agreement dated June 1, 2002 between the Trustee and the Authority in the form on file with the Clerk is hereby approved for execution and delivery by the Authority. SECTION 7. Notice Inviting Bids. The Notice Inviting Bids is approved and the City's Financial Advisor is authorized to solicit bids for the sale of the Certificates by publishing once Resolution 2002-162 Page 3 in a newspaper of general circulation in the State of California, not less than 15 days prior to receipt of bids, a short form of the Notice Inviting Bids and to mail to prospective purchasers of the Certificates, the Notice Inviting Bids, substantially in the form on file with the Clerk together with such changes thereto as the Assistant City Manager or his designee, approve. The Assistant City Manager and his designee are authorized, on behalf of the City, to accept the bid of the lowest responsible bidder for the Certificates providing that (a) the principal amount of the Certificates does not exceed $62,000,000 and (b) the true interest cost of the Certificates does not exceed 7.5% per annum. The sale may be conducted through electronic means if the Assistant City Manager of the City, or his designee, determines that such process will assist the City in obtaining the lowest interest cost for the Project. SECTION 8. Bond Insurance. The Assistant City Manager and his designee are hereby authorized to (i) solicit bids on a municipal bond insurance policy, (ii) to negotiate the terms of such policy, (iii) to finalize, if appropriate, the form of such policy with a municipal bond insurer and (iv) if it is determined that the policy will result in interest rate savings for the City, to pay the insurance premium of such policy from the proceeds of the issuance and sale of the Certificates. SECTION 9. Preliminary Official Statement. The form of the Preliminary Official Statement, presented to this meeting and on file with the Clerk, is hereby approved. The Assistant City Manager and his designee are hereby authorized to make such changes to the Preliminary Official Statement as are necessary to make it final as of its date and are authorized and directed to execute and deliver a certificate deeming the Preliminary Official Statement final as of its date in accordance with Rule 15c2-12 promulgated under the Securities Exchange Act of 1934. The Authorized Officers are hereby authorized and directed to execute, approve and deliver the final Official Statement in the form of the Preliminary Official Statement with such changes, insertions and omissions as the Authorized Officers executing said document may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. SECTION 10. Continuing Disclosure Agreement. The form of the Continuing Disclosure Agreement between the City and the Trustee (the "Continuing Disclosure Agreement"), presented to this meeting and on file with the Clerk, is hereby approved. Each of the Authorized Officers is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver to the Trustee the Continuing Disclosure Agreement in substantially said form, with such changes therein as such Authorized Officers executing such document may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. SECTION 11. Site Lease. The form of the Site Lease, dated as of June 1, 2002 (the "Site Lease"), between the Authority and the City, presented to this meeting and on file with the Clerk, is hereby approved. Each of the Authorized Officers is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver to the Authority the Site Lease in substantially said form, with such changes therein as such Authorized Officers executing such document may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. Resolution 2002-162 Page 4 SECTION 12. Attestations. The Clerk or persons as may have been designated by the City Manager are hereby authorized and directed to attest the signature of the Authorized Officers designated herein to execute any documents described herein, and to affix and attest the seal of the City, as may be required or appropriate in connection with the execution and delivery of the Lease, the Trust Agreement, the Continuing Disclosure Agreement, the Site Lease and the Official Statement. SECTION 13. Other Actions. The Authorized Officers are each hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which each may deem necessary or advisable (including the payment of a premium for a municipal bond insurance policy, a debt service surety bond, or other form of credit enhancement) in order to consummate the sale, execution and delivery of the Certificates and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution, the Certificates, the Lease, the Trust Agreement, the Continuing Disclosure Agreement, the Site Lease, the Preliminary Official Statement, and the Official Statement. Such actions heretofore taken by such officers or designees are hereby ratified, confirmed and approved. In the event that it is determined by the Assistant City Manager, or his designee, that there are limitations or restrictions on the ability of the City to lease any portion of the Site as contemplated by the Site Lease and the Lease, the Assistant City Manager, or his designee, may designate other real property of the City to be leased pursuant to the Site Lease and the Lease with such designation to be conclusively evidenced by the execution and delivery of the Site Lease and the Lease by one or more of the Authorized Officers. SECTION 14. Effect. This Resolution shall take effect immediately upon its passage. BE IT FURTHER RESOLVED that the city hereby appropriates $44,734,190 to the Police Headquarters Project, and $5,205,000 as reimbursement to the General Fund for monies previously spent on the Project from the proceeds of the sale of the Certificates of Participation. Presented by Approved as to foru~ by Robert W. Powell /Ohn M. Kaheny ~ Assistant City Manager City Attorney Resolution 2002-162 Page 5 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 14th day of May, 2002, by the following vote: AYES: Councilmembers: Davis, Padilla, Rindone, Salas and Horton NAYS: Councilmembers: None ABSENT: Councilmembers: None Shirley Hortoh, Mayor ATTEST: Susan Bigelow, City Clerl~ STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2002-162 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 14th day of May, 2002. Executed this 14th day of May, 2002. Susan Bigelow, City Clerk