HomeMy WebLinkAboutReso 2008-028
RESOLUTION NO. 2008-028
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING THE EXECUTION AND
DELIVERY OF DOCUMENTS RELATING TO THE
SUBSTITUTION OF A RESERVE FUND POLICY INTO THE
RESERVE FUND FOR THE 2002 CERTIFICATES OF
PARTICIPATION (POLICE FACILITY PROJECT) AND
AUTHORIZING AND DIRECTING CERTAIN ACTIONS IN
CONNECTION THEREWITH
WHEREAS, the City of Chula Vista (City) is a municipal corporation and a charter city
duly organized and existing under and pursuant to the Constitution and laws of the State of
California (State); and
WHEREAS, the Chula Vista Public Financing Authority (Authority) has assisted the City
in financing the construction and equipping of the City's police facility (Police Facility Project)
through the execution and delivery of the $60,145,000 City of Chula Vista 2002 Certificates of
Participation (Police Facility Project) (2002 Certificates) pursuant to that certain Trust
Agreement, dated as of June 1,2002 (Trust Agreement), by and among the City, the Authority
and U.S. Bank, N.A., as trustee; and
WHEREAS, in connection with the execution and delivery of the 2002 Certificates, the
Reserve Fund established under the Trust Agreement was funded in cash in the amount of
$4,063,500; and
WHEREAS, Section 6.02 of the Trust Agreement permits the Reserve Fund to be funded
with a letter of credit, a bond insurance policy or other credit facility (Reserve Policy) instead of
cash; and
WHEREAS, the City desires to fund the Reserve Fund with a Reserve Policy and use the
cash in the Reserve Fund to pay lease payments due with respect to the 2002 Certificates and/or
to fund capital improvements, furnishings and equipment for the City's Civic Center project or to
reimburse the Public Facilities Development Impact Fee Fund for disbursements made to finance
the Civic Center project.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby resolve 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
Resolution No. 2008-028
Page 2
SECTION 2. Authorization of Use of Reserve Policv. The City Council hereby
authorizes replacing the cash in the Reserve Fund with a Reserve Policy meeting the criteria set
forth in Section 6.02 of the Trust Agreement. The City Council hereby approves using the cash
to be released to the City for the payment of all or a portion of the lease payments due with
respect to the 2002 Certificates, with the balance being applied to pay any costs related to the
acquisition, construction, reconstruction, modernization and equipping of the Civic Center
project or to reimburse the Public Facilities Development Impact Fee Fund for disbursements
made to finance the Civic Center project.
SECTION 3. Execution of Documents for Reserve Policv. Each of the Mayor of the
City, the City Manager of the City and the Director of Finance of the City 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 any and all documents required for the Reserve
Policy, including any amendments to the Trust Agreement or the other documents previously
executed by the City with respect to the 2002 Certificates, and to pay the premium costs of the
Reserve Policy.
SECTION 4. Attestations. The City Clerk and such person or persons as may have been
designated by the City Clerk to act on her behalf, are hereby authorized and directed to attest the
signature of the Authorized Officers designated herein to execute any documents related to the
substitution of the Reserve Policy, and to affix and attest the seal of the City, as may be required
or appropriate in connection with the execution and delivery of any such documents.
SECTION 5. Other Actions. The Authorized Officers are each hereby authorized and
directed, jointly and severally, to do any and all things and to obtain any and all consents from
MBIA Insurance Corporation and Standard & Poor's Rating Services to the substitution of the
Reserve Policy and to pay the costs related to the substitution which each may deem necessary or
advisable (including the fees and costs of Stradling Y occa Carlson & Rauth, a Professional
Corporation, Special Counsel and Harrell & Company, Financial Advisor to the City) in order to
consummate the substitution of the Reserve Policy and otherwise to carry out, give effect to and
comply with the terms and intent of this Resolution. Such actions heretofore taken by such
officers or designees are hereby ratified, confirmed and approved.
SECTION 6. Effect. This Resolution shall take effect immediately upon its passage.
Presented by
Approved as to form by
Maria achadoorian
Direct r of Finance
~~,
Ann Moore
City Attorney
Resolution No. 2008-028
Page 3
PASSED, APPROVED, and ADOPTED by the City Council of the City ofChula Vista,
California, this 22nd day of January 2008 by the following vote:
AYES:
Councilmembers:
McCann, Ramirez, and Cox
NAYS:
Councilmembers:
None
ABSENT:
Councilmembers:
Castaneda and Rindone
a~~
Cheryl cox: ay v
ATTEST:
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Donna R. Norri ,C
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Donna R. Norris, Interim City Clerk of Chula Vista, California, do hereby certifY that the
foregoing Resolution No. 2008-028 was duly passed, approved, and adopted by the City Council
at a regular meeting of the Chula Vista City Council held on the 22nd day of January 2008.
Executed this 22nd day of January 2008.
--AinlI.UJ << i;1(bMJ.AJ
Donna R. Norris!CMC~nterim City Clerk