HomeMy WebLinkAbout6164_CCv0001.pdf RESOLUTION NO. 6164
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDLANDS,CALIFORNIA AUTHORIZING THE ISSUANCE AND
SALE OF ITS 2003 LEASE REVENUE REFUNDING
CERTIFICATES OF PARTICIPATION AUTHORIZING
EXECUTION AND DELIVERY BY THE CITY OF A LEASE
AGREEMENT, A SITE AND FACILITIES LEASE, AN ESCROW
DEPOSIT AND TRUST AGREEMENT AND A TRUST AGREE-
MENT, APPROVING AND AUTHORIZING THE FORM OF
CERTIFICA lE PURCHASE AGREEMENT AND PREPARATION
AND DELIVERY OF A PRELIMINARY OFFICIAL STATEMENT
AND FINAL OFFICIAL STATEMENT WITH RESPECT TO THE
ISSUANCE AND SALE OF SUCH CERTIFICATES OF
PARTICIPATION, APPOINTING A TRUSTEE AND MAKING
OTHER FINDINGS RELATING THERETO
WHEREAS,the City Council(the"City Council")of the City of Redlands,California(the
"City") believes it is in the best interests of the City to issue certificates of participation in an aggregate
principal amount not to exceed $21,000,000 (the "Certificates") and to authorize the necessary legal
documents relating to such Certificates in order to refund the City's outstanding obligations relating to its
Certificates of Participation(City of Redlands 1993 Refunding of the 1986 and 1987 Issues) (the "1993
Certificates");and
WHEREAS,in order to accomplish the refinancing of the Project and the issuance and sale
of the Certificates, the parties must enter into a Site and Facilities Lease, by and between the City, as
lessor, and the Redlands Financing Authority (the "Authority"), as lessee, whereby the City leases the
Project to the Authority; and
WHEREAS,the City and the Authority will also enter into an a Lease Agreement,whereby
the Authority will lease the Project and related sites back to the City,and under which the City is obligated
to make lease payments;
WHEREAS,the Authority will assign its rights to receive such lease payments to U.S.Bank
National Association, as trustee, pursuant to a Trust Agreement, among the City, the Authority and the
Trustee,such Trust Agreement providing for the issuance of the Certificates and the payment provisions
thereof;
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WHEREAS, the City and the trustee for the 1993 Certificates will enter into an Escrow
Deposit and Trust Agreement which will provide for the payments and redemption of the 1993 Certificates;
and
WHEREAS, this City Council has determined to sell the Certificates to O'Connor
Southwest Securities (the "Underwriter") and upon the terms and conditions set forth in the form of
Certificate Purchase Agreement presented at this meeting;and
WHEREAS, this City Council desires to authorize preparation and distribution of a
Preliminary Official Statement and Final Official Statement relating to the Certificates;
NOW,THEREFORE,BE IT RESOLVED,DETERMINED AND ORDERED BY THE
CITY COUNCIL OF THE CITY OF REDLANDS, CALIFORNIA AS FOLLOWS:
Section 1. Approval of Issuance of Certificates of Participation. The issuance of the City's
2003 Lease Revenue Refunding Certificates of Participation is hereby approved. The City Manager or
the Finance Director,based on such advice of staff as he or she may deem necessary,is hereby authorized
and directed to act on behalf of the City to establish and determine (i) the final principal amount of the
Certificates in an amount not to exceed$21,000,000;(ii)the final interest rates on various maturities of the
Certificates,provided that the yields shall not exceed 4.85%; and(iii)the underwriter's discount for the
purchase of the Certificates,which amount shall not exceed 1.6%.
Section 2. Legal Documents. The forms of the Agreements listed below which have been
presented to this meeting are hereby approved and the Mayor or the City Manager or their designee is
hereby authorized and directed for and in the name and on behalf of the City to execute and deliver said
agreements in the name of and on behalf of the City and the City Clerk is hereby authorized to
acknowledge and deliver said agreements in the form hereby approved with such changes as the officer
executing the same may approve,such approval to be conclusively evidenced by the execution and delivery
thereof:
1. The Trust Agreement;
2, The Lease Agreement;
3. The Site and Facilities Lease; and
4. The Escrow Deposit and Trust Agreement.
Section 3. Certificate Purchase Agreement. The form of proposed Certificate Purchase
Agreement by and between the City and the Underwriter subject to such corrections,revisions or additions
as may be acceptable to Special Counsel and the City Attorney,is hereby approved and the City Manager,
the Finance Director or their designee is hereby authorized and directed to cause said Certificate Purchase
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Agreement to be executed and delivered on behalf of the City in such form as hereby approved subject
to the parameters set froth in Section 1 hereof.
Section 4. Official Statement. The City Council hereby authorizes and approves the
preparation and distribution of a Preliminary Official Statement(the"Preliminary Official Statement")and
authorizes its distribution in connection with the sale of the Certificates. The City Manager is authorized
and directed for and on behalf of the City to review and approve the Preliminary Official Statement and
any amendments thereto,provided that he shall have determined,alter consultation with Special Counsel,
the City Attorney and such other persons as he may deem appropriate, that such Preliminary Official
Statement fairly and accurately presents the information required to be set forth therein and to certify that
the Preliminary Official Statement as distributed is deemed to be "near final" within the meaning of Rule
15c-2-12 of the Securities Exchange Commission. The City Manager is further authorized and directed
to review,sign and approve distribution of the Final Official Statement,to consist of the Preliminary Official
Statement and such changes thereto as may be approved by the City Manager, upon advice of Special
Counsel and the City Attorney.
Section 5. Trustee and Paying Agent. U.S. Bank National Association, is hereby
appointed as Trustee pursuant to the Trust Agreement,to take any and all action provided therein to be
taken by the Trustee,and is further designated and appointed as paying agent for the Certificates.
Section 6. Form of Certificates. The form of the Certificates as set forth in the Trust
Agreement is hereby approved,and the Trustee is hereby authorized to execute and deliver the Certificates
in an aggregate principal amount as set forth in the Trust Agreement and to apply and expend the proceeds
thereof as specified in the Trust Agreement.
Section 7. Requisitions. The City Manager and the Finance Director,or any one of them,
are hereby authorized and directed to execute one or more requisitions authorizing the Trustee to pay the
cost of issuing the Certificates from the proceeds of the Certificates pursuant to the Trust Agreement.
Section 8. Other Acts. The Mayor, the City Clerk, the City Manager and the Finance
Director are hereby authorized and directed,jointly and severally,to do any and all things,to execute and
deliver any and all documents, which in consultation with the staff and special counsel they may deem
necessary or advisable in order to consummate the sale and delivery of the Certificates,or otherwise to
effectuate the purposes of this Resolution,and any such actions previously taken by such officers are hereby
ratified and confirmed.
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Section 9. Effective Date. This resolution shall take effect upon adoption.
ADOPTED, SIGNED AND APPROVED this 20th day of May, 2003.
CITY OF REDLANDS, CALIFORNIA
ATTEST: Karl N. Haws, Mayor
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Beatrice Sanchez, Deputy City Cl '
I, Beatrice Sanchez, Deputy City Clerk of the City of Redlands, hereby certify that the foregoing
resolution was duly adopted by the City Council at a regular meeting thereof held on the 15th
day of April, 2003, by the following vote:
AYES: Councilmembers Peppier, Gilbreath, George, Harrison; Mayor Haws
NOES: None
ABSENT: None
ABSTAIN: None
A l
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Beatrice Sanchez, Deputy City Ci
City of Redlands