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HomeMy WebLinkAbout2017 206 CC RESO RESOLUTION NO. 2017-206 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, APPROVING THE FORM AND AUTHORIZING THE EXECUTION OF CERTAIN LEASE FINANCING DOCUMENTS IN CONNECTION WITH THE REFUNDING OF THE OUTSTANDING BALDWIN PARK FINANCE AUTHORITY 2004 LEASE REVENUE REFUNDING BONDS (COMMUNITY CENTER PROJECT) AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO RESOLVED, by City Council (the "Council") of the City of Baldwin Park (the "City") as follows: WHEREAS, the Baldwin Park Finance Authority (the "Finance Authority"), has heretofore issued its Baldwin Park Finance Authority 2004 Lease Revenue Refunding Bonds (Community Center Project) (the"2004 Bonds"),to finance and refinance the costs of the certain capital improvements within the geographic boundaries of the City; WHEREAS, the 2004 Bonds are currently outstanding in the principal amount of $7,700,000; WHEREAS, the payment of debt service on the 2004 Bonds is derived from lease payment made by the City to the Baldwin Park Finance Authority under a lease agreement, by and between the Finance Authority and the City (the "2004 Lease"), payable from the City's general fund; WHEREAS, the City has determined that, due to prevailing interest rates in the municipal bond market and for other reasons, the 2004 Bonds can be refunded for savings which will reduce the City's payment obligations under the 2004 Lease and the City has determined to implement a lease financing for such purposes; WHEREAS, it is in the public interest and for the public benefit that the City authorize and direct execution of the Lease Agreement (hereinafter defined) and certain other financing documents in connection therewith;and • WHEREAS, the documents below specified have been filed with the Council and the members of the Council,with the aid of its staff,have reviewed said documents; NOW,THEREFORE, it is hereby DECLARED and ORDERED,as follows: Section 1. The Council hereby approves the refinancing of the 2004 Lease Agreement and the defeasance of the 2004 Bonds. • Section 2. The below-enumerated documents, in the forms on file with the City Clerk,be and are hereby approved,and the Mayor,the Chief Executive Officer or the Director of Finance, or the designee thereof (each, a "Designated Officer"), are hereby individually authorized and directed to execute said documents, with such changes, insertions and omissions as may be Resolution No.2017-206 Page 2 approved by such officials, and the City Clerk is hereby authorized and directed to attest to such official's signature: (a) a letter agreement for purchase and rate lock, by and between an institutional investor to be selected pursuant to a competitive process, as purchaser (the "Purchaser"), and the City, whereby the Purchaser agrees to acquire certain rights of the Authority, including but limited to the lease payments to be made by the City under the Lease Agreement and the rights of the Authority under the Site and Facility Lease(hereinafter defined); (b) a site and facility lease, by and between the City, as lessor, and the Baldwin Park Municipal Financing Authority (the "Authority"), as lessee (the "Site and Facility Lease"), pursuant to which the City will lease certain real property and improvements (the "Property") to the Authority;and (c) a lease agreement, by and between the Authority, as lessor, and the City, as lessee (the "Lease Agreement"), pursuant to which the Authority will lease the Property back to the City and pursuant to which the City will agree to make semi-annual lease payments (the"Lease Payments"), so long as the term of the Lease Agreement does not extend beyond August 1, 2034, and the Lease Payments, as compared to the lease payments under the 2004 Lease Agreement,provide present value savings to the City of 6% of refunded par; (d) an escrow agreement, by and between the City and U.S. Bank National Association, providing for the prepayment of the 2004 Lease and redemption of the 2004 Bonds; (e) a costs of issuance custodian agreement, by and between the City and U.S. Bank National Association,providing for the payment of the costs of the financing;and (f) a termination agreement, by and among the City, the Baldwin Park Authority and U.S. Bank National Association, as assignee of the 2004 Lease, terminating the 2004 Lease and' associated documents from the Los Angeles County records. Section 3. The designation of Harrell&Company Advisors, LLC,as municipal advisor to the City, of Quint & Thimmig LLP, as special legal counsel to the City, and of Samuel A. Ramirez&Co.,Inc.,as placement agent to the City,are hereby approved.. Section 4. The Mayor, the Chief Executive Officer, the Director of Finance, the City Clerk and all other appropriate officials of the Council and the City are hereby authorized and directed to execute such other agreements, documents and certificates as may be necessary to effect the purposes of this resolution and the financing herein authorized. Section 5. This Resolution shall take effect upon its adoption by the Council. PASSED,APPROVED and ADOPTED this 18th day o October 2017. MA EL LOZANO,MAYOR Resolution No.2017-206 Page 3 ATTEST: STATE OF CALIFORNIA COUNTY OF LOS ANGELES ss. CITY OF BALDWIN PARK I, ALEJANDRA AVILA, City Clerk of the City of Baldwin Park, do hereby certify that the foregoing Resolution 2017-206 was duly and regularly approved and adopted by the City Council of the City of Baldwin Park at a regular meeting of the City Council held on October 18 ,2017,by the following vote: AYES: COUNCIL MEMBERS: Baca,Garcia,Lozano,Pacheco,Rubio NOES: COUNCIL MEMBERS: None ABSENT: 0 NCIL MEMBERS. None // t ABSTAIN: ./A N ILME • . None ALEJANDR AVILA, CITY CLERK .... 1 it ‘ , V\ 1 %ad'".....•416. ,,,-.'..s. .•.A•,,, ,,s i ' CI,