HomeMy WebLinkAbout2002 026 CC RESO2002 026 CC RESO¹òw @˜ Ñ RESOLUTION NO. 2002-026
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF BALDWIN PARK AUTHORIZING DELIVERY AND
SALES OF CERTIFICATES OF PARTICIPATION IN THE
MAXIMUM PRINCIPAL AMOUNT OF $5,000,000 TO
FINANCE CONSTRUCTION OF PUBLIC STREET
IMPROVEMENTS, AND APPROVING RELATED
DOCUMENTS AND ACTIONS
WHEREAS, the City of Baldwin Park City") has determined to undertake an
accelerated program for the improvement of public streets and related facilities as
hereinafter described collectively, the Street Improvement Project) and the City wishes to
finance such improvement from motor vehicle fuel tax revenues received by the City from
the State of California; and
WHEREAS, the Baldwin Park Financing Authority the Authority") has been formed
for the purpose of assisting the City in the financing of facilities and property useful to the
City, and the City has requested the Authority to assist it in financing the construction of the
Street Improvement Project; and
WHEREAS, in order to provide funds for such purposes, the City has proposed to
lease to the Authority certain real property which generally constitutes a part of the public
street system of the City the Leased Property") under a Site Lease by and between the
City as lessee and the Authority as lessor the Site Lease"), for a payment the Site Lease
Payment") which the City will use to finance the Street Improvement Project, and the
Authority has agreed to lease the Leased Property back to the City pursuant to a Lease
Agreement by and between the Authority as lessor and the City as lessee; and
WHEREAS, the Authority has further agreed to assign its right to receive lease
payments under the lease to U.S. Bank, N.A., as trustee the Trustee"), and in
consideration of such assignment the Trustee has agreed to execute and deliver not to
exceed $5,000,000 aggregate principal amount of 2002 Variable Rate Demand Certificates
of Participation Street Improvement Program) the Certificates of Participation"), each
evidencing a direct, undivided fractional interest in the lease payments to be paid by the
City under the Lease, the proceeds of which will be applied by the Authority to pay the Site
Lease Payment to the City, pursuant to that certain Trust Agreement The Trust
Agreement"), by and among the Authority, the City and the Trustee; and
WHEREAS, a financial institution the Bank") to be determined by the Chief
Executive Officer or the Director of Finance each, an Authorized Official"), will issue an
irrevocable direct-pay letter of credit the Letter of Credit") in support of the Certificates of
Participation; and
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WHEREAS, the City Council wishes at this time to authorize and approve all
proceedings for the financing of the Street Improvement Project, the delivery and sale of
the Certificates of Participation for such purpose, and all related documents and actions, in
furtherance of the public purposes of the City; and
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY OF BALDWIN
PARK AS FOLLOWS:
SECTION 1. Approval of Financing Plan and Related Documents. The City Council
hereby approves the financing plan outlined above. To that end, the City Council hereby
approves each of the following financing documents in substantially the respective forms
on file with the City Clerk together with any changes therein or additions thereto deemed
advisable by Authorized Official, provided that the execution thereof by the Authorized
Official shall be conclusive evidence of such approval:
A) Site Lease by and between the City as lessor and the Authority as lessee,
whereby the City leases the Leased Property to the Authority.
B) Lease Agreement by and between the Authority as lessor and the City as
lessee, whereby the Authority agrees to lease the Leased Property to the
City in consideration of the payment by the City of semiannual lease
payments.
C) Trust Agreement by and among the City, the Authority and The Trustee,
whereby the Trustee agrees to execute and deliver the Certificates of
Participation.
In addition, the City Council hereby authorizes the Authorized Official to negotiate a
form of Remarketing Agreement between the City and a remarketing agent for the
Certificates of Participation the Remarketing Agent"), whereby the Remarketing Agent
agrees to remarketthe Certificates of Participation during any period in which interest is set
at a variable rate; and a form of Letter of Credit and Reimbursement agreement between
the City and the Bank whereby the Bank agrees to issue the Letter of Credit for the security
of the Certificates of Participation and the City agrees to repay amounts drawn under the
Letter of Credit.
The Authorized Official is authorized and directed for and in the name and on behalf
of the City to execute, and the City Clerk is hereby authorized and directed to attest and
affix the seal of the City to the final form of each of the foregoing documents. The
schedule of lease payments attached to the Lease Agreement shall correspond to the
payments of principal and interest represented by the Certificates of Participation, to be
determined upon the sale thereof as set forth in Section 2.
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SECTION 2. Sale of Certificates of Participation. The C'rty Council hereby approves
the sale of the Certificates of Participation by negotiation with Seidler-Fitzgerald Public
Finance, as underwriter the Underwriter"). The Certificates of Participation shall be sold
to the Underwriter pursuant to an agreement to be approved by the City Council by
resolution adopted prior to the sale thereof.
SECTION 3. Authorization to Institute Judicial Validation Proceedings. The City
Council hereby authorizes the filing of an action, pursuant to Chapter 9 commencing with
Section 860) of Title 10 of Part 2 of the California Code of Civil Procedure, to determine the
validity of the Site Lease, the Lease Agreement, the Trust Agreement and related matters.
Such action shall be prosecuted on behalf of the City by the City Attorney with the advice
and assistance of Jones Hall, a Professional Law Corporation, as bond counsel to the City
in connection with the issuance and sale of the Certificates of Participation.
SECTION 4. Official Actions. The Mayor, the Chief Executive Officer, the Director
of Finance, the Crty Clerk and all other officers of the City are each authorized and directed
in the name and on behalf of the City to make any and all assignments, certificates,
requisitions, agreements, notices, consents, leases and other instruments of conveyance,
warrants and other documents, which they or any of them might deem necessary or
appropriate in order to consummate any of the transactions contemplated by the
agreements and documents approved pursuant to this Resolution. Whenever in this
resolution any officer of the City is authorized to execute or countersign any document or
take any action, such execution, countersigning or action may be taken on behalf of such
officer by any person designated by such officer to act on his or her behalf in the case such
officer shall be absent or unavailable.
SECTION 5. Effective Date. This resolution shall take effect from and after the date
of its passage and adoption.
APPROVED AND ADOPTED on this 20th day of February, 2002.
MANUEL LOZANO,MAYOR
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ATTEST:
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES) ss:
CITY OF BALDWIN PARK
I, Rosemary M. Ramirez, Chief Deputy City Clerk of the City of Baldwin Park, do
hereby certify that the foregoing Resolution was duly and regularly approved and adopted
by the City Council of the City of Baldwin Park at its regular meeting of the City Council on
February 20, 2002, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
Marten Garcia, Ricardo Pacheco, Mayor Pro Tern
Gair and Mayor Lozano
None
ABSENT: COUNCILMEMBERS: Bill Van Cleave
ABSTAIN: COUNCILMEMBERS: None
Rosemary IvrRayhirez, CMC
Chief Deputy City Clerk
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