Loading...
HomeMy WebLinkAboutResolution 89-97 CITY COUNCIL OF THE CITY OF ATASCADERO RESOLUTION NO.89-97 RESOLUTION AUTHORIZING REFINANCING OF AN EXISTING LEASE. THE EXECUTION AND DELIVERY OF A SUBLEASE AND SITE LEASE AND AUTHORIZING AND DIRECTING; CERTAIN ACTIONS IN CONNECTION THEREWITH. The City Council of the City of Atascadero(the"City Council")finds and resolves as follows: WHEREAS, The City of Atascadero (the "City") is a city organized and existing under and pursuant to the Constitution and laws of the State of California(the"State");and WHEREAS, the City desires to provide for the refinancing of that certain Lease Agreement dated as of October 1, 1989 (the "Prior Lease"), by and between the California Public Agency Leasing Corporation and the City, and for the repayment of the Certificates of Participation (Police Headquarters, Park Pavilion and Park Acquisition Projects)evidencing the lease payments under the Prior Lease(the"1989 Certificates");and WHEREAS,said refinancing and prepayment will be accomplished by the execution of the Sublease and Site Lease approved herein;and WHEREAS, Municipal Leasing Associates, Inc. (the"Corporation")has proposed a cost-effective lease refinancing arrangement at a 5.75%interest rate;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; NOW,THEREFORE,it is resolved by the City Council as follows: SECTION 1. Findings. The City Council hereby specifically finds and declares that the statements, findings and determinations of the City set forth in the preambles of the documents approved herein are true and correct and the City Council hereby declares its intention of entering into the Sublease described in Section 2 hereof. SECTION 2. Approval of Refinancing and Refunding of 1989 Certificates. The City Council hereby approves the prepayment and refinancing of the 1989 Certificates and directs the Accountant to take all necessary or desirable actions, including causing a notice of prepayment to be delivered to the owners of the 1989 Certificates,to accomplish such prepayment. The City Council hereby further approves of the City's entering into a lease transaction with the Corporation for the purpose of refinancing the Prior Lease and lowering the City's interest rate costs; provided that the interest component under such lease transaction shall not exceed 5.75%per annum. SECTION 3. Sublease/Option Agreement. The form of the Sublease/Option Agreement, between the City and the Corporation(the"Sublease"),presented to this meeting and on file with the City Clerk(the"Clerk") is hereby approved. The Accountant or her designee are hereby authorized and directed, for and in the name and on behalf of the City,to execute and deliver to the Corporation the Sublease in substantially said form, with such changes therein as such officer or person may required or approve,such approval to be conclusively evidenced by the execution and delivery thereof. Resolution No.89-97 Page 2 SECTION 4. Site Lease. The form of the Site Lease, between the Corporation and the City(the"Site Lease"),presented to this meeting and on file with the Clerk,is hereby approved. The Accountant or her designee are hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver to the Corporation the Site Lease in substantially said form, with such changes therein as such officer or person may require or approve,such approval to be conclusively evidenced by the execution and delivery thereof. SECTION 5. Escrow Agreement.ement. The form of the Escrow Agreement between the City and BNY Western Trust Company (the "Escrow Agreement"), presented to this meeting and on file with the Clerk, is hereby approved. The Accountant or her.designee are hereby authorized and directed,for and in the name and on behalf of the City,to execute and deliver to BNY Western Trust Company,the Escrow Agreement in substantially said form, with such changes therein as such officer or person may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. SECTION 6. Attestations.The Clerk or other appropriate City officer are hereby authorized and directed to attest the signature of the Accountant or of such other person or persons as may have been designated by the Accountant, 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 Sublease and the Site Lease. SECTION 7. Other Actions. The Accountant and other officers of the City are each hereby authorized and directed,jointly and severally, to do any and all thirds and to execute and deliver any and all documents which they may deem necessary or advisable in order to carry out, give effect to and comply with the terms and interact of this Resolution, the Sublease, and the Site Lease. Such actions are hereby ratified, confirmed and approved. SECTION 8. Qualified Tax-Exempt Obligations. The Sublease is hereby designated as a"qualified tax exempt obligation" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986; as amended (the"Code"). The City,together with all subordinate entities of the City,do not reasonably expect to issue during the calendar year in which the Sublease is issued more than $10,000,000 of obligations which it could designate as"qualified tax-exempt obligations"under Section 265(b)of the Code. SECTION 9. Effect. This Resolution shall take effect immediately upon its passage. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Atascadero held on the 23rd of September, 1997. 1 hereby certify that the foregoing resolution was duly introduced,passed and adopted,at time and place and by the vote as noted above. ATTEST: %CITY OF ATS DE O MARCIA TORGERSON,City Cl RAY JOHN O ,Mayor APPROVED AS TO FORM: r ROY NLEY,City Attorn y