HomeMy WebLinkAboutCity Council - 6009 RESOLUTION NO. 6009
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH APPROVING LEASE OF EQUIPMENT WITH
HUNTINGTON BEACH PUBLIC FINANCING AUTHORITY, APPROVING
AND AUTHORIZING EXECUTION OF RELATED LEASE AGREEMENT,
TRUST AGREEMENT AND CREDIT AGREEMENT, APPROVING
OFFICIAL STATEMENT AND SALE OF NOT TO EXCEED
$5,600,000 CERTIFICATES OF PARTICIPATION,
AND "PROVING RELATED DOCUMENTS AND OFFICIAL ACTION
WHEREAS, the City of Huntington Beach (the "City") proposes to acquire various
items of equipment necessary for the police and fire departments of the City (the
"'Equipment") by leasing the Equipment pursuant to that certain Lease Agreement, dated
as of April 1, 1989 (the "Lease Agreement") by and between the City as lessee and the
Huntington Beach Public Financing Authority (the "Authority"), as lessor; and
for the purpose of obtaining the moneys required to finance the acquisition of the
Equipment pursuant to the Lease Agreement, the Authority has agreed to assign and
transfer certain of its rights under said Lease Agreement to First Interstate Bank of
California, as trustee, (the "Trustee") pursuant to the Assignment Agreement, dated as of
April 1, 1.989, by and between the Authority and the Trustee (the "Assignment
Agreement"), and in consideration of such assignment and the execution of the Trust
Agreement, dated as of March 1, 1989, by and among the City, the Authority and the
Trustee (the "Trust Agreement"), the Trustee has agreed to execute and deliver
Certificates of Participation (Police and Fire Facilities Equipment Project) in the principal
amount of not to exceed $5,600,000 (the "Certificates of Participation") each evidencing
an undivided fractional interest in the Lease Payments made by the City under the Lease
Agreement; and
Stone & Youngberg, as prospective underwriter of the Certificates of Participation
(the "Underwriter") has informed the City and the Authority that it intends to submit an
offer to purchase the Certificates of Participation, and in connection with the remarketing
of the Certificates of Participation, the Underwriter has caused to be prepared an Official
Statement describing the Certificates of Participation; and
in furtherance thereof, the Board of Directors of the Authority dial, on February 6,
1989, adopt Resolution No. '3 , which approved the Lease Agreement, Trust Agreement
and related documents; and
since February 6, 1989, Bond Investors Guaranty ("BIG") has issued a
commitment to insure the Certificates (and thereby causing a "AAA" rating to be
assigned to the Certificates)so long as certain changes are made to the Lease Agreement
and Trust Agreement; and
BIG has also offered, together with the Swiss Bank Corporation, New York Branch
(the "Lender") to cause a debt service reserve line of credit to be issued to satisfy the
reserve fund requirements under the Trust Agreement, pursuant to a Credit Agreement,
dated as of April 1, 1989, by and among BIG, the Lender and the City (the "Credit
Agreement"); and
the City Council approves of said transactions in the public interests of the City;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Huntington Beach as follows:
6009
Section 1. Lease of Equipment from Authority. The City Council hereby
approves and authorizes the lease of the Equipment from the Authority pursuant to and
in accordance with the Lease Agreement, in substantially the form on file with the City
Clerk, together with any immaterial changes therein or additions thereto deemed
advisable by the City Administrator and approved by the City Attorney. The Mayor and
the City Clerk are hereby authorized and directed for and in the name and on behalf of
the City to execute, attest and affix the seal of the City to said form of Lease Agreement.
The schedule of lease payments set forth in Exhibit B to the form of Lease Agreement
shall conform to the schedule of principal and interest payments represented by the
Certificates of Participation, determined pursuant to Section 4 hereof.
Section 2. Trust Agreement. The City Council hereby approves the Trust,
Agreement in substantially the form on file with the City Clerk, together with any
immaterial changes therein or additions thereto deemed advisable by the City
Administrator and approved by the City Attorney. The City Council hereby authorizes
and directs the Mayor to execute, and the City Clerk to attest and affix the seal of the
City to said form of the Trust Agreement for and in the name of the City.
Section 3. Credit Agreement. The City Council hereby approves the Credit
Agreement in substantially the form on file with the City Clerk, together with any
immaterial changes therein or additions thereto deemed advisable by the City
Administrator and approved by the City Attorney. The City Council hereby authorizes
and directs the Mayor to execute, and the City Clerk to attest and affix the seal of the
City to said form of the Credit Agreement for and in the name of the City.
Section. 4. Sale of Certificates. The City Council hereby approves the sale of
the Certificates of Participation to the Underwriter pursuant to that certain Purchase
Agreement among the City, the Authority, and the Underwriter, in substantially the form
on file with the City Clerk, together with any immaterial changes therein or additions
thereto deemed advisable by the City Administrator and approved by the City Attorney,
whose execution of said agreement shall be conclusive evidence of his approval of any
such changes or additions. The Certificates shall be substantially as described in. the
form of Official Statement on file with the City Clerk and hereinafter approved. The City
Administrator is hereby delegated the authority to execute said Purchase Agreement for
and in the name of the City and thereby accept an offer from the Underwriter to purchase
the Certificates of Participation, which offer is acceptable to the City Administrator:
provided, however, that the Certificates shall be sold for not less than ninety eight and
twenty-five hundredths percent (98.25%) of the par value thereof and provided further
that the rate of interest represented by the Certificates of Participation shall not exceed
eight percent (8%) per annum. The City Administrator is hereby delegated to accept the
offer of the Underwriter to purchase the Certificates of Participation, provided that such
offer is in form and substance acceptable to the City Administrator as approved by the
City Attorney and is within the limitations set forth in this Resolution.
Section 5. Official Statement. The City Council hereby approves the
preliminary Official Statement describing the Certificates of Participation, in
substantially the form submitted by the Underwriter and on file with the City Clerk,
together with any immaterial changes therein or additions thereto deemed advisable by
the City Administrator and approved by the City Attorney. The City Council approves
and authorizes the distribution by the Underwriter of said Preliminary Official Statement
to prospective purchasers of the Certificates of Participation.
-2- 6009
Section 6. Official Actions. All actions heretofore taken by the officers and agents
of the City with respect to the sale and issuance of the Certificates are hereby approved,
confirmed and ratified, and the officers of the City, including the Mayor, the Mayor Pro
Tem, the City Administrator, the Deputy City Administrator, the City Clerk, the City
Treasurer and any and all other officers of the City, are hereby authorized and directed,
for and in the name and on behalf of the City, to do any and all things and take any and
all actions and execute and deliver any and all certificates, agreements and other
documents which they, or any of them, may deem necessary or advisable in order to
consummate the lawful issuance and delivery of the Certificates in accordance with this
resolution, including but not limited to those certificates, agreements and other
documents described in the Lease Agreement, Trust Agreement, the Purchase Contract,
and the other documents herein approved and any certificates, agreements or documents
as may be necessary to further the purpose hereof so long as all such documents have
been previously approved by the City Attorney.
Whenever in this resolution any officer of the City is authorized to execute and
deliver any document or take any action, such execution, delivery or action may be taken
on behalf of such officer by any deputy thereto or by any other person designated by such
officer to act on his or her behalf in the case such officer shall be absent or unavailable.
Section 7. Effective Date. This Resolution shall take effect from and after the
date of its passage and adoption.
PASSED AND ADOPTED this 20thday of March, 1989, by the following vote:
AYES: MacAllister, Green, Winchell Bannister, Silva, Erskine
NOES: None
ABSENT: None
ABSTAIN: Mays � ,�,,�,,,,
Mayor
(SEAL)
Attest: APPROVED AS TO FORM:
By. City Clerk By:
Cz 3-13 j City Attorney 3-13•y�
INITIATED & APPROVED: REVIEWED & APPROVED:
By: _ By:
Depu y ty A ministr or City City Administrator
M7443
-3- 6009
Res. No. 6009
STATE OF CALIFORNIA
COUNTY OF ORANGE ss
CITY Of HUNTINGTON BEACH
I, CONNIE BROCKWAY the duly elected, qualified City
Clerk of the City of Huntington Beach, and ex-officio Clerk of the
City Council of said City, do hereby certify that the whole number of
members of the City Council of the City of Huntington Beach is seven;
that the foregoing resolution was passed and adopted by the affirmative
vote of at least a majority of all the members of said City Council
at a regular meeting thereof held on the 20th day
Of March , 19 0 by the following voter
AYES: Councilmembers:
MacAllister, Green, Winchell , Bannister, Silva, Erskine
NOES Councilmembers:
None
ABSENT: Councilmembers:
None
L�G,�7GGC.R
ABSTAIN: Councilmembers
Mays City Clerk and ex-offlao er
of the.City Council of the City
of Huntington Beach, California