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HomeMy WebLinkAboutCity Council - 2001-86 RESOLUTION NO. 2001-86 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING PROCEEDINGS TO REFUND THE CITY'S OUSTANDING 1993 REFUNDING CERTIFICATES OF PARTICIPATION (CIVIC CENTER REFINANCING PROJECT) AND 1993 REFUNDING CERTIFICATES OF PARTICIPATION (POLICE ADMINISTRATION BUILDING REFINANCING PROJECT), APPROVING THE ISSUANCE OF LEASE REVENUE BONDS BY THE HUNTINGTON BEACH PUBLIC FINANCING AUTHORITY FOR SUCH PURPOSE, AND APPROVING RELATED DOCUMENTS AND OFFICIAL ACTIONS WHEREAS, the City of Huntington Beach ("City") and the Redevelopment Agency of the City of Huntington Beach ("Agency") have heretofore entered into a Joint Exercise of Powers Agreement, dated March 7, 1988, establishing the Huntington Beach Public Financing Authority (the "Authority") for the purpose, among others, of issuing its bonds to be used to provide financial assistance to its members; and The City has previously caused the execution and delivery of $21,895,000 1993 Refunding Certificates of Participation (Civic Center Refinancing Project) to refund certain prior certificates of participation executed and delivered in 1986 to finance the construction of the City's civic center(the"1993 Civic Center Certificates"); and The 1993 Civic Center Certificates are currently outstanding in the aggregate principal amount of$16,655,000; and The City has also previously caused the execution and delivery of $16,350,000 1993 Refunding Certificates of Participation (Police Administration Building Refinancing Project) to refund certain prior certificates of participation executed and delivered in 1989 to finance the construction of the City's police administration building (the "1993 Police Administration Building Certificates"); and The 1993 Police Administration Building Certificates are currently outstanding in the aggregate principal amount of$13,095,000; and The City Council has determined that due to favorable interest rates, it is in the best interests of the City that the 1993 Civic Center Certificates and the 1993 Police Administration Building Certificates (collectively, the "1993 Certificates") be refunded; and For the purpose of providing moneys to refund the 1993 Certificates, the City will lease certain real property (the "Site") and certain improvements thereon (the "Facility" and, with the Site, the "Property") to the Authority pursuant to a site and facility lease (the "Site and Facility Lease"); and 1 SF:2001 Resol:Resol 2 Civic Center Refinance 10-1 Res. No. 2001-86 The Authority has determined to issue its Huntington Beach Public Financing Authority Lease Revenue Bonds, 2001 Series B (Capital Improvement Refinancing Project), in the aggregate principal amount of not to exceed $32,000,000 (the `Bonds"), all pursuant to and secured by an Indenture of Trust (the "indenture"), by and between the Authority and BNY Western Trust Company, as trustee; and In order to provide for the repayment of the Bonds, the Authority will lease the Property to the City pursuant to a lease agreement (the "Lease Agreement"), under which the City will agree to make lease payments to the Authority (the "Lease Payments") which will be calculated to be sufficient to enable the Authority to pay the principal of and interest and premium (if any) on the Bonds when due and payable; and The Bonds will be issued under the provisions of the Marks-Roos Local Bond Pooling Act of 1985, constituting Article 4 (commencing with section 6584) of Chapter 5, Division 7, Title 1 of the California Government Code (the "Bond Law"), and the Indenture; and The firm of Salomon Smith Barney Inc. (the "Underwriter") has proposed to purchase and underwrite the Bonds; and The City has on this date held a duly noticed public hearing, as required by section 6586.5(a) of the California Government Code, on the financing of the Improvements by the Authority; and This City Council now desires to make a finding of significant public benefit, pursuant to section 6586.5(a)(2) of the California Government Code, and to approve of the financing of the Improvements and the transactions contemplated by the Bonds; and This City Council approves all of said transactions in furtherance of the public purposes of the City, and wishes at this time to take its action approving the issuance and sale of the Bonds and authorizing the execution and delivery of the documents required for the lease financing to be accomplished thereby; NOW, THEREFORE, the City Council of the City of Huntington Beach resolves as follows: Section 1. Approval of Bonds. The City Council hereby approves the issuance of the Bonds by the Authority for the purpose of providing funds to enable the City to refund the 1993 Certificates. Pursuant to the Bond Law, the City Council hereby finds and determines that the issuance of the Bonds will result in savings in effective interest rates, bond underwriting costs and bond issuance costs and thereby result in significant public benefits to its members within the contemplation of section 6586 of the Bond Law. Section 2. Approval of Related Financing Documents. The City Council hereby approves each of the following agreements required to implement the financing plan to be accomplished by the Bonds, in substantially the respective forms on file with the City Clerk, together with such additions thereto and changes therein as the Mayor, the City Administrator, the City Treasurer, the Administrative Services Director or the Finance Director (the "Designated -2- Res. No. 2001-86 Officers") shall deem necessary, desirable or appropriate, the execution of which by the City shall be conclusive evidence of the approval of any such additions and changes: (a) a Site and Facility Lease, by and between the City, as lessor, and the Authority, as lessee, relating to the lease of the Property to the Authority; (b) a Lease Agreement, by and between the Authority, as lessor, and the City, as lessee, relating to the lease of the Property by the Authority back to the City, so long as the annual lease payments to be paid by the City under the Lease Agreement, as compared to the lease payments to be made by the City with respect to the 1993 Certificates, provides a net present value savings of at least 3%; (c) an escrow deposit and trust agreement, by and between the City and U.S. Bank Trust National Association, as trustee for the 1993 Civic Center Certificates and as escrow bank, providing for the creation of an irrevocable escrow for the payment and refunding of the 1993 Civic Center Certificates; (d) an escrow deposit and trust agreement, by and between the City and U.S. Bank Trust National Association, as trustee for the 1993 Police Administration Building Certificates and as escrow bank, providing for the creation of an irrevocable escrow for the payment and refunding of the 1993 Police Administration Building Certificates; (e) a termination agreement, by and among the City, the City of Huntington Beach Civic Improvement Corporation (the "Corporation") and U.S. Bank Trust National Association, as trustee for the 1993 Civic Center Certificates, terminating the legal documents relating to the 1993 Civic Center Certificates; and M a termination agreement, by and among the City, the Corporation and U.S. Bank Trust National Association, as trustee for the 1993 Police Administration Building Certificates, terminating the legal documents relating to the 1993 Police Administration Building Certificates. The Designated Officers, each acting alone, are hereby authorized and directed to execute, and the City Clerk is hereby authorized and directed to attest to, the final form of such agreements for and in the name and on behalf of the City. The City hereby authorizes the delivery and performance of such agreements. Section 3. Sale of Bonds. The City Council hereby approves the sale of the Bonds by the Authority by negotiation with the Underwriter, pursuant to a bond purchase agreement, substantially in the form on file with the City Clerk (the "Bond Purchase Agreement"), together with such additions thereto and changes therein as a Designated Officer shall deem necessary, desirable or appropriate, the execution of which by the Authority shall be conclusive evidence of the approval of any such additions and changes. The Designated Officers, each acting alone, are hereby authorized and directed to execute the final form of the Bond Purchase Agreement for and in the name and on behalf of the City upon the submission of an offer by the Underwriter to purchase the Bonds, which offer is acceptable to a Designated Officer and consistent with the requirements of this Resolution. The amount of Underwriter's discount for the Bonds shall be not -3- Res. No. 2001-$6 more than 1% of the par amount thereof(not taking into account any original issue discount on the sale thereof). Section 4. Official Statement. The City hereby approves the preliminary official statement, substantially in the form on file with the City Clerk (the "Preliminary Official Statement"), together with such additions thereto and changes therein as a Designated Officer shall deem necessary, desirable or appropriate. The Designated Officers, each acting alone, are hereby authorized and directed to deem final within the meaning of Rule 15c2-12 of the Securities Exchange Act of 1934 except for permitted omissions, the Preliminary Official Statement. Distribution of the Preliminary Official Statement by the Underwriter is hereby approved. The Designated Officers, each acting alone, are hereby authorized to execute a final official statement (the "Official Statement"), including as it may be modified by such additions thereto and changes therein as a Designated Officer shall deem necessary, desirable or appropriate, and the execution of the Official Statement by the City shall be conclusive evidence of the approval of any such additions and changes. The City hereby authorizes the distribution of the Official Statement by the Underwriter. The Official Statement shall be executed in the name and on behalf of the City by a Designated Officer. Section 5. Official Actions. The Mayor, the City Administrator, the City Treasurer, the Administrative Services Director, the Finance Director, the City Clerk 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, including execution and delivery of any and all assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and other documents, which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and sale of the Bonds and the consummation of the transactions as described herein. Section G. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the Sth day of November ,2001. Mayor AirGG � APPROVED AS TO FORM: City Clerk City Attorney REVIEWED AND APPROVED: rr AN ROVED: ity Administrator Director Ad alive Services f Res. No. 2001-86 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-offcio 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 5th day of November, 2001 by the following vote: AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer NOES: None ABSENT: None ABSTAIN: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California