HomeMy WebLinkAboutPublic Financing Authority - 15 RESOLUTION NO. 15
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
HUNTINGTON BEACH PUBLIC FINANCING AUTHORITY
AUTHORIZING THE ISSUANCE AND SALE OF LEASE REVENUE BONDS IN AN
AGGREGATE AMOUNT NOT TO EXCEED $32,000,000 REFUND THE CITY OF
HUNTINGTON BEACH'S OUSTANDING 1993 REFUNDING CERTIFICATES OF
PARTICIPATION (CIVIC CENTER REFINANCING PROJECT) AND 1993
REFUNDING CERTIFICATES OF PARTICIPATION (POLICE
ADMINISTRATION BUILDING REFINANCING PROJECT), AND APPROVING
RELATED DOCUMENTS AND OFFICIAL ACTIONS
WHEREAS, the City of Huntington Beach (the "City") and the Redevelopment Agency
of the City of Huntington Beach (the "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
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SF:2001 Resol:Reso13-Lease Revenue Bonds
Res. NO. 15
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
back 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 Board has duly considered such transactions and wishes at this time to approve said
transactions in the public interests of the Authority;
NOW, THEREFORE, the Board of Directors of the Huntington Beach Public Financing
Authority resolves as follows:
Section 1. Findings and Determinations. Pursuant to the Bond Law, the Board 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. Issuance of Bonds; Approval of Indenture. The Board hereby authorizes the
issuance of the Bonds under and pursuant to the Bond Law and the Indenture in the aggregate
principal amount of not to exceed $32,000,000 for the purpose of providing funds to enable the
City to refund the 1993 Certificates. The Board hereby approves the Indenture, substantially in
the form on file with the Secretary, together with such additions thereto and changes therein as
the Chairperson, the Treasurer, the Executive Director or the Deputy Executive Director of the
Authority (the "Designated Officers") 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, and the Secretary is hereby authorized and directed to attest to, the final form
of the Indenture for and in the name and on behalf of the Authority. The Board hereby authorizes
the delivery and performance of the Indenture.
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Res. No. 15,,.
Section 3. Approval of Related Financing Documents. The Board hereby approves
each of the following agreements required to implement the financing plan to be accomplished
by the Bonds, substantially in the respective forms on file with the Secretary, 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:
(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; and
(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.
The Designated Officers, each acting alone, are hereby authorized and directed to
execute, and the Secretary is hereby authorized and directed to attest to, the final form of such
agreements for and in the name and on behalf of the Authority. The Authority hereby authorizes
the delivery and performance of such agreements.
Section 4. Sale of Bonds. The Board hereby approves the sale of the Bonds by the
Authority by negotiation with the Underwriter, pursuant to the Bond Purchase Agreement,
substantially in the form on file with the Secretary (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 Authority 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
more than 1% of the par amount thereof(not taking into account any original issue discount on
the sale thereof).
Section 5. Official Statement. The Authority hereby approves the preliminary official
statement, substantially in the form on file with the Secretary (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 Authority shall be conclusive
evidence of the approval of any such additions and changes. The Authority 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 Authority by a Designated Officer.
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Res. No. 15
Section 6. Official Actions. The Chairperson, the Treasurer, the Executive Director, the
Deputy Executive Director, the Secretary and any and all other officers of the Authority are
hereby authorized and directed, for and in the name and on behalf of the Authority, 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 7. Effective Date. This Resolution shall take effect from and after the date of its
passage and adoption.
HUNTINGTON BEACH PUBLIC
FIIN®ANCING AUTHORITY
C irperson
ATTEST:
e� q �
Secretary 11—21-01
APPROVED AS TO FORM:
General Counsel
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Res. No. 15
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF HUNTINGTON BEACH )
I, CONNIE BROCKWAY, the duly elected, qualified Secretary of
the Huntington Beach Public Financing Authority, do hereby certify that the
whole number of members of the Board of Directors of the Huntington Beach
Public Financing Authority 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
Board at a regular meeting thereof held on the 5th day of November, 2001 and
that it was so adopted by the following vote:
AYES: Directors: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff,
Bauer
NOES: Directors: None
ABSENT: Directors: None
ABSTAIN: Directors: None
Secretary of the Board of Di ectors
of the Huntington Beach Public
Financing Authority