HomeMy WebLinkAboutCity Council - 2019-41 RESOLUTION NO. 2019-41
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH
APPROVING THE MAKING OF ONE OR MORE LOANS BY FIRST REPUBLIC BANK TO
THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY IN A PRINCIPAL AMOUNT
NOT TO EXCEED $13,000,000 FOR THE PURPOSE OF FINANCING THE COSTS OF
CERTAIN IMPROVEMENTS TO A SCHOOL COMMONLY KNOWN AS THE PEGASUS
SCHOOL AND CERTAIN OTHER MATTERS RELATING THERETO
WHEREAS, The Pegasus School (the "School"), a California nonprofit public
benefit corporation and an organization described in Section 501(c)(3) of the Internal Revenue
Code of 1986, as amended (the "Code"), has requested that the California Municipal Finance
Authority (the "Authority") enter into a loan agreement with First Republic Bank (the "Lender")
and the School pursuant to which the Lender will make one or more loans to the Authority in a
principal amount not to exceed $13,000,000 (the "Loans") for the purposes of financing the costs
of construction of a science and technology building, remodeling current middle school
classrooms, restructuring a parking lot, and upgrading the middle school quad, and all associated
design, engineering and planning costs related thereto, of the School located at 19692 Lexington
Lane, Huntington Beach, California and related capital project costs (the "Facilities") and paying
related expenses incurred in connection with the making of the Loans (collectively, the
"Project"); and
WHEREAS, the Facilities are owned and operated by the School and are located
within the City of Huntington Beach (the "City"); and
WHEREAS, pursuant to Section 147(f) of the Code, the making of the Loans by
the Lender must be approved by the City because the Facilities are located within the territorial
limits of the City; and
WHEREAS, the City Council of the City (the "Council") is the elected legislative
body of the City and is one of the applicable elected representatives required to approve the
making of the Loans under Section 147(f) of the Code; and
WHEREAS, the Authority has requested that the Council approve the making of
the Loans by the Lender in order to satisfy the public approval requirement of Section 147(f) of
the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating
to the California Municipal Finance Authority, dated as of June 1, 2004 (the "Agreement"),
among certain local agencies, including the City; and
WHEREAS, pursuant to Section 147(f) of the Code, the Council has, following
notice duly given, held a public hearing regarding the making of the Loans, and now desires to
approve the making of the Loans by the Lender;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Huntington Beach as follows:
19-7645/204214 1
Resolution No. 2019-41
Section 1. The Council hereby approves the making of the Loans by the Lender.
It is the purpose and intent of the Council that this resolution constitute approval of the making
of the Loans by the Lender, for the purposes of(a) Section 147(f) of the Code by the applicable
elected representative of the governmental unit having jurisdiction over the area in which the
Facilities are located, in accordance with said Section 147(f), and (b) Section 4 of the
Agreement. The City shall have no responsibility or liability whatsoever with respect to the
Loans.
Section 2. The officers of the City are hereby authorized and directed,jointly and
severally, to do any and all things and to execute and deliver any and all documents which they
deem necessary or advisable in order to carry out, give effect to and comply with the terms and
intent of this resolution and the financing transaction approved hereby.
Section 3. This resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 3rd day of June , 2019.
Mayor
REVIEWED AND APPROVED: INITIATED AND APPROVED:
City Manager Deputy Director of conomic Development
APPROVED AS TO FORM:
Cit Attorney NXV
19-7645/204214 2
Res. No. 2019-41
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, ROBIN ESTANISLAU 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 June 3, 2019 by the following vote:
AYES: Brenden, Carr, Semeta, Peterson, Posey, Hardy
NOES: None
ABSENT: None
OUT OF
ROOM: Delgleize
RECUSE: None
City Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California