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HomeMy WebLinkAboutCC RESO 98-135RESOLUTION NO 98-135 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING PRELIMINARY OFFICIAL STATEMENT AND AUTHORIZING AND DIRECTING THE EXECUTION OF A LEASE AGREEMENT AND A CONTRACT OF PURCHASE WHEREAS, the National City Joint Powers Financing Authority (the "Authority") issued its Lease Revenue Bonds, Series 1991 (City of National City Police Facilities Project) in the aggregate principal amount of $6,950,000 (the "1991 Bonds") for the purpose of financing the acquisition and construction of certain police facilities (the "Project"), which improvements are being leased by the Authority to the City pursuant to a Lease Agreement, dated as of October 1, 1991, by and between the Authority and the City (the "1991 Lease Agreement"); and WHEREAS, interest savings will be realized if the 1991 Bonds are refunded with the proceeds of refunding bonds (the "Refunding Bonds") to be issued by the Authority; and WHEREAS, the Refunding Bonds are to be issued pursuant to a Trust Indenture, dated as of October 1, 1998 (the "Indenture"), by and between the Authority, and Union Bank of California (the "Trustee"); and WHEREAS, the Refunding Bonds are to be secured by an assignment by the Authority to the Trustee of all of the Authority's rights to receive lease payments under an Amended and Restated Lease Agreement, dated as of October 1, 1998, between the City and the Authority, which amends and restates in whole the 1991 lease Agreement (the "Lease Agreement"), pursuant to the terms of the Indenture; and WHEREAS, MBIA Muni Financial has, at the direction of the City, begun the preparation of Preliminary Official Statement describing the Bonds, the Project, the City and the Authority; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City as follows: Section 1. Approval of Lease Agreement. The City Council hereby approves the Lease Agreement, in substantially the form on file with the City Clerk, together with any changes or additions therein or additions thereto deemed advisable by the City Attorney. The Mayor is hereby authorized and directed to execute, and the City Clerk is authorized and directed to attest, and affix the seal of the City to, the Lease Agreement for and in the name of the City. Resolution No 98-135 October 6, 1998 Page Two Section 2. Sale of Refunding Bonds. The Refunding Bonds shall be sold to Kinsell, O'Neal, Newcomb & De Dios, Inc. (the "Underwriter") pursuant to the Contract of Purchase, dated as of the date of the sale of the Refunding Bonds, by and among the Underwriter, the Authority and the City (the "Contract of Purchase") and the Mayor is directed to execute the Contract of Purchase, in substantially the form on file with the City Clerk, so long as the principal amount of the Refunding Bonds will not exceed $6,500,000, so long as the net present value savings realized through the sale of the Refunding Bonds shall be not less than $55,000 per year, and so long as the Underwriter's discount on the Refunding Bonds does not exceed 1 % of the principal amount of the Bonds. Section 3. Approval of Preliminary Official Statement; Final Official Statement. The City hereby approves a preliminary Official Statement (the "Preliminary Official Statement") in substantially the form on file with the City Clerk. The City Manager is hereby authorized and directed to approve corrections and additions to the Preliminary Official Statement by supplement or amendment thereto, or otherwise as appropriate, provided that any such corrections or additions shall be necessary to cause the information contained therein to conform with facts material to the Bonds, or to the proceedings of the Authority or the City. The City Manager is authorized and directed to cause the Preliminary Official Statement to be brought into the form of a final official statement (The "Final Official Statement") and to execute a statement that the facts contained in the Official Statement, and any supplement or amendment thereto (which shall be deemed an original part thereof for the purpose of such statement) were, at the time of sale of the Refunding Bonds, true and correct in all material respects and that the Final Official Statement did not, on the date of sale of the Refunding Bonds, and does not, as of the date of delivery of the Bonds, contain any untrue statement of a material fact with respect to the City or omit to state material facts with respect to the City required to be stated where necessary to make any statement made therein not misleading in the light of the circumstances under which it was made. The City Manager shall take such further actions prior to the signing of the Final Official Statement by the Mayor on behalf of the City as are deemed necessary or appropriate to verify the accuracy thereof. Section 4. Official Actions. The Mayor, City Manager, Finance Director and City Clerk of the City, and any other officers of the City, are hereby authorized and directed to take all actions and do all things necessary or desirable hereunder with respect to the preparation of distribution of the Preliminary Official Statement, including the execution and delivery of any and all agreements, certificates, instruments and other documents, which they, or any of them, may deem necessary or desirable and not inconsistent with the purposes of this resolution, and the City Council ratifies any actions heretofore taken by the City. Resolution No 98-135 October 6, 1998 Page Three PASSED AND ADOPTED this 6th day of October, 1998. CITY OF NATIONAL CITY George H. Waters, Mayor Attest: /i Mich el R. Dalla, ity Clerk Approved as to Form: George H. Eiser, III, City Attorney