Loading...
HomeMy WebLinkAboutCC RESO 2010-217RESOLUTION NO. 2010 — 217 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY (1) AUTHORIZING PROCEEDINGS TO REFINANCE $3,280,000 OUTSTANDING 1998 LEASE REVENUE BONDS; (2) TERMINATING THE 1998 LEASE AGREEMENT BETWEEN THE CITY, THE NATIONAL CITY JOINT POWERS FINANCING AUTHORITY, AND UNION BANK OF CALIFORNIA; (3) APPROVING THE NEW LEASE AGREEMENT BETWEEN THE CITY AND THE NATIONAL CITY JOINT POWERS FINANCING AUTHORITY; (4) APPROVING THE ASSIGNMENT AGREEMENT BETWEEN THE AUTHORITY AND THE LENDER; AND (5) APPROVING THE IRREVOCABLE REFUNDING INSTRUCTIONS GIVEN BY THE CITY TO THE 1998 TRUSTEE. WITH THIS REFINANCE, THE GENERAL FUND WILL REALIZE A DIRECT SAVINGS OF $137,000 IN FY 10-11 WHEREAS, in order to finance the construction of a Police Administration Building located at 1200 National City Boulevard in the City of National City (the "Facilities"), the City of National City (the "City") has previously leased the real property constituting the site thereof (the "Site") and the completed Facilities from the National City Joint Powers Financing Authority (the "Authority") under a Lease Agreement dated as of October 28, 1998 (the "1998 Lease Agreement"); and WHEREAS, the City's lease payments under the 1998 Lease Agreement (the "1998 Lease Payments") are evidenced by 1998 Certificates of Participation (Police Administration Building Project) which have been executed and delivered in the aggregate principal amount of $6,255,000 of which $3,280,000 are currently outstanding (the "1998 Certificates"); and WHEREAS, the City and the Authority have received a proposal from Bank of America, N.A. (the "Lender"), to provide funds required to refinance the 1998 Lease Payments and the 1998 Certificates; and WHEREAS, the City Council wishes at this time to approve proceedings to refinance the 1998 Lease Payments and the 1998 Certificates and thereby realize interest rate savings to the City, and to approve related documents and actions. NOW THEREFORE, BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AS FOLLOWS: 1. Approval of Refinancing Proceedings. The City Council hereby approves the refinancing of the 1998 Certificates and the related 1998 Lease Payments. To that end, the City Council hereby approves each of the following agreements in substantially the respective forms on file with the City Clerk together with any changes therein or additions thereto deemed advisable by the City Manager, and the execution thereof by the City Manager shall be conclusive evidence of such approval: • Termination Agreement among the City, the Authority, and Union Bank of California as trustee for the 1998 Certificates (the "1998 Trustee"), whereby the City, the Authority and the 1998 Trustee agree to terminate the 1998 Lease Agreement and the related Assignment Agreement. Resolution No. 2010 — 217 Page 2 • Lease Agreement between the City and the Authority, whereby the Authority leases the Site and Facilities to the City in consideration of the payment of semiannual lease payments by the City as rental for such real property. • Irrevocable Refunding Instructions given by the City to the 1998 Trustee, whereby the 1998 Trustee agrees to establish an irrevocable escrow fund to be held and invested for the purpose of paying the principal and interest represented by the 1998 Certificates, and to prepay the 1998 Certificates in full on the prepayment date specified therein. The City Manager is authorized and directed for and in the name and on behalf of the City to execute and the City Clerk is hereby authorized and directed to attest the final form of each of the foregoing documents. 2. Approval of Assignment to Lender. The proposal from the Lender to provide financing for the purposes set forth in this Resolution is hereby approved, and the acceptance of such proposal by the Director of Finance is hereby ratified, confirmed and approved. The City Council hereby approves the assignment by the Authority to the Lender of certain of its rights under the Lease Agreement, including the right to receive and enforce payment by the City of all lease payments due thereunder. 3. Official Actions. The Mayor, the City Manager, the Director of Finance, the City Clerk and all other officers of the City are each authorized and directed in the name and on behalf of the City to make any and all assignments, certificates, requisitions, agreements, notices, consents, leases and other instruments of conveyance, warrants and other documents, which they or any of them might deem necessary or appropriate in order to consummate any of the transactions contemplated by the agreements and documents approved under this Resolution. Whenever in this Resolution any officer of the City is authorized to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf in the case such officer is absent or unavailable. 4. Constitutionality, Severability. If any section, subsection, sentence, clause, phrase, or word of this Resolution is for any reason held by a court of competent jurisdiction to be unconstitutional or invalid for any reason, such decision shall not affect the validity of the remaining portions of the resolution. The City Council of the City of National City hereby declares that it would have passed this resolution and each section, subsection, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more section(s), subsection(s), sentence(s), clause(s), phrase(s), or word(s) be declared invalid. 5. Effective Date. This Resolution shall become effective immediately. --- Signature Page to Follow --- Resolution No. 2010 — 217 Page 3 PASSED and ADOPTED this 21st day of September, 2010. on Morrison, Mayor ATTEST: Michael R. Dalla, i>:y Clerk A'PROVEVS TO FORM: udia G. Ci y Attorney W Passed and adopted by the Council of the City of National City, California, on September 21, 2010 by the following vote, to -wit: Ayes: Councilmembers Morrison, Sotelo-Solis, Van Deventer, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California City Clerk of the City of ational City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2010-217 of the City of National City, California, passed and adopted by the Council of said City on September 21, 2010. City Clerk of the City of National City, California By: Deputy