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HomeMy WebLinkAbout1297ORDINANCE NO. 1297 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING SALE AND LEASEBACK OF PROPERTY WITH THE CITY OF SAN LUIS OBISPO CAPITAL IMPROVEMENT BOARD IN CONJUNCTION WITH THE ISSUANCE OF LEASE REVENUE BONDS BY THE BOARD AND APPROVING RELATED DOCUMENTS AND OFFICIAL ACTIONS WHEREAS, the City of San Luis Obispo (the "City ") wishes at this time to finance the acquisition and construction of various properties and improvements to be used for the municipal purposes of the City, including but not limited to facilities to be used for the headquarters fire station purposes, land acquisition, seismic and other improvements to the City Hall, and the acquisition of street lighting facilities; and WHEREAS, in order to provide funds for such purpose, the City has proposed to sell to the City of San Luis Obispo Capital Improvement Board (the 'Board ") certain existing properties owned by the City, consisting generally of a headquarters fire station, land for public park, open space, transportation and flood protection purposes, land on which the existing Bowden Adobe building is situated and adjacent properties, and the corporation yard of the City (collectively, the "Properties "), pursuant to an Acquisition Agreement dated as of June 1, 1996 (the "Acquisition Agreement "), by and between the City as seller and the Board as purchaser; and WHEREAS, in order to raise the funds necessary to acquire the properties from the City under the Acquisition Agreement, the Board has proposed to issue its 1996 Lease Revenue Bonds in the maximum principal amount of $7,500,000 (the 'Bonds ") under an Indenture of Trust dated as of June 1, 1996, by and between the Board and a commercial bank to be designated by the City Administrative Officer, as trustee; and WHEREAS, for the purpose of providing a source of funds with which to pay debt service on the Bonds, the City has proposed to lease the Properties back from the Board under a Lease Agreement dated as of June 1, 1996 (the "Lease "), by and between the Board as lessor and the City as lessee, under which the City will agree to pay semiannual rental payments which will be sufficient to enable the Board to pay principal of and interest on the Bonds when due; and WHEREAS, the firm of Evensen Dodge, Inc. as financial adviser to the City and the Board (the "Financial Adviser "), has recommended that the Board sell the Bonds on a competitive basis and has prepared a preliminary form of an Official Statement describing the Bonds; and WHEREAS, the City is required by Article 9 of Chapter 5 of Part 1 of Division 2 of the California Government Code (commencing with Section 54240 of said Code) to approve the Lease Agreement by ordinance which is subject to referendum; BE IT ORDAINED by the Council of the City of San Luis Obispo: SECTION 1. Sale of Properties to Board. The City Council hereby approves the sale of the Properties by the City to the Board under and pursuant to the Acquisition Agreement. The proceeds received by the City from the sale of the Properties shall be applied to pay and 0 -1297 Ordinance 1297 Page 2 reimburse the City for payment of costs of various municipal improvements approved by the City Council. The City Council hereby approves the Acquisition Agreement in substantially the form on file with the City Clerk together with any changes therein or additions thereto deemed advisable by the City Administrative Officer, whose execution thereof shall be conclusive evidence of the approval of any such changes or additions. The City Administrative Officer is hereby 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 and affix the seal of the City to, the final form of the Acquisition Agreement. SECTION 2. Lease of Properties from Board. The City Council further hereby approves the lease of the Properties by the City back from the Board under and pursuant to the Lease Agreement. The City Council hereby approves the Lease Agreement in substantially the form on file with the City Clerk together with any changes therein or additions thereto deemed and advisable by the City Administrative Officer, whose execution thereof shall be conclusive evidence of the approval of any such changes or additions. The City Administrative Officer is hereby 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 and affix the seal of the City to, the final form of the Lease Agreement. SECTION 3. Issuance and Sale of Bonds by Board. The City Council hereby approves the issuance of the Bonds by the Board in the aggregate principal amount of not to exceed $7,500,000 for the purpose of providing funds to acquire the Properties from the City under the Acquisition Agreement, and thereby provide funds to ,enable the City to finance its various municipal projects. The City Council hereby approves the competitive sale of the Bonds by the Board in accordance with the resolution of the governing body of the Board relating thereto. SECTION 4. Official Statement. The City Council hereby approves, and hereby authorizes the Director of Finance to deem nearly final within the meaning of Rule 15c2 -12 of the Securities Exchange Act of 1934, the .preliminary Official Statement describing the Bonds in substantially the form submitted by the Financial Adviser and on file with -the City Clerk. Distribution of the preliminary Official Statement by the Financial Adviser to prospective bidders is hereby approved. The City Council hereby authorizes the distribution of the final Official Statement by the winning bidder. SECTION 5. Official Actions. The City Administrative Officer, 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 site leases, assignments, certificates, requisitions, agreements, notices, consents, 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 pursuant to this Ordinance. Whenever in this Ordinance 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 of such officer shall be absent or unavailable. SECTION 6. Effective Date. This Ordinance shall become effective thirty(30) days from and after the date of its final passage. This Ordinance shall be subject to referendum pursuant to and as provided in Section 54241 of the Government Code of the State of California and the Ordinance 1297 Page 3 laws of the State of California. The City Clerk shall certify to the adoption of this Ordinance, and shall cause this Ordinance to be published as required by Section 602 of the City Charter. On motion of Council Member Smith , seconded by Council Member Williams and on the following roll call vote: AYES: Council Members Smith, Roalman, Romero, Williams,. Mayor Settle NOES: None ABSENT: None the foregoing Ordinance was passed to print this _16 day Of' April,' 1996. Mayor, Allen Settle by Asst. City Clerk Kim Condon APPROVED AS TO FORM: Ordinance No. 1297 (1996 Series) FINALLY PASSED this 7th day of May , 1996, on motion of Council Member Smith , seconded by Council Member Roalman , and on the following roll call vote: AYES: Council Members Smith, Roalman, Romero, Williams, and Mayor Settle NOES: None ABSENT: None Mayor Allen K. Settle A Trr1M0T.