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HomeMy WebLinkAboutr 10561 Financing Authority Lease Revenue Bonds RESOLUTION NO. 10561 (2014 SERIES) i A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF SAN LUIS OBISPO PUBLIC FINANCING AUTHORITY LEASE: REVENUE BONDS; THE EXECUTION AND DELIVERY OF A CONTINUING DISCLOSURE CERTIFICATE, A SITE LEASE AND A FACILITY LEASE; THE PREPARATION AND DISTR113UTION OF A PRELIiNIINARY AND A FINAL OFFICIAL STATEMENT; AND CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH WHEREAS, the City of San Luis Obispo (the "City") proposes to finance the expansion of the Los Osos Valley road interchange (the "Project"); and WHEREAS, in order to assist in financing the Project, it is proposed that the City lease the real property located at 842 Palm Street, 1280 Laurel Lane and 1395 Madonna Road; San Luis Obispo, and improvements thereon (the "Leased Property') to the Authority pursuant to a Site Lease (the "Site Lease") and lease the Leased Property back from the Authority pursuant to a Facility Lease (the Facility Lease"): and WHEREAS, it is further proposed that the Authority issue its San Luis Obispo Public Financing Authority Lease Revenue Bonds in the aggregate principal amount of not to exceed $8,305,000 (the 'Bonds"), pursuant to Article 4 of Chapter 5 of Division 7 of Title 1 of the California Government Code (the "Code"), for the purpose of making a payment to the City pursuant to the Site Lease to finance the Project, fiord a debt service reserve account. if deemed necessary, and pay costs of issuance; and WI-IEREAS, it is further proposed that the Authority issue the Bonds pursuant to a trust agreement (the "Trust Agreement`) by and between the Authority and The Bank of New York Mellon Trust Company, N.A., as trustee (the "Trustee"),- and WHEREAS, in order to take advantage of the bond issuance options under the Code to achieve debt service savings for the Authority and maximize benefits to the City, the City Council deems it necessary and desirable to authorize the sale of the Bonds by a competitive sale to the lowest true interest cost bidder: and WHEREAS, the City heretofore held a public hearing on the proposed financing following publication of the notice of the public hearing at least five days prior thereto in a newspaper of general circulation in the City; and WHEREAS, the Authority has prepared an official statement relating to the Bonds (the "Official Statement") for use in preliminary form in connection with the marketing of the Bonds to potential purchasers and for use in final form for distribution to the actual purchasers thereof. NOIY, THEREFORE, BE IT RESOLVED, by the Council as follows: SECTION 1. The foregoing recitals are true and correct and the City Council hereby so Finds and determines. I i R 10561 Resolution No. 10561 2014 Series Page 2 SECTION 2. In accordance with Section 6586.5 of the California Government Code. the Council hereby finds and determines that the proposed financing of said proposed public capital improvements will have one or more of the following public benefits to the citizens of the City, and that such benefits will be significant: (a) demonstrable savings in effective interest rate, bond preparation, bond underwriting or bond issuance costs.- (b) osts;(b) significant reductions in effective user charges levied by the City; (c) employment benefits from undertaking the proposed public capital improvements in a timely fashion: and (d) more efficient delivery of local agency services to residential and commercial development. SECTION 3. Accordingly, the Council hereby approves the financing of the public capital improvements proposed to be financed with the proceeds of the Bonds. SECTION 4. The Council hereby approves the issuance of the Bonds by the Authority in an aggregate principal amount not to exceed $8,305,000 to finance the Project, including reserve fund requirements if deemed necessary, costs of issuance and related fees and expenses; provided. however that such Bonds shall be sold on or before December 31, 2014, and shall mature no later than October 1, 2044. The Director of Finance and Information Technology of the City is hereby directed to perform the duties imposed upon him by the provisions of the financing documents, including the Trust Agreement, the Site Lease and the Facilities Lease, and is hereby authorized to act as treasurer of the Authority and to hold the funds and accounts in trust as a fiduciary for the owners of the Bonds as set forth in said documents. SECTION 5. The City Council authorizes the sale of the Bonds through a competitive sale to the lowest true interest cost bidder, subject to the terms and conditions of the Official Notice of Sale describing the Bonds. The true interest cost of the Bonds shall not be in excess of six percent (6%), and the Bonds shall otherwise conform to the limitations specified herein. The proposed forms of the Official Notice of Sale and the Notice to Sell Bonds in substantially the forms on file with the City Clerk are hereby approved. Public Financial Management, Inc., as financial advisor (the "Financial Advisor'), is hereby authorized and directed to cause to be delivered to prospective bidders for the Bonds copies of said Official Notice of Sale. in substantially said form with such additions, corrections and revisions as may be determined to be necessary or desirable by the Director of Finance and Information Technology of the City, the City Manager, or their designees (each, an "Authorized Officer'), the Financial Advisor, or the City's bond counsel. The true interest cost limitations described in this Section, and the terms of the Bonds described in Section 2, shall apply to such competitive sale. SECTION 6. The Site Lease, in substantially the form submitted to this meeting; is hereby approved. Any Authorized Officer, each acting alone, is hereby authorized and directed, for and on behalf of the City, to execute and deliver the Site Lease in substantially said form. with such changes therein as any Authorized Officer, with the advice of the City Attorney and Resolution No. 10561 (2014 Series) Page 3 the City's bond counsel, may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. SECTION 7. The Facility Lease, in substantially the form submitted to this meeting, is hereby approved. Any Authorized Officer, each acting alone, is hereby authorized and directed, for and on behalf of the City, to execute and deliver the Facility Lease in substantially said form, with such changes therein as any Authorized Officer, with the advice of the City Attorney and the City's bond counsel, may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. SECTION 8. The form of Continuing Disclosure Certificate presented at this meeting is hereby approved. Any Authorized Officer, each acting alone, is hereby authorized and directed, (or and on behalf of the City to execute and deliver the Continuing Disclosure Certificate in substantially the form presented at this meeting, with such changes therein as the officer executing the same may, with the advice of the City Attorney and the City's bond counsel, require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. SECTION 9. The preliminary form of the Official Statement to be used in connection with the offer and sale of the Bonds is hereby adopted and approved, and any Authorized Officer, each acting alone, is hereby authorized to execute and deliver a certificate deeming the preliminary form of the Official Statement (including, if applicable, as modified by any amendment or supplement thereto) "final' within the meaning of Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 and to execute and deliver the same in final form, for and on behalf of the Authority, with such changes therein as the officer executing the same, with the advice of the City Attorney, may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. SECTION 10. The Financial Advisor is hereby authorized and directed to cause to be supplied to prospective bidders for the Bonds copies of a preliminary Official Statement in such form, and to supply the winning bidder of the Bonds with copies of a final Official Statement, completed to include, among other things the interest rate or rates and final sale information. Any of the Authorized Officers is hereby authorized and directed to execute a certificate confirming that the preliminary Official Statement has been "deemed final" by the City for purposes of Rule 1 5c2-12. SECTION 11. 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, including all things and documents that may be necessary to provide insurance or other credit enhancement with respect to the Bonds, which they may deem necessary or advisable in order to consummate the issuance, sale and delivery of the Bonds or related documents and otherwise to effectuate the purposes of this resolution. SECTION 12. This resolution shall take effect immediately. Resolution No. 10561 (2014 Series) Page 4 Upon motion of Council Member Ashbaugh, seconded by Vice Mayor Christianson. and on the following roll call vote: AYES: Council Members Ashbaugh, Carpenter and Smith; Vice Mayor Christianson and Mayor Marx NOES: None ABSENT: None The foregoing resolution was adopted this 16th day of September 2014. Mayor Janarx i i ST:� .L nthoti 4'. N jia, M APPROVED AS FORM ristine Dietrick Citi Attorney CITY CLERK'S CERTIFICATE I, the undersigned, duly appointed and qualified City Clerk of the City of San Luis Obispo (the "City'), certify that attached is a full, true and correct copy of Resolution No. lo75t^1 . adopted September 16, 2014, during a meeting of the City Council of the City. Such meeting was duly and legally held at the regular meeting place of the City Council. All of the members of said council had due notice of such meeting and a majority thereof was present at such meeting. 1 have carefully compared the same with the original minutes of said meeting on file and of record in my office, and the foregoing is a full, true and correct copy of such resolution adopted at said meeting and entered in said minutes. Said resolution has not been amended, modified or rescinded since the date of its adoption, and the same is now in full force and effect. Dated: oly By: -h„� i C1= OIISUSA:758876382.5