The URL can be used to link to this page

Home My WebLink About11-079 CC Resolution RESOLUTION NO. 11-79 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE FORM AND AUTHORIZING THE EXECUTION OF CERTAIN LEASE FINANCING DOCUMENTS IN CONNECTION WITH THE REFUNDING OF THE CITY'S CERTIFICATES OF PARTICIPATION (2001 CAPITAL IMPROVEMENT FINANCING PROJECT) AND THE CITY'S CERTIFICATES OF PARTICIPATION (2008 TEMECULA CIVIC CENTER FINANCING PROJECT), AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The City, working together with Temecula Public Financing Authority (the "Authority"), has heretofore caused the execution and delivery of (a) the $6,465,000 Certificates of Participation (2001 Capital Improvement Financing Project) (the "2001 Certificates") evidencing direct, undivided fractional interests of the owners thereof in installment payments to be made by the City as the purchase price for certain property pursuant to an installment sale agreement with the Authority, to finance and refinance the construction of various community recreation facilities, and (b) the $24,535,000 Certificates of Participation (2008 Temecula Civic Center Financing Project) (the "2008 Certificates") evidencing direct, undivided fractional interests of the owners thereof in lease payments to be made by the City as the rental for certain property pursuant to a lease agreement with the Authority to finance the construction of the Temecula Civic Center. Section 2. The 2001 Certificates are currently outstanding in the principal amount of $3,860,000, and the 2008 Certificates are currently outstanding in the principal amount of $23,210,000. Section 3. The City has determined at this time, due to prevailing interest rates in the municipal bond market and for other reasons, to refinance its obligations with respect to the 2001 Certificates and the 2008 Certificates. Section 4. It is in the public interest and for the public benefit that the City authorize and direct execution of the Lease Agreement (hereinafter defined) and certain other documents in connection therewith. Section 5. The documents below specified have been filed with the City and the members of the City Council, with the aid of its staff, have reviewed said documents. R:/Resos 2011/Resos 11-79 1 NOW, THEREFORE, it is hereby DECLARED and ORDERED, as follows: Section 6. The City Council hereby approves the refinancing of the 2001 Certificates and the 2008 Certificates. Section 7. The below-enumerated documents be and are hereby approved, and the Mayor, the City Manager or the Assistant City Manager or the designee of any such official, is hereby authorized and directed to execute said documents, with such changes, insertions and omissions as may be approved by such official, the execution thereof to be conclusive evidence of such approval, and the City Clerk is hereby authorized and directed to attest to such official's signature: A. A site and facility lease, between the City, as lessor, and the Authority, as lessee (the "Site and Facility Lease"), pursuant to which the City will lease certain existing real property and the improvements thereon (the "Property") to the Authority. B. A lease agreement, by and between the Authority, as lessor, and the City, as lessee (the "Lease Agreement"), pursuant to which the Authority will lease the Property back to the City, so long as the total principal amount of the Lease Agreement does not exceed $30,000,000, and so long as the lease payments to be made by the City under the Lease Agreement results in net present value savings as compared to the lease payments with respect to the 2001 Certificates and the 2008 Certificates of at least 5°/a on a combined basis. C. A letter agreement for purchase between Compass Mortgage Corporation and the City, whereby Compass Mortgage Corporation agrees to acquire the rights of the Authority to the lease payments to be made by the City under the Lease Agreement and the rights of the Authority under the Site and Facility Lease D. A termination agreement, by and among the City, U.S. Bank National Association, as Trustee for the 2008 Certificates (the "2008 Trustee") and the Authority, whereby the City, the Authority and the 2008 Trustee agree to terminate the documents relating to the 2008 Certificates. Section 8. The Mayor, the City Manager, the Assistant City Manager, the Director of Finance, the City Clerk, and all other appropriate officials of the City are hereby authorized and directed to execute such other agreements, documents and certificates and to take such other actions as may be necessary to effect the purposes of this resolution and the financing herein authorized. Section 9. This Resolution shall take effect upon its adoption by this City Council. R:/Resos 2011/Resos 11-79 2 PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 1 st day of November, 2011. Ron Roberts, Mayor ATTEST: LtJ Susan . Jone MMC ity Cle k [S EAL] t R:/Resos 2011/Resos 11-79 3 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. 11-79 was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 1 st day of November, 2011, by the following vote: AYES: 5 COUNCIL MEMBERS: Comerchero, Edwards, Naggar, Washington, Roberts NOES: 0 COUNCIL MEMBERS: None ABSENT: 0 COUNCIL MEMBERS: None ABSTAIN: 0 COUNCIL MEMBERS: None � � Susan W. Jones, MMC City Clerk R:/Resos 2011/Resos 11-79 4