HomeMy WebLinkAbout01-103 CC ResolutionRESOLUTION NO. 01-103
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA AUTHORIZING AND DIRECTING EXECUTION OF
CERTAIN INSTALLMENT SALE FINANCING DOCUMENTS,
AUTHORIZING AND DIRECTING DISTRIBUTION OF A
PRELIMINARY OFFICIAL STATEMENT IN CONNECTION WITH
THE OFFERING AND SALE OF CERTIFICATES OF
PARTICIPATION RELATING THERETO, AUTHORIZING AND
DIRECTING EXECUTION OF A PURCHASE AGREEMENT AND
DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO
WHEREAS, the Temecula Community Services District (the "District"), working together
with the Temecula Public Facilities Financing Corporation, has heretofore caused Certificates of
Participation (Community Recreation Project), Series 1992 (the "Prior Certificates") to be
executed and delivered in the aggregate principal amount of $5,380,000, the proceeds of which
were used to finance the construction of a community recreation center (the "1992 Project");
WHEREAS, the obligations of the District with respect to the Prior Certificates have been
assumed by the City of Temecula (the "City") and are payable from a special tax levied by the
City for purposes of operating, maintaining and servicing public parks and recreational facilities,
recreational and community services programs, median landscaping, arterial street lights and
traffic signals throughout the City and administrative expenses incurred by the City in
connection therewith, which special tax was approved by more than 2/3 of the ballots cast in
connection therewith at an election held on March 4, 1997;
WHEREAS, the City, working together with the Temecula Public Financing Authority (the
"Authority"), proposes to refinance the 1992 Project and, therefore, to refund the Prior
Certificates, and finance the construction of a portion of certain new capital improvements
consisting of a community sports park (the "2001 Project"), and it is in the public interest and for
the public benefit that the City authorize and direct execution of the Installment Sale Agreement
(hereinafter defined) and certain other financing documents in connection therewith;
WHEREAS, a preliminary official statement containing information material to the
offering and sale of the 2001 Certificates described below (the "Preliminary Official Statement")
has been prepared; and
WHEREAS, the documents below specified have been filed with the City Clerk and the
members of the City Council, with the aid of its staff, have reviewed said documents; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Temecula as
follows:
Section 1. Certificates of Participation (2001 Capital Improvement Financing Project)
(the "2001 Certificates") are hereby authorized to be executed and delivered pursuant to the
provisions of the Trust Agreement, as hereinafter defined, to provide for the refinancing of the
1992 Project and, therefore, the refunding of the Prior Certificates, and the financing of the 2001
Project.
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Section 2. The below-enumerated documents, substantially in the form on file with the
City Clerk, be and are hereby approved and the Mayor or the City Manager, or the designee
thereof, is hereby authorized and directed to execute said documents, with such changes,
insertions and omissions deemed advisable by the City Attorney, and the City Clerk is hereby
authorized and directed to attest to such official's signature:
(a) an installment sale agreement, relating to the 1992 Project and the 2001 Project
(collectively, the "Project"), by and between the Authority, as seller, and the City, as purchaser
(the "Installment Sale Agreement"), so long as the total principal amount thereof does not
exceed $7,000,000, the maximum annual installment payments thereunder do not exceed
$600,000 and the term thereof does not exceed 20 years;
(b) a trust agreement, by and among the Authority, the City and U.S. Bank Trust National
Association, as trustee (the 'q'rust Agreement"), relating to the financing, and the execution and
delivery of the 2001 Certificates; and
(c) a purchase agreement, by and between Stone & Youngberg LLC, as underwriter (the
"Underwrite¢') and the City, relating to the purchase by the Underwriter of the 2001 Cedificates,
so long as the Underwriter's discount does not exceed 2.25% of the principal amount of the
2001 Certificates, exclusive of any original issue discount which does not represent
compensation to the Underwriter.
Section 3. The Preliminary Official Statement describing the financing, substantially in
the form on file with the City Clerk, with such changes, insertions and omissions as may be
approved by the Mayor or the City Manager, or the designee thereof, is hereby approved. The
Board authorizes and directs the Mayor or the City Manager, or the designee thereof, on behalf
of the City, to deem '~[inal" pursuant to Rule 15c2-12 under the Securities Exchange Act of 1934
(the "Rule") the Preliminary Official Statement prior to its distribution by the Underwriter.
Section 4. The Mayor or the City Manager, or the designee thereof, 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 said Final Official Statement, dated as
of the date of the sale of the 2001 Certificates, and a statement that the facts contained in the
Final 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 2001
Certificates, true and correct in all material respects and that the Final Official Statement did not,
on the date of sale of the 2001 Certificates, and does not, as of the date of delivery of the 2001
Certificates, 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 light of the circumstances under which it was made.
The Mayor or the City Manager, or the designee thereof, shall take such further actions prior to
the signing of the Final Official Statement as are deemed necessary or appropriate to verify the
accuracy thereof. The execution of the Final Official Statement, which shall include such
changes and additions thereto deemed advisable by the Mayor or the City Manager, or the
designee thereof, and such information permitted to be excluded from the Preliminary Official
Statement pursuant to the Rule, shall be conclusive evidence of the approval of the Final Official
Statement by the City.
Section 5. The Final Official Statement, when prepared, is approved for distribution in
connection with the offering and sale of the 2001 Certificates.
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Section 6. The Mayor, the City Manager, the City Clerk and all other appropriate officials
of the City are hereby authorized and directed to execute such other agreements, documents
and certificates as may be necessary to effect the purposes of this resolution and the financing
herein authorized.
Section 7. This Resolution shall take effect upon its adoption by this Board.
PASSED, APPROVED AND ADOPTED, by the City Council of the City of Temecula, at
a meeting held on the 27th day of November, 2001
ATTEST:
[SEAL]
Jeff Comercnero, Mayor
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Susan Jones, City Clerk of the City of Temecula, HEREBY DO CERTIFY that the
foregoing Resolution No. 01-103 was duly adopted at a special meeting of the City Council of
the City of Temecula on the 27th day of November, 2001, by the following roll call vote:
AYES: 4 COUNCILMEMBERS: Naggar, Roberts, Stone, Comerchero
NOES: 0 COUNCILMEMBERS: None
ABSENT: 1 COUNCILMEMBERS: Pratt
ABSTAIN: 0 COUNCILMEMBERS: None
~ City Clerk
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