HomeMy WebLinkAbout18-59 CC Resolution RESOLUTION NO. 18-59
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA APPROVING AN AMENDMENT TO THE
LEASE AGREEMENT RELATING TO THE REFUNDING OF
THE CITY'S CERTIFICATES OF PARTICIPATION (2001
CAPITAL IMPROVEMENT FINANCING PROJECT) AND
CERTIFICATES OF PARTICIPATION (2008 TEMECULA
CIVIC CENTER FINANCING PROJECT), TO REDUCE THE
INTEREST RATE AND TO REVISE THE PREPAYMENT
PROVISIONS, AND APPROVING OFFICIAL ACTIONS
THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE
AS FOLLOWS:
WHEREAS, the City entered into transactions with the Temecula Public Financing
Authority (the "Authority") in 2011 to refund the City's Certificates of Participation (2001
Capital Improvement Financing Project) and the City's Certificates of Participation (2008
Temecula Civic Center Financing Project);
WHEREAS, in connection with the financing of the Project, the City entered into
the Lease Agreement, with the original principal amount of$26,835,000;
WHEREAS, lease payments made by the City under the Lease Agreement were
assigned by the Authority to Compass Mortgage Corporation, as purchaser (the
"Purchaser");
WHEREAS; pursuant to the terms of the Lease Agreement, interest payable with
respect to the principal component of the lease payments under the Lease Agreement, is
paid at the rate of 3.750% per annum;
WHEREAS, the City has requested and the Purchaser has agreed to reduce the
rate of interest payable under the Lease Agreement to 3.420% per annum;
WHEREAS, the City has requested the deletion of the "make whole" prepayment
provision and the Purchaser has agreed so long as the optional prepayment provision
excludes prepayment until December 1, 2026; and
WHEREAS, the City has requested, and the Assignee has agreed, to make certain
revisions to the Lease Agreement to match provisions in a new lease between the
Authority and the City, also assigned to the Assignee;
NOW, THEREFORE, it is hereby DECLARED and ORDERED, as follows:
Section 1. Findings and Determinations. The Council hereby finds and determines
that the foregoing recitals are true and correct.
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Section 2. Approval of First Amendment to Lease Agreement. The Council hereby
approves a first amendment to the Lease Agreement, in the form on file with the City Clerk
(the "First Amendment"), together with such additions thereto and changes therein as the
Mayor or the City Manager (the "Designated Officers") shall deem necessary, desirable
or appropriate, the execution of which shall be conclusive evidence of the approval of any
such additions and changes. The Designated Officers, each acting alone, are hereby
authorized and directed to execute, and the City is hereby authorized and directed to
attest to, the final form of the First Amendment for and in the name and on behalf of the
City. The Council hereby authorizes the delivery and performance of the First
Amendment.
Section 3. Official Actions. The Mayor, the City Manager, the Finance Director, 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, 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 documents approved pursuant
to 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 shall be absent or unavailable.
Section 4. Effective Date. This Resolution shall take effect upon its adoption by the
Council.
Section 5. The City Clerk shall certify adoption of the resolution.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of
Temecula this 14th day of August, 2018.
t,.
Matt Rahn, Mayor
ATTE
Randi Jo-M7-City Clerk
[SEAL]
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Randi Johl, City Clerk of the City of Temecula, do hereby certify that the
foregoing Resolution No. 18-59 was duly and regularly adopted by the City Council of the
City of Temecula at a meeting thereof held on the 14th day of August, 2018, by the
following vote:
AYES: 4 COUNCIL MEMBERS: Comerchero, Edwards, Stewart,
Rahn
NOES: 0 COUNCIL MEMBERS: None
ABSTAIN: 0 COUNCIL MEMBERS: None
ABSENT: 1 COUNCIL MEMBERS: Naggar
Randi Johl, City Clerk
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