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HomeMy WebLinkAboutRES 2002-77RESOLUTION NO. 2002-77 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR AUTHORIZING THE CREATION OF THE CITY OF DIAMOND BAR PUBLIC FINANCING AUTHORITY; APPROVING A SITE LEASE, A LEASE AGREEMENT AND A BOND PURCHASE AGREEMENT; AUTHORIZING THE NEGOTIATION AND EXECUTION OF A REIMBURSEMENT AGREEMENT; AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH WHEREAS, the City of Diamond Bar (the "City") and the Redevelopment Agency of the City of Diamond Bar (the "Agency") desires to enter into a Joint Exercise of Powers Agreement establishing the City of Diamond Bar Public Financing Authority (the "Authority") for the purpose, among other things, of issuing its bonds to be used to provide financing and refinancing for public capital improvements of the City and the Agency; and WHEREAS, upon its creation, the Authority will authorize the issuance of its Variable Rate Lease Revenue Bonds, 2002 Series A (Community/Senior Center Project) (the `Bonds") to provide for the financing of a community/senior center project (the "Project") and other public capital improvements within the City; WHEREAS, the City will lease to the Authority its fee interest in certain real property designated for the Project (the "Site") pursuant to a Site Lease (the "Site Lease"); and WHEREAS, the Authority, concurrently with the execution of the Site Lease, will lease the Site and improvements to be constructed thereon, including the Project, back to the City pursuant to a Lease Agreement (the "Lease"), in consideration for base rental payments equal to the principal and interest coming due on the Bonds; and WHEREAS, the Bonds are to be issued pursuant to the Marks -Roos Local Bond Pooling Act of 1985 (the "Act"), constituting Article 4 (commencing with Section 6584 of Chapter 5 of Division 7 of Title 1 of the Goverment Code of the State of California; and WHEREAS, the City has heretofore held a public hearing pursuant to Section 6586.5 of the Act; and WHEREAS, the City Council has reviewed the documentation related to the issuance of the Bonds which documentation is on file with the City Clerk of the City of Diamond Bar; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF DIAMOND BAR, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The City hereby finds and determines that the foregoing recitals are true and correct. Section 2. The City hereby approves the creation of the Authority, its membership therein and the Joint Powers Agreement related thereto, substantially in the form on file with the City Clerk and presented to the City Council at this meeting. Any one of the Mayor, the City 452489993.DOC 2002--77 Manager or the City Clerk of the City, or any designee of any of them (each, an "Authorized Officer" and collectively, the "Authorized Officers"), is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Joint Powers Agreement, with such insertions and changes as may be approved by the Authorized Officer executing the same, subject to the provisions of this Resolution, such approval to be conclusively evidenced by such execution and delivery. Section 3_ The City hereby finds and determines that (i) the Project is to be located within the boundaries of the City and (ii) there are significant public benefits arising from the Authority's issuance of the Bonds to finance the Project, including but not limited to employment benefits from undertaking the acquisition and construction of the Project in a timely fashion, as contemplated by Section 6586 of the Act. Sggfiffl 4• The Site Lease, in substantially the form on file with the City Clerk of the City and presented to the City Council at this meeting, is hereby approved. Any one of the Authorized Officers is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Site Lease, with such insertions and changes as may be approved by the Authorized Officer executing the same, subject to the provisions of this Resolution, such approval to be conclusively evidenced by such execution and delivery. Section 5. The Lease Agreement, in substantially the form on file with the City Clerk of the City and presented to the City Council at this meeting, is hereby approved. Any one of the Authorized Officers is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Lease Agreement, with such insertions and changes as may be approved by the Authorized Officer executing the same, subject to the provisions of this Resolution, such approval to be conclusively evidenced by such execution and delivery. Section 6. The Bond Purchase Agreement, in substantially the form on file with the City Clerk of the City and presented to the City Council at this meeting, is hereby approved. Any one of the Authorized Officers is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Bond Purchase Agreement, with such insertions and changes as may be approved by the Authorized Officer executing the same,. subject to the provisions of this Resolution, such approval to be conclusively evidenced by such execution and delivery. The initial interest rate shall not exceed 2.5% and the underwriter's discount for the Bonds specified in the Bond Purchase Agreement shall not exceed 1.0%, exclusive of original issue discount. Section 7. The City Manager is hereby authorized and directed to select a letter of credit bank and, if applicable, a confirming letter of credit bank (collectively, the `Bank"), and negotiate the terms of a Reimbursement Agreement, to be prepared and entered into by and between the City and the Bank, pursuant to which the Bank will issue its irrevocable direct pay letter of credit with respect to the Bonds. Any one of the Authorized Officers is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Reimbursement Agreement, with such insertions and changes as may be approved by the Authorized Officer executing the same, subject to the provisions of this Resolution, such approval to be conclusively evidenced by such execution and delivery. 45248999 3.DOC 2 2002-77 1 Section 8. The Authorized Officers, the other officers and employees of the City, the members of the City Council, Bond Counsel and the other consultants to and agents of the City, are each hereby authorized and directed to do all things and take all actions necessary or desirable to effectuate the transaction contemplated by this Resolution, and to execute such other assignments, agreements, certificates, receipts, endorsements, orders, opinions and other documents in connection with such transactions, including, without limitation, closing documents in connection with the issuance of the Bonds are hereby ratified, approved and confirmed in every respect. Section 9. This Resolution shall become effective immediately upon adoption. PASSED, APPROVED AND ADOPTED this 19th day of November, 2002. C Wen Chang, Mayor I, TOMMYE CRIBBINS, Assistant City Clerk of the City of Diamond Bar, California do hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of Diamond Bar, California at its regular meeting held on the 19th day of November, 2002, by the following vote: AYES: COUNCIL MEMBERS: Herrera, MPT/O' Connor, M/Chang NOES: COUNCIL MEMBERS: Hu f , Z i rbe s ABSENT:. COUNCIL MEMBERS: None ABSTAINED: COUNCIL MEMBERS: None JjrrAhA Tommye Uribbins, Assistant City Clerk City of Diamond Bar 45246999 3.DOC 3 2002-77