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
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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.
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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
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Tommye Uribbins, Assistant City Clerk
City of Diamond Bar
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