HomeMy WebLinkAboutCity Council Resolution 91-42.1110017-29 IHHW:BDQ:rhc 08/17/92
CITY OF SARATOGA
RESOLUTION NO. 91-42.1
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA
AUTHORIZING AND DIRECTING THE PREPARATION AND
EXECUTION OF CERTAIN LEASE FINANCING DOCUMENTS,
AUTHORIZING THE PREPARATION AND DISTRIBUTION OF A
PRELIMINARY OFFICIAL STATEMENT IN CONNECTION WITH THE
OFFERING AND SALg OF CERTIFICATES OF PARTICIPATION
RELATING THERETO, AND AUTHORIZING AND DIRECTING
CERTAIN ACTIONS WITH RESPECT THERETO
RESOLVED, by the City Council of the City of Saratoga, California (the "City"), as
follows:
WHEREAS, the City, working together with the ABAG Finance Corporation (the
"Co ration") and certain other cities, has heretofore caused Certificates of Participation (ABAG
~Series A) to be executed and delivered in the aggregate principal amount of $13,975,000,
$2,255,000 of which was allocable to the City (the "Prior Certificates");
WHEREAS, the proceeds of the Prior Certificates were used to finance construction of
various capital improvements (the "ProjectS;
WHEREAS, the City, workin tol~ether with the Corporation and the Cities of Santa Cruz
and South Gate (collectively, the "~arucipants'), proposes. to refinance the Project, as more
particularly described in the hereinafier defined Lease Agreement, and it is in the public interest and
for the public benefit that the City authorize and direct execution of the Lease Agreement and
certain other financing d~ts in connection therewith;
WHEREAS, Kelling, Northcross & Nobriga, Inc., financial advisor to the City, has been
directed to prepare a reliminary official statement containing information material to the offering
and sale of the 1992 ~'~cates descri~ below; and
WHEREAS, the documents below specified shall be filed with the City and the members of
the City Council, with the aid of its staff, shall review said documents;
NOW, THEREFORE, it is hereby ORDERED and DETERMINED, as follows:
$ection 1. Certificates of Participation (ABAG XXVI, Series A) (the "1992 Certificates")
are hereby authorized to be executed and delivered pursuant to the provisions of the Trust
Agreement, as hereinafter defined; provided, however, the payments of principal and interest with
respect to the 1992 Certificates attributable to the City shall create a present value savings in
comparison to the payments of principal and interest with respea to the Prior Certificates of at least
2.5%.
Section 2. The below-enumerated documents be and ate hereby approved, and the Mayor,
the City Manager or the Finance Director is hereby authorized and directed to execute said
documents, with such changes, insertions and omissions as may be approvcd by such official, and
the City Oerk is hereby authorized and directed to attest to such official' s signature:
(a) a termination agreement, by and among the Corporation, the City and Seattle-First
National Bank, as trustee for the Prior Certificates, relating to the termination of the lease
agreement relating w the Prior Certificates;
(b) a site and facility lease, relating to the Project, by and between the City, as lessor, and
the Corporation, as lessee;
(c) a lease agreement, relating to the Project, by and between the Corporation, as lessor,
and the City, as lessee (the "Luse Agreement");
(d) a trust agreement., by and among the Corporation, the City and Seattle-First National
Bank, as trustee (the "Trust Agreement"), relating to the financing, and the execution and delivery
of the 1992 Certificates;
(e) an escrow trust and deposit agreement, by and between the City and Seattle-First
National Bank, as trustee for the Prior Certificates and as escrow bank, pursuant to which the Prior
Certificates will be clefeased; and
(f) a purchase agreement, by and between the underwriter to be selected (the
"Underwriter") and the Participants relating to the purchase by the Underwriter of the 1992
Certificates, so long as the Underwriter's discount does not exceed 1.5%, exclusive of any original
issue discount which does not represent compensation to the Underwriter.
Section .~. The City hereby approves the preparation of a Preliminary Official Statement
describing the financing, wgether with any changes therein or additions thereto deemed advisable
by the Mayor, the City Manger or the Finance Director. The City authorizes and directs the
Finance Director, on behalf of the City, to deem "final" 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 Underwriter, on behalf of the City, is authorized and directed to cause the
Preliminary Official Statement to be distributed to such investors and other persons as may be
interested in purchasing the 1992 Certificates therein offered for sale if, in its judgment, such
distribution would enhance the markcling of the 1992 Certificates.
Section .~. The Mayor, the City Manager or the Finance Director is authorized and directed
to cause the P~eliminary 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 1992 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 1992 Certificates, true
and correct in all material respects and that the Final Official Statement did not, on the date of sale
of the 1992 Certificates, and does not, as of the date of delivery of the 1992 Cerlificates, 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 the light of the circumstances under which it was made. The Mayor, the City
Manager or the Finance Director 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, the City Manager or the Finance Director 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 6. The Final Official Statement, when prepared, is approved for distribution in
connection with the offering and sale of the 1992 Certificates.
Section 7. The Mayor, the City Manager, the Finance Director, 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 authorize.
Secn'on 8. This Resolution shall take effect upon its adoption by this City Council.
I, the undersigned City Clerk of the City of Saratoga, hereb certify that the foregoing is a
full, true and correct copy of a resolution duly ado ted by the City ~uncil of the City at a meeting
thereof on the 8th day of September, 1992, by the ~o~llowing vote of the members thereof:
AYES, and in favor thereof: Council Members Burger, Kohler, Monia, Tucker and
Mayor Anderson
NOES: Council Members - None
ABSENT: Council Members None
May~r' " "'
ATTEST: