2009-20 r RESOLUTION NO. 2009-20
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAND TERRACE AUTHORIZING PROCEEDINGS TO
REFUND OUTSTANDING 1997 CERTIFICATES OF
PARTICIPATION AND APPROVING RELATED DOCUMENTS
AND ACTIONS
WHEREAS, in order to refinance obligations issued by the City of Grand Terrace
(the "City") and the City of Grand Terrace Public Financing Authority (the "Authority")
have previously entered into a Lease Agreement dated as of August 1, 1997 (the "1997
Lease"); and
WHEREAS, the City's lease payments under the 1997 Lease (the "1997 Lease
Payments") are evidenced by City of Grand Terrace Refunding - Certificates of
Participation, Issue of 1997 which have been executed and delivered in the aggregate
principal amount of$3,730,000 (the "1997 Certificates"); and
WHEREAS, the City Council wishes at this time to approve proceedings to
refinance-the 1997 Certificates and thereby realize interest rate savings as well as the
reduction or elimination of certain other costs, and to approve related documents and
actions;
- NOW, THEREFORE; IT IS HEREBY RESOLVED by the City Council of the City
of Grand Terrace as follows:
Section 1. Approval of Refinancing Proceedings. The City Council hereby
approves the refinancing of the 1997 Certificates and the related 1997 Lease Payments.
To that end, the City Council hereby approves each of.the following agreements in
substantially the respective forms on file with the City'Clerk together with any changes
therein or additions thereto deemed advisable by the Acting City Manager, and the
execution thereof by the Acting City Manager shall be conclusive evidence of such
approval:
• Termination Agreement between the City, the Authority and U.S. Bank
National Association, as trustee for the 1997 Certificates (the "1997
Trustee"), whereby the City and the Authority agree to terminate the
1997 Lease and the related Assignment Agreement.
• Lease Agreement between the City and Municipal Finance
Corporation (the "Corporation"), whereby the City leases to the
Corporation the real-property which has been leased under the 1997
Lease in consideration of the agreement by the Corporation to provide
sufficient funds to refinance the 1997 Lease and pay related financing
costs, and the Corporation leases such real property back to the City
in consideration of the payment of semiannual lease payments by the
City as rental for such real property.
i Irrevocable Refundinq Instructions given by the City to the 1997
- Trustee, whereby the 1997 Trustee agrees to establish an irrevocable
escrow fund to be held and invested for the purpose of paying the
principal, interest and prepayment premium represented by the 1997
Certificates, and to prepay the 1997 Certificates in full on the first
available prepayment date.
The Acting City Manager is authorized and directed for and in the name and on
behalf of the City to execute and the City Clerk is hereby authorized and directed to
attest the final form of each of the foregoing documents.
Section 2. Material Terms of Lease Agreement. The Lease Agreement shall
be for 'a term not in excess of the original term of the 1997 Lease, the aggregate
principal amount of the lease--payments shall not exceed $2,300,000 and the interest
components of the lease payments thereunder shall be computed at an interest rate of
4.70% per annum.
Section 3. Official Actions. The Acting 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 agreements and documents
approved under 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 is absent or
unavailable.
Section 4. Effective Date. This Resolution shall take effect from and after the
date of its passage.and adoption.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Grand Terrace on the 23`d day of June, 2009, by the following called vote:
Mayor ofie City of Grand Terrace
Attest:
City Clerk of the City of Grand Terrace
�r
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I; BRENDA MESA, City Clerk of the City of Grand Terrace, do hereby certify that
�. Resolution No. 2009- 20 was introduced and adopted at a regular meeting of the City
Council of the City of Grand Terrace held on the 23rd day of June, 2008, by the following
vote:
AYES: Councilmembers Cortes, Miller and Stanckiewitz; Mayor Ferre
NOES: None
ABSENT Mayor Pro Tem Garcia
ABSTAIN: None
Brenda Mesa, City Clerk
Ap oved ja t form:
City Attorney
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