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HomeMy WebLinkAboutAgenda Report - July 17, 1996 (68)CITY OF LODI 1 1 1 rC4<'IFOF�P AGENDA TITLE: Approval of Lease Financing Documents and Certain Actions with Respect Thereto MEETING DATE: July 17, 1996 PREPARED BY: Finance Director RECOMMENDED ACTION: That the Lodi Public Improvement Corporation (LPIC) adopt Resolution No. 96-1 approving the execution of lease financing documents and certain actions with respect thereto. BACKGROUND INFORMATION: The 1995-97 Financial Plan and Budget expressed the need to finance a number of capital projects over the next several years including the Performing Arts/Convention Center. Past financing programs included the issuance of annual Tax Revenue Anticipation Notes (TRANs) and $5 million Certificates of Participation (COP) under the Small Issue Arbitrage Financing Program. In the proposed COP financing, the City would sell a 20 year $10,120,000 Certificate of Participation to finance the construction of the Performing Arts/Convention Center. The City would transfer the Hutchins Street Square, the City Hall, and Police Facility to the Lodi Public Improvement Corporation which in tum would transfer it back to the City under a lease purchase agreement. An agreement would be entered into by the Old Union High School Site Foundation and the City which would require the Foundation to make a "best effort" to repay the City for the cost of the project. Both parties would be requested to recognize the commitment by the Foundation annually in the amount of the debt service schedule with the understanding that the Foundation would make a best effort to meet their responsibility based on receipts of funds from bequests and/or fund raising activities. To protect the City's interests, the Foundation would be asked to provide the City with an annual audit of its financial records by outside certified public accountants. FUNDING: Annual payments: Capital Outlay Fund Vicky McA hie Finance Director } AppwvEw- H. Diiion Flynn _ ity Manager 22028-13 JHHW:BDQ:kta LODI PUBLIC IMPROVEMENT CORPORATION RESOLUTION NO. 96-1 RESOLUTION APPROVING, AUTHORIZING AND DIRECTING PREPARATION AND EXECUTION OF CERTAIN LEASE FINANCING DOCUMENTS AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO 06/24/96 07/08/96 RESOLVED, by the Board of Directors (the "Board") of Lodi Public Improvement Corporation (the "Corporation"), as follows: WHEREAS, the City of Lodi, California (the "City"), working together with the Corporation, is proposing to proceed with a lease financing; WHEREAS, in connection therewith, the City proposes to finance the acquisition, construction and installation of certain public improvements within the geographic boundaries of the City (the "Improvements"), and it is in the public interest and for the public benefit that the Corporation authorize and direct execution of the Lease Agreement and certain other financing documents in connection therewith; WHEREAS, the documents below specified shall be filed with the Corporation and the members of the Board, with the aid of its staff, shall review said documents; NOW, THEREFORE, it is hereby ORDERED and DETERMINED, as follows: Section 1. The below -enumerated documents be and are hereby approved, and the President, the Executive Director or the Assistant Executive Director is hereby authorized and directed to execute said documents, with such changes, insertions and omissions as may be approved by such official, and the Secretary of the Corporation is hereby authorized and directed to attest to such official's signature: (a) a site and facility lease, between the City, as lessor, and the Corporation, as lessee; (b) a lease agreement, between the Corporation, as lessor, and the City, as lessee (the "Lease Agreement"); (c) an assignment agreement, by and between the Corporation and First Trust of California, National Association, as trustee, (the "Trustee"), pursuant to which the Corporation will assign certain of its rights under the Lease Agreement, including its right to receive lease payments thereunder, to the Trustee; (d) a trust agreement, by and among the Corporation, the City and the Trustee, relating to the financing and the execution and delivery of certificates of participation evidencing the direct, undivided fractional interests of the owners thereof in lease payments to be made by the City under the Lease Agreement; and (e) a purchase agreement, by and among Seidler -Fitzgerald Public Finance (A Division of The Seidler Companies Incorporated) (the "Underwriter"), the City and the Corporation, relating to the purchase by the Underwriter of the Certificates, so long as the Underwriter's discount does not exceed 2% of the principal amount of the Certificates Section 2. The President, the Executive Director, the Assistant Executive Director, the Secretary and other officials of the Corporation 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 lease financing herein authorized. Section 3. This Resolution shall take effect upon its adoption by the Board. I, the undersigned Secretary of the Lodi Public Improvement Corporation, hereby certify that the foregoing is a full, true and correct copy of a resolution duly adopted by the Board of Directors of the Corporation at a meeting thereof on the 17th day of July, 1996, by the following vote of the members thereof: AYES: Board Members: Davenport, Mann, Pennino, Sieglock and Warner (President) NOES: Board Members: None ABSTAIN: Board Members: None ABSENT: ATTEST: '1 Secretary bZ President •. CITY OFLODI Carnegie Forum . 305 West Pine Street, Lodi AGENDA - L%..ji Public Improvement Corporation Date: July 17, 1996 Time: 7:00 p.m. For information regarding this Agenda please contact: Jennifer M. Perrin City Clerk Telephone: (209) 333-6702 MEETING OF THE Public Improvement Corporation (PIC) of the City of Lodi A. Call to order by President David P. Warner B. Roil call to be recorded by Secretary Res. No. 96-1 C. Approval of execution of lease financing documents and sale of $10,120,000 Certificates of Participation (COP) D. Adjournment Pursuant to Section 64954.2(a) of the Government Code of the State of California, this agenda was posted at least 72 hours in advance of the scheduled meeting at a public place freely accessible to the public 24 hours a day. Jq*1ifer M. Perrin Secretary Lodi Public Improvement Corporation JACRYCLRKIFORMSWGNLPIC.DOC 7110198