HomeMy WebLinkAboutAgenda Report - September 20, 1995 (60)CITY OF LODI AGENDA - Loai Public Improvement Corporation
Date: September 20, 1995
Carnegie Forum Time: 7:00 p.m.
305 West Pine Street, Lodi
For information regarding this Agenda please contact:
Jennifer M. Perrin
City Clerk
Telephone: (209) 333-6702
MEETING OF THE
Public Improvement Comoration (PIC)
of the City of Lodi
A. Call to order by President Stephen J. Mann
B. Roll call to be recorded by Secretary
Res. No. 95-2 C. Approval of sale of $5 million Certificates of Participation under Small Issue
Arbitrage Financing Program
D. Adjournment
Pursuant to Section 54954.2(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.
J i er M. rrin
Sbtretary
Lodi Public Improvement Corporation
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AGENDA TITLE: Approval of Sale of $5 million Certificates of Participation under Small Issue Arbitrage
Financing Program
I MEETING DATE: September 20, 1995
PREPARED BY: Acting Finance Director
RECOMMENDED ACTION: That the L.P.I.C. adopt Resolution No. 95-2 approving
the sale of $5 million Certificates of Participation under the
Small Issue Arbitrage Financing Program to finance a number
of capital projects.
BACKGROUND INFORMATION: The 1995-97 Financial Plan and Budget expressed the need to
finance a number of capital projects over the next three years,
including the Performing Arts Facility, and Downtown
Renovation. Past financing programs included the issuance
of annual Tax Revenue Anticipation Notes (TRANS) to generate
new revenue from arbitrage earnings for capital needs. The City can issue up to $5 million per year of debt
and arbitrage on an unlimited basis. The TRAN program does not reach the allowable $5 million limit. In
addition, the TRAN is a short-term program, not a permanent solution.
In the proposed small issue arbitrage financing program the City would sell a 20 year $5 million Certificate of
Participation in each of the next three calendar years. Since it would fall under the small issue exemption, the
proceeds would be arbitraged until needed. The City would sell the City Hall and/or Police Facility to the
Lodi Public Improvement Corporation which in turn would sell it back to the City under a lease purchase
agreement. The annual lease payments would be backed by the City's general fund. These payments would
be budgeted from the 30% of the property taxes allocated to the Capital Outlay Fund as approved in the
budget policies.
John Firzgerald from Seidler -Fitzgerald Public Finance will be present to answer any questions.
FUNDING: Annual payments: Capital Outlay Fund
Vic —hie
Acting Finance Director
APPROVED:��/ ��'% t�.:�r _ 4W%�
THOMAS A. PETERS recycled paper
City Manager
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RESOLUTION NO. 95-2
RESOLUTION APPROVING, AUTHORIZING AND DIRECTING
PREPARATION AND EXECUTION OF CERTAIN LEASE FINANCING
DOCUMENTS AND AUTHORIZING AND DIRECTING CERTAIN
ACTIONS WITH RESPECT THERETO
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 Bank of America
National Trust and Savings 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 20th day of September, 1995, by the
following vote of the members thereof:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST:
Secretary
-2-
President