2001-012 Hall Property RESOLUTION NO. 01-12
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ENCINITAS AUTHORIZING PROCEEDINGS AND
AGREEMENTS RELATING TO THE FINANCING OF THE
ACQUISITION OF LAND FOR PUBLIC USES, APPROVING
ISSUANCE AND SALE OF BONDS BY THE ENCINITAS
PUBLIC FINANCING AUTHORITY, APPROVING AN
OFFICIAL STATEMENT AND AUTHORIZING OFFICIAL
ACTIONS
WHEREAS, the Encinitas Public Financing Authority (the "Authority") is a joint
exercise of powers authority formed pursuant to a Joint Exercise of Powers Agreement originally
executed by and among the City of Encinitas (the "City"), Cardiff Sanitation District, Encinitas Fire
Protection District, Encinitas Sanitary District, and S an Dieguito Water District, and authorized under
said Agreement and under the laws of the State of California to finance the acquisition and
construction of public capital improvements for the City; and
WHEREAS, the City has requested that the Authority issue its revenue bonds for the
purpose of providing funds to enable the City to finance the acquisition costs of a parcel to be used
for public uses (the "Project"); and
WHEREAS, to provide such financing for the Project the Authority proposes to
issue its revenue bonds in an aggregate original principal amount of not to exceed $25,000,000 (the
"Bonds") under the provisions of Article 4 (commencing with Section 6584) of Chapter 5 of Division
7 of Title 1 of the Government Code of the State of California (the "Act"), which are proposed to be
payable from lease payments to be paid to the Authority by the City pursuant to a lease agreement
relating to the Project (the "Lease Agreement"); and
WHEREAS, the proceeds of the Bonds deposited in the Project Fund will be applied
by the Authority and the City for the acquisition/construction and installation of the Project pursuant
to an Agency Agreement between the Authority and the City; and
WHEREAS, the Authority has determined that the Bonds should be offered for sale
on a competitive basis and has presented a form of notice of sale and a proposed form of an Official
Statement describing the Bonds, to be used in connection with the marketing thereof; and
WHEREAS, the City Council has previously adopted an Ordinance approving the
lease purchase of the Project, and the City Council has determined that it should give its final
approval to the transactions described herein and the final form of the agreements and documents
relating thereto;
WHEREAS, the City Council has conducted a noticed public hearing pursuant to
Section 6586.5 of the California Government Code and published notice was given in accordance
with the terms of the Government Code;
NOW THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED
that the City Council of the City of Encinitas as follows:
Section 1. Findings and Determinations. The City Council finds and determines that
it is in the prudent management of the fiscal affairs of the City that the proceeds to be deposited in
the Project Fund will be used for the acquisition of the Project.
Pursuant to the Act, the City Council hereby finds that the issuance of the Bonds by
the Authority will result in savings in effective interest rates, underwriting costs and bond insurance
costs and thereby result in significant public benefits within Section 6586 Ofthe Act.
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Section 2. Approval of Bonds. The City Council hereby approves of the issuance of
the Bonds by the Authority under and pursuant to the Act provided that the maximum aggregate
principal amount of the Bonds shall not exceed $25,000,000.
Section 3. Approval of Financing Documents. The City Council hereby approves
each of the following documents in substantially the respective forms on file with the City Clerk,
together with such additions thereto and changes therein as the Bond Counsel shall deem necessary,
desirable or appropriate, the execution of which by the Mayor, the Deputy Mayor, the City Manager
or the Financial Services Manager shall be conclusive evidence of the approval of any such additions
and changes.
(a) the Lease Agreement relating to the lease purchase of the Project by the City
from the Authority;
(b) the Agency Agreement, by and between the City and the Authority; and
(c) the Notice of Intention to Sell Securities and Official Notice Inviting Bids; and
The Mayor, the Deputy Mayor, the City Manager or the Financial Services Manager
is hereby authorized and directed to execute, and the City Clerk is hereby authorized and directed to
attest and affix the seal of the City to, the final forms of each of the above-mentioned documents for
and in the name and on behalf of the City.
Section 4. Sale of Bonds. The City Council hereby approves the sale of the Bonds
by the Authority by competitive sale; provided, that the net interest cost for the Bonds shall not be
more than 6.00% and the rate of interest to be represented by any single maturity of the Bonds shall
not exceed 6.25% per annum.
Section 5. Official Statement; Continuing Disclosure. The City Council approves the
preparation of, and hereby authorizes the City Manager or the Financial Services Manager to deem
final within the meaning of Rule 15c2-12 of the Securities and Exchange Commission except for
permitted omissions, a preliminary form of Official Statement describing the Bonds. The City
Manager or the Financial Services Manager is hereby authorized to execute the final Official
Statement in the name and on behalf of the City, including any modifications resulting from additions
thereto and changes therein as the City Attorney shall deem necessary, desirable or appropriate, with
the execution of the final Official Statement by the City Manager or the Financial Services Manager
to be conclusive evidence of the approval of any such additions and changes. The City Council has
reviewed and approved the Continuing Disclosure Agreement and the City Manager or the Financial
Services Manager is further authorized to sign the Continuing Disclosure Agreement on behalf of the
City in such form as ma be approved by the officer executing the same.
Section 6. Official Actions. The Mayor, the Deputy Mayor, the City Manager, the
Financail Services Manager, the City Clerk and any and all other officers of the City are hereby
authorized and directed, for and in the name and on behalf of the City, to do any and all things and
take any and all actions, including obtaining a rating on the Bonds and/or a municipal bond insurance
policy and a debt reserve fund surety bond, and including execution and delivery of any and all
assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance,
warrants and other documents, which they, or any of them, may deem necessary or advisable in order
to consummate the transactions as described herein in connection with the issuance and sale of the
Bonds.
Section 7. Effective Date. This Resolution shall take effect from and after the date
of its passage and adoption.
ADOPTED this 21st day of March, 2001. __~- ~ ~i~~
Mayor of the City of Enc
ATTEST:
City Clerk of the City of Encinitas
CERTIFICATION
I, Deborah Cervone, City Clerk of the City of Encinitas do hereby certify that the
foregoing resolution was adopted by the City Council of the City of Encinitas at a regular meeting
thereof held on the 21 '~ day of March, 2001, by the following vote of the Council:
AYES: Bond, Guerin, Holz, Houlihan, Stocks.
NOES: None.
ABSENT: None.
ABSTAINED: None.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal
of the City of Encinitas this 21 st day of March, 2001.
City Clerk of the City of Encinitas
(SEAL)