R 4307 RESOLUTION NO. 4307
A RESOLUTION OF CITY COUNCIL OF THE CITY OF
ARROYO GRANDE APPROVING, AUTHORIZING AND
DIRECTING EXECUTION OF CERTAIN LEASE -
PURCHASE FINANCING DOCUMENTS AND
AUTHORIZING AND DIRECTING RELATED ACTIONS
WHEREAS, the City Council (the "City Council ") of the City of Arroyo Grande (the
"City "), County of San Luis Obispo, State of California, proposes to construct a new city
hall facility (the "Project ");
WHEREAS, the City, working with the Arroyo Grande Redevelopment Agency (the
"Agency ") is proposing to proceed with a lease- purchase financing in order to help to
finance the Project with a loan from the United States Department of Agriculture (the
"USDA "); and
WHEREAS, the documents listed below have been filed with the City and the Agency,
with the aid of its staff, have reviewed such documents;
NOW, THEREFORE, BE IT RESOLVED by the City Council as follows:
1. The forms of the documents listed below are hereby approved and the
Mayor, Mayor Pro Tem, the City Clerk, the City Manager the City Attorney, or an
authorized representative of sucn persons (each a "City Representative ") 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 such documents in substantially the form of
documents on file with the City, together with any additions thereto or changes therein
deemed necessary or advisable by the City Representative, upon consultation with
bond counsel, and whose execution thereof shall be conclusive evidence of approval of
any such additions or changes:
(a) the Lease - Purchase Agreement by and between the Agency and
the City;
(b) the Trust Agreement by and among the Agency, the City and the
City's Director of Financial Services, as Trust Administrator (the "Trust Administrator ")
relating to the financing, and the execution and delivery of certificates of participation
(the "Certificates of Participation ") evidencing the direct, undivided interest of the owner
thereof in the lease payments to be made by the City under the Lease Purchase
Agreement; and
(c) the RUS Bulletin 1780 -27, Form RD 1942 -47 "Loan Resolution
(Public Bodies)," as currently prescribed by the USDA,
2. The City Representative is hereby authorized and directed to accept for
the City and upon receipt by the City of an offer to purchase the Certificates of
Participation, submitted to the City by the USDA, which offer is hereby approved, so
RESOLUTION NO. 4307
PAGE 2
long as the aggregate principal amount of the Certificate of Participation does not
exceed $1,200,000. In connection with such offer, the provisions of USDA, RUS
Bulletin 1780 -27, Form RD 1942 -47 "Loan Resolution (Public Bodies "), are hereby
incorporated herein by reference.
3. The City Representatives and any duly authorized 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 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 effect the purposes of this Resolution and the
financing of the Project.
4. The City intends to execute and deliver the Certificates of Participation,
which is an "Obligation" under United States Income Tax Regulations section 1.150 -2
(the "Regulations"), in the maximum principal amount of approximately $1,200,000 to
finance all or a portion of the costs of the Project. The City Council hereby declares that
the City reasonably expects to use a portion of the proceeds of the Obligation for
reimbursement of expenditures for the Project that are paid before the date of issuance
of the Obligation. This section of this resolution shall be solely for the purpose of
complying with the provisions of the Regulations and shall not be deemed an approval
of all or any part of the Project or a commitment on the part of this Board to issue any or
all of the Obligation or otherwise provide,for financing.
5. This Resolution shall take effect from and after the date of its passage and
adoption.
On motion of Council Member Ray, seconded by Council Member Costello, and on the
following roll call vote, to wit:
AYES: Council Members Ray, Costello, Guthrie, and Mayor Ferrara
NOES: Council Member Fellows
ABSENT: None
the foregoing Resolution was passed and adopted this 14 day of September 2010.
RESOLUTION NO. 4307
PAGE 3
/
TONY FERRr1., AYOR
ATTEST:
efe KELLY W TMfR CITY CLERK
APPROVED AS TO CONTENT:
STE E�� V N ADAMS, CITY MANAGER
APPROVED AS TO FORM:
7 4,\-- HY J RMEL, CITY ATTORNEY
OFFICIAL CERTIFICATION
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis
Obispo, State of California, do hereby certify under penalty of perjury, that the attached
Resolution No. 4307 is a true, full, and correct copy of said Resolution passed and
adopted at a Regular meeting of the City Council /Redevelopment Agency of the City of
Arroyo Grande on the 14 day of September 2010.
WITNESS my hand and the Seal of the City of Arroyo Grande af`:xed this 21 day of
September 2010.
KELLY W T E, CITY CLERK