HomeMy WebLinkAboutRES NO 24-97RESOLUTION NO. 2 4 "9 '~
A RESOLUTION GUARANTEEING LEASE PAYMENTS
FROM MONIES OTHERWISE PAYABLE TO THE CITY
FROM THE MOTOR VEHICLE LICENSE FEE ACCOUNT.
WHEREAS, the City Council of the City of Bakersfield is considering the
construction of an arena addition to the Convention Center and is further considering
financing such construction with certificates of participation through a lease, lease back,
arrangement with the Central District Development Agency; and
WHEREAS, in the event such financing arrangement is undertaken, the City has
been advised by its bond underwriter that electing to participate in the State Motor Vehicle
License Fee Intercept Program will improve the credit quality of the proposed public
financing and will assist the City of Bakersfield in completing said proposed public
financing on the best terms and at the lowest interest cost otherwise permitted by bond
market conditions; and
WHEREAS, the City Council of the City of Bakersfield has the authority pursuant
to Section 37351.5 of the California Government Code, to participate in such Motor Vehicle
Licence Fee Intercept Program to guarantee payment of said lease and/or bond payments
to be made by the City of Bakersfield with regard to the construction of the arena addition
to the Convention Center in the manner, from the source, and to the extent authorized by
said Section 37351.5.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Bakersfield
as follows:
SECTION 1.
Pursuant to the authority of Section 37351.5 of the California Government Code,
the City hereby elects to guarantee payment under any lease agreement or other
obligation associated with the issuance of certain Certificates of Participation for the
construction of an arena addition to the Convention Center from monies credited to the
Motor Vehicle License Fee Account in the Transportation Tax Fund to which the City is
-- Page 1 of 3 Pages
entitled under Chapter 5 (commencing with Section 11001 ) of Part 5 of Division 2 of the
California Revenue and Taxation Code.
The Mayor, the City Manager, or the Finance Director shall, prior to execution of
such lease agreement or other financing agreement, provide notice to the State Controller
of such election, which notice shall include copies of all relevant financing documents
together with the resolution approving the form of financing and the execution of such
financing documents and a schedule of payments to be made by City under the lease
agreement and shall identify the Trustee as the trustee selected by the City for the
purposes of such Section. In the event that, for any reason, the funds otherwise available
to the City will not be sufficient to make any payment under the lease agreement, or other
financing agreement, the Mayor, the City Manager or the Finance Director shall so notify
the Trustee which shall immediately communicate that information to the State Controller
and to the owners of the Certificates of Participation.
SECTION 2.
Any action authorized or permitted to be taken hereunder by the City Manager may
be taken by any designee in the absence or incapacity of the City Manager. Any action
authorized or permitted to be taken hereunder by the City Clerk may be taken by the City
Clerk's designee in the absence or incapacity of the City Clerk.
SECTION 3.
This Resolution shall take effect immediately upon its passage.
Page 2 of 3 Pages --
I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the
Council of the City of Bakersfield at a regular meeting thereof held on FEB ! 9 1997
1997, by the following vote:
AYES: COUi'~CILMEM~ER DeMOND, CARSON, SMITH, McDERMOTT, t~&~S, SULLIVAN, SALVAGGIO
NOES: COUNCILMEMBER
ABSTAIN: GOUNGILMEMBER
CITY CLERK and EX OFFiCIO/of the
Council of the City of Bakersfield
FEB 1 9 *~17
APPROVED:
BOBSPRICE, MAYOR
CITY OF BAKERSFIELD
APPROVED AS TO FORM:
JUDY K. SKOUSEN
CITYATTORNEY
'~_/ALAN I~NIED----~
Assistant City Attorney
City of Bakersfield
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S:~COUNClL~RES~VIVLF.RES
--February 13, 1997
-- Page 3 of 3 Pages --
NOTICE OF ELECTION TO PLEDGE MOTOR VEHICLE
LICENSE FEE AS SECURITY FOR BONDS OR
CERTIFICATE OF PARTICIPATION.
The Certificates of Participation for constructing the multiple use arena adjacent to the
Convention Center in Downtown Bakersfield:
Attached is a certified copy of the Resolution adopted by the City Council for the City of
Bakersfield electing to guarantee payment of Certificates of Participation, issued to finance
the construction of the arena addition to the Convention Center in accordance with Section
37351.5 of the Government Code.
This Notice will be supplemented within ten (10) calendar days after entering into any such
agreement to finance or complete the bond sale in order to provide the State Controller
with the following information:
Schedule of Payments
Name and Address of Trustee
Sin a~t u re~J~A LA N i/~"~'DY~~
Date
City Manager
Title
(805) 326-3751
Telephone Number
RETURN TO:
State Controller
Division of Accounting
Financial Reports and Apportionments
P.O. Box 942850
Sacramento, CA 94250-5875
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S:~ARENA~ARENA.PRO~AGRS'~IVLF.NOT