HomeMy WebLinkAboutRES NO 055-06
RESOLUTION NO.
055-'06
A RESOLUTION GUARANTEEING LEASE PAYMENTS
FROM MONIES OTHERWISE PAYABLE TO THE CITY
FROM THE MOTOR VEHICLE LICENSE FEE ACCOUNT.
WHEREAS, the City of Bakersfield, California (the "City") utilized the proceeds ITom
its 1997 Certificates of Participation (Convention Center Expansion - Arena Project, 1997) (the
"1997 Certificates"), which were executed and delivered upon the security of lease payments to
be made by the City pursuant to a lease agreement, to finance the addition of an Arena to the
Convention Center complex, to finance improvements to the Convention Center and to advance
refund certain outstanding City certificates of participation and certain outstanding bonds of the
Central District Development Agency of the City of Bakersfield, now known as the Bakerstìeld
Redevelopment Agency; and
WHEREAS, the City Council of the City of Bakersfield (the "Council") is considering
prepaying the Lease Payments evidenced by the 1997 Certificates through a lease, lease back,
arrangement with the Bakersfield Redevelopment 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 tìnancing 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 Council has the authority pursuant to Section 37351.5 of the California
Government Code, to participate in such Motor Vehicle License Fee Intercept Program to
guarantee payment of said lease and/or bond payments to be made by the City of Bakerstìeld
with regard to the prepayment of the Lease Payments and the refunding of the 1997 Certificates
in the manner, fTOm 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 ofthe California Government Code, the City
hereby elects to guarantee payment under any lease agreement or other obligation associated
with the issuance of certain Refunding Certificates of Participation for the prepayment of the
1997 Certificates ITom monies credited to the Motor Vehicle License Fee Account in the
Transportation Tax Fund to which the City is 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
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schedule of payments to be made by City under the lease agreement and shall identify U.S, Bank
National Association 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,
[End of Resolution]
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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 February 22,2006, by the
following vote:
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CARSON, BENHAM, MAGGARD, COUCH, HANSON, SULLlV AN, SCRIVNER
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NOES:
ABSTAIN:
ABSENT:
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
COllNCILMEMBER
!1rAv-. DA it.JDr (' 1/ "Ihr
City Clerk and Ex Officio
Clerk of the Council of the
City of Bakersfield
APPROVED this 22nd day of February, 2006
HARVEY L. HALL
Mayor ofthe City of Bakersfi ld
APPROVED AS TO FORM:
[Signature Page to Resolution]
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4838-4060-9280.3