HomeMy WebLinkAboutRESO 9057Resolution No. 9057
Resolution of the Council of the City of Palo Alto
Authorizing the Issuance and Sale of its General Obligation
Bonds for Measure N Projects in the Principal Amount of
Not to Exceed $60,000,000, Authorizing and Directing the
Execution of a Paying Agent Agreement and Certain Other
Related Documents, and Authorizing Actions
Related Thereto
WHEREAS, more than two-thirds of the qualified voters in the City of Palo Alto
(the "City"), voting at a municipal election on November 4,2008, approved the issuance of up to
. $76,000,000 of general obligation bonds to finance the costs of constructing a new energy
efficient, environmentally friendly Mitchell Park Library and Community Center, renovating and
expanding the Main Library, and renovating the Downtown Library, including enhancements at
all three facilities for seismic safety and disabled access, expanded space for library collections,
meeting and study areas, and new air conditioning, ventilation and lighting systems; and
WHEREAS, pursuant to the authorization received at such election, and the
authorization contained in Chapter 4 (commencing with section 43600) of Division 4 of Title 4
of the California Government Code (the "Act"), the City intends to issue the first series of the
general obligation bonds authorized as described above pursuant to the Paying Agent Agreement
(defined below) in a principal amount of not to exceed $60,000,000, to be designated as the
"City of Palo Alto General Obligation Bonds, Election of 2008, Series 2010A" (the "Bonds");
and J
WHEREAS, the City Council of the City has duly considered such transactions and
desires at this time to approve said transactions and the documents related thereto;
NOW, THEREFORE, the City Council of the City of Palo Alto does hereby
RESOL VB as follows:
SECTION 1. Approval of Paying Agent Agreement. The proposed form of paying
agent agreement dated as of June 1, 2010, by and between the City and U.S. Bank National
Association (the "Paying Agent"), which is on file with the City Clerk (the "Paying Agent
Agreement") is hereby approved, and the City Manager and Director of Administrative Services
(the "Authorized Officers", and individually, an "Authorized Officer") are hereby separately
authorized and directed, for and in the name and on behalf of the City, to execute and deliver the
Paying Agent Agreement in substantially said form, with said additions thereto (including the
insertion of the maturity dates, principal amounts and interest rates of the Bonds) and changes
therein as the Authorized Officer may approve, such approval to be conclusively evidenced by
the execution and delivery thereof. The Council hereby authorizes the issuance of the Bonds
pursuant to the Paying Agent Agreement, and the performance by the City of its obligations
under the Paying Agent Agreement. The selection of U.S. Bank National Association, as Paying
Agent is hereby approved and ratified.
100503 sh 8261318 1
SECTION 2. Approval of Form of Bonds. The form of Bonds set forth in Exhibit
A to the Paying Agent Agreement is hereby approved, and the City Manager is hereby
authorized and directed to execute the Bonds, and the City Clerk to countersign in the name and
on behalf of the City and under its seal, and to cause the delivery thereof as provided for below.
SECTION 3. Sale and Issuance of Bonds. The Bonds shall be sold by competitive
sale, provided that (a) the true interest cost of the Bonds shall not exceed 5.50% per annum, (b)
the principal amount of the Bonds shall not exceed $60,000,000, and (c) the final maturity date
of the Bonds shall not be more than thirty~one (31) years from the date of issuance. The
Authorized Officers are hereby separately authorized and directed to evidence the City's
acceptance of an offer to purchase the Bonds following competitive bidding pursuant to the
Official Notice of Sale relating to the competitive sale of the Bonds (the "Official Notice of
Sale"). The City Council hereby approves the Official Notice of Sale in substantially the form
on file with the City Clerk.
Jones Hall, A Professional Law Corporation, as bond counsel to the City, is hereby
authorized and directed to cause a Notice of Intention to Sell Bonds, in form and substance
acceptable to said firm, to be published once in The Bond Buyer in accordance with Section
53692 of the California Government Code.
SECTION 4. Approval of Preliminary and Final Official Statement. Quint &
Thimmig LLP, as disclosure counsel to the City, has prepared a preliminary official statement
describing the Bonds (the "Preliminary Official Statement"). The City Council hereby approves
the Preliminary Official' Statement in the form presented to the Council at this meeting. The
Authorized Officer is hereby authorized and directed to execute a certificate to the effect that the
Preliminary Official Statement was deemed "final" as of its date for purposes of Rule 15c2-12 of
the Securities Exchange Act of 1934, and the Authorized Officer is hereby authorized to so deem
such Preliminary Official Statement finaL
The execution of the final Official Statement (the "Official Statement"), which shall
include such changes and additions to the Preliminary Official Statement deemed advisable by
the Authorized Officer or any other qualified officer of the City and such information permitted
to be excluded from the Preliminary Official Statement pursuant to the Rule, shall be conclusive
evidence of the approval of the Official Statement by the City. The City Council authorizes the
distribution by Stone & Youngberg LLC (the "Financial Advisor") of the Official Statement to
prospective purchasers of the Bonds.
The Authorized Officer is authorized and directed to execute the Official Statement
and a statement that the facts contained in the Official Statement, and any supplement or
amendment thereto (which shall be deemed an original part thereof for the purpose of such
statement) were, at the time of sale of the Bonds, true and correct in all material respects and that
the Official Statement did not, on the date of sale of the Bonds, and does not, as of the date of
delivery of the Bonds, contain any untrue statement of a material fact with respect to the City or
omit to state material facts with respect to the City required to be stated where necessary to make
any statement made therein not misleading in the light of the circumstances under which it was
made. The Authorized Officer shall take such further actions prior to the signing of the Official
Statement as are deemed necessary or appropriate to verify the accuracy thereof.
100503 sh 8261318 2
, SECTION 5. Delegation of Authority to Authorized Officers. The Authorized
Officers are hereby authorized and directed to execute, sign and deliver any and all approvals,
certificates, statements, requests, requisitions and orders of the City in connection with the sale
and issuance of the Bonds, the purchase of the Bonds and the other transactions described herein.
The Authorized Officers may authorize such other officers of the City as they deem appropriate
to undertake any of the actions which he is authorized or directed to undertake pursuant hereto.
SECTION 6. General Authority. The officers of the City are hereby authorized
and directed, jointly and severally, to do any and all things and to execute and deliver any and all
documents which they may deem necessary or advisable in order to consummate the transactions
described herein or to otheiwise effectuate the purposes of this resolution, including preparing,
or causing to be prepared, and executing all appropriate disclosure documents relating to the
Bonds and agreements necessary to comply with the disclosure requirements ofRu1e 15c2-12, as
amended, of the Securities and Exchange Commission. Any such actions previously taken by
such officers are hereby ratified and confirmed.
SECTION 7. Severability. If any section, paragraph or provision of this resolution
shall be held to be invalid or unenforceable for any reason, such invalidity or unenforceability
shall not affect any remaining provisions hereof.
SECTION 8. Effective Date. This resolution shall take effect from and after the
date of its passage and adoption.
II
II
II
II
II
II
II
II
II
II
II
100503 sh 8261318 3