HomeMy WebLinkAboutRESO 9188Resolution No. 9188
Resolution of the Council of the City of Palo Alto Approving,
Authorizing And Directing Execution Of Certain Lease
Refinancing Documents, And Authorizing And Directing Certain
Actions With Respect Thereto
The Council of the City of Palo Alto does hereby resolve as follows:
WHEREAS, the City has heretofore leased certain real property, consisting of the
Palo Alto municipal golf course, including certain improvements financed thereon, by a lease
transaction between the City and the Palo Alto Public Improvement Corporation (the
"Corporation") in 1998, pursuant to that certain property lease, dated as of August 1, 1998, by
and between the City, as lessor, and the Corporation, as lessee (the "1998 Property Lease"), and a
lease agreement, dated as of August 1, 1998, by and between the Corporation, as lessor, and the
City, as lessee (the "1998 Lease"); and
WHEREAS, the City has determined that it is in the interests of the City at this time
to provide for the refinancing of the 1998 Lease and the Certificates of Participation executed
and delivered in connection therewith in the original principal amount of $7,750,000 (the "1998
Certificates"), by entering into a Master Lease-Purchase Agreement, between the City and Chase
Equipment Finance, Inc. (the "Lessor"), in substantially the form attached hereto as Exhibit A, as
amended by those certain conditions set forth in the Lease Addenda, attached hereto as Exhibit B
(as so amended, the "Lease Agreement"); and
WHEREAS, under the Lease Agreement, the Lessor will lease to the City those
certain vehicles and other items of Fire Department Rolling Stock identified in the attached
Exhibit C; and
WHEREAS, for the purpose of obtaining the moneys required to be deposited with
u.S. Bank Trust National Association (the "Escrow Bank") to refund the 1998 Lease and the
1998 Certificates, the City will cause the Lessor to deposit with the Escrow Bank an amount
sufficient to refund the 1998 Lease and 1998 Certificates, and pay costs of issuance incurred in
connection therewith, pursuant to an Escrow Agreement, dated as of August 1, 2011, between
the City and the Escrow Bank (the "Escrow Agreement");
WHEREAS, in connection therewith, it is in the public interest and for the public
benefit that the City authorize and direct execution of the Lease Agreement, the Escrow
Agreement and Termination of Lease Agreements (described below) in connection therewith;
and
WHEREAS, the documents below specified have been filed with the City, and the
members of the City Council, with the aid of its staff, have reviewed said documents;
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NOW, THEREFORE, it is hereby ORDERED and DETERMINED, as follows:
SECTION 1. The below-enumerated documents be and are hereby approved,
and the Mayor, the City Manager, the Administrative Services Director or a designee appointed
by any such officer (in each case, an "Authorized Officer") are hereby separately authorized and
directed to execute said documents, with such changes, insertions and omissions as may be
approved by such official, and the City Clerk is hereby authorized and directed to attest to such
Authorized Officer's signature:
(a) a Lease Agreement, so long as the stated term of the Lease Agreement does not
extend beyond the original term of the 1998 Lease (except in the case of default),
and so long as the refunding of the 1998 Certificates and 1998 Lease achieves net
present value savings of at least 3% of the principal amount of the 1998
Certificates and 1998 Lease being refunded;
(b) an Escrow Agreement, by and between the City and the Escrow Bank, relating to
the deposit by the Lessor with the Escrow Bank of an amount sufficient to refund
the 1998 Lease and 1998 Certificates, and pay costs of issuance incurred in
connection therewith; and
(c) A Termination of Lease Agreements, relating to the termination of the 1998
Property Lease and the 1998 Lease, between the Corporation and the City.
SECTION 2. The Authorized Officer, the City Clerk and other officials of the City
are hereby authorized and directed to execute such other agreements, documents and certificates
as may be necessary to effect the purposes of this resolution and the lease financing and
refinancing herein authodzed.
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