HomeMy WebLinkAbout03-52 - Refinancing of an Existing Lease, Lease with Option to PurchaseRESOLUTION NO. 03-52
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COSTA MESA, CALIFORNIA, AUTHORIZING
REFINANCING OF AN EXISTING LEASE, THE
EXECUTION AND DELIVERY OF A LEASE WITH OPTION
TO PURCHASE, AND AUTHORIZING AND DIRECTING
CERTAIN ACTIONS IN CONNECTION THEREWITH. .
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THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY
RESOLVE AS FOLLOWS:
WHEREAS, the City of Costa Mesa (the "City") is a municipal corporation duly
organized and existing under and pursuant to the Constitution and laws of the State of
California; and
WHEREAS, the City desires to provide for the prepayment and the refinancing
of that certain Lease with Option. to Purchase #01 -073 -AF (the "Prior Lease"), by and
between the City and Municipal Finance Corporation ("MFC"); and
WHEREAS, MFC has proposed a cost-effective lease refinancing arrangement
to refinance the purchase option price of the Prior Lease in the amount of $578,921.64
at a 3.65% interest rate;
NOW, THEREFORE, it is resolved by the City Council of the.City of Costa Mesa
as follows:
Section 1. Lease with Option to Purchase. The Mayor, the City Manager, the
Finance Director or a designee is hereby authorized to enter into a Lease with Option to
Purchase (the "Lease") with MFC, subject to approval as to form by the City Attorney.
Section 2. Attestations. The Clerk or other appropriate City officer are hereby
authorized and directed to attest the signature of the Mayor, the City Manager, the
Finance Director or of such other person or persons as may have been designated by
the Mayor, the City Manager or the Finance Director, and to affix and attest the seal of
the City, as may be required or appropriate in connection with the execution and
delivery of the Lease.
Section 3. Other Actions. The Mayor, the City Manager, the Finance Director and
other officers of the City are each hereby authorized and directed, jointly and severally,
to do any and all things and to execute and deliver any and all agreements, documents
and certificates which they may deem necessary or advisable in order to carry out, give
effect to and comply with the terms of this Resolution and the Lease. Such actions are
hereby ratified, confirmed and approved
Section 4. Qualified Tax -Exempt Obligations. The Lease is hereby designated as
"qualified tax exempt obligations" within the meaning of Section 265(b)(3) of the Internal
Revenue Code of 1986, as amended (the "Code"). The City, together with all
subordinate entities of the City, do not reasonably expect to issue during the calendar
year in which the Lease is issued more than $10,000,000 of obligations which it could
designate as "qualified tax-exempt obligations" under Section 265(b) of the Code.
Section 5. Effect. This Resolution shall take effect immediately upon its passage.
PASSED AND ADOPTED this 2nd day of September, 2003.
ATTEST:
Deputy ity Clerk of the City of Costa Mesa Mayor oft t
City of Costa Mesa
APPROVED AS TO FORM
//r6ity Attorney
STATE OF CALIFORNIA)
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, JULIE FOLCIK, Deputy City Clerk and ex -officio Clerk of the CityCouncil of the
City of Costa Mesa, hereby certify that the above and foregoing Resolution
No. 03-52 was duly and regularly passed and adopted by the said City Council at
a regular meeting thereof held on the 2nd day of September, 2003, by the following roll
call vote:
ti
AYES: Monahan, Steel, Cowan, Mansoor, Scheafer
NOES: None
ABSENT: None
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of
the City of Costa Mesa this 3rd day of September, 2003.
Deputyity Clerk a d ex -officio Clerk of
the City Council of the City of Costa Mesa