R-8922
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FIN:CA:CMD:kf:finance\admin\stfrpts\aircop.res
Council Meeting Date: July 25, 1995 Santa Monica, California
RESOLUTION NO. 8922
(CCS)
(CITY COUNCIL SERIES)
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA APPROVING THE REDEMPTION OF
CERTIFICATES OF PARTICIPATION AND OTHER
MATTERS RELATED THERETO
WHEREAS, in order to finance certain airport facilities (the
"Airport Facilities"), the City of Santa Monica (the "City") caused
to be executed and delivered $4,625,000 aggregate principal amount
of certificates of Participation ("COP" or "Prior Certificates");
WHEREAS, the city currently leases the Airport Facilities and
the real property on which they are located ( collectively, the
"Propertyl1) pursuant to a Lease Agreement, dated as of October 1,
1985 (the "Prior Leasel1);
WHEREAS, the prior certificates were executed and delivered
pursuant to a Trust Agreement, dated as of October 1, 1985 (the
tlprior Trust Agreement"), among Bank of America National Trust and
Savings Association, as trustee (rlthe Trusteel1), the City and
Security Pacific National Bank, as lessor;
WHEREAS, the Prior certificates represent proportionate
interests in the lease payments to be made by the City under the
Prior Lease;
WHEREAS, in order to achieve certain savings, the City desires
to exercise its option to prepay lease payments payable under the
Prior Lease (thereby releasing the Property from the Prior Lease),
and then to lease the Property pursuant to a new Lease Agreement to
be entered into by the City (the "Lease Agreementll);
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WHEREAS, the City has determ~ned that ~t would be in the best
interests of the City to provide the funds necessary for the City
to exercise its option to prepay lease payments payable under the
Prior Lease through the sale and delivery of certificates of
participation (the "Certificateslt) evidencing proportionate
interests in the base rental payments to be made by the City under
the Lease Agreement;
WHEREAS, Section 404{c) of the Prior Lease provides that the
City's option to prepay lease payments under the Prior Lease may be
exercised by the City giving wr~tten notice to the Trustee of the
exercise of such option on or before the August 1 pr~or to the
selected payment date and filing with said notice a certlfied copy
of a resolution of the City approving the issuance of refunding
bonds or notes, the proceeds of which pursuant to such resolution
are required to be applied to redemption of the Prior Certif~cates
and are sufficient to redeem the Prior Certificates at the premiums
payable as provided in the Prior Trust Agreement on the date fixed
for redemption thereof;
WHEREAS, the City desires to so exercise said option,
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the
City of Santa Monica as follows:
SECTION 1. The City hereby elects to exercise its optlon to
prepay lease payments under the Prior Lease and approves the
redemption of all of the outstanding Prior Certificates on October
1, 1995 (the Redemption Date") at a redemption price equal to the
principal amount payable w~th respect thereto, together with a
premium of 2~% of the total amount redeemed, and accrued interest
to the Redemption Date.
SEcrION 2. The City Council hereby approves the execution and
delivery of the Certificates in an amount sufficient to redeem the Prior
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Certificates on the Redemption Date at the redemption price
described in Section 1 hereof. The proceeds of the Certificates
shall be appl~ed to the redemption of the Prior Certificates on the
Redemption Date.
SECTION 3. The City Manager of the City and the Finance
Director of the City are each hereby authorized and directed, for
and on behalf of the C~ty, to give written notice to the Trustee,
on or before August 1, 1995, of the City's exercise of its option
to prepay said lease payments in accordance with the provisions of
the Prior Lease. The City Manager of the City and the Finance
Director of the City are each hereby authorized and d~rected to
file with said notice a certified copy of this Resolution.
SECTION 4. All actions heretofore taken by the officers,
employees and agents of the City with respect to the redemption of
the Prior Certificates are hereby approved, confirmed and ratified.
SECTION 5. The City Clerk shall certify to the adoption of
this Resolution and thenceforth and thereafter the same shall be in
full force and effect.
APPROVED AS TO FORM:
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Marsha Jone Moutrie, City Attorney
Adopted and approved this 25th day of July 1995.
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Adopted and approved this 25th of July, 1995
/!J ;f~-&.~
Mayor
I hereby certIfy that the foregoing ResolutIOn 8922 (CCS) was duly adopted at a meetmg
of the CIty CouncIl held on the 25th of July, 1995 by the followmg vote
Ayes
CouncIl members
Abdo, Genser, Holbrook, Ebner, Rosenstem
Noes
CouncIl members
None
Abstam
CouncIl members
None
Absent
Counctl members
Greenberg, 0' Connor
ATTEST
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CIty Clerk