CC Resolution No. 8840
13031-19 City Reso
JHHW:MDC:eac
02/22/93
CITY OF CUPERTINO. CALIFORNIA
RESOLUTION NO. 8840
RESOLUTION APPROVING, AUTHORIZING AND DIRECTING EXECUTION OF
CERTAIN LEASE FINANCING DOCUMENTS, APPROVING THE FORM AND
AUTHORIZING DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT, IN
CONNECTION WITH THE OFFERING AND SALE OF CERTIFICATES OF
PARTICIPATION RELATING THERETO, APPROVING A PURCHASE AGREEMENT
AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO
RESOLVED, by the City Council of the City of Cupertino, California (the "City"):
WHEREAS, the City, working together with the Cupertino Public Facilities Corporation
(the "Corporation"), has heretofore caused the $32,970,000 Certificates of Participation (Open
Space Acquisition Project) (the "Prior Certificates"), to be executed and delivered in 1991 by the
sale to the Corporation of two parcels of land in the City commonly known as Blackberry Farm
and the Fremont Older Elementary School Site;
WHEREAS, the proceeds of the Prior Certificates were used to finance the acquisition of
Blackberry Farm and the Fremont Older Elementary School Site (together, the "Project");
WHEREAS, the City, workin\l together with the Corporation proposes to refinance the
Project, in whole or in part, and it is In the public interest and for the public benefit that the City
authorize and direct execution of the Lease Agreement and certain other financing documents in
connection therewith;
WHEREAS, Rauscher Pierce Refsnes, Inc. (the "Underwriter") has been directed to
prepare a preliminary official statement containing information material to the offering and sale of
the 1993 Certificates, Series A described below (the "Preliminary Official Statement"); 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;
NOW, THEREFORE, it is hereby ORDERED and DETERMINED, as follows:
Section 1. Certificates of Participation (1993 Refunding, Series A), (the "1993
Certificates") are hereby authorized to be executed and delivered pursuant to the provisions of
the Trust Agreement, as hereinafter defined; provided, however, the payments of principal and
interest with respect to the 1993 Certificates shall create a present value savings in comparison
to the payments of principal and interest with respect to the Prior Certificates to be refunded.
Section 2. The below-enumerated documents be and are hereby approved, and the
Mayor, the City Manager or the Director of Finance is hereby 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 official's signature:
(a) a termination agreement, by and among the Corporation, the City and First Interstate
Bank of California, as successor trustee for the Prior Certificates, relating to the termination of the
lease agreement relating to the Prior Certificates in the event of a full refunding;
(b) a site and facility lease relating to the Project, by and between the City, as lessor, and
the Corporation, as lessee;
(c) a lease agreement, relating to the Project, by and between the Corporation, as lessor,
and the City, as lessee (the "Lease Agreement");
(d) a trust agreement, by and among the Corporation, the City and First Interstate Bank of
California, as trustee (the ''Trust Agreement"), relating to the financing, and the execution and
delivery of the 1993 Certificates;
(e) an escrow deposit and trust agreement, by and between the City and First Interstate
Bank of California, as successor trustee for the Prior Certificates and as escrow bank, pursuant to
which all or a portion of the Prior Certificates will be defeased; and
(f) a purchase agreement, by and between the Underwriter and the City, relating to the
purchase by the Underwriter of the 1993 Certificates, so long as the Underwriter's discount does
not exceed 2%, exclusive of any original issue discount which does not represent compensation
to the Underwriter.
Section 3. The City hereby approves the preparation of a Preliminary Official Statement
describing the financing, together with any changes therein or additions thereto deemed advisable
by the Mayor, the City Manager or the Director of Finance. The City authorizes and directs the
Mayor, the City Manager or the Director of Finance, on behalf of the City, to deem "final" pursuant
to Rule 15c2-12 underthe Securities Exchange Act of 1934 (the "Rule") the Preliminary Official
Statement prior to its distribution by the Underwriter.
Section 4. The Underwriter, on behalf of the City, is authorized and directed to cause the
Preliminary Official Statement to be distributed to such investors and other persons as may be
interested in purchasing the 1993 Certificates therein offered for sale if, in its judgment, such
distribution would enhance the marketing of the 1993 Certificates.
Section 5. The Mayor, the City Manager or the Director of Finance is authorized and
directed to cause the Preliminary Official Statement to be brought into the form of a final official
statement (the "Final Official Statement") and to execute said Final Official Statement, dated as of
the date of the sale of the 1993 Certificates, and a statement that the facts contained in the Final
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 1993 Certificates,
true and correct in all material respects and that the Final Official Statement did not, on the date of
sale of the 1993 Certificates, and does not, as of the date of delivery of the 1993 Certificates,
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 Mayor,
the City Manager or Director of Finance shall take such further actions prior to the signing of the
Final Official Statement as are deemed necessary or appropriate to verify the accuracy thereof.
The execution of the final Official Statement, which shall include such changes and additions
thereto deemed advisable by the Mayor, the City Manager or the Director of Finance 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 final Official Statement by the City.
Section 6. The Final Official Statement, when prepared, is approved for distribution in
connection with the offering and sale of the 1993 Certificates.
Section 7. Jones Hall Hill & White, a Professional Law Corporation, is hereby appointed
special counsel in connection with the 1993 Certificates and the City Manager is hereby
authorized to execute an agreement for legal services with Jones Hall Hill & White relating to the
1993 Certificates in substantially the form presented at this meeting and on file with the City
Clerk.
Section 8. The Mayor, the City Manager, the Director of Finance, the City Clerk and all
other appropriate 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
-2-
resolution and the financing herein authorized, including without limitation, executing and delivering
a certificate of acceptance with respect to the conveyance of the property subject to the Lease
Agreement by the Corporation to the City as required by Section 27281 of the California
Government Code and procuring bond insurance on the Certificates if it is economically
advantageous to do so.
Section 9. This Resolution shall take effect upon its adoption by this City Council.
.*.*****
I, the undersigned City Clerk of the City of Cupertino, hereby certify that the foregoing is
a full, true and correct copy of a resolution duly adopted by the City Council of the City at a
meeting thereof on the 1 st day of March, 1993, by the following vote of the members thereof:
AYES: Dean, Goldman, Koppel, Sorensen, Szabo
NOES: None
ABSTAINED: None
ABSENT: None
ATTEST:
/s/ Nick Szabo
Mayor
/s/ Roberta A. Wolfe
City Clerk , Deputy
-3-