CIC Resolution 03-116COMMUNITY IMPROVEMENT COMMISSION OF THE CITY OF ALAMEDA
RESOLUTION NO. 0 3 -116
AUTHORIZING THE ISSUANCE AND SALE OF REFUNDING BONDS RELATING
TO THE BUSINESS AND WATERFRONT IMPROVEMENT PROJECT AREA,
APPROVING AMENDMENT TO INDENTURE OF TRUST, AND APPROVING
OTHER RELA'T'ED DOCUMENTS AND ACTIONS
RESOLVED, by the Community Improvement Commission of the City of Alameda (the
"CIC "), as follows:
WHEREAS, the CIC established a Business and Waterfront Improvement Project area
(the "BWIP Project Area "), and has completed the fiscal merger of the BWIP Project Area with
its West End Community Improvement Project Area; and
WHEREAS, prior to the completion of the fiscal merger, the CIC entered into various
obligations secured by a pledge of tax increment revenues arising from the BWIP Project Area,
including: (i) an Indenture of Trust, dated as of March 1, 2002 (the "Series A Indenture ")
between the CIC and Union Bank of California, N.A., as trustee (the "Trustee "), pursuant to
which the CIC issued its $5,220,000 Community Improvement Commission of the City of
Alameda Business and Waterfront Improvement Project Tax Allocation Bonds, 2002 Series A
(the "Series A Bonds "); (ii) a CIC Pledge Agreement, dated as of March 1, 2002 (the "Pledge
Agreement "), between the CIC and the City of Alameda (the "City "), pursuant to which the
CIC agreed to pay the debt service on the City's $10,000,000 City of Alameda Community
Facilities District No. 4 (Demolition and Backbone Infrastructure - FISC and East Housing Sites)
Special Tax Bonds, Series 2002 -A (the "CFD Bonds "); (iii) an ISDA Master Agreement and
related Schedule and confirmation, dated March 13, 2002 (the "Swap Agreement "), between the
CIC and Ambac Financial Services, L.P.; (iv) a Standby Purchase Agreement, dated as of March
1, 2002 (the "Liquidity Facility "), among the CIC, the Trustee and First Union National Bank;
and (v) an Indenture of Trust, dated as of March 1, 2002 (the "Series B Indenture "), between the
CIC and the Trustee, pursuant to which the CIC issued its $4,640,000 Community Improvement
Commission of the City of Alameda Tax Allocation Bonds (Business and Waterfront
Improvement Area) Subordinate Taxable Tax Allocation Bonds, 2002 Series B (the "Series B
Bonds "); and
WHEREAS, the Series A Bonds and the CFD Bonds were acquired by the Alameda
Public Financing Authority (the "Authority ") with the proceeds of the Authority's Alameda
Public Financing Authority 2002 Revenue Bonds (BWIP Tax Increment and CFD No. 4
Financing) Variable Rate Demand Taxable Series A and Variable Rate Demand Taxable Series B
(collectively, the "Authority Bonds "); and
WHEREAS, the CIC now proposes to refinance its obligations under the Series A
Indenture, the Series A Bonds, the Pledge Agreement, the Swap Agreement and the Liquidity
Facility (collectively, the "Senior Obligations ") with the proceeds of its Community
Improvement Commission of the City of Alameda Tax Allocation Refunding Bonds (Business
and Waterfront Improvement Area), Series 2003C (the "Series C Bonds ") and its Community
Improvement Commission of the City of Alameda Taxable Tax Allocation Refunding Bonds
(Business and Waterfront Improvement Area), Series 2003D (the "Series D Bonds" and,
together with the Series C Bonds, the "Refunding Bonds "), in order to realize interest rate
savings and reduce the complexity and costs of administration of its outstanding obligations;
and
WHEREAS, proceeds of the Refunding Bonds will be used to defease the Authority
Bonds and make a termination payment under the Swap Agreement, thereby allowing for a
discharge of the CIC's obligations under the Senior Obligations; and
WHEREAS, in order to issue the Refunding Bonds, it is necessary to amend the Series B
Indenture; and
WHEREAS, the CIC has duly considered the above - described transactions and now
desires to approve the issuance of the Refunding Bonds, the discharge of the Senior
Obligations, the amendment of the Series B Indenture and related documents and actions, in
the public interest and in furtherance of the public purposes of the CIC.
NOW, THEREFORE, THE COMMUNITY IMPROVEMENT COMMISSION OF THE
CITY OF ALAMEDA DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. Issuance of Refunding Bonds; Approvl of Refunding Indenture. The CIC
hereby authorizes the issuance of the Refunding Bonds under and pursuant to an Indenture of
Trust (the "Refunding Indenture ") and the Community Redevelopment Law of the State of
California, in the maximum aggregate principal amount of $19,000,000. The CIC hereby
approves the Refunding Indenture in the form on file with the Secretary. The CIC hereby
authorizes and directs the Executive Director to execute and deliver the Refunding Indenture in
such form, together with any changes therein or additions thereto deemed advisable by the
Executive Director upon consultation with the City Attorney and Bond Counsel, the approval
of such changes to be conclusively evidenced by the execution of such document by the CIC.
The CIC hereby authorizes the delivery and performance by the CIC of the Refunding
Indenture.
Section 2. Approval of Sale of Refunding Bonds; Bond Purchase Contract. The CIC
hereby authorizes and approves the sale to E. J. De La Rosa, Inc. (the "Underwriter ") of the
Refunding Bonds pursuant to and in accordance with the provisions of a Bond Purchase
Agreement between the CIC and the Underwriter (the "Bond Purchase Contract "), so long as
the principal amount of the Refunding Bonds is not in excess of $19,000,000, the final maturity
of the Refunding Bonds is not later than the final maturity of the Authority Bonds, and the net
present value savings as a result of the refinancing of the Senior Obligations by means of the
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issuance of the Refunding Bonds is not less than $900,000. The CIC hereby approves the Bond
Purchase Contract in the form on file with the Secretary. The CIC hereby authorizes and directs
the Executive Director to execute and deliver the Bond Purchase Contract in such form,
together with any changes therein or additions thereto deemed advisable by the Executive
Director upon consultation with the City Attorney and Bond Counsel, the approval of such
changes to be conclusively evidenced by the execution of such document by the CIC. The CIC
hereby authorizes the delivery and performance by the CIC of the Bond Purchase Contract.
Section 3. Approval of Official Statement. The official statement relating to the
Refunding Bonds (the "Official Statement "), in the form on file with the Secretary, is hereby
approved. The Executive Director is hereby authorized and directed to execute the Official
Statement in said form, with such additions thereto or changes therein as are recommended or
approved by the Executive Director upon consultation with the City Attorney and Bond
Counsel, the approval of such additions or changes to be conclusively evidenced by the
execution and delivery of the Official Statement by the CIC. The Underwriter is hereby
authorized to distribute copies of the Official Statement to persons who may be interested in
the purchase of the Refunding Bonds and is directed to deliver copies of the Official Statement
to all actual purchasers of the Refunding Bonds. Distribution by the Underwriter of a
preliminary official statement relating to the Refunding Bonds is hereby approved and
authorized.
The Executive Director is hereby authorized to execute a certificate or certificates to the
effect that the Official Statements and such preliminary official statements were deemed "final"
as of their respective dates for purposes of Rule 15c2 -12 of the Securities Exchange Code of
1934, and are authorized to so deem such statements final.
Section 4. Approval of Continuing Disclosure Certificate. The Continuing Disclosure
Certificate (the "Disclosure Certificate ") related to the Refunding Bonds, in the form on file
with the Secretary, is hereby approved. The Executive Director is hereby authorized and
directed to execute and deliver the Disclosure Certificate in said form, with such additions
thereto or changes therein as are recommended or approved by the Executive Director upon
consultation with the City Attorney and Bond Counsel, the approval of such additions or
changes to be conclusively evidenced by the execution and delivery of the Disclosure
Certificate by the CIC.
Section 5. Approval of Escrow Agreement. The Escrow Deposit and Trust Agreement
(the "Escrow Agreement ") related to the refunding of the Senior Obligations and the Authority
Bonds, in the form on file with the Secretary, is hereby approved. The Executive Director is
hereby authorized and directed to execute and deliver the Escrow Agreement in said form,
with such additions thereto or changes therein as are recommended or approved by the
Executive Director upon consultation with the City Attorney and Bond Counsel, the approval
of such additions or changes to be conclusively evidenced by the execution and delivery of the
Escrow Agreement by the CIC.
Section 6. Approval of First Supplemental Indenture. The First Supplemental Indenture
(the "Supplement ") amending the Series B Indenture, in the form of file with the Secretary, is
hereby approved. The Executive Director is hereby authorized and directed to execute and
deliver the Supplement in said form, with such additions thereto or changes therein as are
recommended or approved by the Executive Director upon consultation with the City Attorney
and Bond Counsel, the approval of such additions or changes to be conclusively evidenced by
the execution and delivery of the Supplement by the CIC.
Section 7. Delive,ry of the Refunding Bonds. The Refunding Bonds, when executed,
shall be delivered to the Trustee for authentication. The Trustee is hereby requested and
directed to authenticate the Refunding Bonds by executing the Trustee's certificate of
authentication and registration appearing thereon, and to deliver the Refunding Bonds, when
duly executed and authenticated, to upon the instruction of the Underwriter in accordance with
written instructions executed on behalf of the CIC by the Executive Director, which instructions
such officer is hereby authorized and directed, for and in the name and on behalf of the CIC, to
execute and deliver to the Trustee. Such instructions shall provide for the delivery of the
Refunding Bonds to the Underwriter in accordance with the Bond Purchase Contract upon
payment of the purchase price therefor.
Section 8. Official Actions. The Chairman, the Executive Director, the Treasurer, the
Secretary and any and all other officers of the CIC are hereby authorized and directed, for and
in the name and on behalf of the CIC, to do any and all things and take any and all
including execution and delivery of any and all assignments, certificates, requisitions,
agreements, notices, consents, instruments of conveyance, warrants and other documents
which they, or any of them, may deem necessary or advisable in order to consummate the
issuance of the Refunding Bonds, the discharge of the Senior Obligations (including the
termination of the Swap Agreement and the payment of any termination charge or fee as a
consequence thereof) as contemplated by the Escrow Agreement, and all other transactions
contemplated by the documents" approved by this Resolution.
Section 9. Appointment of Consultants. The Underwriter is hereby appointed to act as
underwriter in connection with the offer and sale of the Refunding Bonds, the law firm of
Quint & Thimmig LLP is hereby appointed as Bond Counsel and Disclosure Counsel to the CIC
in connection with the Refunding Bonds, the firm of Gardner Underwood & Bacon LLC is
hereby appointed as financial advisor to the CIC in connection with the Refunding Bonds, and
Union Bank of California, N.A. is hereby appointed as trustee for the Refunding Bonds. All
fees and expenses of such firms shall be payable solely from the proceeds of the Refunding
Bonds (or, in the case of the Underwriter, by means of a discount on the purchase of the
Refunding Bonds).
Section 10. Effective Date. This Resolution shall take effect from and after the date of its
passage and adoption.
I, the undersigned, hereby certify that the foregoing Resolution was duly and regularly
adopted and passed by the Community Improvement Commission of the City of Alameda in a
Special Joint City Council, Community Improvement Commission, and Alameda Public Financing
Authority meeting assembled on the 7th day of October, 2003, by the following vote to wit:
AYES: Commissioners Daysog, Gilmore, Kerr, Matarrese and
Chair Johnson - 5.
NOES: None.
ABSENT: None.
ABSTENTIONS: None.
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the official seal of said
Commission this 8th day of October, 2003.
Lara Weisiger, Secretary
Community Improvement Commission
everly Johnson, _C,hair
Community Improv6rn ommission