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RESOLUTION NO. 51-04
A RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF LOS
ALTOS HILLS AUTHORIZING LEASE FINANCING OF NEW
TOWN HALL AND ADMINISTRATION BUILDING,AND
APPROVING RELATED DOCUMENTS AND ACTIONS
WHEREAS, the Town of Los Altos Hills (the "Town") wishes to finance the
construction and improvement of a new Town Hall, including Council Chambers, Town
Administration Offices and related parking and site improvements (the "Project"),and in order
to provide financing for the Project the Town has proposed to lease the site of the Project to
Municipal Finance Corporation (the "Corporation") for an up-front rental payment which is
sufficient to enable the Town the complete the Project;and
WHEREAS,in order to provide the funds needed to finance the Project in the amount of
$2,000,000, the Corporation has proposed to lease the Project and the site thereof (collectively,
the "Leased Property")back to the Town in consideration of the payment by the Town of lease
payments as the rental for the Leased Property (the "Lease Payments"),which the Corporation
will assign to City National Bank, of Beverly Hills, California (the "Bank"), under an
Assignment of Lease Agreement between the Corporation and the Bank;and
WHEREAS, the City Council approves all of said transactions in furtherance of the
public purposes of the Town and wishes at this time to authorize all proceedings relating to the
lease financing of the Project;
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the Town of
Los Altos Hills as follows:
Section 1. Approval of Lease Agreement and Related Financing Documents. The City
Council hereby approves the financing plan outlined above. To that end, the City Council
hereby approves the Lease Agreement between the Town and the Corporation,in substantially
the form on file with the City Clerk, together with any changes therein or additions thereto
deemed advisable by the City Manager. The Mayor is hereby authorized and directed for and
in the name and on behalf of the Town to execute, and.the City Clerk is hereby authorized and
directed to attest and affix the seal of the Town to,the final form of the Lease Agreement.
Section 2. Material Terms of Lease Agreement. The Lease Agreement shall be for a
term not in excess of 15 years, and the average annual Lease Payment payable by the Town
under the Lease Agreement shall not exceed $195,964.90. The proceeds received by the Town
from the assignment of the Lease Agreement to the Bank shall equal$2,000,000.
Section 3. Official Actions. The Mayor,the City Manager, the Administrative Services
Director, the.City Clerk and all other officers of the Town are each authorized and directed in
the name and on behalf of the Town to make any and all assignments, certificates,requisitions,
agreements, notices, consents, instruments of conveyance, warrants and other documents,
which they or any of them might deem necessary or appropriate in order to consummate any of
the transactions contemplated by the agreements and documents approved pursuant to this
Resolution. Whenever in this resolution any officer of the Town is authorized to execute or
countersign any document or take any action, such execution, countersigning or action may be
taken on behalf of such officer by any person designated by such officer to act on his or her
behalf in the case such officer is absent or unavailable.
Section 4. Effective Date. This Resolution shall take effect from and after the date of its
passage and adoption.
PASSED AND ADOPTED at a regular meeting of the City Council of the Town of Los
Altos Hills on the 19th day of August,2004,by the following called vote:
AYES.
Mayor Mike O'Malley, Mayor Pro Tem Breene Kerr,
CouncilmemberfBob Fenwick and Councilmember Dean Warshawsky
NOES: Councilmember Emily Cheng
ABSENT: None
ABSTAIN: None
AfIx_;ST:
lerk Mayo,
- Town .s Altos Hills Town of Lo Alto Hills
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