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05/06/2013 ORIGINAL RESOLUTION NUMBER 15261 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDWOOD CITY APPROVING THE FORM AND AUTHORIZING THE EXECUTION OF A COMMITMENT LETTER FROM COMPASS BANK IN CONNECTION WITH THE REFUNDING OF THE CITY'S OBLIGATIONS WITH RESPECT TO THE CITY OF REDWOOD CITY PUBLIC FINANCING AUTHORITY LEASE REVENUE BONDS SERIES 2003 AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO WHEREAS, the City of Redwood City (the "City"), working together with the City of Redwood City Public Financing Authority (the "Authority"), has caused the issuance and delivery of the Authority's $11,475,000 City of Redwood City Financing Authority Lease Revenue Bonds, Series 2003 (the "2003 Bonds"), secured by undivided fractional interests of the owners thereof in lease payments to be made by the City as the rental for certain property pursuant to a lease agreement, dated as of November 1, 2003 (the "2003 Lease Agreement") between the City and the Authority; WHEREAS, the 2003 Bonds are currently outstanding in the principal amount of $5,130,000; WHEREAS, the City has determined at this time, due to prevailing interest rates in the municipal bond market and for other reasons, to refinance its obligations with respect to the 2003 Bonds by providing for the refunding of all 2003 Bonds; and WHEREAS, Compass Bank, an Alabama corporation (the "Bank") has issued a commitment letter to the City in the form attached hereto as Exhibit A (the "Commitment Letter") offering to provide moneys to prepay the City's obligations under the 2003 Lease Agreement, which prepayment proceeds will be used to refund the 2003 Bonds; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Redwood City as follows: Section 1. Approval of Refunding Process. The City Council hereby approves staff moving forward with the refinancing of the 2003 Bonds, subject to the City Council's final approval of documents and terms. Section 2. Approval of Commitment Letter. The Commitment Letter, in the form attached hereto as Exhibit A, is hereby approved, and the Mayor, Vice Mayor, City Manager or Director of Finance, or their respective designated representatives (each, an "Authorized Officer"), are each hereby authorized and directed to countersign the Commitment Letter indicating the City's acceptance of the offer of the Bank to provide to ATTY/RES0.2850/PFA LEASE REV BONDS PRIVATE PLACEMENT RESO.#15261 REV:04-29-13 PT MUFF#505 Page 1 of 2