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HomeMy WebLinkAboutCC Reso No 2015-013 City Council ResoRESOLUTION NO, 2015 -013 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2005 -2 (ALBERHILL RANCH), AUTHORIZING THE ISSUANCE OF ITS IMPROVEMENT AREA A 2015 SPECIAL TAX REFUNDING BONDS IN A PRINCIPAL AMOUNT NOT TO EXCEED TWENTY -SIX MILLION DOLLARS ($26,000,000) AND APPROVING CERTAIN DOCUMENTS AND TAKING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH WHEREAS, the City Council of the City of Lake Elsinore (the "City'), located in Riverside County, California (hereinafter sometimes referred to as the "legislative body of the District'), has heretofore undertaken proceedings to form City of Lake Elsinore Community Facilities District No. 2005 -2 (Alberhill Ranch) (the "District') and designate Improvement Area A therein ( "Improvement Area A ") pursuant to the terms and provisions of the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act'); and WHEREAS, the District has previously issued its $24,680,000 Special Tax Bonds (Improvement Area A) 2005 Series A (the "Prior Bonds ") to finance certain public improvements; and WHEREAS, the legislative body of the District now desires to refund the Prior Bonds through the issuance of bonds in an aggregate principal amount not to exceed $26,000,000 designated as the "City of Lake Elsinore Community Facilities District No. 2005 -2 (Alberhill Ranch) Improvement Area A 2015 Special Tax Refunding Bonds" (the "2015 Bonds "); and WHEREAS, in order to effect the issuance of the 2015 Bonds, the legislative body of the District desires to enter into a Bond Indenture (the "Local Obligation Bond Indenture "), with MUFG Union Bank, N.A., as Trustee, in substantially the form presented herewith; and WHEREAS, in order to effect the refunding and redemption of the Prior Bonds, the legislative body of the District desires to enter into an Escrow Agreement (the "Escrow Agreement'), with MUFG Union Bank, N.A., as Escrow Bank, in substantially the form presented herewith; and WHEREAS, the legislative body of the District has determined in accordance with Section 53360.4 of the Code that a negotiated sale of the 2015 Bonds to the Lake Elsinore Public Financing Authority (the "Authority ") in accordance with the terms of the Local Obligations Purchase Agreement to be entered into by and among the Authority, City Council Resolution No 2015 -013 Page 2 the District and certain other community facilities districts of the City participating in the financing, (the 'Bond Purchase Agreement') approved as to form by this legislative body herein will result in a lower overall cost to the District than a public sale; and WHEREAS, the legislative body of the District has determined that it is prudent in the management of its fiscal affairs to issue the 2015 Bonds; and WHEREAS, the Authority will issue its bonds (the "Authority Bonds ") to provide funds for its purchase of the 2015 Bonds; NOW, THEREFORE, the City Council, acting as the legislative body of the District, does hereby resolve, order and determine as follows: Section 1. Each of the above recitals is true and correct. Section 2. The legislative body of the District is authorized pursuant to the Act to issue the 2015 Bonds for the benefit of the District for purposes set forth herein and to take the necessary steps to refund and redeem the Prior Bonds. Section 3. The issuance of the 2015 Bonds in an aggregate principal amount not to exceed $26,000,000 is hereby authorized with the exact principal amount to be determined by the official signing the Bond Purchase Agreement in accordance with Section 6 below. The legislative body of the District hereby determines that it is prudent in the management of its fiscal affairs to issue the 2015 Bonds. The 2015 Bonds shall mature on the dates and pay interest at the rates set forth in the Bond Purchase Agreement to be executed on behalf of the District in accordance with Section 6 hereof. The 2015 Bonds shall be governed by the terms and conditions of the Local Obligation Bond Indenture presented at this meeting. The Local Obligation Bond Indenture shall be prepared by Bond Counsel to the District and executed by one or more of the Mayor, the City Manager, the Director of Administrative Services, or their written designees (collectively, the "Authorized Officers ") substantially in the form presented at this meeting, with such additions thereto and changes therein as the officer or officers executing the same deem necessary to cure any ambiguity or defect therein, to insert the offering price(s), interest rate(s), selling compensation, principal amount per maturity, redemption dates and prices and such other related terms and provisions as limited by Section 6 hereof, to conform any provisions therein to the Bond Purchase Agreement and the Official Statement for the Authority Bonds. Approval of such changes shall be conclusively evidenced by the execution and delivery of the Local Obligation Bond Indenture by one or more Authorized Officers. Capitalized terms used in this Resolution which are not defined herein have the meanings ascribed to them in the Local Obligation Bond Indenture. In satisfaction of the requirements contained in Section 53363.2 of the Act, the legislative body of the District hereby determines that: (1) it is anticipated that the purchase of the 2015 Bonds will occur on or about March 17, 2015, (2) the 2015 Bonds shall bear the date, be in the denominations, have the maturity dates (which do not exceed the latest maturity date of the Prior Bonds being refunded), and be payable at City Council Resolution No 2015 -013 Page 3 the place and be in the form specified in the Local Obligation Bond Indenture, (3) the 2015 Bonds will bear interest at the minimum rate of 0.5% per annum, and (4) the designated cost of issuing the 2015 Bonds being used to refund the Prior Bonds, as defined by Section 53363.8 of the Act, shall include all of the costs specified in Section 53363.8(a), (b)(2) and (c). In satisfaction of the requirements contained in Section 53364.2 of the Act, the legislative body of the District hereby determines that any savings achieved through the issuance of the 2015 Bonds shall be used to reduce special taxes of Improvement Area A, and such reductions shall be made in accordance with the Act. Section 4. The 2015 Bonds shall be executed on behalf of the District by the manual or facsimile signature of the Mayor of the City, and the seal of the District, or a facsimile thereof, shall be impressed or imprinted thereon and attested with the manual or facsimile signature of the City Clerk. MUFG Union Bank, N.A. is hereby appointed to act as Trustee for the 2015 Bonds. Section 5. The covenants set forth in the Local Obligation Bond Indenture to be executed in accordance with Section 3 above are hereby approved, shall be deemed to be covenants of the City Council in its capacity as the legislative body of the District and shall be complied with by the District and its officers. Section 6. The form of the Bond Purchase Agreement presented herewith is hereby approved; and any one of the Authorized Officers is hereby authorized and directed, for and in the name of the District, to execute and the City Clerk, or her written designee, is authorized to attest to the Bond Purchase Agreement substantially in the form approved, with such additions thereto and changes therein as may be approved or required by an Authorized Officer, including changes relating to dates and numbers as are necessary to conform the Bond Purchase Agreement to the dates, amounts and interest rates applicable to the 2015 Bonds as of the sale date. Approval of such additions and changes shall be conclusively evidenced by the execution and delivery of the Bond Purchase Agreement; provided, however, that the Bond Purchase Agreement shall be signed only if the interest rate on the 2015 Bonds is such that the principal and total net interest cost to maturity on the 2015 Bonds is less than the principal and total net interest cost to maturity on the Prior Bonds. Section 7. The form of the Escrow Agreement presented at this meeting is hereby approved; and any one of the Authorized Officers is hereby authorized and directed, for and in the name of the District, to execute and the City Clerk, or her written designee, is authorized to attest to the Escrow Agreement, with such additions thereto and changes therein as may be approved or required by an Authorized Officer, including changes to conform to the final pricing of the escrow investments and to clarify any ambiguities; provided that the form of Escrow Agreement may be modified to conform to federal tax law requirements or to achieve further savings, with the advice and assistance of Bond Counsel, such approval to be conclusively evidenced by the execution of the Escrow Agreement by an Authorized Officer. MUFG Union Bank, N.A. is hereby appointed to act as Escrow Agent under the Escrow Agreement. City Council Resolution No 2015 -013 Page 4 Section 8. In accordance with the requirements of Section 53345.8 of the Act, the legislative body of the District hereby determines that the assessed value of the real property in Improvement Area A subject to the special tax to pay debt service on the 2015 Bonds is at least three times the principal amount of the 2015 Bonds and the principal amount of all other bonds outstanding that are secured by a special tax levied pursuant to the Act or a special assessment levied on property within Improvement Area A. Section 9. The form of the Preliminary Official Statement for the Authority Bonds presented at this meeting is hereby approved, and the underwriters of the Authority Bonds are hereby authorized to distribute the Preliminary Official Statement to prospective purchasers of the Authority Bonds in the form hereby approved, together with such additions thereto,.and changes therein as are determined necessary or desirable by the Authorized Officers to make such Preliminary Official Statement final as of its date for purposes of Rule 15c2 -12 of the Securities and Exchange Commission, including, but not limited to, such additions and changes as are necessary to make all information set forth therein accurate and not misleading. Any one of the Authorized Officers is hereby authorized to execute a final Official Statement in the form of the Preliminary Official Statement, together with such changes as are determined necessary by the Authorized Officers to make such Official Statement complete and accurate as of its date. The underwriters of the Authority Bonds are further authorized to distribute the final Official Statement for the Authority Bonds and any supplement thereto to the purchasers thereof upon its execution on behalf of the District as described above. Section 10. The Authorized Officers are authorized to provide for all services necessary to effect the issuance of the 2015 Bonds. Such services shall include, but not be limited to, obtaining legal services, trustee services and any other services deemed appropriate as set forth in a certificate of any one of the Authorized Officers. The Authorized Officers are authorized to pay for the cost of such services, together with other Costs of Issuance from 2015 Bond proceeds. Section 11, The Authorized Officers and all other officers of the City are hereby authorized and directed to take any actions and execute and deliver any and all documents as are necessary to accomplish the issuance, sale and delivery of the 2015 Bonds in accordance with the provisions of this Resolution and the fulfillment of the purposes of the 2015 Bonds as described in the Local Obligation Bond Indenture. Any document authorized herein to be signed by the City Clerk may be signed by a duly appointed deputy clerk. City Council Resolution No 2015 -013 Page 5 Section 12. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED at a of the City of Lake Elsinore, California, this 10th day 1 ATTEST: _ )hi A &" VirginicbBlo City Clerk APPROVED AS TWFR Ba#bara Zeid L�ibold, City Attorney 1 of the City Council 5. , Mayor STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Virginia Bloom, City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. 2015 -013 was adopted by the City Council of the City of Lake Elsinore, California, at a Regular meeting held on the 10th day of February 2015, and that the same was adopted by the following vote: AYES: Mayor Pro Tem Tisdale, Council Member Johnson, Council Member Magee, Council Member Hickman and Mayor Manos NOES: None ABSENT: None ABSTAIN: None Virginia . 1316 0. ,' City CIGFk