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HomeMy WebLinkAboutCC Reso No 2019-103 CFD 2005-2 Issuance of Improvement area A 2019 Special Tax refunding bondsRESOLUTTON NO. 2019-103 A RESOLUTION OF THE CITY COUNCIL OF THE CIry OF LAKE ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE coMMUNtTY FACtL|TIES DTSTRTCT NO.2005-2 (ALBERHTLL RANCH), AUTHORIZING THE ISSUANCE OF ITS IMPROVEMENT AREA A 2019 SPECIAL TAX REFUNDING BONDS IN A PRINCIPAL AMOUNT NOT TO EXCEED SEVEN MILLION FIVE HUNDRED THOUSAND DOLLARS ($7,5OO,OOO) 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 lmprovement Area A therein ("lmprovement Area A') pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Parl I , Division 2, Title 5 of the Government Code of the State of California (the "Act"); and, Whereas, in connection with the issuance of the Lake Elsinore Public Financing Authority's (the "Authority") Local Agency Revenue Refunding Bonds, Series 2015, the District has previously issued $21,095,000 aggregate principal amount of its lmprovement Area A 2015 Special Tax Refunding Bonds (the "20'15 Bonds") pursuant to the Bond lndenture dated as of March 1, 2015 (the "2015 lndenture"), by and between the District and Wilmington Trust, National Association, as successor trustee, to refinance certain public improvements; and, Whereas, the legislative body of the District now desires to refund a portion of the outstanding 2015 Bonds consisting of the 2036 Term Bonds (as defined in the 2015 lndenture) through the issuance of bonds in an aggregate principal amount not to exceed $7,500,000 designated as the "City of Lake Elsinore Community Facilities District No. 2005-2 (Alberhill Ranch) lmprovement Area A 2019 Special Tax Refunding Bonds" (the "2019 Bonds"); and, Whereas, in order to affect the issuance of the 2019 Bonds, the legislative body of the District desires to enter into a First Supplemental Bond lndenture (the "First Supplemental Bond lndenture"), which is supplemental to the 2015 lndenture, with Wilmington Trust, National Association, as Trustee, 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 2019 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 between the Authority and the District (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 20'19 Bonds; and, Whereas, the Authority will issue its Local Agency Revenue Refunding Bonds Series 2019 (the "2019 Authority Bonds") to provide funds for its purchase ofthe 2019 Bonds. CC Reso. No.2019-103 Page 2 of 4 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 2019 Bonds for the benefit of the District for purposes set forth herein and to take the necessary steps to refund and redeem the 2036 Term Bonds. Section 3. The issuance of the 2019 Bonds in an aggregate principal amount not to exceed $7,500,000 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 2019 Bonds. The 201 I 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 2019 Bonds shall be governed by the terms and conditions of the 2015 lndenture, as supplemented by the First Supplemental Bond lndenture presented at this meeting. The First Supplemental Bond lndenture shall be prepared by Bond Counsel to the District and executed by one or more of the Mayor, the City Manager, the Assistant City Manager, 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. Approval of such changes shall be conclusively evidenced by the execution and delivery of the First Supplemental Bond lndenture 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 2015 lndenture, as supplemented by the First Supplemental Bond lndenture. ln 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 2019 Bonds will occur on or about December 19,2019, (2) the 2019 Bonds shall bear the date, be in the denominations, have the maturity dates (which do not exceed the latest maturity date of the 2036 Term Bonds being refunded), and be payable at the place and be in the form specified in the 2015 lndenture, as supplemented by the First Supplemental Bond lndenture, (3) the 2019 Bonds will bear interest at the minimum rate of 0. 1% per annum, and (4) the designated cost of issuing the 2019 Bonds being used to refund the 2036 Term Bonds, as defined by Section 53363.8 of the Act, shall include all of the costs specified in Section 53363.8(a), (bX2) and (c). ln 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 ofthe 2019 Bonds shall be used to reduce special taxes of lmprovement Area A, and such reductions shall be made in accordance with the Act. Section 4. The 2019 Bonds shall be executed on behalf of the District by the manual or facsimile signature of the Mayor of the City and attested with the manual or facsimile signature of the City Clerk. Wilmington Trust, National Association is hereby appointed to act as Trustee for the 2019 Bonds. -l CC Reso. No.2019-103 Page 3 of 4 Section 5. The covenants set forth in the 2015 lndenture, as supplemented by the First Supplemental Bond lndenture to be executed in accordance with Section 3 above are hereby approved, shall be deemed to be covenants of the City Council with respect to the 2019 Bonds, 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 2019 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 2019 Bonds is such that the principal and total net interest cost to maturity on the 2019 Bonds is less than the principal and total net interest cost to maturity on the 2036 Term Bonds. Section 7. ln accordance with the requirements of Section 53345.8 of the Act, the legislative body ofthe District hereby determines that the assessed value ofthe real property in lmprovement Area A subject to the special tax to pay debt service on the 2019 Bonds is at least three times the principal amount of the 2019 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 lmprovement Area A. Section 8. The Authorized Officers are authorized to provide for all services necessary to affect the issuance of the 2019 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 any other costs of issuance, from 2019 Bond proceeds. Section 9. 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 2019 Bonds in accordance with the provisions of this Resolution and the fulfillment ofthe purposes ofthe 2019 Bonds as described in the 2015 lndenture, as supplemented by the First Supplemental Bond lndenture. Any document authorized herein to be signed by the City Clerk may be signed by a duly appointed deputy clerk. Section 10. The City Council acknowledges that the good faith estimates required by Section 5852.1 of the California Government Code are disclosed in the staff report relating to the approvals set forth in this Resolution and are available to the public at the meeting at which this Resolution is approved. Section'11. This Resolution shall take effect immediately upon its adoption. CC Reso. No.2019-103 Page 4 of 4 Passed and Adopted at a regular meeting California, this 1Oih day of December 201 9. STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) l, Candice Alvarez, MMC City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. 2019-103 was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of December 10,2019 and that the same was adopted by the following vote: AYES: Council Members Sheridan, Johnson and Magee; Mayor Pro-Tem Tisdale and Mayor Manos NOES: None ABSENT: None ABSTAIN: None Attest: