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Home My WebLink AboutCC Reso No 2000-33 RESOLUTION NO. 2ooo_s~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DECLARING ITS INTENTION TO REFUND THE OUTSTANDING BONDS OF ASSESSMENT DISTRICT NO. 93-1; TO LEVY REASSESSMENTS AS SECURITY FOR THE REFUNDING BONDS; TO CONTINUE THE LIEN OF THE ORIGINAL ASSESSMENTS ON CERTAIN PARCELS OF PROPERTY IN THE ASSESSMENT DISTRICT, AND TO EMPLOY BOND COUNSEL, DISCLOSURE COUNSEL AND FINANCIAL ADVISOR WHEREAS, the City of Lake Elsinore (the "City") has previously issued and sold two different series of bonds for Assessment District No. 93-1 of the City (the "Assessment District") designated "City of Lake Elsinore, Assessment District No. 93-1 (Cottonwood Hills), Limited Obligation Improvement Bonds, Series A" and "City of Lake Elsinore, Assessment District No. 93-1 (Cottonwood Hills), Limited Obligation Improvement Bonds, Series B" in the total aggregate principal amount of $18,075,000, of which $17,365,000 remains outstanding (the "Outstanding Bonds"); and WHEREAS, Pardee Construction Company, the owner of all the net accessible acreage of the land within the Assessment District (the "Developer"), has requested the City's assistance in connection with modification of the existing assessments levied against pazcels in the District as security for the Outstanding Bonds; and WHEREAS, there has been presented to the City Council a form of Deposit and Reimbursement Agreement providing for the advance of funds by the Developer to be used to pay costs incurred in connection with the issuance of bonds to refund the Outstanding Bonds (the "Refunding Bonds"), and to reimburse the Developer, without interest, from the proceeds of such Refunding Bonds; and WHEREAS, the City Council has detemuned that the public interest requires the refunding of the Outstanding Bonds as permitted by and pursuant to proceedings to be conducted in accordance with the Refunding Act of 1984 for 1915 Improvement Act Bonds, Division 11.5 (commencing with Section 9500) of the Streets and Highway Code of the State of California (the "Refunding AcY'). NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the City Council of the City of Lake Elsinore as follows: Section 1. Refunding; Continuation of Liens of Original Assessments. The City Council determines that the public interest requires the refunding of the Outstanding Bonds and declazes its intention to refund the Outstanding Bonds, to issue the Refunding Bonds and to levy reassessments on the pazcels of property in the Assessment District as security for the Refunding Bonds, ali )H01560/ 10006763/RESOLU-1. W PD pursuant to the Refunding Act. It is further the intention of the City Council to continue the liens of the original assessments levied on pazcels of properiy in the Assessment District, and which secure the payment of the principal of and interest of the Outstanding Bonds, as security for the payment of the unpaid installments of such assessments and the penalties and interest thereon, including the installments of such assessments which have been posted to and aze to be collected on the ta~c assessment roll for the 1999-2000 fiscal yeaz and all unpaid and delinquent installments of such assessments which were posted to the taY assessment roll for prior fiscal yeazs. Section 2. Report. The City Manager is authorized and directed to haue MBS Govemmental Finance Group; the firm employed by the City to assist the City in the reassessment proceedings which aze to be conducted pursuant to the Refunding Act (the "Reassessment Consultant"), prepaze and file with the City Clerk a report containing all of the matters required by Section 9523 of the Streets and Highways Code of the State of California (the "Report"). In prepazing the Report, the Reassessment Consultant shall assume that the City will advance the maturity of all of the Outstanding Bonds to Mazch 2, 2001, and that in refunding the Outstanding Bonds, the City will pay the principal amount thereof and accrued interest thereon to Mazch 2, 2001, together with premiuxn. The Reassessment Consultant shall further assume that the maximum interest rate on the Refunding Bonds will be a percent to be determined by the Financial Advisor with the approval of the City Manager. Upon receipt of the Report, the City Clerk shall present it to the City Councii for consideration. Section 3. Masimum Interest Rate on Refundin Bg onds. The maximum rate of interest on the Refunding Bonds shall not exceed 9.0% per annum. Section 4. Deposit and Reimbursement Agreement. The form of Deposit and Reimbursement Agreement to be entered into by and between the City and the Developer, presented at the meeting at which this resolution is adopted is approved and the Mayor, the Mayor Pro Tem, the City Manager or the Director of Finance is authorized to execute and deliver said agreement in substantially the form presented at said meeting with such changes thereto as they may approve, such approval to be conclusively evidenced by the execution and delivery thereof. Section 5. Delinquent Assessment Installments. The City staff and the Reassessment Consultant shall determine and make a recommendation to the City Council as to whether it is in the best interests of the City and the owners of parcels of property in the Assessment District as to which annual installments of the assessments thereon aze unpaid and delinquent to include such delinquent installments, and the penalties and interest thereon, in the reassessments which will be levied on such parcels as security for the payment of the principal of and interest on the Refunding Bonds. Section 6. ~'o Citv Obligafion. The City Council determines, pursuant to Section 8769 of the Streets and Highways Code of the State of California, that City will not obligate itself to advance available funds from the City Treasury to cure any deficiency which may occur in the bond redemption fund for the Refunding Bonds. 1H01560/] 0006763/RESOLU-1. WPD Section 7. Consultants. For purposes of the reassessment proceedings and the issuance and sale of the Refunding Bonds, the law fum of Fulbright & Jaworski L.L.P. is employed as Bond Counsel and Disclosure Counsel to the City and the firtn ofRod Gunn Associates, Inc. is employed as Financial Advisor to the City. The Mayor and City Clerk aze authorized and directed to execute contracts between such firms and the City in a form approved by the City Attomey. PASSED, APPROVED AND ADOPTED this 24th day of July, 2000. A TE~ ,r..~ ~~ City Clerk of the City of Lake Elsinore UPON THE FOLLOWING ROLL CALL VOTE: AYES: COUNCILMEMBERS NOES: COUNCILMEMBERS ABSENT: COUNCILMEMBERS ABSTAIN: COUNCILMEMBERS APPROVED AS TO LEGAL FORM: KELLEY, METZE,~PAPE, SCHIFFNER, BRINLEY NONE NONE NONE ~ ~/ Z---.~ ~ ~ ~ General Counsel ~~ 1N01560/I0006763/ltESOLU-1. WPD STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE ) I, VICHI KASAD, CITY CLERK OF THE CITY OF LAKE EL5INORE, CALIFORrTIA, DO HEREBY CERTIFY that the foregoing Resolution duly adopted by the City Council of the City of Lake Elsinore at a Regular Meeting of said Council on the 24th day of July, 2000, and that it was so adopted by the following vote: AYES: COUNCILMEMBERS: KELLEY, METZE,PAPE, SCHIFFNER, BffiNLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE VIC SAD CITY CLERK ~ CITY OF LAKE ELSINORE (SEAL) STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE) I, VICHI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE, DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of Resolution No. 2000-33 of said Council, and that the same has not been amended or repealed. DATE: July 25, 2000 ~~ VIC KASAD, CITY CLERK CITY OF LAKE ELSINORE (SEAL)