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Home My WebLink AboutCC Reso No 1997-249 RESOLUTION NO. 9~-24 A RESOLUTTON PROVIDING FiNAL APPROVAL OF THE ISSUANCE OF SPECIAL TAX REFUNDING BONDS OF THE CITY OF LAKE ELSINORE FOR CITY OF LAKE ELSINORE COMMUNTTY FAQLTITES DISTRICT NO. 88-3 (WEST LAKE ELSINORE) IN TWO PARTS, CONFIRMING APPROVAL OF EXECUTION OF A FISCAL AGENT AGREEMENT, APPROVING SALE OF SUCH BONDS TO THE LAKE ELSINORE PUBLIC FINANCING AUTHORTI'Y APPROVING OFFICIAL STATEMENT AND APPROVING OTHER RELATED DOCUMENTS AND ACTIONS City of Lake Elsinore Commiutity Facilities District No. 88-3 (West Lake Elsinore) IZESOLVED, by the City Council of the City of Lake Elsinore (the "City") that: WHEREAS, this City Council has conducted proceedings under and pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the "Act"), to form the City of Lake Elsinore Community Facilities District No. 88-3 (West Lake Elsinore) (the "District"), to authorize the levy of special taxes upon the land within the District, and to issue bonds secured by said special taxes; and LVHEREAS, the City Council, as legislative body of the District, autharized the issuance of three separate series of bonds of the City for the District, namely; bonds in the original principal amount of $14,500,000 designated City of Lake Elsinore Community Facilities District No. 88-3 (West Lake Elsinore) 1991 Special Tax Bonds, bonds in the original principal amount of $8,000,000 designated City of Lake Elsinore Community Facilities District No. 88-3 1992 Special Tax Bonds and bonds in the original principal amount of $~,400,000 designated City of Lake Elsinore Community Facilities District No. 88-3 (West Lake Elsinore) 1995 Special Tax Bonds (together, the "Prior Bonds"); and WFIEREAS, the City Council determined in Resolution No. 96-65, adopted December 10, 1996, that due to favorable interest rates as well as the existence of certain financial difficulties attributable to the lack of new housing development within the City, it is in the best interests of the City and the District that the Prior Bonds be refunded; and WHEAEAS, in Resolution No. 96-65, the City Council authorized and directed the fIling of an action in the Superior Court in and for the County of Riverside with respect to the Bonds, and the Superior Court entered its Judgment on February 19, 1997, in Action No. 290318, determining, among other things, that the Bonds (with such additions or modifications as shall be appropriate to effectuate the sale and delivery of such Bonds), when issued, sold and delivered, will be valid, legal and binding obligations of the City; and WHEREAS, the City and the Lake Elsinore Redevelopment Agency of the City of Lake Elsinore have heretofore entered into a Joint Exercise of Powers Agreement establishing the Lake Elsinore Pu6lic Financing Authority (the "Authority"); and WHEREAS, the Authority purchased the Prior Bonds with proceeds of two separate series of Authority bonds issued for such purpose (together, the "Prior Authority Bonds") and the proceeds of the refunding of the Prior Bonds will be used by the Authority to refund by redemption or purchase a portion of the outstanding Prior Authority Bonds; and a WHEREAS, the Authority proposes at this time to issue its revenue bonds in separate series (the "Authority Bonds") for the purpose of providing funds to purchase the Bonds and the City Council, in Resolution No. 96-65 authorized the execution and delivery of a , Commitment Agreement and Purchase Contract (the "Commitment Agreement") providing for the sale of the Bonds to the Authority; and WHEREAS, the Authority desires to sell the Authority Bonds to O'Connor and Company Securities, as underwriter (the "Underwriter"), pursuant to a purchase contract (the "Purchase Contract") in form on file with the City Clerk; and WHEREAS, the Authority directed Rod Gunn Associates, Inc., as ~inancial advisor to the Authority and the City (the "Financial Advisor") to prepare Official Statements describing the Authority Bonds, which are designated therein as the "Series F Bonds" and the "Series G Bonds" for distribution by the Underwriter and the Financial Advisor has prepared and submitted preliminary form of Official Statement describing the Series F Bonds (the Series F Bonds OfEicial Statement") and a preliminary form of Official Statement describing the Series G Bonds (the "Series G Bonds Official Statement"); and WHEIZEAS, it appears that each of said documents and instruments which are now before this meeting is in appropriate form and is an appropriate document or instrument to be executed and delivered for the purpose intended. NOW, THEREFORE, it is hereby determined and ordered as follows: Section 1. Final A~proval of Issuance of Bonds. Pursuant to the Act, this Resolution and the Fiscal Agent Agreement, special tax refunding bonds of the City for the District designated as "City of Lake Elsinore Community Facilities District No. 88-3 (West Lake Elsinore) 1997 Special Tax Refunding Bonds" in an aggregate principal amounh not to exceed $30,000,000, are hereby authorized to be issued. The Bonds shall be issued in td~o separate parts, namely Community Facilities District No. 88-3 (West Lake Elsinore) 1997 Special Tax Refunding Bonds, Series A(the "Series'A Bonds") and Community Facilities District No. 88-3 (West Lake Elsinore) 1997 Special Tax Refunding Bonds, Series B(the Series B Bonds). The Series A Bonds and the Series B Bonds shall be in the respective principal amounts as the Financial Advisor shall advise, provided that the principal amounts of the Series A Bonds and the Series B Bonds, in the aggregate, shall not exceed $30,000,000. The Bonds shall be executed in the form set forth in and otherwise as provided in the Fiscal Agent Agreement. Section 2. Series B Bonds Deemed Part of Series A Bonds. For all purposes of the Judgment of the Riverside Superior Court entered February 19, 1997, in Action No. 290318, the Series B Bonds shall be deemed to be a part of the Series A Bonds in that (i) the aggregate principal amount of the Series A Bonds and the Series B Bonds does not exceed the aggregate amount of the Series F Bonds as represented by the Authority in its Complaint filed in said Action No. 290318 and (ii) the Series F Bonds and the Series G Bonds have been separated into two parts solely as a modification of the proceedings submitted in said Action No. 290318, in order to retain flexibility in resolving the foreclosure actions and court matters relating to the substantial Special Tax delinquencies existing in Community Facilities District No. 88-3 (West Lake Elsinore). Section 3. Sale of Local Obligations by the City. The City Council hereby confirms its approval in Resolution No. 96-65 of the sale of the Local Obligations of the City pursuant to the Commitment Agreement in substantially the form on file with the City Clerk provided that the Commitment Agreement shall implement the sale of the Local Obligations in parts, and any changes therein or additions thereto as may be approved by the City Manger or the Assistant City Manager, and approved by the City's co-bond counsel, and the City Manager or the -2- r Assistant City Manager and approved by the City's co-bond counsel shall execute and deliver the Commitment Agreement in the name and on behalf of the City and whose execution thereof shall be conclusive evidence of approval of any such additions and changes. Section 4. Sale of Bonds, A~proval of Purchase Contract. The City Council hereby approves the sale by the Authority of the Series F Bonds and the Series G Bonds to the Underwriter pursuant to and in accordance with the Purchase Contract, in substantially the form on ffie with the City Clerk, and hereby delegates to both the City Manager and to the Assistant City Manager, the authority to approve an offer from the Underwriter to purchase the Series F Bonds and the Series G Bonds from the Authority, provided, howev~r, that the average annual interest rate payable with respect to the Series F Bonds shall not exceed seven and three- quarters percent (7.75%) per annum and the purchase price to be paid by the Underwriter for the purchase of the Series F Bonds shall be not less than ninety-seven and one-half percent (97.50%) of the par amount thereof, exclusive of original issue discount, and the average annual interest rate payable with respect to the Series G Bonds shall not exceed eight and one-half percent (8.50%) per annum and the purchase price to be paid by the Underwriter for the purchase of the Series G Bonds shall be not less than ninety-seven percent (97%) of the par amount thereof, exclusive of original issue discount. Section 5. Official Statements. The City Council hereby approves the matters contained in the preliminary forms of the Series F Bonds Official Statement and the Series C Bonds Official Statement (together, the "Official Statements") in substantially the forms submitted by the Underwriter and on file with the City Clerk, with such changes and modifications as shall be necessary or appropriate by the Authority. The City Council hereby approves the final Official Statements describing the Series F Bonds and the Series G Bonds respectively. Distribution of the final Official Statements by the Underwriter is hereby approved. Section. 6. Official Actions. All actions heretofore taken by ttYe officers and agents of the City with respect to the establishment of the District and the sale and issuance of the Bonds are hereby approved, confirmed and ratified, and the proper officers of the City are hereby authorized and directed to do any and all things and take any and all actions and execute any and all certificates, agreements and other documents (including but not limited to a certificate or agreement regarding continuing disclosure as referred to in the Fiscal Agent Agreement, and an escrow deposit and trust agreement or snnilar agreement in customary form providing for the refixnding of the Pribr Bonds and the Prior Authority Bonds (the "Escrow Agreement"), which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Bonds in accordance with this resolution, and any certificate, agreement, and other document described in the documents herein approved, and the refunding of the Prior Bonds and the Prior Authority Bonds in accordance with the Escrow Agreement and any applicable certificate or other document described herein or therein. The Assistant City Manager or the Director of Administrative Services may act on behalf of the City Manager , in the event of the unavailability of the City Manager to take any action which the City Manager ~ is herein authorized to take. Section 7. Effective. This resolution shall take effect from and after its adoption. . » ~ ~ ~ ~ ~ -3- ~ r PASSED AND ADOPTED this 27th day of May, 1997, by the following vote: AYES: COUNCILMEMBERS: ALONGI, BRINLEY, KELLEY, PAPE ' NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: (S~:AL) Attest• n ay.: ~., ~ Vicki Kasad, City Clerk City of Lake Elsinore !' Approved as to Form & L~gality: ~~ John R. Harper, City A to n -4- STATE OF CALIFORN~A ) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE ) I, VICHI KASAD, CTTY CLERK OF THE CITY OF LAKE ELSINORE, CALIFORNrA, DO HEREBY CERTIFY that the foregoing Resolution duly adopted by the City Council of the City of Lake Elsinore at an Adjourned Regular Meeting of said Council on the 27th day of May,1997, and that it was so adopted by the following vote: AYES: COUNCILMEMBERS: ALONGI, BRINLEY, KELLEY, PAPE NOES: COUNCILMEMBERS: ABSENT: COUNCII.MEMBERS: ABSTAIN: COUNCILMEMBERS: NONE METZE NONE ~~~~ VICI~".t Y'.ASr~, CITY CLERK CITl: OF I.AL~ ELSINORE ,~EAL) STATE OF CALIFORN~A ) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE) I, VICHI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE, DO HEREBY CERTIF'Y that the above and foregoing is a full, true and correct copy of Resolution No. 97-24 of said Council, and that the same has not been amended or repealed. DATE: June 3, 1997 ~ ~ ~/~~-~-PJy ~ V iCHI x.ASA_D, C1TY CLERK r:'IiI' OF ~AKI: ELSINORE (ss.'.F.L}