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HomeMy WebLinkAboutCC Reso No 1997-59° RESOLUT'ION NO. 97- 59 A RES~LidTION OF THE CTTY COUNCIL OF THE CTI'Y OF LAKE ELSINORE RATIFYING DOCUMENTS AND ACTIONS RELATED TO SPECIAL TAX REFUNDING BONDS OF THE CITY OF LAKE ELSINORE FOR CITY OF LAKE ELSINORE COMMUNITY FACILTTIES DISTRICT NO. 88-3 (WEST LAKE ELSINORE), AUTHORIZING THE ISSUANCE OF ADDTITONAL BONDS, AND APPROVIIVG RELATED ACTIONS. City of Lake Elsinore Community Facilities District No. 88-3 (WestLake Elsinore) RESOLVED, 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 Community Facilities District No. 88-3 of the City ofLake Elsinore (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 WHEREAS, the City Council, as legislative body of the District, authorized 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 (West Lake Elsinore ) 1995 Special Tax Bonds (together, the "Prior Bonds"); and WHEREAS, the City Council determined in Resolution No. 96-65, adopted Deeember 10, 1996, that due to favorable interest rates as well as the e~cistence of certain financial difficulties attributable'to the lack of new housing development within the City, it was in the best interests of the City and the District that the Prior Bonds be refinanced; and WHEREAS, the City Council adopted Resolution No. 97-24 on May 27, 1997 (the "1997 Resolution") granting final approval to the issuance of special tax refunding bonds of the City for the District, and on August 7, 1997, the City issued, for and on behalf of the District, $24,SSO,U00 City of Lake Elsinore Community Facilities District No. 88-3 (West Lake Elsinore) 1997 Special Tax Refunding Bonds, Series A(the "Series A Bonds") and $4,255,000 City of Lake Elsinore Community Facilities District No. 88-3 (West Lake Elsinore) 1997 Special Tax Refunding Bonds, Series B(the "Series B Bonds" and, together with the Series A Bonds, the "Bonds"); and WHEREAS, following adoption of the 1997 Resolution and up to the closing for the ~ Bonds, revisions were made to the documents pursuant to which the Bonds were issued and the Series A Bonds were sold to the Lake Elsinore Public Financing Authority (the "Authority"), and the City Council now desires to ratify the revisions to such documents as set forth below; and WHEREAS, as additional consideration for the Authority's purchase of the Series A Bonds, the City issued and delivered to the Authority the Series B Bonds and agreed to deliver additional bonds of the City for the District (the "Additional Bonds") to be issued and secured under the Fiscal Agent Agreement for the Series B Bonds, and the City Council now desires to authorize the issuance of the Additional Bonds and to approve all actions necessary to issue and deliver the Additional Bonds to the Authority; and NOW, THEREFORE, it is hereby deternuned and ordered as follows: Section 1. Itatification of Documents Related to the Bonds. The City Council hereby ratifies the revisions made to the documents for the Bonds, and hereby approves, nun pro hinc, the following documents in the forms executed by the City at or before the closing for the Bonds; the Series A Bonds, the Series B Bonds, the Fiscal Agent Agreement for the Series A Bonds, the ° PAGE TWO - RESOLUT'ION NO. 97- 9 Fiscai Agent Agreement for the Series B Bonds (the "Series B Fiscal Agent Ageement") and the Commitment Agreement and Purchase Contract for Purchase and Sale of Local Obligations (the "Purchase Contract," and together with such other documents, the "Bond Documents"). The City Council hereby ratifies its authorization of and approves the performance by the City and the District of their obligations under the Bond Documents. Section 2. Authorization of Additional Bonds. The City Council hereby acknowledges that (a) the District is authorized to issue up to $30,000,000 principal amount of special tax bonds, (b) the initial aggregate principal amount of the prior Bonds was $26,900,000, and ~ the Bonds satisfied the requirements of Section 53362.5 of the Act, so that under Section 53362.7 of the Act the total authorized amount of the bonded indebtedness was not reduced by the principal amount of the Bonds, all to the effect that the City is authorized to issue an additional $3,100,000 in special tax bonds for the District. Accordingly, and in order to satisfy the City's obligations under Section 7 of the Purchase Contract and under an pursuant to the Act and the Series B Fiscal Agent Agreement, the City hereby authorizes the issuance of the Additional Bonds as Parity Bonds (as defined in the Series B Fiscal Agent Agreement) of the City for the District in the initial aggregate principal amount of $3,100,000. The Additional Bonds shall be executed in the form and othenvise as provided in the Series B Fiscal Agent Agreement. The City Council hereby finds and deternunes that the Additional Bonds should be issued for the public policy reason that the issuance of the Additional Bonds was a condition to the purchase of the Bonds by the Authority, and the Authority's program involving the purchase of the Bonds will be of the assistance to the restructuring of defaulted Authority and City bond issues and to the development of property in the City. The City Council hereby finds and deternvnes that the sale of the Series A Bonds to the Authority pursuant to the Purchase Contract, and the delivery to the Authority ofthe Series B Bonds and the Additional Bonds to the Authority in connection therewith, resulted in a lower overall cost and thereby satisfied any applicable requirement of Section 53360.4 of the Act. Section 3. Delivery of Additional Bonds. The Additional Bonds, when executed, shall be delivered to the Fiscal Agent (as defined in the Series B Fiscal Agent Agreement) for authentication. The Fiscal Agent is hereby requested and directed to authenticate the Additional Bonds by executing the Fiscal AgenYs certificate of authentication and registration appearing thereon, and to deliver the Additional Bonds, when duly executed and authenticated, to the Authority. Section 4. Financing Team. The City hereby designates the following firms as its consultants for future financings of the City: Rod Gunn Associates, Inc., O'Connor & Company Securities, Fulbright & Jaworski, L.L.P. and Quint & Thimmig, L.L.P. The City Manager is hereby authorized to enter into agreements, for and on behalf of the City, with said firms for their services related to the Bonds and any future financings of the City, as applicable said agreements to be in a form acceptable to the City Manager and the City Attorney. Section 5. Ofticial Actions. All actions heretofore taken by the officers and agents of the City with respect to the establishment of the District and the sale and issuance of the Bonds and the Additional 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, which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Additional Bonds in accordance with this Resolution, and any certificate, agreement, and other document described int he documents herein approved, and the refunding of the Prior Bonds and any applicable certificate or other document described herein or therein. Section 6. Effective. This Resolution shall take effect from and after its adoption. . a PAGE THREE - RESOLUTION NO. 97-59 9 PASSED AND ADOPT'ED this 12th day of August, 1997, by the following vote: AI'ES: COUNCIL.MEMBERS: BRINLEY, KELLEY, METZE, PAPE NOES: COUNCILMEMBERS: ALONGI ABSENT: COiTNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE v ~OV. PAP'E,~'IAYOR OF LAKE ELSINORE ATTEST: ~ ~ J.~- ~~~A~ VICICF KASAI9, CITY CLERK ~,'i~'Y OF LAKE EL$INORE APPROVED AS TO FORM: CITY A STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE ) I, VICHI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE, CALIFOItNIA, DO HEREBY CERTIFY that the foregoing Resotution duly adopted by the City Council of the City of Lake Elsinore at a Regular Meeting of said Council on the 12th day of August, 1997, and that it was so adopted by the following vote: AYES: COUNCILMEMBERS: BRINLEY, KELLEY, METZE, PAPE NOES: COUNCILMEMBERS: ALONGI ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBER5: NONE ~ ~ ~..ti(~ ~~ICKL KASAP; LITY CLERK CITI' OF.' LA.KE ELSINORE (3Er".I.} STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) 5S: CITY OF LAKE ELSINORE) I, VICKI 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. 97-59 of said Council, and that the same has not been amended or repealed. DATE: August 19, 1997 ~~~~~~ `7ICKI ?i~~SAD, (:ITY CLERK CITY ~F LAI~E ELSINORE ~SI~AL)