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HomeMy WebLinkAboutCC Reso No 1996-48RESOLUTION NO. 96-48 A RESOLUTION Or THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DESIGNATING CONSULTANTS TO ASSIST WITH THE ANALYSIS AND RESTRUCTURING OF IMPROVEMENT DISTffiCT AND THE REFUNDING OF OBLIGATIONS RELATED THERETO. WHEREAS, the City of Lake Elsinore (the City ) has formed a number of improvement districts pursuant to the Municipal Improvement Act of 1915, as amended, and the Community Facilities Act of 1982, as amended, for the purpose of acquiring, constructing and financing public facilities and improvements to benefit and serve land included within such districts and the residents of the City; and WHEREAS, the City and its Public Financing Authority (the Authority ) have issued bonds to finance such facilities and improvements, secured by the land within the benefitting districts, and many parceis within such districts responsible for paying assessments and special taxes to the City to pay such bonds have become delinquent, thereby placing the districts in danger of default in the payment of debt service on the bonds; and WHEREAS, the City has initiated foreclosure procedures as to such delinquent parcels but anticipates that proceeds from the sale of the Property will not be sufticient to bring the Property current in the payment of delinc~uent assessments and special ta~ces and an effort must be commenced to explore alternate solutions Yo return the property to productive status, including the restructuring of the assessment and special tax obligations on the Property, the refunding of the bonds and possible forgiveness of a portion of assessment and special ta~c delinquencies, including penalties and interest, to bring the debt service requirements to a feasible level based on current economic conditions in the area; and ~. WHEREAS, the city desires to designate and retain consultants having experience and expertise in such matters to assist the City in the analysis and in implementing a restructuring and financing program to accomplish the stated oUjectives ofthe City. NOW, THEREFORE, BE IT I2~SOLVED by the City Council of the City of Lake Elsinore, as follows: Section 1. The above recitals are true and correct. Section 2. The staff of the City is hereby directed, on a priority basis, to complete the necessary studies and analysis, and to provide information necessary to assist the designated PAGE TWO - RESOLUTION NO. 96-48 consultants in developing a workout strategy and deternuning the appropriate alternatives to implement a financing program to accomplish the stated objectives of the City. 5ection 3. The City hereby designates the firm of CHII,TON & O CONNOP.; INC. (The Underwriter ) to provide investment bonding services to the City in connection with workout and finance strategies and implementation thereof, including the underwriting of bonds which may be issued for such purpose. The City Manager is directed to negotiate an agreement by and between the underwriter and the City in connection with the services contemplated herein. Section 4. The City hereby designates the firm of 70NES, HALL, HII,L & WFIITE and the firm of I-IARPER & BURNS (collectively, Bond Counsel ) to provide legal services to the City in connection with the analysis of existing bonded indebtedness and the sale of refunding bonds, to accomplish the objectives and purposes of the City, which services shall include the preparation of all certificates, notices, affidavits, resolutions, ordinances and financing and closing documentation, and the issuance of its legal opinion as to the ta~c-exempt nature of interest on any bonds issued for the indicated purposes. The City Manager is directed to negotiate an agreement by and between Bond Counsel and the City in connection with the services contemplated hereunder. Section 5. The City hereby designates the firm of ROD GiTNN ASSOCIATES, INC. (the Financial Advisor ) to provide public financial advisory services to the City in connection with workout and finance strategies and 'unplementation thereof, including an analysis of the terms of all outstanding bonds and any bonds proposed to be issued. The City Manager is directed to negotiate an agreement by and between the Financial Advisor and the City in connection with the services contemplated hereunder. Section 6. The City hereby designates the firm of MCFARLIN & ANDERSON ( Warkout Counsel ) to provide legal services to the City in connection with the development and implementation of workout and finance strategies, including the restructuring of the e3cisting financing and the sale of refunding bonds, to accomplish the objectives and purposes of the City. The City Manager is directed to negotiate an agreement by and between Workout Counsel and the City in connection with the services contemplated hereunder. PAGE THREE - RESOLUTION NO. 96-48 5ection 7. This Resolution shall take eft'ect immediately upon adoption. PASSED, APPROVED AND ADOPTED on this 13th day ofAugust, 1996, by the following vote: AYES: COUNCII.MENIBERS: ALONGI, BRINLEY, KELLEY, METZE, PAPE NOES: COLTNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE ATTEST: j ~~ ~ ~, i ~ ~ ~ ~r , r~ ~ YbCHI I{ASr4IJ, ~ITY CLERK APPROVED A5 TO FORM AND LEGALITY: ~~ ,~P~~ CITY ATTORNEY' `'J~, STATE OF CALIFORNIA ) COiTNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE ) I, VICKI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution duly adopted by the I City Council of the City of Lake Elsinore at a regulaz meeting of said Council on the 13th day of August, 1996, and that it was so adopted by the following vote: AYES: COUNCILMEMBERS: ALONGI, KELLEY, METZE, PAPE, BRINLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE ~ ~~ ~~ ~~~,~~y^r~. ~ F~TCI~~SA/D C. I' CLERK CITY ~F LA.~ ELSINORE (~r,Ai,) STAT~ OF CALIFORNIA ) COLTNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE) I, VICKI KASAD, CITY CLERK OF THE CITY OF LAICE ELSINORE, DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of Resolution No. 96-48 of said Council, and that the same has not been amended or repealed. DAT : August 27, 1996 ~~~ ~.J.~~f ~?ICHI ~S~s:A}, ~ ITY CLERK LITY ~F I:A~:: ~LSINORE ISEAL)