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HomeMy WebLinkAboutCC Reso No 1996-65^~. RESOLUTION NO. 96-65 A RESOLUTION AUTHORIZING THE ISSUANCE OF SPECIAL TAX REFUNDING BONDS OF THE QTY OF LAKE ELSINORE FOR CITY OF LAKE ELSINORE COMMLTNITY FACILITIES DISTTiICT NO. 88-3 (WEST LAKE ELSINORE), APPROVING AND DIRECTiNG THE EXECUTION OF A FISCAL AGENT AGREEMENT, APPROVING SALE OF SUCH BONDS TO THE LAKE ELSINORE PUBLIC FINANQNG AUTHORITY AND APPROVING OTHER RELATED DOCUMENTS AND ACTIONS City of Lake Elsinore Community Facilities District No. 88-3 (West Lake Elsinore) ItESOLVED, 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 YVfiEREAS, the City Council, as legislative body of the District, authorized the issuance of two 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 orighlal principal amount of $4,400,000 designated City of Lake Elsinore Community Facilities District No. 88-3 (West Lake Elsinore) 1995 Special Tax Bonds (together, the "Prior Bonds"); and WHEftEAS, the City Council has determined 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, there has been submitted to the City Council a fiscal agent agreement (the "Fiscal Agent Agreement") providing for the issuance of special tax refunding bonds of the City (the "Bonds"), for and on behalf of the District, and the City Council, with the aid of its staff, has reviewed the Fiscal Agent Agreement and found it to be in proper order, and now desires to approve the Fiscal Agent Agreement and the issuance of the Bonds; and WHEREAS, all conditions, things and acts required to exist, to have happened and to have been performed precedent to and in the issuance of said special tax refunding bonds as contemplated by this Resolution and the documents referred to herein exist, have happened and have been performed in due time, form and manner as required by the laws of the State of California, including the Act; and WHEftEAS, 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 Public 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 WHEREAS, the Authority proposes at this time to issue its revenue bonds (the "Authority Bonds") for the purpose of providing funds to purchase the Bonds; and WHEREAS, there is on file with the City Clerk a customary form of bond purchase contract for the purchase by the Authority from the City of the Bonds (the "Commitment Agreement and Purchase Contract"), and the City Council has duly considered the transactions on the part of the City and the District contained in such document and wishes at this time to approve said transactions in the public interests of the City and the District; and WHEAEAS, co-bond counsel to the Authority have advised the Authority that it is appropriate to bring an action in the Superior Court to confirm, among other things, the etfect, if any, of newly adopted Article XIIIC of the California Constitution on the security for the Bonds and, hence, the Authority Bonds; and WHEREAS, 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, THEItEFOIZE, it is hereby determined and ordered as follows Section 1. 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 amount not to exceed $30,000,000, are hereby authorized to be issued. The Bonds shall be executed in the form set forth in and otherwise as provided in the Fiscal Agent Agreement. Section 2. Findings Re Sale of Bonds. In furtherance of the sale of the Bonds, the City Council hereby makes the following findings and determinations: (i) it is prudent in the management of the fiscal affairs of the City, the City Council and the District to issue the Bonds for the purpose of refunding the Prior Bonds and (ii) the total net interest cost to maturity on the Bonds plus the principal amount of the Bonds will not exceed the total net interest cost to maturity on the Prior Bonds plus the principal amount of the Prior Bonds. Accordingly, the Bonds need not satisfy the requirements of Section 53345.8(a) of the Act by reason of the provisions of Section 53345.8(c) of the Act. Section 3. Avnroval of Fiscal Agent Agreement. The City Council hereby approves the Fiscal Agent Agreement in the form on file with the City Clerk. The City Manager is hereby authorized and directed to execute the Fiscal Agent Agreement, for and in the name and on behalf of the City and the District, in such form, together with any additions thereto or changes therein deemed necessary or advisable by the City Manager upon consultation with co-bond counsel. The proceeds of the Bonds shall be applied by the City for the purposes and in the amounts as set forth in the Fiscal Agent Agreement. The City Council hereby authorizes the delivery and performance by the City of the Fiscal Agent Agreement. Section 4. Findings Re Refunding Bonds. For purposes of Section 53363.2 of the Act, (i) it is expected that the purchase of the Bonds will occur on or after February 15, 1997, (ii) the date, denomination, maturity dates, places of payment and form of the Bonds shall be as set forth in the Fiscal Agent Agreement, (iii) the minimum rate of interest to be paid on the Bonds -2- shall be one percent (1%) with the actual rate or rates to be set forth in the Fiscal Agent Agreement as executed, (iv) the place'of payment for the Prior Bonds shall be as set forth in the fiscal agent agreement for the Prior Bonds; and (v) the designated costs of issuing the Bonds shall be as described in Section 53363.8(a) of the Act, and as otherwise described in the Escrow Agreement hereinafter referred to, in the Official Statement for the Authority Bonds and the closing certificates for the Bonds and the Authority Bonds, including Bond Counsel fees and expenses, Underwriter's discount, printing costs for the Official Statement, initial trustee and fiscal agent fees, and costs of City staFf incurred in connection with the sale and issuance of the Bonds and the Authority Bonds and the refunding of the Prior Bonds and the purchase or redemption of the Prior Authority Bonds. Section 5. Sale of Bonds to Authoritv. The proposed form of purchase contract for the Bonds (the "Commitment Agreement and Purchase Contract") between the City and the Authority, in customary form is hereby approved. The City Manager is hereby authorized and directed, for and in the name and on behalf of the City, to accept the offer of the Authority to purchase the Bonds contained in the purchase contract and to execute and deliver said purchase contract in said form, with such additions thereto or changes therein as are recommended or approved by such officer upon consultation with Co-Bond Counsel (provided that no additions or changes shall authorize an aggregate principal amount of Bonds in excess of $30,000,000, or result in an initial true interest cost on the Bonds in excess of 10% per annum), the approval of such additions or changes to be conclusively evidenced by the execution and delivery by the City of said purchase contract. This City Council hereby finds and determines that the sale of the Bonds at negotiated sale as contemplated by the Commitment Agreement and Purchase Contract will result in a lower overall cost. Section 6. Foreclosure Actions. The City hereby covenants, tor the benefit of the Bondowners, to commence and diligently pursue to completion any foreclosure action regarding delinquent installments of any amount levied as a special tax for the payment of interest or principal of the Bonds, any such foreclosure action to b"e commenced and pursued as more completely set forth in the Fiscal Agent Agreement. Section 7. Delivery of Bonds. The Bonds, when executed, shall be delivered to the Fiscal Agent for authentication. The Fiscal Agent is hereby requested and directed to authenticate the Bonds by executing the Fiscal Agent's certificate of authentication and registration appearing thereon, and to deliver the Bonds, when duly executed and authenticated, to the Authority in accordance with written instructions executed on behalf of the City by the Director of Administrative Services, which instructions such officer is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver to fhe Fiscal Agent. Such instructions shall provide for the delivery of the Bonds to the Authority or its designee in accordance with the purchase contract, upon payment of the purchase price therefor. Section 8. Action for Validation. Jones Hall Hill & White, A Professional Law Corporation, and Harper & Burns, co-bond counsel to the City, are authorized and directed to prepare proceedings to bring an action on behalf of the City in the Superior Court of the State of California, in and for the County of Riverside, requesting a judgment of the Court confirming the effect, if any, of Section XIIIC of the California Constitution on the Bonds and the Authority Bonds and as to such other matters as co-bond counsel shall deem necessary or appropriate, such action being authorized by Section 53517 of the Government Code of the State of California to be brought as an action in rem pursuant to Section 860 et seq. of the Code of Civil Procedure of the State of California. _~ Section 9. Official 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 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 sunilar agreement in customary form providing for the refunding of the Prior 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 hereirr 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 10. Effective. This resolution shall take effect from and after its adoption. ~ » ~ ~ ~ ~ . PASSED AND ADOPTED this IOth day of December, 1996, by the following vote: AYES: COUNCILMEMBERS: ALONGI, ARINLEY, KELLEY, METZE, PAPE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: I (SEAL) Atke~4' Approved as to Legal Form: 1 _ ~ -~I/ YA y~ BY: , ` ~iVVI ~ Vicki Kasad, City Clerk John R. Harper, C t Attorney City of Lake Elsinore -4- STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE ) I, VICKI KASAD, CITY CLERK OF TI~ CITY OF LAKE ELSINORE, CALIFORI~IIA, DO HEREBY CERTIFY that the foregoing Resolution duly adopted by the City Council of the City of Lake Elsinore at a Special meeting of said Council on the 3rd day of December, 1996, and that it was so adopted by the following vote: AYES: COUNCILMEMBERS: ALONGI, BRIlVLEY, KELLEY, METZE, PAPE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE ~,~l,,~ ' C ~ LERK ~ CITY OF L.AIZF: ELSINORE (SEA3.,1 STATE OF CALIFORIVIA ) COUNTY OF RIVERSIDE ) SS: 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. 96-65 of said Council, and that the same has not been amended or repealed. DA . December 12, 1996 ~ , L ' ` r ~ ~l1Pr CITY CLERK . ~ CITY OF LAI~T: ELSINORE (SF:rLI~~