HomeMy WebLinkAboutCC Reso No 1994-60RESOLiTTION NO. 94-60
A RESOLUTION AUTHORIZING THE ISSUANCE OF SUBORDINATE SPECIAL
TAX BONDS, APPROVING AND DIRECTING THE EXECUTION
OF A SUPPLEMENTAL AGREEMENT TO FISCAL AGENT AGREEMENT, AND
APPROVING OTHER RELATED DOCUMENTS AND ACTIONS
City of Lake Elsinore
Community Facilities District No. 90-3
(North Lake Elsinore Hills Public Improvements)
RESOLVED, by the City Council of the City of Lake ELsinore (the "City") that:
WHEIZEAS, this 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. 90-3 (North Lake Elsinore Hills Public
Improvements) (the "District"), to authorize the levy of special taxes upon the land within the
District, and to issue bonds secured by said special taxes the proceeds of which are to be used
to finance certain facilities (the "Facilities"), all as described in the Resolurion Nos 92-42 and
92-43 of the City Council adopted on June 23, 1992, entitled, "A Resolution of Formation of
City of Lake Elsinore Community Facilities I?istrict No. 90-3 (North L.ake Elsinore Hills Public
Improvements), Authorizing the Levy of a Special Tax Within the District, Preluninary
Establishing an Appropriations Limit for the District and Submitting Levy of the Special Tax
and the Establishment of the Appropriations L'unit to the Qualified Electors of the District" and
"A Resolution Determining the Necessity to Incur Bonded Indebtedness Within the City of Lake
Elsinore Community Facilities District No. 90-3 (North Lake Elsinore Hills Public
Improvements) and Submitting Proposition to the Qualified Electors of the District",
respectively;
WHEREAS, pursuant to said resolutions, an election was held within the District on
June 23, 1992 and the qualified electors approved the propositions of the incurrence of the
bonded debt, the levy of the special tax and the establishment of the appropriations limit by
more than two-thirds of the votes cast at said special election;
WHEREAS, pursuant to Resolution No. 92-46 adopted by this Council on June 23, 1992,
and that certain Fiscal Agent Agreement, dated as of February 1, 1993 (the "Fiscal Agent
Agreement") by and between the City and the Lake Elsinore Public Financing Authority (the
"Authority" or the "Fiscal Agent;' as applicable), as fiscal agent, the City, on behalf of the
District, has caused to be issued bonds in the aggregate principal amount of $4,162,928.97,
designated "City of Lake Elsinore Community Facilities District No. 90-3 (North Lake Elsinore
Hills Public Improvements) 1992 Special Tax Bonds" (the "1992 Bonds"), the proceeds of which
aze being used by the City to finance a portion of the Facilities;
WHEREAS, the Fiscal Agent Agreement provides that it may be amended by a
supplemental agreement thereto;
WHEREAS, this City Council now wishes to provide for the issuance of additional
bonds of the City for the District (the "S.ubordinate Bonds") pursuant to such a supplemented
agreement (the "Supplemental Agreement"), such bonds to be subordinate to the 1992 Bonds,
and there have been submitted to this City Council certain documents providing for the issuance
of the Subordinate Bonds of the City for the District and the use of the proceeds of those bonds
to finance additional porrions of the Facilities, and this Council, with the aid of its staff, has
reviewed said documents and found them to be in proper order; and
WHEREAS, all condirions, things and acts required to exist, to have happened and to
have been performed precedent to and in the issuance of the Subordinate Bonds and the levy of
said special taxes 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.
NOW, THEftEFORE, TT IS HEREBY ORDERED as follows:
Section 1. Pursuant to the Act, this Resolution, the Fiscal Agent Agreement and the
Supplemental Agreement, Subordinate Bonds of the City for the District designated as "City of
Lake Elsinore Community Facilities District No. 90-3 (North Lake Elsinore Hills Public
Improvements) 1994 Special Tax Bonds" (hereinafter called the "Subordinate Bonds") in an
aggregate principal amount not to exceed $5,837,071.03 are hereby authorized to be issued.
The Subordinate Bonds shall be executed in the form set forth in and otherwise as provided in
the Fiscal Agent Agreement, as supplemented by the Supplemental Agreement.
Section 2. The proposed form of the Supplementai Agreement ("AgreemenY') with
respect to the Bonds, in the form on file with the City Clerk, is hereby approved. The Director
of Administrative Services of the City is hereby authorized and directed to execute and deliver
the Supplemental Agreement in said form, with such additions thereto or changes therein as are
approved by the D'uector of Administrative Services of the City upon consultation with the
City's financial advisor and co-bond counsel including such additions or changes as are
necessazy or advisabie in accordance with SecHon 6 hereof (provided that no additions or
changes shall authorize an aggregate principal amount of Subordinate Bonds in excess of
$5,837,071.03, result in an initial net interest cost on the Subordinate Bonds in excess of 10%
per annum or result in an underwriter's discount in excess of 5%a of the aggregate principal
amount of the Subordinate Bonds), the approval of such additions or changes to be conclusively
evidenced by the execution and delivery of the Supplemental Agreement by the Director of
Administrative Services of the City. The date, manner of payment, interest rate or rates,
interest payment dates, denominations, form, registration privileges, manner of execution, place
of payment, terms of redemption and other terms of the Subordinate Bonds shall be as
provided in the Supplemental Agreement as finally executed. The terms and provisions of the
Fiscal Agent Agreement and the Supplemental Agreement are incorporated herein by this
reference as if fully set forth herein.
Section 3. The proposed form of purchase contract for the Subordinate Bonds (the
"Purchase AgreemenY'), in the form on file with the City Clerk, is hereby approved. The
Director of Administrative Services of the City 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, as
such offer is contained in the Purchase Agreement (when such offer is made and if such offer is
consistent with Section 2 hereofl and to execute and deliver the Purchase Agreement in said
form, with such additions thereto or changes therein as aze recommended or approved by such
officer upon consultation with the Cit~s financial advisor and co-bond counsel, the approval of
such additions or changes to be conclusively evidenced by the execution and delivery by the
City of the Purchase Agreement.
This Council hereby finds and determuies that the sale of the Subordinate Bonds at
negotiated sale as contemplated by the Purchase Agreement will result in a lower overall cost
to the City than would a competitively bid sale.
Section 4. The City hereby covenants, for the benefit of the Subordinate 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
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Subordinate Bonds, said foreclosure acHon to be commenced and pursued as more completely
set forth in the Fiscal Agent Agreement.
Section 5 The Subordinate Bonds, when executed, shall be delivered to the Fiscal Agent
for authentication. The Fiscal Agent is hereby requested and directed to authenticate the
Subordinate Bonds by executing the Fiscal AgenYs certificate of authentication and registration
appearing thereon, and to deliver the Subordinate 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 the Fiscal Agent. Such instructions shall provide for the delivery of the Subordinate Bonds to
the Authority in accordance with the Purchase Agreement, upon payment of the puzchase price
therefor.
Section 6. 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 Subordinate 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
Subordinate Bonds in accordance with this resolution, and any certificate, agreement, and other
document described in the documents herein approved. All actions to be taken by the Director
of Administrative Services as specified herein, may be taken by the D'uector of Administrative
Services or any written designee thereof, with the same force and effect as if taken by the
Director of Administrative Services.
Section 7. This Resolution shall take effect from and after its adoption.
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PASSED AND ADOPTED this 22nd day of November 1994, by the following vote:
AYES: Councilmember : al.orrcz, BENDER, BRINLEY, PAPE, WASHBURN
NOES: Council member : rroNs
ABSTAIN: Council member . NONE
ABSENT: Council member . NoNE II ~
._.,~...~_.., ...,,...
City of Lake Elsinore
ATTEST:
i
Vicki Kasad
City Clerk
APPROVED AS TO FORM & LEGALITY:
~1 ~~ ,~
.7ohn R. Harper, Cit Att rney
~-
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) SS:
CITY OF LAKE ELSINORE )
I, VICKI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE,
', 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 22nd day of November, 1994, and that it was so
adopted by the following vote:
AYES: COUNCILMENIBERS: ALONGI, BENDER~ BRINLEY, PAPE,
WASHBURN
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
ABSTAIN: COUNCILMII'4BERS: NONE
CLERK
CITY UE` LAKE EI:SINORE
, (SEAI~)
STATE OF CALIFORNIA )
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. 94-60 of said Council, and that the
same has not been amended or repealed.
D TED: November 28, 1994
~
CKI KAS , C3'^ CLERK
CITY ~)'a :,AKE EL:INORE
(SEAL)