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HomeMy WebLinkAbout98-041 CC ResolutionRESOLUTION NO. 98-41 A RESOLUTION OF THF~ CITY COUNCIL OF ~ CITY OF ~ AUTHOIHZING ~ ISSUANCE OF SPECIAL TAX REFUNDING BONDS OF THE crrY FOR AND ON BEHALF OF ~ CO]~i~ITY FACII.rYI~S DISTRICT NO. 88-12 OF ~ CITY OF TEMECIRA (YNEZ CORRIDOR), APPROVING AND DIRECTING ~ ~ON OF A FISCAL AGENT AGREEMENT AND AN ESCROW AG]~Ln~iENT, APPROVING SALI~. OF SUCH BONDS, AND APPROVING OT!~k~R RELATi~ ~S AND ACTIONS Wl:I~REAS, the Board of Supervisors (the "Board") of the County of Riverside (the "County") 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. 88-12 of the County of Riverside (Ynez Corridor) (the "District"), to authorize the levy of special taxes upon the land within the District, and to issue bonds secured by said special taxes to finance certain facilities; and wI:n~EAS, the Board, as the then legislative body of the District, authorized the issuance of bonds for the District in the original principal amount of $18,325,000 designated Community Facilities District No. 88-12 of the County of Riverside (Ynez Corridor) Series 1992 Special Tax Bonds (the "Prior Bonds"), the Prior Bonds having been issued on June 4, 1992, pursuant to the Act and Resolution No. 92-157 of the Board; and ~, the City Council and the Board have entered into an agreement transferring the governance of the District to the City Council which became effective on December 1, 1997, and the City Council is now the legislative body for the District and, pursuant to the Act and such agreement, the District is now known as the Community Facilities District No. 88-12 of the City of Temecula (Ynez Corridor); and WI~RgAS, the City Council has determined that due to favorable interest rates, it is in the best interests of the City and the District that the Prior Bonds be refunded; and w'm~R&S, 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, there has been presented to the City Council an escrow agreement (the R~n. 98-41 1 "Escrow Agreement"), providing for the creation of a refunding fund which will be used to refund and redeem the Prior Bonds and the City Council now desires to approve such agreement in connection with the refunding of the Prior Bonds; and WheREAS, the City proposes to sell the Bonds to Stone & Youngberg LLC (the 'Underwriter") pursuant to the terms of a Bond Purchase Agreement (the "Bond Purchase Agreement") by and between the City and the Underwriter, and the Underwriter proposes to offer the Bonds to the investing public by means a preliminary official statement (the "Prelirninary Official Statement"); and WI~k-~,EAS, 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; and WI~RRAS, all conditions, things and acts required to exist, to have happened and to have been performed precedent to and in the issuance of the 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. NOW, THS~:REI~ORE, BE IT RESOLVED, by the City Council of the City of Temecula as follows: 1. Issuance of Bonds; Approval of Fiscal Agent Agreement and Escrow Agreement. Pursuant to the Act, this Resolution and the Fiscal Agent Agreement, special tax refunding bonds of the City for the District designated as "community Facilities District No. 88-12 of the City of Temecula (Ynez Corridor) Special Tax Refunding Bonds, 1998 Series A" in an aggregate principal amount not to exceed $19,000,000, 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. In furtherance of the issuance 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, inter alia, of refunding the Prior Bonds, (ii) the total net interest cost to maturity on the portion of the Bonds being issued to refund the Prior Bonds plus the principal amount of the portion of the Bonds being issued to refund the Prior Bonds will not exceed the total net interest cost to maturity on the Prior Bonds plus the principal amount of the Prior Bonds, and (iii) the Bonds are in compliance with the City's Goals and Policies for Community Facilities Districts, adopted on July 22, 1997. The principal amount of the Bonds will be less than one third of the value of the property in the District subject to the levy of the special taxes authorized under the Act, as confirmed in the appraisal of Bruce W. Hull & Associates, Inc. dated March 25, 1998. 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 Rems. 98-41 2 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 Bond Counsel and the City Attorney. 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. For purposes of Section 53363.2 of the Act, (i) it is expected that the purchase of the Bonds will occur on or after June 17, 1998, (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 shall be three percent (3%) 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 Fiscal Agent Agreement, in the Official Statement for the Bonds and the closing certificates for the Bonds, including Bond Counsel fees and expenses, Underwriter's discount, printing costs for the Official Statement, escrow verification costs, initial fiscal agent fees, and costs of City staff incurred in connection with the sale and issuance of the Bonds. The City Council hereby approves the refunding of the Prior Bonds with the proceeds of the Bonds, in accordance with the provisions of the documents pursuant to which such Prior Bonds were sold and delivered, and the Escrow Agreement, between the City and the Fiscal Agent for the Prior Bonds. The City Council hereby approves the Escrow Agreement in the form on file with the City Clerk. The City Council hereby authorizes and directs the City Manager to execute and deliver the final form of the Escrow Agreement for and in the name and on behalf of the City, in such form, together with any changes therein or additions thereto deemed advisable by the City Manager upon consultation with Bond Counsel and the City Attorney. The City Council hereby authorizes the delivery and performance by the City of the Escrow Agreement. 2. Delivery of the 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 Underwriter or its order in accordame with written instructions executed on behalf of the City by the City Manager, 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 Bonds to the Underwriter or its order in accordance with the Bond Purchase Contract, upon payment of the purchase price therefor. 3. Sale of the Bonds. The City Council hereby approves the sale of the Bonds to the Underwriter. The Bond Purchase Contract, in the form on file with the City Clerk, be and the same is hereby approved, and the Finance Director (or, in his absence, the City Manager) is hereby authorized and directed to execute the Bond Purchase Contract in said form, with such changes, insertions and omissions as may be approved by such official, provided that the aggregate principal amount of the Bonds does not exceed the amount set forth in Section 1, the R~o~. 98-41 3 net interest cost on the Bonds does not exceed 7.0%, the Underwriter's discount on the Bonds (without regard to any original issue discount) does not exceed 3.0% and the requirements of clause (ii) of the second paragraph of Section 1 are met. The City Council hereby finds and determines that the sale of the Bonds at negotiated sale as contemplated by the Bond Purchase Contract will result in a lower overall cost. 4. Official Statement. The City Council hereby approves the Preliminary Official Statement in the form on file with the City Clerk, together with any changes therein or additions thereto deemed advisable by the Finance Director. The City Council authorizes and directs the Finance Director, on behalf of the City and the District, to deem ~final" pursuant to Rule 15c2-12 under the Securities Exchange Act of 1934 (the "Rule") the Preliminary Official Statement prior to their distribution by the Underwriter. The Underwriter, on behalf of the City and the District, is authorized and directed to cause the Preliminary Official Statement to be distributed to such municipal bond broker-dealers, to such banking institutions and to such other persons as may he interested in purchasing the Bonds. The Finance Director is authorized and directed to assist the Underwriter in causing the Prel'uninary Official Statement to he brought into the form of final official statement (the "Final Official Stst_ement"), and the City Manager is hereby authorized and directed to execute said Final Official St~t_ement and a statement that the facts contained in the Final Official Statement, and any supplement or ~t thereto (which shall be deemed an original part thereof for the purpose of such ~tement) were, at the time of sale of the Bonds, true and correct in all material respects and that the Final Official Statement did not, on the date of sale of the Bonds, and do not, as of the date of delivery of the Bonds, contain any untrue statement of material fact or omit to state material facts required to be stated where necessary to make any statement made therein not misleading in the light of the circumstances under which it was made. The execution and delivery by the City of the Final Official Statement, which shall include such changes and additions thereto deemed advisable by the Finance Director and such information permitted to be excluded from the Preliminary Official Statement pursuant to the Rule, shall be conclusive evidence of the approval of the Final Official Statement by the City. The Final Official Statement, when prepared, is approved for distribution in connection with the offering and sale of the Bonds. $. Official Actiota. 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, continned 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 Bonds and the refunding of the Prior Bonds, in accordance with this resolution, and any certificate, agreement, and other document described in the documents herein approved. 98-41 4 ---- 6. Effective Date. This resolution shall take effect from and after its adoption. PASSED, APPROVED, AND ADOPTi~, by the City Council of the City of Temecula this 12th day of May, 1998. Ron Roberts, Mayor ATI'F_~T: · Iones, ~MC ity Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, Acting City Clerk of the City of Temecula, California, do hereby certify that Resolution No.98-41 was duly and regularly adopted by the City Council of the City of Temecula at a regular meeting thereof held on the 12th day of May, 1998, by the following vote: 5 COUNCILMEMBERS: Comerchero, Ford, Linderoans, Stone, Robera NOF, S: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None Susan CMC Acting City Clerk R~o~. 98-41 5