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HomeMy WebLinkAbout12-01 TPFA Resolution RESOLUTION NO. TPFA 12-01 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY AUTHORIZING THE ISSUANCE OF SPECIAL TAX REFUNDING BONDS RELATED TO THE TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 03-1 (CROWNE HILL), APPROVING AND DIRECTING THE EXECUTION OF A FISCAL AGENT AGREEMENT AND APPROVING OTHER RELATED DOCUMENTS AND ACTIONS THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The Board of Directors has conducted proceedings under and pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the "AcY'), to form the Temecula Public Financing Authority Community Facilities District No. 03-1 (Crowne Hill) (the "District"), to authorize the levy of special taxes on the real property within the District, and to issue bonds secured by the special taxes the proceeds of which are to be used to finance certain public improvements, all as described in Resolution No. TPFA 03-05, adopted by the Board of Directors on March 25, 2003. Section 2. On August 7, 2003, the Authority, for and on behalf of the District: (i) entered into a Fiscal Agent Agreement, dated as of July 1, 2003 (the "Original Fiscal Agent Agreement"), with U.S. Bank National Association, as fiscal agent thereunder (the "Fiscal AgenY'); and (ii) issued $12,155,000 initial principal amount of Temecula Public Financing Authority Community Facilities District No. 03-1 (Crowne Hill) Special Tax Bonds, Series 2003-A (the "Series 2003-A Bonds"). Section 3. The Original Fiscal Agent Agreement allows for the issuance by the Authority for the District of Parity Bonds, as defined therein, secured on a parity with the Series 2003-A Bonds, in order to provide additional financing for the District and to refund outstanding bonds issued for the District. Section 4. On August 24, 2005, the Authority, for and on behalf of the District: (i) entered into a First Supplemental Fiscal Agent Agreement, dated as of August 1, 2005 (the "First Supplement") with the Fiscal Agent; and (ii) issued $3,865,000 initial principal amount of Temecula Public Financing Authority Community Facilities District No. 03-1 (Crowne Hill) Special Tax Bonds, Series 2005-B (the "Series 2005-B Bonds"). Section 5. Due to favorable interest rates in the financial markets, the Board of Directors has determined that it is in the best interests of the Authority and the persons owning real property in the District that the Series 2003-A Bonds be refunded. R:/TPFA Resos 2012ITPFA 12-01 1 Section 6. There have been submitted to the Board of Directors for its approval a Second Supplemental Fiscal Agent Agreement (the "Second Supplement") providing for the issuance of special tax refunding bonds of the Authority for the District (the "Bonds") and the use of the proceeds of the Bonds to refund, in whole, the Series 2003-A Bonds, as well as a Preliminary Official Statement (the "Preliminary Official Statement") describing the Bonds, a bond purchase agreement to be used in connection with the sale of the Bonds (the "Purchase Contract"), a Continuing Disclosure Agreement relating to the Bonds (the "Continuing Disclosure Agreement"), an Escrow Agreement (the "Escrow AgreemenY') relating to the redemption of the Series 2003-A Bonds and an Indemnity Agreement (the "Indemnity Agreement") relating to the use of proceeds of the Series 2003-A Bonds and of the Series 2005 Bonds to pay costs of public improvements, and the Board of Directors, with the aid of City of Temecula staff, has reviewed said documents and found them to be in proper order. Section 7. 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. Section 8. Pursuant to the Act, Article 11, commencing with Section 53580, of Chapter 3 of Part 1 of Division 2 of Title 5 of the California Government Code (the "Refunding Law"), this Resolution and the Original Fiscal Agent Agreement, as amended and supplemented by the First Supplement and the Second Supplement, special tax bonds of the Authority for the District (described in Section 6 and elsewhere in this Resolution as the "Bonds"), in an aggregate principal amount not to exceed $11,000,000, are hereby authorized to be issued, with the Bonds to be designated the "Temecula Public Financing Authority Community Facilities District No. 03-1 (Crowne Hifl) Special Tax Refunding Bonds, Series 2012." The Original Fiscal Agent Agreement, as amended and supplemented by the First Supplement and by the Second Supplement is referred to below as the "Fiscal Agent Agreement." 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 Board of Directors hereby makes the following findings and determinations: (a) it is prudent in the management of the fiscal affairs of the Authority, the Board of Directors and the District to issue the Bonds for the purpose of refunding the Series 2003-A Bonds; (b) 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 of the Series 2003-A Bonds plus the principal amount of the Series 2003-A Bonds (by reason of the requirement for sale of the Bonds in clause (d) of Section 10 below); (c) the Bonds satisfy the requirements of Section 53345.8(a) of the Act in that the assessed value of the real property in the District is more than three times the principal amount of the Bonds, based upon the assessed value of the real property in the District as determined by reference to the Riverside County Assessor's records; (d) the Bonds will constitute "Refunding Bonds" as defined in the Fiscal Agent R:/TPFA Resos 2012ITPFA 12-01 2 Agreement; (e) the Bonds satisfy the "Parity Bond" requirements of Section 2.14 of the Fiscal Agent Agreement and, when issued, will be secured under the Fiscal Agent Agreement on a parity with the Series 2005-B Bonds and any future Parity Bonds that may be issued under and as such term is defined in the Fiscal Agent Agreement; and (f) the Bonds, when issued pursuant to the Fiscal Agent Agreement, will be in accordance with the Revised Local Goals and Policies for Community Facilities Districts, adopted by the Board of Directors on July 10, 2012. For purposes of Section 53363.2 of the Act: (i) it is expected that the purchase of the Bonds will occur on or after July 11, 2012, (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 one-half of one percent (0.5%) with the actual rate or rates to be set forth in the Fiscal Agent Agreement as executed, (iv) the place of payment for the Series 2003-A Bonds shall be as set forth in the Fiscal Agent Agreement; 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 Second Supplement hereafter approved, in the Official Statement for the Bonds and the closing certificates for the Bonds, including Bond Counsel and Disclosure Counsel fees and expenses, Underwriter's discount, financial advisor fees and expenses, printing costs for the Official Statement, initial fiscal agent fees, and costs of City staff incurred in connection with the sa�e and issuance of the Bonds. Section 9. The Second Supplement, in the form presented to the Board of Directors at this meeting, is hereby approved. The Executive Director is hereby authorized and directed to execute and deliver the Second Supplement in said form, with such additions thereto or changes therein as are approved by the Executive Director upon consultation with the Authority's General Counsel and Bond Counsel, the approval of such additions or changes to be conclusively evidenced by the execution and delivery of the Second Supplement by the Executive Director. 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 Bonds shall be as provided in the Fiscal Agent Agreement. Section 10. The Purchase Contract between the Authority and Stifel, Nicolaus & Company, Incorporated dba Stone & Youngberg, a Division of Stifel Nicolaus (the "Underwriter"), in the form presented to the Board of Directors at this meeting, is hereby approved. The Executive Director and the Treasurer, each acting alone, are hereby authorized and directed to accept the offer of the Underwriter to purchase the Bonds contained in the Purchase Contract; provided that (a) the aggregate principal amount of the Bonds sold thereby is not in excess of $11,000,000, (b) the true interest cost of the Bonds is not in excess of 5.50%, (c) the underwriter's discount is not in excess of 1.00% of the aggregate principal amount of the Bonds, and (d) the requirements of clause (b) of the second paragraph of Section 8 above are satisfied. The Executive Director and the Treasurer, each acting alone, are hereby authorized and directed to execute and deliver the Purchase Contract in said form (if the requirements of the preceding sentence are satisfied), with such additions thereto or changes therein as are R:/TPFA Resos 2012/TPFA 12-01 3 recommended or approved by the officer executing such document upon consultation with the Authority's General Counsel and Bond Counsel, the approval of such additions or changes to be conclusively evidenced by the execution and delivery of the Purchase Contract by the Authority. Section 11. The Preliminary Official Statement, in the form presented to the Board of Directors at this meeting, is hereby approved. The Executive Director is hereby authorized and directed, for and in the name and on behalf of the Authority, to make changes to the Preliminary Official Statement prior to its dissemination to prospective investors, and to bring the Preliminary Official Statement into the form of a final official statement (the "Official Statement") including such additions thereto or changes therein as are recommended or approved by such officer upon consultation with the Authority's General Counsel and Disclosure Counsel. The Executive Director is hereby authorized and directed to execute and deliver the Official Statement. The Underwriter is hereby authorized to distribute copies of the Preliminary Official Statement to persons who may be interested in the purchase of the Bonds and is directed to deliver copies of the Official Statement to all actual purchasers of the Bonds. The Executive Director is hereby authorized to execute a certificate or certificates to the effect that the Official Statement and the Preliminary Official Statement were deemed "final" as of their respective dates for purposes of Rule 15c2-12 of the Securities Exchange Act of 1934, and is authorized to so deem such statements final. Section 12. The Continuing Disclosure Agreement related to the Bonds and the Indemnity Agreement relating to the use of proceeds of the Series 2003-A Bonds and the Series 2005-B Bonds to pay costs of public improvements, in the respective forms presented to the Board of Directors at this meeting, are hereby approved. The Executive Director is hereby authorized and directed, for and in the name of and on behalf of the Authority, to execute and deliver the Continuing Disclosure Agreement and the Indemnity Agreement in said forms, with such additions thereto or changes therein as are deemed necessary, desirable or appropriate by the Executive Director upon consultation with the Authority's General Counsel and Disclosure Counsel, the approval of such changes to be conclusively evidenced by the execution and delivery by the Executive Director of the Continuing Disclosure Agreement and the Indemnity Agreement. Section 13. The Board of Directors hereby approves the refunding of the Series 2003-A Bonds with the proceeds of the Bonds, in accordance with the provisions of the Fiscal Agent Agreement and the Escrow Agreement between the Authority and U.S. Bank National Association, as Escrow Bank. The Board of Directors hereby approves the Escrow Agreement in the form presented to the Board of Directors at this meeting. The Executive Director is hereby authorized and directed, for and in the name of and on behalf of the Authority, to execute and deliver the Escrow Agreement in said form, with such additions thereto or changes therein as are deemed necessary, desirable or appropriate by the Executive Director upon consultation with the Authority's General R:/TPFA Resos 2012/TPFA 12-01 4 Counsel and Bond Counsel, the approval of such changes to be conclusively evidenced by the execution and delivery by the Executive Director of the Escrow Agreement. Section 14. The Authority hereby covenants, for 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, said foreclosure action to be commenced and pursued as more completely set forth in the Fiscal Agent Agreement. Section 15. The Bonds, when executed, shall be delivered to the Fiscal Agent (as defined in the Fiscal Agent Agreement) 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 in accordance with written instructions executed on behalf of the Authority by the Executive Director, which instructions such officer is hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver to the Fiscal Agent. Such instructions shall provide for the delivery of the Bonds to the Underwriter upon payment of the purchase price therefor. Section 16. The law firm of Quint & Thimmig LLP is hereby designated as Bond Counsel to the Authority for the Bonds, the law firm of McFarlin & Anderson LLP is hereby designated as Disclosure Counsel to the Authority for the Bonds, and the firm of Fieldman, Rolapp & Associates is hereby designated as Financial Advisor to the Authority for the Bonds. The Executive Director is hereby authorized to execute agreements with said firms for their services in connection with the Bonds, provided that the compensation payable to said firms is payable solely from the proceeds, and wholly contingent upon the issuance, of the Bonds. Section 17. All actions heretofore taken by the officers and agents of the Authority with respect to the sale and issuance of the Bonds and the refunding of the Series 2003-A Bonds are hereby approved, confirmed and ratified, and the proper officers of the Authority 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 those related to bond insurance and a reserve fund surety bond for the Bonds) 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 Series 2003-A Bonds in accordance with this Resolution, and any certificate, agreement, and other document described in the documents herein approved. Section 18. This Resolution shall take effect upon its adoption. R:/TPFA Resos 2012/TPFA 12-01 5 PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Temecula Public Financing Authority of the City of Temecula this 10 day of July, 2012. .. , ( G ; _ � Qh k Washington, Chairperson ATTEST: � Susan . Jones, MMC City CI k/Boa� Secretary [SEAL] R:/TPFA Resos 2012/TPFA 12-01 6 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, MMC, City Clerk/Board Secretary of the Temecula Public Financing Authority of the City of Temecula, do hereby certify that the foregoing Resolution No. TPFA 12-01 was duly and regularly adopted by the Board of Directors of the Temecula Public Financing Authority of the City of Temecula at a meeting thereof hetd on the 10 day of July, 2012, by the following vote: AYES: 5 BOARD MEMBERS: Comerchero, Edwards, Naggar, Roberts, Washington NOES: 0 BOARD MEMBERS: None ABSENT: 0 BOARD MEMBERS: None ABSTAIN: 0 BOARD MEMBERS: None � Susan . Jones, MMC C Cler� oard Secretary R:ITPFA Resos 2012/TPFA 12-01 7