HomeMy WebLinkAbout16-15 TPFA Resolution ' RESOLUTION NO. TPFA 16-15
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. 01-2 (HARVESTON),
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 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 "Act'),
to form the Temecula Public Financing Authority Community Facilities District No. 01-2
(Harveston) (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 were to be used to finance certain public improvements, all as described in
Resolution No. TPFA 02-03 adopted by the Board of Directors on March 26, 2002.
Section 2. In order to finance various public facilities authorized to be funded by
the District, on August 29, 2002, the Temecula Public Financing Authority (the
"Authority"), for and on behalf of the District, issued its Temecula Public Financing
Authority Community Facilities District No. 01-02 (Harveston) Variable Rate Demand
Special Tax Bonds, 2002 Series A (the "2002 Bonds"), and on September 1 , 2006, the
Authority, for and on behalf of the District, issued its Temecula Public Financing
Authority Community Facilities District No. 01-2 (Harveston) 2006 Special Tax
Refunding Bonds, Series A and its Temecula Public Financing Authority Community
Facilities District No. 01-2 (Harveston) 2006 Special Tax Refunding Bonds, Subordinate
Series B (collectively, the "2006 Bonds"), the proceeds of which 2006 Bonds were used
to refund the then outstanding 2002 Bonds.
Section 3. 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 2006 Bonds be refunded.
Section 4. There have been submitted to the Board of Directors for its approval a
Fiscal Agent Agreement (the "Fiscal Agent Agreement") 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 the 2006 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
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Disclosure Agreement'), and an Escrow Agreement (the "Escrow Agreement') relating
to the redemption of the 2006 Bonds, 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 5. 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 6. 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 Fiscal Agent Agreement, special tax bonds of
the Authority for the District (described in Section 4 and elsewhere in this Resolution as
the "Bonds"), in an aggregate principal amount not to exceed $15,000,000, are hereby
authorized to be issued, with the Bonds to be designated the "Temecula Public
Financing Authority Community Facilities District No. 01-2 (Harveston) 2016 Special
Tax Refunding Bonds." 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 outstanding 2006 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 2006 Bonds to be refunded with proceeds of the
Bonds plus the principal amount of the 2006 Bonds to be refunded with proceeds of the
Bonds (by reason of the requirement for sale of the Bonds in clause (d) of Section 8
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 that will be subject to the levy of
special taxes to pay debt service on the Bonds 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; and (d) the
Bonds, when issued pursuant to the Fiscal Agent Agreement, will be in accordance with
the Local Goals and Policies for Community Facilities Districts adopted by the Board of
Directors on April 24, 2001.
For purposes of Section 53363.2 of the Act: (i) it is expected that the purchase of
the Bonds will occur on or after November 10, 2016, (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-quarter of one percent (0.25%) with the actual rate or rates to be set forth in the
Fiscal Agent Agreement as executed, (iv) the place of payment for the 2006 Bonds shall
be as set forth in the Prior 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 Fiscal Agent Agreement hereafter approved, in the Official
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Statement for the Bonds and the closing certificates for the Bonds, including Bond
' Counsel and Disclosure Counsel fees and expenses, Underwriter's discount, municipal
advisor fees and expenses, rating agency fees, costs of bond insurance and a debt
service reserve surety bond, fees of a verification agent, printing costs for the Official
Statement, initial fiscal agent fees, and costs of City staff and the City Attorney incurred
in connection with the sale and issuance of the Bonds.
Section 7. The Fiscal Agent Agreement with respect to the Bonds, in the form
presented to the Board of Directors at this meeting, is hereby approved. The Executive
Director, the Assistant Executive Director and the Treasurer (each a "Designated
Officer"), each acting alone, are hereby authorized to execute and deliver the Fiscal
Agent Agreement in said form, with such additions thereto or changes therein as are
approved by the Designated Officer executing the Fiscal Agent Agreement 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 Fiscal Agent Agreement by a Designated Officer. The Secretary is hereby
authorized and directed to countersign the Fiscal Agent Agreement. 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 as finally
executed.
Section 8. The Purchase Contract between the Authority and Stifel, Nicolaus &
Company, Incorporated (the "Underwriter"), in the form presented to the Board of
Directors at this meeting, is hereby approved. The Designated Officers, each acting
alone, are hereby authorized 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 $15,000,000, (b) the true interest
cost of the Bonds is not in excess of 4.00%, (c) the Underwriter's discount is not in
excess of 1 .40% of the aggregate principal amount of the Bonds, and (d) the
requirements of clause (b) of the second paragraph of Section 6 above are satisfied.
The Designated Officers, each acting alone, are hereby authorized 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
recommended or approved by the Designated 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 a Designated Officer. The Secretary does not need to
countersign the Purchase Contract.
Section 9. The Preliminary Official Statement, in the form presented to the Board
of Directors at this meeting, is hereby approved. The Designated Officers are hereby
authorized, 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
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recommended or approved by any 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 Designated Officers, each acting alone, are 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 each Designated Officer is
authorized to so deem such statements final.
Section 10. The Continuing Disclosure Agreement related to the Bonds, in the
form appended as Appendix E to the Preliminary Official Statement, is hereby approved.
The Designated Officers, each acting alone, are hereby authorized, for and in the name
of and on behalf of the Authority, to execute and deliver the Continuing Disclosure
Agreement in said form, with such additions thereto or changes therein as are deemed
necessary, desirable or appropriate by the Designated Officer executing the Continuing
Disclosure Agreement 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 a Designated Officer of the Continuing Disclosure Agreement.
' Section 11. The Board of Directors hereby approves the refunding of the 2006
Bonds with the proceeds of the Bonds, in accordance with the provisions of the Prior
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 Designated Officers, each acting alone, are hereby authorized, 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 Designated Officer executing the Escrow Agreement
upon consultation with the Authority's General Counsel and Bond Counsel, the approval
of such changes to be conclusively evidenced by the execution and delivery by a
Designated Officer of the Escrow Agreement. The Secretary is hereby authorized and
directed to countersign the Escrow Agreement.
Section 12. 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 13. 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
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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 a Designated Officer,
which instructions each Designated Officer, acting alone, is hereby authorized, 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 14. 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
2006 Bonds are hereby approved, confirmed and ratified, and the proper officers of the
Authority (including the Designated Officers and the Secretary) 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 2006 Bonds in accordance with this Resolution, and any
certificate, agreement, and other document described in the documents herein
approved.
In furtherance of the foregoing, the Designated Officers are hereby authorized to
approve modifications to the documents approved by this Resolution to allow for
municipal bond insurance and a reserve fund surety bond for the Bonds if, upon the
advice of the Municipal Advisor to the Authority for the Bonds, such insurance and/or
surety bond are advantageous in the circumstances.
Section 15. This Resolution shall take effect upon its adoption.
PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Temecula
Public Financing Authority this 25th day of October, 2016.
Michael S. Naggar, Chair
ATT
Randi Johl, Secretary
[SEAL]
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Randi Johl, Secretary of the Temecula Public Financing Authority, do hereby
certify that the foregoing Resolution No. TPFA 16-15 was duly and regularly adopted by
the Board of Directors of the Temecula Public Financing Authority at a meeting thereof
held on the 25th day of October, 2016, by the following vote:
AYES: 4 BOARD MEMBERS: Edwards, McCracken, Rahn, Naggar
NOES: 0 BOARD MEMBERS: None
ABSTAIN: 0 BOARD MEMBERS: None
ABSENT: 1 BOARD MEMBERS: Comerchero
Randi Johl, Secretary
TPFA Resos 16-15 6