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HomeMy WebLinkAboutCity Council - 6033 RESOLUTION NO. 6033 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AUTHORIZING (1) THE ISSUANCE, SALE AND DELIVERY OF CITY OF HUNTINGTON BEACH DEMAND MULTIFAMILY MORTGAGE REVENUE BONDS (HUNTINGTON BREAKERS PROJECT) , ISSUE OF 1989, (2) THE EXECUTION AND DELIVERY OF (A) AN INDENTURE OF TRUST, (B) LOAN AGREEMENT, (C) REGULATORY AGREEMENT, (D) OFFICIAL STATEMENT AND (E) BOND PURCHASE AGREEMENT AND (3) AUTHORIZING OTHER RELATED DOCUMENTS AND APPROVING OTHER RELATED ACTIONS WHEREAS, Article 11 of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California, commencing with Section 53580 (the "Act") authorizes local agencies to incur indebtedness for the purpose of refunding any revenue bonds of the local agency, and the Act provides a complete, additional and alternative method for such financing; and The City of Huntington Beach (the "City") has previously issued its Loans-to-Lenders Revenue Bonds (Home Federal Savings and Loan Association - Huntington Breakers Project) in the aggregate principal amount of $16, 000,000 (the "1983 Bonds") to finance the construction and development of a multifamily rental housing project by Huntington Breakers Apartments, Limited (the "Owner") located at 21270 Beach Boulevard in the City of Huntington Beach (the "Project") , and the Owner has requested the City to issue its 40 revenue bonds under the Act (the "Bonds") for the purpose of refunding the 1983 Bonds in full; and A notice of a public hearing with respect to the proposed issuance of the Bonds has been published in accordance with the applicable requirements of federal tax law; and Such public hearing has been held before this City Council, and an opportunity was provided for interested parties to present -1- 6033 arguments for and against the issuance of the Bonds; and The firm of Stone & Youngberg (the "Underwriter") has informed the City that it expects to submit a bid to purchase all of the Bonds and in connection with the marketing of the Bonds has caused to be prepared an Official Statement describing the Bonds; and 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, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach, as follows : Section 1. Recitals. The City Council hereby finds and III declares that the above recitals are true and correct. Section 2. Authorization of Bonds. Pursuant to the Act, revenue bonds of the City, designated as "City of Huntington Beach Multifamily Mortgage Revenue Bonds (Huntington Breakers Project) , Issue of 1989" in an aggregate principal of $16, 000, 000 (the "Bonds") , are hereby authorized to be issued. The Bonds shall be executed by the manual or facsimile signature of the Mayor, the seal or facsimile of the seal of the City shall be reproduced thereon and the Bonds shall be attested by the manual or facsimile signature of the City Clerk, in the form set forth in and otherwise in accordance with the Indenture. Section 3. Indenture. The proposed form of Indenture of Trust (the "Indenture") between the City and Security Pacific -2- Res 6033 National Bank as trustee (the "Trustee") in substantially the form on file with the City Clerk, is hereby approved. The City Administrator is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Indenture, and the City Clerk is hereby authorized and directed, for and in the name and on behalf of the City, to attest the Indenture, in substantially the form on file with the City Clerk together with any immaterial additions thereto or immaterial changes therein deemed necessary or advisable by the City Administrator and approved by the City Attorney. Section 4. Loan Agreement. The proposed form of Loan Agreement (the "Loan Agreement") among the Trustee, the City and the Owner in substantially the form on file with the City Clerk, is hereby approved. The City Administrator is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Loan Agreement, and the City Clerk is hereby authorized and directed, for and in the name and on behalf of the City, to attest the Loan Agreement, in substantially the form on file with the City Clerk together with any immaterial additions thereto or immaterial changes therein deemed necessary or advisable by the City Administrator and approved by the City Attorney. Section 5. Regulatory Agreement. The proposed form of Regulatory Agreement and Declaration of Restrictive Covenants (the "Regulatory Agreement") among the City, the Trustee and the Owner in substantially the form on file with the City Clerk, is hereby approved. The City Administrator is hereby authorized and directed, for and in the name of and on behalf of the City, to execute and _3 Res 6033 deliver the Regulatory Agreement, and the City Clerk is hereby authorized and directed, for and in the name and on behalf of the City, to attest the Regulatory Agreement, in substantially the form on file with the City Clerk together with any immaterial additions thereto or immaterial changes therein deemed necessary or advisable by the City Administrator and approved by the City Attorney. Section 6. Sale of Bonds. The proposed form of Bond Purchase Agreement (the "Purchase Agreement") among the City, the Company and the Underwriter, in substantially the form presented on file with the City Clerk, is hereby approved. The City Administrator is hereby authorized and directed, for and in the name and on behalf of the City, to accept the offer of the Underwriter to purchase the Bonds contained in the Purchase Agreement and to execute and deliver said Purchase Agreement in substantially the form on file with the City Clerk together with any immaterial additions thereto or immaterial changes therein deemed necessary or advisable by the City Administrator and approved by the City Attorney; provided, however, that the purchase price to be paid for the Bonds shall be at least 98% of the par value thereof and the net interest cost of the Bonds shall not exceed nine percent (9%) per annum. Section 7. Official Statement. The proposed form of Official Statement relating to the Bonds (the "Official Statement") , in substantially the form on file with the City Clerk, is hereby approved. The City Administrator is hereby authorized and directed, for and in the name and on behalf of the City, to execute the Official Statement and to approve any immaterial changes in or -4 Res 6033 immaterial additions to a final form of said Official Statement as approved by the City Attorney. The Underwriter is hereby authorized to distribute copies of said Official Statement to persons who may be interested in the purchase of the Bonds and is directed to deliver such copies to all actual purchasers of the Bonds. Distribution by the Underwriter of a preliminary official statement relating to the Bonds is hereby approved and authorized. Section 8. Issuance of Bonds. The Bonds, when executed, shall be delivered to the Trustee for authentication. The Trustee is hereby requested and directed to authenticate the Bonds by executing the Trustee'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 City by any of its officers . Such instruction shall provide for the delivery of the Bonds to the Underwriter in accordance with the Purchase Agreement, upon payment of the purchase price therefor. Section 9. Engagement of Bond Counsel. The City Council hereby authorizes and directs the engagement of Jones Hall Hill & White, A Professional Law Corporation, as bond counsel to the City in connection with the sale of the Bonds, pursuant to and in accordance with the form of agreement with said firm on file with the City Clerk as approved by the City Attorney. The City Council hereby authorizes and directs the Mayor to execute said agreement for and in the name and on behalf of the City upon approval by the City Attorney. -5- Res 6033 Section 10. Official Actions. All actions heretofore taken by the officers and agents of the City with respect to the sale and issuance of the Bonds are hereby approved, confirmed and ratified, and the officers of the City, including the Mayor, the Mayor Pro Tem, the City Administrator, the Deputy City Administrator, the City Clerk, the City Treasurer and any and all other officers of the City, are hereby authorized and directed, for and in the name and on behalf of the City, to do any and all things and take any and all actions and execute and deliver 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 in accordance with this resolution, including but not limited to those certificates, agreements and other documents described in the Indenture, the Loan Agreement, the Regulatory Agreement, the Purchase Contract, and the other documents herein approved and any certificates, agreements or documents as may be necessary to further the purpose hereof, evidence credit support or additional security for the bonds, or evidence the obligation to purchase Bonds upon tender by the Bond owner and the obligation to remarket such Bonds, but which shall not create any obligation or liability of the City other than with respect to the revenues and assets derived from the proceeds of the Bonds, all as approved by the City Attorney. Whenever in this resolution any officer of the City is authorized to execute and deliver any document or take any action, such execution, delivery or action may be taken on behalf of such officer by any deputy thereto or by any other person designated by -6- Res 6033 such officer to act on his or her behalf in the case such officer shall be absent or unavailable. Section 11. Effective Date. This resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 19th day of June, 1989 . Mayor ATTEST: APPROVED AS TO FORM: 40a�f q� 9,z� City Clerk i y Attorney 6_S Yi REVIEWED AND APPROVED: INIT BikI' D AND ROVED: City Administrator toi-of Adminis rat've Services -7- Res 6033 Res. No. 6 033 STATE OF CALIFORNIA COUNTY OF ORANGE ss: CITY OF HUNTINGTON BEACH id City I, CONNIE BROCKWAY, the duly elected, qualified C y Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 19th day of June 19 89 , by the following vote: AYES: Councilmembers: MacAllister, Green, Winchell , Bannister, Mays, Erskine NOES: Councilmembers: None ABSENT: Councilmembers: Silva • City Clerk and ex-offiClo er of the.City Council of the City of Huntington Beach, California