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HomeMy WebLinkAboutCity Council - 2001-74 RESOLUTION NO. 2001-74 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AUTHORIZING THE ISSUANCE OF 2001 SPECIAL TAX REFUNDING BONDS OF THE CITY FOR AND ON BEHALF OF THE CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO. 1990-1 (GOLDENWEST/ELLIS AREA), APPROVING AND DIRECTING THE EXECUTION OF A FISCAL AGENT AGREEMENT AND AN ESCROW AGREEMENT, APPROVING THE SALE OF SUCH BONDS, AND APPROVING OTHER RELATED DOCUMENTS AND ACTIONS WHEREAS, the City 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 Huntington Beach Community Facilities District No. 1990-1 (Goldenwest/Ellis Area) (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 The City Council, as legislative body of the District, authorized the issuance of bonds of the City for the District in the original principal amount of $2,400,000 designated City of Huntington Beach Community Facilities District No. 1990-1 (Goldenwest/Ellis Area) 1990 Special Tax Bonds (the "Prior Bonds"), the Prior Bonds having been issued on August 9, 1990, pursuant to the Act and Resolution 6174 of the City Council; and 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, with the resulting savings to be applied to reduce the special taxes paid by the affected homeowners; and 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 There has been presented to the City Council an escrow agreement (the "Escrow Agreement'), providing for the creation of an escrow 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 The City proposes to sell the Bonds to O'Connor SWS Securities (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 "Preliminary Official Statement'), and 1 SF:2001 Resol:2001 Special Tax Refunding Bonds Res. No. 2001-74 City staff has caused to be prepared a draft of goals and policies for community facilities districts of the City (the "Goals and Policies"), the form of which is on file with the City Clerk, and this City Council has duly considered said Goals and Policies and desires to approve them at this time so that the terms of any refunding bonds can be structured to comply with such Goals and Policies; and 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 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, it is hereby ORDERED and DETERMINED, as follows: SECTION 1. Adoption of Goals and. Policies. The Goals and Policies, in the form on file with the City Clerk, are hereby adopted as the local goals and policies of the City for community facilities districts, and are intended to satisfy the requirements of section 53312.7(a) of the Act. SECTON 2. Issuance of Bonds, Approval of Fiscal Agent greement 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 "City of Huntington Beach Community Facilities District No. 1990-1 2001 Special Tax Refunding Bonds" in an aggregate principal amount not to exceed $2,400,000, 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: (a) 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 of refunding the Prior Bonds, (ii) 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 on the Prior Bonds plus the principal amount of the Prior Bonds, and (iii)the Bonds are in compliance with the Goals and Policies. The City Council hereby approves the Fiscal Agent Agreement in the form on file with the City Clerk. The Mayor, the City Administrator, the City Treasurer, the Administrative Services Director or the Finance Officer (the "Designated Officers") is hereby authorized and directed to execute the Fiscal Agent 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 a Designated Officer upon consultation with Bond Counsel. 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 November 14, 2001, (ii) the date, denomination, maturity dates, places of payment and form of the Bonds shall be as -2- Res. No. 2001-74 set forth in the Fiscal Agent Agreement, (iii) the maximum rate of interest to be paid on the Bonds shall be seven percent (7%) 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 and Disclosure Counsel fees and expenses, Underwriter's discount, financial advisor fees and expenses, 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 CIerk. The City Council hereby authorizes and directs a Designated Officer 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 Finance Officer upon consultation with Bond Counsel. The City Council hereby authorizes the delivery and performance by the City of the Escrow Agreement. SECTION 3. Delivery of the Bonds. The Bonds, when executed, shall be delivered to U.S. Bank Trust National Association (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 accordance with written instructions executed on behalf of the City by the a Designated Officer, 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. SECTION 4. 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 a Designated Officer 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 Underwriter's discount on the Bonds does not exceed 1.1% and the requirements of clause (ii) of the second paragraph of Section I 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. SECTION 5. 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 a Designated Officer. The City Council authorizes and directs a Designated Officer, on behalf of the City and the District, to deem "final' pursuant.to -3- Res. No. 2001--74 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 be interested in purchasing the Bonds. Any Designated Officer is authorized and directed to assist the Underwriter in causing the Preliminary Official Statement to be brought into the form of final official statement (the "Final Official Statement"), and any Designated Officer is hereby authorized and directed to execute said Final Official Statement and a statement that the facts contained in the Final Official Statement, and any supplement or amendment thereto (which shall be deemed an original part thereof for the purpose of such statement) 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 Officer 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. SECTION G. Official Actions. 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, 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 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. -4- Res. No. 2001-74 SECTION 7, Effective Date. This resolution shall take effect from and after its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 15th day of October , 2001. T��rr3 T7®ut. `tr Mayor ATTEST: APPROVED AS TO FORM: City Clerk {0��, -o) City Attorney REVIEWED AND APPROVED: INITIATE ND APPROVED: Ci dministrator Direct of Administrative Services -5- Res. No. 2001-74 STATE OF CALIFORNIA } COUNTY OF ORANGE } ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City 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 15th day of October, 2001 by the following vote: AYES: Green, Boardman, Cook, Julien Houchen, Garofalo, Dettloff, Bauer NOES: None ABSENT: None ABSTAIN: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California A