HomeMy WebLinkAboutCity Council - 2001-90 RESOLUTION NO. 2001-90
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
THE CITY OF HUNTINGTON BEACH
AUTHORIZING THE ISSUANCE OF SPECIAL TAX BONDS
FOR CITY OF HUNTINGTON BEACH
COMMUNITY FACILITIES DISTRICT NO. 2000-1
(GRAND COAST RESORT) IN AN AGGREGATE PRINCIPAL
AMOUNT NOT TO EXCEED $16,000,000 AND APPROVING
CERTAIN DOCUMENTS AND TAKING CERTAIN OTHER
ACTIONS IN CONNECTION THEREWITH
WHEREAS, the City Council of the City of Huntington Beach (the "City") has heretofore
undertaken proceedings and declared the necessity to issue bonds on behalf of the City of
Huntington Beach Community Facilities District No. 2000-1 (Grand Coast Resort) County of
Orange, State of California (the "Community Facilities District") pursuant to the terms and
conditions of Chapter 3.56 of the Municipal Code of the City and the ("Municipal Code") and
the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1,
Division 2, Title 5 of the Government Code of the State of California (the "Act"); and
Pursuant to Resolution No. 2000-36 adopted by the City Council on April 17, 2000, the
questions of whether bonds should be issued to finance the costs of construction and acquisition
of certain public facilities and a special tax levy in order to pay the principal of and interest on
such bonds were submitted to the qualified electors within the Community Facilities District and
were approved by a two-thirds majority of the qualified electors at an election held on April 17,
2000; and
The City Council by its Resolution No. 2000-38 adopted on April 17, 2000, declared that
the propositions authorizing the issuance of bonds and the levy of special taxes, presented to the
qualified electors of the Community Facilities District on April 17, 2000, received a two-thirds
majority vote of the qualified electors voting at said election and each carried, and, accordingly,
the Community Facilities District is hereby authorized to issue from time to time, as determined
by the City Council, bonds for the benefit of the Community Facilities District and to take the
necessary steps to levy the special tax; and
The City Council is now considering the issuance of Bonds in the aggregate principal
amount of not to exceed $16,000,000 designated as the "City of Huntington Beach Community
Facilities District No. 2000-1 (Grand Coast Resort) Special Tax Bonds, (the "Bonds") as
permitted by the Municipal Code, the Act and Resolution No. 2000--35; and
The City Council has determined in accordance with Section 53360.4 of the California
Government Code that a negotiated sale of the Bonds with Sutro & Co., Inc. (the "Underwriter")
in accordance with the terms and conditions of the Purchase Contract (the "Purchase Contract")
approved as to the form by the City Council will result in a lower overall cost to the Community
Facilities District than a public sale; and
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Res. No. 2001-90
The City on behalf of the Community Facilities District, has caused to be prepared a
Preliminary Official Statement (the "Preliminary Official Statement") containing certain
information with respect to the Community Facilities District.
NOW, THEREFORE, The City Council of The City of Huntington Beach resolves as
follows:
Section 1. Findings. The City Council finds as follows; (1) each of the above recitals is
true and correct; (2) that the sale of the Bonds at a private sale will result in a lower overall cost
to the Community Facilities District; and (3)based upon the appraisal report for the land within
the Community Facilities District prepared by Bruce W. Hull & Associates, Inc. hereby finds
and determines that:
(a) the Bonds do not present any unusual credit risk due to the provisions governing
the Fiscal Agent Agreement defined herein;
(b) The value of the leasebold interest subject to the Special Tax and the
improvements thereon is more than three times the aggregate principal amount of
Bonds; and
(c) the Bond issue should proceed for the following public policy reasons: (i) orderly
development of the land within the Community Facilities District; (ii) there are
significant public benefits contained within the project; (iii) the District's
obligations under the developer funding agreements with respect to land in the
Community Facilities District are satisfied by issuing the Bonds.
Section 2. Approval of Issuance of Bonds and Fiscal Agent Agreement. The issuance of
the Bonds in a principal amount of not to exceed $16,000,000 is hereby authorized pursuant to
the Act. The Bonds shall mature on the dates, pay interest at the rates and shall be substantially
in the form set forth in the Fiscal Agent Agreement presented at this meeting. All other
provisions of the Bonds shall be governed by the terms and conditions set forth in such Fiscal
Agent Agreement, which form of agreement is hereby approved and the Fiscal Agent
Agreement, and the Mayor, the City Administrator, the Assistant City Administrator, or the
Director of Administrative Services is authorized to execute and deliver said Fiscal Agent
Agreement for and in the name of the City on behalf of the Community Facilities District with
such additions thereto and changes therein as are recommended or approved by Bond Counsel to
the Community Facilities District and the officers executing the same, with such approval to be
conclusively evidenced by the execution and delivery of the Fiscal Agent Agreement.
Section 3. Execution of Bonds. The Bonds shall be executed on behalf of the
Community Facilities District by the manual or facsimile signature of the Mayor or the City
Administrator and attested with the manual or facsimile signature of the City Clerk.
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Section 4. Appointing of Fiscal Agent. U.S. Bank Trust National Association is hereby
appointed to act as Fiscal Agent for the Bonds and to assume the duties and obligations of Fiscal
Agent under the Fiscal Agent Agreement. Payment of principal of and interest on the Bonds
shall be made at the principal offices of the Fiscal Agent.
Section 5. Approval of Purchase Contract. The form of Purchase Contract presented at
this meeting and the sale of the Bonds pursuant thereto upon the terms and conditions set forth
therein is hereby approved and, subject to the provisions of Section 6 hereof, the City
Administrator, Assistant City Administrator or Director of Administrative Services is authorized
to execute and deliver the Purchase Contract in the name of and on behalf of the Community
Facilities District and the City in said form with such changes therein as the officer executing the
same may approve and such matters as are authorized by Section 6 hereof, such approval to be
conclusively evidenced by the execution and delivery thereof.
Section 6. City Manager Authorized to Establish Final Terms of the Sale of the Bonds.
The City Administrator, Assistant City Administrator or Director of Administrative Services,
upon such advice of staff as they may deem necessary, is hereby authorized and directed to act
on behalf of the City to establish and determine (1) the final principal amount of the Bonds,
which amount shall not exceed $16,000,000, including Bonds which may be issued at an original
issue discount, (ii) the final amounts of the various maturities and sinking fund payments of the
Bonds the final maturity of such Bonds to be no later than September 1, 2035, (iii) the final
interest rate on the Bonds, which rate shall not exceed seven percent (7%) per annum for any
maturity of the Bonds, and (iv) the Underwriter's discount for the purchase of the Bonds, which
shall not exceed two percent (2%) of the aggregate principal amount of the Bonds including any
original issue discount.
Section 7. Approval of Preliminary Official Statement; Preparation of Final Official
Statement. The Preliminary Official Statement is approved, and the City Administrator,
Assistant City Administrator or Director of Administrative Services, is authorized to consent to
and assist in the preparation of such modifications thereto as may be specified by Disclosure
Counsel. The City Administrator, Assistant City Administrator or Director of Administrative
Services, is authorized to determine, with the assistance of Bond Counsel, when the Preliminary
Official Statement is to be deemed final within the meaning of Rule 15c2-12 of the Securities
and Exchange Commission under the Securities Exchange Act of 1934 and to deliver a
certificate to that effect to the Underwriter. The City Administrator, Assistant City
Administrator or Director of Administrative Services, may authorize the Underwriter to
distribute the Preliminary Official Statement as approved hereby, or as modified with the consent
of the City Administrator, Assistant City Administrator or Director of Administrative Services,
to prospective purchasers of the Bonds. The City Administrator, Assistant City Administrator or
Director of Administrative Services, is authorized to participate in the preparation of the Final
Official Statement, based on the Preliminary Official Statement, and such modifications thereto
as may be agreed to by Disclosure Counsel and the Underwriter. The City Administrator,
Assistant City Administrator or Director of Administrative Services, is authorized to sign the
Final Official Statement on behalf of the City and the Community Facilities District.
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Section 8. Findings Regarding the Levy and Rates of Special Taxes. The City Council
finds that the Community Facilities District will covenant in the Fiscal Agent Agreement, for the
benefit of the owners of the Bonds, that to the extent it is legally permitted to do so (a) it will
levy the Special Taxes for the payment of the Administrative Expenses (as defined therein)
which are expected to be incurred in each fiscal year, and (b) it will not initiate proceedings
under the Mello-Roos Community Facilities Act of 1982 to reduce the maximum Special Tax
Rates (the "Maximum Rates") on property below the amounts which are necessary to pay such
Administrative Expenses and to provide Special Tax Revenues (as defined therein) in an amount
equal to one hundred ten percent (110%) of Maximum Annual Debt Service (as defined therein)
on the outstanding Bonds. The City further finds and determines that any reduction or limitation
of the Special Tax rates below the Maximum Rates would interfere with the timely retirement of
the Bonds.
Section. 9. AWroval of Continuing Disclosure Certificate. The Continuing Disclosure
Certificate-Issuer is approved in the form submitted to the City Council at the meeting at which
this resolution is adopted, and the City Administrator, Assistant City Administrator or Director
of Administrative Services, is authorized to execute and deliver said certificate on behalf of the
Community Facilities District.
Section 10. Covenants. The covenants set forth in the Fiscal Agent Agreement to be
executed in accordance with Section 3 above shall be deemed to be covenants of the City in its
capacity of the legislative body of the Community Facilities District.
Section 11. Other Acts. All actions heretofore taken by officers and agents of the City
and the Community Facilities District with respect to the sale and issuance of Bonds are hereby
approved, confirmed and ratified, and the City Administrator, Assistant City Administrator or
Director of Administrative Services, and the City Clerk, and other appropriate officials of the
City and the Community Facilities District are hereby authorized and directed to take any actions
and execute and deliver any and all documents as are necessary to accomplish the issuance, sale
and delivery of the Bonds in accordance with the provisions of this Resolution.
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PASSED, APPROVED and adopted by the City Council of the City of
Huntington Beach at a regular meeting thereof held November 19th , 2001, and approved by the
following vote:
%A-m
I�Mayor
ATTEST: APPROVED AS TO FORM:
gw- ' l
City Clerk `t_ _a) City Attorney
REVIEWED AND APPROVED INITIkt., flc
D APPROVED
City dministrator Dironomic Developm t
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SF:2001 Resolutions:City—special Tax Bonds—CFD 2000-1
Res. No. 2001-90
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
1, 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 19th
day of November, 2001 by the following vote:
AYES: Green, Boardman, Cook, Garofalo, Dettloff, Bauer
NOES: None
ABSENT: Julien Houchen (out of room)
ABSTAIN: None
City Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California