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HomeMy WebLinkAboutCity Council - 2002-63 RESOLUTION NO. 2002-63 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AUTHORIZING THE ISSUANCE OF SPECIAL TAX BONDS OF THE CITY OF HUNTINGTON BEACH FOR IMPROVEMENT AREA A OF THE CITY OF HUNTINGTON BEACH COMMUNITY FACILITIES DISTRICT NO.2002-1 (MCDONNELL CENTRE BUSINESS PARK), AND APPROVING OTHER RELATED DOCUMENTS AND ACTIONS WHEREAS, this City Council has conducted proceedings under and pursuant to the provisions of Chapter 3.56 (commencing with Section 3.56.010) of the Municipal Code of the City of Huntington Beach (the "Code') and, as applicable under the Code, the Mello-Roos Community Facilities Act of 1982, constituting Section 53311 et seq. of the California Government Code (the "Act," and, together with the Code, the "Law"), to form Improvement Area A of the City of Huntington Beach Community Facilities District No. 2002-1 (McDonnell Centre Business Park) (the "Improvement Area'), to authorize the levy of special taxes upon the land within the Improvement Area, and to issue bonds secured by the special taxes the proceeds of which are to be used to finance certain public improvements (the "Facilities");and On June 3, 2002 an election was held within the Improvement Area and the sole qualified elector approved the propositions of the incurrence of the bonded debt by the City for the Improvement Area, the establishment of an appropriations Iimit for the Improvement Area and the levy of special taxes in the Improvement Area by more than two-thirds of the votes cast at said special election;and There have been submitted to this City Council certain documents providing for the issuance of bonds of the City for the Improvement Area and the use of the proceeds of those bonds to finance the Facilities and this City Council, with the aid of City staff, has reviewed said documents and found them to be in proper order; and On October 15, 2001, this City Council adopted a resolution approving local goals and policies for community facilities districts (the "Goals and Policies");and The proposed bond financing program approved by this Resolution is consistent with the Goals and Policies;and Following the adoption of this Resolution, all conditions, things and acts required to exist, to have happened and to have been performed precedent to and in the issuance of said bonds and the levy of said special taxes as contemplated by this Resolution and the documents referred to herein exist, will have happened and will have been performed in due time, form and manner as required by the laws of the State of California, including the Act, and as required by the Code. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach as follows: Res. No. 2002-63 Section 1. Pursuant to the Law, this Resolution and the Fiscal Agent Agreement (hereafter defined), special tax bonds of the City for the Improvement Area designated as "Improvement Area A of the City of Huntington Beach Community Facilities District No. 2002- 1 (McDonnell Centre Business Park) Special Tax Bonds" in an aggregate principal amount not to exceed $13,000,000 (the "Bonds"), are hereby authorized to be issued, and the first series of such bonds designated "Series 2002-A" in an aggregate principal amount not to exceed $4,900,000 (the "Series 2002-A Bonds") are hereby authorized to be issued and sold as provided below. The Series 2002-A Bonds shall be executed in the form set forth in and otherwise as provided in the Fiscal Agent Agreement. Jurisdiction is hereby reserved to issue the remaining authorized,but unissued portion of the Bonds. In connection with the authorization, sale and issuance of the Series 2002-A Bonds, the City Council hereby makes the following determinations: (a) pursuant to the Goals and Policies, (i) the appraisal, dated April 1,2002, of John S.Adams &Associates,Inc. of the land in the Improvement Area has been prepared consistent with the Goals and Policies and satisfactory land value to lien ratios exist, (ii) the rate and method of apportionment of special taxes for the Improvement Area is in compliance with the Goals and Policies, and (iii) the structure of the proposed financing is consistent with the applicable sections of the Goals and Policies; (b) the proposed financing satisfies the requirements of a minimum 3:1 value to lien ratio required by the Goals and Policies; and (c) the sale of the Series 2002-A Bonds at a negotiated sale as contemplated by the Purchase Contract (defined below)will result in a lower overall cost. Section 2. The fiscal agent agreement (the "Fiscal Agent Agreement") with respect to the Bonds, in the form on file with the City Clerk, is hereby approved. The Mayor is hereby authorized and directed to execute and deliver, and the City Clerk is hereby authorized and directed to attest, the Fiscal Agent Agreement in substantially said form, with such additions thereto or changes therein as are approved by the Director of Administrative Services upon consultation with the City Attorney and Bond Counsel, including such additions or changes as are necessary or advisable in accordance with Section 8 hereof, the approval of such additions or changes to be conclusively evidenced by the execution and delivery of the Fiscal Agent Agreement by the Mayor. 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 Series 2002-A Bonds shall be as provided in the Fiscal Agent Agreement as finally executed. Section 3. The purchase contract for the Series 2002-A Bonds (the "Purchase Contract") between the City and Stone & Youngberg LLC (the "Underwriter"), in the form on file with the City Clerk, is hereby approved. The Director of Administrative Services is hereby authorized and directed to accept the offer of the Underwriter to purchase the Series 2002-A Bonds contained in the Purchase Contract (provided that the aggregate principal amount of the Series 2002-A Bonds sold thereby is not in excess of$4,900,000, the net interest cost of the Series 2002- A Bonds is not in excess of 7.00%,and the underwriters' discount is not in excess of 2.50% of the aggregate principal amount of the Series 2002-A Bonds) and to execute and deliver the Purchase Contract in said form, with such additions thereto or changes therein as are recommended or approved by such officer upon consultation with the City Attorney 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 Director of Administrative Services. -2- Res. No. 2002-63 Section 4. The official statement relating to the Series 2002-A Bonds (the "Official Statement"), in 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 in said form,with such additions thereto or changes therein as are recommended or approved by such officer upon consultation with the City Attorney and Bond Counsel, the approval of such additions or changes to be conclusively evidenced by the execution and delivery of said Official Statement by the City Administrator. The Underwriter is hereby authorized to distribute copies of the Official Statement to persons who may be interested in the purchase of the Series 2002-A Bonds and is directed to deliver such copies to all actual purchasers of the Series 2002-A Bonds. Distribution of a preliminary official statement relating to the Series 2002-A Bonds is hereby approved and authorized. The Director of Administrative Services is hereby authorized to execute a certificate or certificates to the effect that the Official Statement and such preliminary official statement were deemed "final" as of their respective dates for purposes of Rule 15c2-12 of the Securities Exchange Act of 1934, as amended,and is authorized to so deem such statements final. Section 5. The Series 2002-A Bonds, when executed, shall be delivered to the Fiscal Agent for authentication. The Fiscal Agent is hereby requested and directed to authenticate the Series 2002-A Bonds by executing the Fiscal Agent's certificate of authentication and registration appearing thereon, and to deliver the Series 2002-A Bonds, when duly executed and authenticated, to the Underwriter in accordance with written instructions executed on behalf of the City by the Director of Administrative Services, 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 Series 2002-A Bonds to the Underwriter upon payment of the purchase price therefor. Section 6. The Continuing Disclosure Certificate - Issuer and the Acquisition Agreement, in the respective forms on file with the City Clerk, are hereby approved. The Mayor is hereby authorized and directed, for and in the name of and on behalf of the City, to execute and deliver the Continuing Disclosure Certificate - Issuer. and the Acquisition Agreement in said forms, with such additions thereto or changes therein as are deemed necessary, desirable or appropriate by the Director of Administrative Services upon consultation with the City Attorney and Disclosure Counsel, the approval of such changes to be conclusively evidenced by the execution and delivery by the Mayor of the Continuing Disclosure Certificate- Issuer and the Acquisition Agreement. Section 7. The City 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 8. All actions heretofore taken by the officers and agents of the City with respect to the establishment of the Improvement Area and the sale and issuance of the Series 2002-A 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 -3- Res. No. 2002-63 the Series 2002-A Bonds in accordance with this Resolution, and any certificate, agreement, and other document described in the documents herein approved. Section 9. This Resolution shall take effect upon its adoption. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Huntington Beach on this 17th day of June, 2002. Mayor ATTEST: APPROVED AS TO FORM: City Clerk d6 1,1-02 6 City Attorney ioZ REVIEWED AND APPROVED: INITIATED AND APPROVED: rty Administrator Director of Economic Development 08003.07:J6154 6/4/02 -4- Res. No. 2002-63 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 17th day of June, 2002 by the following vote: AYES: Green, Boardman, Cook, Houchen, Winchell, Bauer NOES: None ABSENT: Dettloff ABSTAIN: None City Clerk and ex-officio derk of the City Council of the City of Huntington Beach, California