HomeMy WebLinkAboutCity Council - 2004-20 RESOLUTION NO. 2004-20
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH AUTHORIZING THE ISSUANCE OF
NOT TO EXCEED $24,000,000 AGGREGATE PRINCIPAL AMOUNT OF
JUDGMENT OBLIGATION BONDS, AND AUTHORIZING THE FILING
OF AN ACTION TO DETERMINE THE VALIDITY OF SAID BONDS
WHEREAS, the Orange County Superior Court rendered its judgment (the "Judgment"),
which was subsequently upheld by the Appellate Court on appeal, in the case of Howard Jarvis
Taxpayers Assn v. County of Orange, and Real Party in Interest, City of Huntington Beach,
Orange County Superior Court Case No. 818780, which invalidated certain property taxes
collected by the County of Orange on behalf of the City to the extent that such taxes exceeded the
City's employer contribution for PERS retirement benefits that were in effect prior to July 1,
1978, or amendments thereto mandated by the California Legislature; and
WHEREAS, the City is obligated to refund such property taxes under the provisions of
Chapter 5, Part 9, Division 1 of the California Revenue and Taxation Code, commencing with
Section 5096 of said Code (the "Tax Refund Law"); and
WHEREAS, the City is authorized under the provisions of Articles 10 and 1 I of Chapter
3 of Part 1 of Division 2 of Title 5 of the California Government Code, commencing with
Section 53570 of said Code (the `Bond Law"), to issue its bonds for the purpose of refinancing
outstanding obligations of the City, including its obligations arising under the Judgment and the
Tax Refund Law; and
WHEREAS, in order to provide funds for that purpose, the City Council wishes at this
time to authorize the issuance of its City of Huntington Beach 2004 Judgment Obligation Bonds
(the "Bonds") under the Bond Law, and to institute judicial proceedings to determine the validity
thereof;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington
Beach as follows:
SECTION 1. Authorization of Bonds. The City Council hereby authorizes the issuance
of the Bonds under the Bond Law in the aggregate principal amount of not to exceed
$24,000,000, for the purpose of refinancing the obligations of the City arising under the
Judgment and the Tax Refund Law, including for the purpose of refunding property taxes as
required by the Judgment and the Tax Refund Law and for the purpose of paying related costs of
the Judgment and costs of issuing the Bonds.
SECTION 2. Material Terms of Bonds; Approval of Trust Agreement. The Bonds shall
bear interest, payable semiannually, at such fixed rates of interest as are determined upon the sale
thereof, not to exceed 8%per annum. The principal of the Bonds shall mature and be payable in
annual installments, over a term not exceeding 15 years from the date of issuance. Additional
terms and provisions of the Bonds shall be as specified in the Trust Agreement which the City
Council hereby approves in substantially the form on file with the City Clerk together with any
changes therein or additions thereto deemed advisable by the City Administrator or the Director
04resoBonds 4/6/2004
2004-20
of Administrative Services (each, an "Authorized Officer"), whose execution shall be conclusive
evidence of the approval of any such changes or additions. Concurrently with the issuance of the
Bonds, an Authorized Officer shall execute and deliver, and the City Clerk shall attest and affix
the seal of the City to, the final form of the Trust Agreement.
SECTION 3. Institution of Judicial Validation Proceedings. In order to determine the
validity of the Bonds, the City Council hereby authorizes the law firm of Jones Hall, A
Professional Law Corporation, in concert with the City Attorney, to prepare and cause to be filed
and prosecuted to completion all proceedings required for the judicial validation of the Bonds
and related matters in the Superior Court of Orange County, under the provisions of Sections 860
et seq. of the Code of Civil Procedure of the State of California.
SECTION 4. Sale of the Bonds. The Bonds shall be sold by the City to an underwriting
firm in accordance with a resolution to be considered by the City Council at a subsequent
meeting, following institution of the judicial validation proceedings referenced in Section 3. At
that time, the City Council shall consider an Official Statement relating to the Bonds, a bond
purchase agreement between the City and said underwriting firm, and other documents and
actions relating to the sale of the Bonds.
SECTION 5. Official Actions. The Mayor, the City Administrator, the Director of
Administrative Services, and all other officers of the City are each authorized and directed in the
name and on behalf of the City to make any and all assignments, certificates, agreements, notices,
consents, instruments of conveyance and other documents, which they or any of them might
deem necessary or appropriate in order to consummate the issuance and validation of the Bonds,
and any of the other transactions approved or contemplated by this Resolution. Whenever in this
Resolution any officer of the City is authorized to execute or countersign any document or take
any action, such execution, countersigning or action may be taken on behalf of such officer by
any person designated by such officer to act on his or her behalf in the case such officer is absent
or unavailable.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 19th day of April 2004.
Mayor
AMOVED AS TO FORM:
City Clerk y Atto e
INITIATED AND APPROVED:
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City A nistrator_...._....__._W._........,._,,.__
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Res. No. 2004-20`
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 an regular meeting thereof held on the 19th
day of April, 2004 by the following vote:
AYES: Sullivan, Coerper, Hardy, Green, Boardman, Cook, Houchen
NOES: None
ABSENT: None
ABSTAIN: None
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City Clerk and ex-offici Clerk of the
City Council of the City of
Huntington Beach, California