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HomeMy WebLinkAboutReso 2000-043 RESOLUTION NO. 2000-043 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CAI.IFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACII.ITIES DISTRICT NO. 99-1 (OTAY RANCH SPA ONE-PORTIONS OF VILLAGE ONE, VILLAGE FIVE AND VII.I.AGE ONE WEST), APPROVING THE FORM OF A SUPPLEMENTAL BOND INDENTURE TO PROVIDE FOR THE REPRICING AND REMARKETING OF THE 1999 SPECIAL TAX BONDS AND AUTHORIZING THE PREPARATION AND DISTRIBUTION OF A SUPPLEMENT TO THE OFFICIAL STATEMENT WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (this "City Council"), did previously conduct proceedings to form and did form a community facilities district pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982," being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act"), said Community Facilities District designated as COMMUNITY FACILITIES NO. 99-1 (OTAY RANCH SPA ONE-PORTIONS OF VILLAGE ONE, VILLAGE FIVE AND VILLAGE ONE WEST) (the "Community Facilities District") for the purpose of financing the acquisition of certain public improvements; and WHEREAS, the City Council did, subsequent to the formation of the District, adopt its Resolution No. 19695 authorizing and providing for the issuance of the $23,000,000 Community Facilities District No. 99-1 (Otay Ranch Spa One - Portions of Village One, Village Five and Village One West) 1999 Special Tax Bonds (the "Bonds") and approving the form of a Bond Indenture dated as of December 1, 1999 (the "Bond Indenture'') by the between the District and U.S. Bank Trust National Association, as fiscal agem (the "Fiscal Agent") to establish the terms and conditions pursuant to which the Bonds were to be issued and subsequently administered; and WHEREAS, the Bonds were sold by negotiated sale to Stone & Youngberg LLC (the "Underwriter'') and the Bonds were delivered to the Underwriter and the District received the proceeds from the sale of the Bonds on December 23, 1999 (the "Delivery Date'3; and WHEREAS, on January 3, 2000, the District was contacted by representatives of Otay Project LLC, the major property owner within the District (the "Developer") and was advised by the Developer of certain transactions that the Developer and its members consmated on December 30, 1999 which have been summarized in a First Supplement to Official Statement dat~l January 5, 2000; and WHEREAS, given the transaedous that were consummated on December 30, 1999, the City Manager, the Finance Director and the City's financing team have recommended that the Bonds be repriced through a remarketing of the Bonds at interest rates which Stone & Youngberg, acting as the remarketlng agent, and the Director of Finance determine will result in a remarketing of the Bonds at a price of par and that all existing owners of the Bonds be given the option to tender their Bonds for purchase on the remarketing date; and Resolution 2000-043 Page 2 WHEREAS, in order to accomplish the repricing, tender and remarketing of the Bonds, it is first necessary to amend the Bond Indenture to establish the procedures for the repricing, tender and remarketing of the Bonds; and WHEREAS, there has been presented to this City Council the form of a First Supplemental Bond Indenture dated as of February 1, 2000 (the "First Supplemental Bond Indenture") by and between the District and the Fiscal Agent to amend the Bond Indenture to establish such repricing, tender and remarketing procedures; and WHEREAS, this City Council, with the aid of City staff and the City's financing team, has reviewed and considered the form of the First Supplemental Bond Indenture and finds the form of such document suitable for approval, subject to the conditions set forth in this resolution; and WHEREAS, the City Council wishes to authorize the Director of Finance to prepare and distribute, or cause to be prepared and distributed, a Second Supplement to Official Statement to advise the owners of the Bonds and the municipal marketplace of the plan to reprice, tender and remarket the Bonds. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. Recitals. The above recitals are true and correct. SECTION 2. First Supplemental Bond Indenture. The form of First Supplemental Bond Indenture as presented to this City Council and on fie with the City Clerk is hereby approved. The Director of Finance or such other official of the City as may be designated by this City Council (an "Authorized Officer"), acting for and on behalf of the District, is hereby authorized and directed to execute and deliver the First Supplemental Bond Indenture subject to such additions or changes therein as such Authorized Officer shall deem to be in the best interests of the District following consultation with and review by the City Attorney and Brown Diven & Hessell LLP, the District's bond counsel SECTION3. Effective Date of First Supplemental Bond Indenture - Consent of Bond-owners. The approval of the First Supplemental Bond Indenture shall become effective upon the receipt of the necessary consent of Bond-owners as required pursuant to the provisions of the Bond Indenture. The Director of Finance is hereby directed to notify the Fiscal Agent of the approval by this City Council of the First Supplemental Bond Indenture, to deliver a copy of the First Supplemental Bond Indenture to the Fiscal Agent and request that the Fiscal Agent cause notice of the First Supplemental Bond Indenture to be given to the Bond-owners pursuant to the Bond Indenture. SECTION 4. Second Supplement to Official Statement. The Director of Finance is hereby authorized and directed to prepare, or cause to be prepared, a Second Supplement to Official Statement to advise the owners of the Bonds and the municipal marketplace of the plan to reprice, tender and remarket the Bonds. The Director of Finance is further authorized and directed to distribute, or cause to be Resolution 2000-043 Page 3 distributed, such Second Supplement to Offidal Statement to the owners of the Bonds and such other persons and entities as he shall deem appropriate. SECTION 5. Actions. The proper officers of the City, acting for and on behalf of the District, are hereby authorized and directed to do any and all things and take any and all actions and execute any and all certificams, agreements, contracts, notices and other documents, which they, or any of them, may deem necessary or advisable in order to facilitate and consummate the approval of the First Supplemental Bond Indenture. SECTION 6. Effective Date of this Resolution. This resolution shall take effect from and after its adoption. Presented by Approved as to form by owell J eny ~ ~/~ Deputy City Manager Resolution 2000-043 Page 4 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 1~ day of February, 2000, by the following vote: AYES: Councilmembers: Davis, Padilla, Salas, and Horton NAYS: Councilmembers: None ABSENT: Councilmembers: Moot ATTEST: Shi~ey Horto~/l~ayor Susan Bigelow, City Clerk STATE OF CALIFORNIA ) -- COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2000-043 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 1~t day of February, 2000. Executed this 1st day of February, 2000. Susan Bigelow, City Clerk