HomeMy WebLinkAboutReso 2001-214 RESOLUTION NO. 2001-214
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING AND PROVIDING FOR THE
ISSUANCE OF LIMITED OBLIGATION REFLrNDING BONDS
FOR KEASSESSMENT DISTRICT NO. 2001-2, APPROVING
AS TO FORM THE BOND iNDENTURE AND ACQUIRED
OBLIGATIONS PURCHASE AGREEMENT, AND
AUTHORIZING OTHER ACTIONS IN CONNECTION
THEREWITH
WHEREAS, the City Council has undertaken proceedings pursuant to the "Refunding
Act of 1984 for 1915 Improvement Act Bonds" (the "Reassessment and Refunding Act"), being
Division 11.5 of the Streets and Highways Code of the State of California, and has previously
adopted a resolution approving an Assessment Engineer's Report prepared and submitted
pursuant to the provisions of the Reassessment and Refunding Act (the "Preliminary Assessment
Engineer's Report") and conditionally confirming reassessments upon lands within a
reassessment district known and designated as Reassessment District No. 2001-2 (the
"Reassessment District"); and
WHEREAS, such proceedings provide for the issuance of Limited Obligation Refunding
Bonds (defined below) pursuant to the Reassessment and Refunding Act to represent the unpaid
reassessments within such Reassessment District; and
WHEREAS, at this time, but subject to the final confirmation of the reassessments to be
incorporated in a final Assessment Engineer's Report and the recordation of the reassessment
diagram and notice of reassessment, this legislative body desires to set forth all formal terms and
conditions relating to the issuance and sale of such Limited Obligation Refunding Bonds; and
WHEREAS, a portion of the proceeds of the Limited Obligation Refunding Bonds shall
be used to retire, in advance of their scheduled maturities, certain outstanding improvement
bonds of the City designated as follows:
1. City of Chula Vista Assessment District No. 88-1 (Otay Lakes Road,
Phase I) Limited Obligation Improvement Bonds;
2. City of Chula Vista Assessment District No. 90-2 (Otay Valley Road)
Limited Obligation Improvement Bonds, Series A;
3. City of Chula Vista Assessment District No. 90-2 (Otay Valley Road)
Limited Obligation Improvement Bonds, Series B; and
4. City of Chula Vista Assessment District No. 92-2 (Auto Park) Limited
Obligation Improvement Bonds,
(collectively, the "Prior Bonds"); and
WHEREAS, in order to provide the most cost effective refunding of the Prior Bonds and
the City of Chula Vista Reassessment District No. 2001-1 Limited Obligation Refunding Bonds
(the "2001-1 Limited Obligation Refunding Bonds"), the City Council desires and requests that
the Chula Vista Public Financing Authority (the "Authority") issue, sell and deliver its
Refunding Revenue Bonds (2001 Assessment Districts Refinancing) Series A Senior Lien Bonds
Resolution 2001-214
Page 2
and its Refunding Revenue Bonds, (2001 Assessment Districts Re~nancing) Series B
Subordinate Lien Bonds in an aggregate principal amount not to exceed $30,000,000
(collectively, the "Authority Bonds") to provide funds to purchase the Limited Obligation
Refunding Bonds and the 2001-1 Limited Obligation Refunding Bonds;
WHEREAS, for the purposes of the sale and delivery of the Limited Obligation
Refunding Bonds, there are now on file with the City Clerk copies of the forms of the Bond
Indenture by and between the City and U.S. Bank Trust National Association, as fiscal agent,
establishing the terms and conditions pertaining to the issuance of the Limited Obligation
Improvement Bonds (the "Bond Indenture"); the Acquired Obligations Purchase Agreement by
and between the Authority and the City related to the sale of the Limited Obligation Refunding
Bonds (the "Acquired Obligations Purchase Agreement"); the Escrow Agreement by and
between the City and U.S. Bank Trust National Association, as escrow agent (the "Escrow
Agreement"); the Preliminary Official Statement related to the Authority Bonds (the
"Preliminary Official Statement"); the Bond Pumhase Contract among the Authority, the City
and Stone & Youngberg LLC, as the purchaser of the Authority Bonds (the "Bond Pumhase
Contract"); and the Continuing Disclosure Agreement among the Authority, the City and U.S.
Bank Trust National Association, as dissemination agent (the "Continuing Disclosure
Agreement"), and reference is hereby made thereto for further particulars;
WHEREAS, this City Council has reviewed and considered such Bond Indenture,
Acquired Obligations Purchase Agreement, Escrow Agreement, Preliminary Official Statement,
Bond Pumhase Contract and Continuing Disclosure Agreement and finds those documents
suitable for approval, subject to the conditions set forth in this resolution; and
WHEREAS, all conditions, things and acts required to exist, to have happened and to
have been performed precedent to and in the issuance of the Limited Obligation Refunding
Bonds and the levy of the reassessments as contemplated by this resolution and the documents
referred to herein exist, have happened and have been performed or have been ordered to have
been preformed in due time, form and manner as required by the laws of the State of Califomia,
including the Reassessment and Refunding Act.
NOW, THEREFORE, BE IT RESOLVED AND DETERMINED:
SECTION 1. Recitals. The above recitals are true and correct.
SECTION2. Bonds Authorized. Pursuant to the Reassessment and Refunding Act, this
Resolution and the Bond Indenture, limited obligation refunding bonds of the City for the
Reassessment District designated as "City of Chula Vista Reassessment District No. 2001-2
Limited Obligation Refunding Bonds" in an aggregate principal amount not to exceed the unpaid
reassessments (the "Limited Obligation Improvement Bonds") are hereby authorized to be
issued. 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, covenants and conditions of the Bonds shall be as provided in the
Bond Indenture as finally executed.
SECTION 3. Authorization and Conditions. The City Manager of the City or the Deputy City
Manager and each of their specified designees (the "Authorized Officers"), acting for and on
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Page 3
behalf of the City, are, and each of them is, hereby authorized and directed to execute and deliver
the various documents and instruments described in this Resolution with such changes, insertions
and omissions as the Authorized Officer executing the same may require or approve as being in
the best interests of the City subject to any limiting conditions contained herein and further
subject to the approval thereof as to form by the City Attorney or his specified designee and Best
Best & Krieger LLP, the City's bond counsel. The approval of such additions or changes shall
be conclusively evidenced by the execution and delivery of such documents or instruments by
the Authorized Officer.
SECTION 4. Bond Indenture. The form of Bond Indenture on file in the City Clerk's office is
hereby approved.
SECTION 5. Sale of Limited Obligation Refunding Bonds. This City Council hereby
authorizes and approves the sale of the Limited Obligation Refunding Bonds by negotiation to
the Authority. The form of the Acquired Obligations Purchase Agreement on file in the City
Clerk's Office is hereby approved. Notwithstanding the foregoing, the authorization to execute
the Acquired Obligations Pumhase Agreement is subject to the satisfaction of the following
conditions precedent: (a) that the aggregate principal amount of the Limited Obligation
Refunding Bonds is equal to or less than the aggregate amount of the unpaid reassessments
within the Reassessment District, (b) that the purchase price of the Limited Obligation Refunding
Bonds does not exceed the purchase price thereof upon which the Preliminary Assessment
Engineer's Report was based, (c) that the annual interest rate on the Limited Obligation
Improvement Bonds shall not exceed annual interest rate thereon upon which the Preliminary
Assessment Engineer's Report was based and (d) that the final maturity of the Limited
Obligation Refunding Bonds shall not be later than September 2, 2017.
SECTION 6. Escrow Agreement. The form of the Escrow Agreement on file in the City Clerk's
Office is hereby approved.
SECTION 7. Approval of Preliminary Official Statement and Final Official Statement. The
form of Preliminary Official Statement on file in the Office of the City Clerk is hereby approved.
The Authorized Officers, acting for and on behalf of the City, are, and each of them is, hereby
authorized and directed to approve such changes, insertions and omissions therein as are
necessary to enable such Authorized Officer to certify on behalf of the City that the approved
Preliminary Official Statement is deemed final as of its date except for the omission of certain
information as permitted by Section 240.15c2-12(b)(1) of Title 17 of the Code of Federal
Regulations. The Authorized Officers, acting for and on behalf of the City, are, and each of
them is further authorized and directed to cause the City, together with the Authority, to bring the
Preliminary Official Statement into the form of a final official statement (the "Final Official
Statement") and to execute 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 Revenue Bonds and the Limited
Obligation Refunding Bonds, true and correct in all material respects and that the Final Official
Statement did not, on the date of sale of the Revenue Bonds and the Limited Obligation
Refunding Bonds, and does not, as of the date of delivery of the Revenue Bonds and the Limited
Obligation Refunding Bonds, contain any untrue statement of a material fact with respect to the
City, the Reassessment District or the Limited Obligation Refunding Bonds or omit to state
material facts with respect to the City, the Reassessment District or the Limited Obligation
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Refunding Bonds required be stated where necessary to make any statement made therein not
misleading in the light of the cimumstances under which it was made.
SECTION 8. Continuing Disclosure Agreement. The form of the Continuing Disclosure
Agreement on file in the office of the City Clerk is hereby approved.
SECTION 9. Costs of Issuance. "Designated costs of issuing the refunding bonds" for
purposes of Subsection 9600(b) and Section 9614 of the Reassessment and Refunding Act are
the items specified in paragraphs (1) through and including (5) of subsection (a) of Section 9600
of the Reassessment and Refunding Act, and "Costs of Issuance" as such phrase is used in the
Bond Indenture shall mean such designated costs of issuing the Limited Obligation Refunding
Bonds.
SECTION 10. Bonds Prepared and Delivered. Upon the execution of the Acquired Obligations
Pumhase Agreement, the Limited Obligation Refunding Bonds shall be prepared, authenticated
and delivered, all in accordance with the applicable terms of the Reassessment and Refunding
Act and the Bond Indenture, and the Authorized Officers, and each of them, and other
responsible City officials are hereby authorized and directed to take such actions as are required
under the Acquired Obligations Purchase Agreement and the Bond Indenture to complete all
actions required to evidence the delivery of the Limited Obligation Re~mding Bonds upon the
receipt of the purchase price thereof from the Authority.
SECTION 11. Annual Reassessment Installments. A copy of the resolution confirming the
reassessments and the reassessments, which reassessments shall constitute the security for the
Limited Obligation Refunding Bonds, shall be delivered to the Treasurer and the Treasurer shall
keep or cause to be kept the record showing the several installments of principal and interest on
the reassessments which are to be collected each year during the term of the Bonds. An annual
portion of each reassessment, together with annual interest on said reassessment, shall be payable
in the same manner and at the same time and in the same installment as the general property
taxes of the County of San Diego and shall be payable and become delinquent at the same time
and in the same proportionate amount. Each year the annual installments shall be submitted to
the County Auditor for purposes of collection.
SECTION 12. Actions. All actions heretofore taken by the officers and agents of the City with
respect to the establishment of the Reassessment District and the sale and issuance of the Limited
Obligation Refunding 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, contracts, 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 Limited Obligation Refunding Bonds in accordance with the
Reassessment and Refunding Act, this Resolution, the Bond Indenture, the Acquired Obligations
Purchase Agreement, the Escrow Agreement, the Preliminary Official Statement, the Bond
Purchase Contract, the Continuing Disclosure Agreement and any certificate, agreement,
contract, and other document described in the documents herein approved.
SECTION 13. Effective Date. This resolution shall take effect from and after its adoption.
Resolution 2001-214
Page 5
Prepared by Approved as to form by
Jo . Kaheny
Deputy City Manager A
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 17th day of July, 2001, by the following vote:
AYES: Councilmembers: Davis, Padilla, Rindone, Salas and Horton
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Shirley Hortot~, Mayor
ATTEST:
Susan Bigelow, City Cler~
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, Califomia, do hereby certify that the foregoing
Resolution No. 2001-2'* was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 17th day of July, 2001.
Executed this 17th day of July, 2001.
Susan Bigelow, City Clerk