HomeMy WebLinkAboutReso 2003-275RESOLUTION NO. 2003-275
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA INCREASING THE MAXIMUM PRINCIPAL
AMOUNT OF THE 2003 SPECIAL TAX BONDS OF
COMMUNITY FACILITIES DISTRICT NO. 2001-2
(MCMILLIN OTAY RANCH VILLAGE SIX), AUTHORIZED
TO BE ISSUED AND APPROVING THE FORM OF A
REVISED PRELIMINARY OFFICIAL STATEMENT IN
CONNECTION WITH THE ISSUANCE AND SALE THEREOF
WHEREAS, on February 4, 2003, the City Counc'fl of the City of Chula Vista, California
(this "City Council"), acting in its capacity as the legislative body of Community Facilities
District No. 2001-2 (McMillin Otay Ranch Village Six) (the "Community Facilities District"),
adopted its Resolution No. 2003-45 (the "Resolution of Issuance") 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") and the City of
Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by
the City of Chula Vista under Sections 3, 5 and 7 of Article 31I of the Constitution of the State of
California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the
"Community Facilities District Law") to authorize the issuance by the Community Facilities
District of its 2003 Special Tax Bonds (the "Bonds") in a maximum principal amount not to
exceed $10,250,000; and
WHEREAS, by adoption of the Resolution of Issuance the City Council also approved
the form of various documents related to the issuance and sale of the Bonds including the form
of a preliminary official statement (the "Preliminary Official Statement"); and
WHEREAS, subsequent to the adoption of the Resolution of Issuance but prior to the sale
and delivery of the Bonds, the City Council adopted its traffic monitoring program which
encompasses, together with certain other development projects, the development within the
Community Facilities District; and
WHEREAS, in order to adequately disclose the traffic monitoring plan to potential
purchasers of the Bonds, the Preliminary Official Statement has been revised to disclose the
traffic monitoring plan, a revised market absorption analysis and appraisal of the property within
the Community Facilities District that consider the impact of the traffic monitoring program and
the change in the status of development within the Community Facilities District since the
adoption of the Resolution of Issuance; and
WHEREAS, the form of the revised Preliminary Official Statement (the "Revised
Preliminary Official Statement") has been presented to this City Counc'fl for its review and
approval; and
WHEREAS, subsequent to the adoption of the Resolution of Intention, conditions in the
municipal bond market have improved and as a result of more favorable interest rates, it is
anticipated that the principal amount of the Bonds that can be supported by the authorized
special taxes will exceed the $10,250,000 maximum principal amount authorized to be issued by
the Resolution of Issuance; and
Resolution 2003-275
Page 2
WHEREAS, the maximum principal amount of the Bonds authorized to be issued by the
qualified electors of the Community Facilities District is $13,000,000; and
WHEREAS, increasing the maximum principal amount of the Bonds from $10,250,000
to $11,000,000 will comply and be consistent with the City of Chula Vista Statement of Goals
and Policies Regarding the Establishment of Community Facilities Districts, as amended to date
(the "Goals and Policies").
NOW, THEREFORE, it is hereby resolved by the City Council, acting in its capacity as
the Legislative Body of Community Faciliteis District No. 2001-2 (McMillin Otay Ranch
Village Six), as follows:
SECTION 1. Recitals. The above recitals are tree and correct.
SECTION 2. Determinations. This legislative body hereby makes the following determinations
pertaining to the proposed issuance of the Bonds in a not to exceed maximum principal amount
of $11,000,000:
The Goals and Policies generally require that the full cash value of the properties within
the Community Facilities District subject to the levy of the special taxes must be at least four
times the principal amount of the Bonds and the principal amount of all other bonds outstanding
that are secured by a special tax levied pursuant to the Act on property within the Community
Facilities District or a special assessment levied on property within the Community Facilities
District (collectively, "Land Secured Bonded Indebtedness"). The Act authorizes the City
Council, acting as the legislative body of the Community Facilities District, to sell the Bonds
only if the City Council has determined prior to the award of the sale of the Bonds that the value
of such properties within the Community Facilities District will be at least four times the amount
of such Land Secured Indebtedness.
The value of the property within the Community Facilities District which will be subject
to the special tax to pay debt service on the Bonds will be at least four times the amount of the
Land Secured Bonded Indebtedness assuming the principal amount of the Bonds is $11,000,000.
The Goals and Policies further provide that the full cash value of each development area
for which no final subdivision map has been filed must also be at least four times the Land
Secured Bonded Indebtedness allocable to each such property. "B" Maps have been approved
and recorded for all of the property within the Community Facilities District, therefore, there are
no development areas that are subject to this valuation test.
The foregoing determinations are based upon the full cash value of such properties and
development areas as shown upon an appraisal of the subject properties prepared by Brace W.
Hull & Associates, a state certified real estate appraiser, as defined in Business and Professions
Code Section 11340(c). Such determination was made in a manner consistent with the Goals and
Policies.
SECTION 3. Maximum Principal Amount of the Bonds. The Bonds in an aggregate principal
amount not to exceed $11,000,000 are hereby authorized to be issued subject to all other terms
and conditions as set forth herein and in the Resolution of Issuance.
SECTION 4. Official Statement. The City Council hereby approves the form of the Revised
Preliminary Official Statement as presented to this City Council and on file with the City Clerk,
together with any changes therein or additions thereto deemed advisable by the Director of
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Page 3
Finance or, in the absence of the Director of Finance, another Authorized Officer (as such term is
defined in the Resolution of Issuance). Pursuant to Rule 15c2-12 under the Securities Exchange
Act of 1934 (the "Rule") the Director of Finance or, in the absence of the Director of Finance,
another Authorized Officer is authorized to determine when the Revised Preliminary Official
Statement is deemed final (the "Deemed Final Preliminary Official Statement"), and the Director
of Finance or such other Authorized Official is hereby authorized and directed to provide written
certification thereof. The execution of a fmal official statement (the "Final Official Statement"),
which shall include such changes and additions to Deemed Final Preliminary Official Statement
as are deemed advisable by the Director of Finance or, in the absence of the Director of Finance,
another Authorized Officer pursuant to the Rule, shall be conclusive evidence of the approval of
the Final Official Statement by the Community Facilities District. The City Council hereby
authorizes the distribution of the final form of the Deemed Final Preliminary Official Statement
by Stone & Youngberg LLC (the "Underwriter") to all prospective purchasers of the Bonds and
directs that the Underwriter distribute the Final Official Statement to all purchasers of the Bonds
as required pursuant to the Rule.
SECTION 5. Conflict or Inconsistency with Resolution of Issuance. If terms of this resolution
shall govern and prevail over any inconsistent or conflicting term or terms of the Resolution of
Issuance. All other terms of the Resolution of Issuance shall remain in full force and effect.
SECTION 6. Effective Date. This resolution shall take effect from and after its adoption.
Presented by
Approved as to form by
~Director
Resolution 2003-275
Page 4
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 17th day of June, 2003, by the following vote:
AYES:
Councilmembers:
Davis, McCann, Rindone, Salas and Padilla
NAYS:
Councilmembers: None
ABSENT:
ATTEST:
Councilmembers:
None
~lla, ~layor
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. 2003-275 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 June, 2003.
Executed this 17th day of June, 2003.
Susan Bigelow, City Clerk