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HomeMy WebLinkAboutReso 2004-188 RESOLUTION NO. 2004-188 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 06-1 (EASTLAKE - WOODS, VISTAS, AND LAND SWAP), AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF SPECIAL TAX BONDS OF THE DISTRICT FOR IMPROVEMENT AREA B THEREOF, APPROVING THE FORM OF BOND INDENTURE, BOND PURCHASE AGREEMENT AND OTHER DOCUMENTS AND AUTHORIZING CERTAIN ACTIONS IN CONNECTION WITH THE ISSUANCE OF SUCH BONDS WHEREAS, the City Council of the City of Chula Vista, California (this "City Council"), did previously conduct proceedings to fonn and did fonn a Community Facilities District and designate improvement areas therein pursuant to the tenus and provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part I, 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 XI 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"), such Community Facilities District designated as Community Facilities No. 06-1 (Eastlake - Woods, Vistas and Land Swap) (the "Community Facilities District") and such improvement areas designated as Improvement Area A and Improvement Area B, for the purpose of financing the acquisition or construction of certain public improvements; and WHEREAS, this City Council has previously declared its intention to issue bonds for each of the improvement areas to fmance the acquisition or construction of such improvements, such bonds be issued pursuant to the tenus and provisions of the Act and 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"); and WHEREAS, at this time this City Council desires to set forth the general tenus and conditions relating to the authorization, issuance and administration of such bonds for Improvement Area B; and WHEREAS, the fonns of the following documents have been presented to and considered for approval by this City Council: A. Bond Indenture by and between the Community Facilities District and U.S. Bank National Association, as fiscal agent (the "Fiscal Agent") setting forth the tenus and conditions relating to the issuance and sale of bonds (the "Bond Indenture"); and B. Bond Purchase Agreement authorizing the sale of bonds to Stone & Youngberg LLC, the designated underwriter (the "Bond Purchase Agreement"); and C. Preliminary Official Statement containing infonnation including but not limited to the Community Facilities District, Improvement Area B and the bonds, including the tenus and conditions thereof (the "Preliminary Official Statement"); and Resolution 2004-188 Page 2 D. Continuing Disclosure Agreement by and between the Community Facilities District and u.s. Bank National Association, as dissemination agent (the "Dissemination Agent"), pursuant to which the Community Facilities District will be obligated to provide ongoing armual disclosure relating to the bonds (the "Continuing Disclosure Agreement"); and WHEREAS, this City Council, with the aid of City staff, has reviewed and considered the Bond Indenture, the Bond Purchase Agreement, the Continuing Disclosure Agreement and the Preliminary Official Statement 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 perfonned precedent to and in the issuance of the bonds as contemplated by this resolution and the documents referred to herein exist, have happened and have been perfonned or have been ordered to have been prefonned in due time, fonn and marmer as required by the laws of the State of California, including the Act and the applicable policies and regulations of the City ofChula Vista. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION I. Recitals. The above recitals are true and correct. SECTION 2. Detenninations. This legislative body hereby makes the following detenninations pertaining to the proposed issuance of the Bonds: (a) The Goals and Policies generally require that the full cash value of the properties within Improvement Area B of the Community Facilities District subject to the levy of the special taxes must be at least four times the principal amount of the Bonds (as defined below) and the principal amount of all other bonds outstanding that are secured by a special tax levied pursuant to the Act on property within Improvement Area B or a special assessment levied on property within Improvement Area B (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 detennined prior to the award of the sale of the Bonds that the value of such properties within Improvement Area B will be at least four times the amount of such Land Secured Indebtedness. The value of the property within Improvement Area B of 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. 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. The value of certain development areas will be at least four times the Land Secured Indebtedness allocable to such areas. The foregoing detenninations are based upon the full cash value of such properties and development areas as shown upon an appraisal of the subject properties prepared by Bruce W. Hull & Associates, a state certified real estate appraiser, as defined in Business and Professions Code Section 11340(c). Such detennination was made in a marmer consistent with the Goals and Policies. (b) The tenus and conditions of the Bonds as contained in the Bond Indenture are consistent with and confonn to the Goals and Policies. Resolution 2004-188 Page 3 (c) As a result of the current status of development of the property within Improvement Area B and the relative overall lack of diversity of ownership of property within Improvement Area B, the private sale of the Bonds will result in a lower overall cost to the Community Facilities District. SECTION 3. Bonds Authorized. Pursuant to the Community Facilities District Law, this resolution and the Bond Indenture, special tax bonds of the Community Facilities District designated as "City of Chula Vista Community Facilities District No. 06-1 (EastLake - Woods, Vistas and Land Swap) 2004 Improvement Area B Special Tax Bonds" (the "Bonds") in an aggregate principal amount not to exceed $9,000,000 are hereby authorized to be issued. The date, marmer of payment, interest rate or rates, interest payment dates, denominations, fonn, registration privileges, marmer of execution, place of payment, tenus of redemption and other tenus, covenants and conditions of the Bonds shall be as provided in the Bond Indenture as finally executed. SECTION 4. Authorization and Conditions. The City Manager, the Director of Finance, the Assistant Director of Finance and such other official or officials of the City as may be designated by this City Council (each, an "Authorized Officer") are each hereby authorized and directed to execute and deliver the final fonn of the various documents and instruments described in this resolution, with such additions thereto or changes therein as such Authorized Officer may deem necessary and advisable provided that no additions or changes shall authorize an aggregate principal amount of Bonds in excess of $9,000,000, an armual interest rate on the Bonds in excess of seven percent (7.00%) per year and a purchase price for the Bonds not less than ninety eight and twenty five hundredths percent (98.75%) of the par amount of the Bonds (excluding original issue discount, if any). The approval of such additions or changes shall be conclusively evidenced by the execution and delivery of such documents or instruments by an Authorized Officer, upon consultation with and review by the City Attorney and Best Best & Krieger LLP, the Community Facilities District's bond counsel. SECTION 5. Bond Indenture. The fonn of Bond Indenture by and between the Community Facilities District and the Fiscal Agent, with respect to the Bonds as presented to this City Council and on file with the City Clerk is hereby approved. An Authorized Officer is hereby authorized and directed to cause the same to be completed and executed on behalf of the Community Facilities District, subject to the provisions of Section 3 above. SECTION 6. Official Statement and Continuing Disclosure Agreement. The City Council hereby approves the fonn of the 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 Finance or, in the absence of the Director of Finance, another Authorized Officer. 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 detennine when the Preliminary Official Statement is deemed final, and the Director of Finance or such other Authorized Official is hereby authorized and directed to provide written certification thereof. The execution of the final Official Statement, which shall include such changes and additions thereto 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 Official Statement by the Underwriter as the initial purchaser of the Bonds. The fonn of Continuing Disclosure Agreement by and between the Community Facilities District and the Dissemination Agent as presented to this City Council and on file with the City Clerk is hereby approved. An Authorized Officer is hereby authorized and directed to cause the Resolution 2004-188 Page 4 same to be completed and executed on behalf of the Community Facilities District, subject to the provisions of Section 3 above. SECTION 7. Sale of Bonds. This City Council hereby authorizes and approves the negotiated sale of the Bonds to Stone & Youngberg LLC (the "Underwriter"). The fonn of the Bond Purchase Agreement is hereby approved and an Authorized Officer is hereby authorized and directed to execute the Bond Purchase Agreement on behalf of the Community Facilities District upon the execution thereof by the Underwriter, subject to the provisions of Section 3 above. SECTION 8. Bonds Prepared and Delivered. Upon the execution of the Bond Purchase Agreement, the Bonds shall be prepared, authenticated and delivered, all in accordance with the applicable tenus of the Community Facilities District Law and the Bond Indenture, and any Authorized Officer and other responsible City officials, acting for and on behalf of the Community Facilities District, are hereby authorized and directed to take such actions as are required under the Bond Purchase Agreement and the Bond Indenture to complete all actions required to evidence the delivery of the Bonds upon the receipt of the purchase price thereof from the Underwriter. SECTION 9. Actions. All actions heretofore taken by the officers and agents of the City with respect to the establishment of the Community Facilities District and the sale and issuance of the Bonds are hereby approved, confinned and ratified, and the proper officers of the City, acting for and on behalf of the Community Facilities District, 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 Bonds in accordance with the Community Facilities District Law, this resolution, the Bond Indenture, the Bond Purchase Agreement, the Continuing Disclosure Agreement, and any certificate, agreement, contract, and other document described in the documents herein approved. SECTION 10. Effective Date. This resolution shall take effect from and after its adoption. Presented by Approved as to fonn by CA-~ Ann Moore City Attorney Resolution 2004-188 Page 5 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 8th day of June, 2004, by the following vote: AYES: Councilmembers: NAYS: Councilmembers: ABSENT: Councilmembers: McCarm, Rindone, Salas and Padilla None Davis ATTEST: ~¿k~ ~ 1.-1 11-, ~'~ /) no ~ Susan Bigelow, CMC, City lerk 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. 2004-188 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 8th day of June, 2004. Executed this 8th day of June, 2004. ~ LLð-. ~~ ð L">. Susan Bigelow, CMC, City erk