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HomeMy WebLinkAboutReso 2005-223 RESOLUTION NO. 2005-223 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 97-3 (OT A Y RANCH MCMILLIN SPA ONE), COMMUNITY FACILITIES DISTRICT NO. 99-1 (OTAY RANCH SPA ONE - PORTIONS OF VILLAGE ONE, VILLAGE FIVE AND VILLAGE ONE WEST), COMMUNITY FACILITIES DISTRICT NO. 2000-] (SUNBOW II - VILLAGES 5 THROUGH ]0), AND COMMUNITY FAC]LITIES DISTRICT NO. 200]-] (SAN MIGUEL RANCH), AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF SEPARATE SERIES OF SPECIAL TAX REFUNDING BONDS OF EACH SUCH COMMUNITY FACILITIES DISTRICTS, APPROVING THE FORMS OF BOND INDENTURES FOR EACH SUCH SERIES OF SUCH REFUNDING BONDS, A REFUNDING BONDS PURCHASE AGREEMENT AND ESCROW AGREEMENTS FOR EACH SERIES OF REFUNDED BONDS, AND AUTHORIZING OTHER ACTIONS IN CONNECTION THEREWITH WHEREAS, this City Council has conducted proceedings under and pursuant to the Mello-Roos Community Faci]ities Act of ] 982, being Chapter 2.5 of Part ] of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (the "Act"), to form Community Faci]ities District No. 97-3 (Otay Ranch McMillin Spa One) ("CFD No. 97-3"), Community Facilities District No. 99-] (Otay Ranch Spa One - Portions of Village One, Village Five and Village One West) ("CFD No. 99-] "), Community Facilities District No. 2000-] (Sunbow II - Villages 5 through ] 0) ("CFD No. 2000-] "), and Community Facilities District No. 200]-] (San Miguel Ranch) and Improvement Area A therein ("CFD No. 200]-]" and, together with CFD No. 97-3, CFD No. 99-],and CFD No. 2000-], the "Districts" or each, a "District"), to authorize the levy of special taxes upon the land within each such District, and to issue bonds for each such District secured by the special taxes authorized to be levied therein for the purpose of financing the acquisition or construction of authorized public facilities; and WHEREAS, the Districts have each previously issued special tax bonds identified in Exhibit A attached hereto and incorporated herein by this reference (collectively, the "Prior Special Tax Bonds"); and WHEREAS, as a result of a combination of favorable conditions in the municipal bond market and the level of development, diversity of ownership and increase in value of the properties within each of the Districts for which the Prior Special Tax Bonds were issued and sold, this City Council, acting as the legislative body of each of the Districts, desires to issue a separate series special tax refunding bonds (collectively, the "Special Tax Refunding Bonds" or the "Bonds") for the purpose of defeasing and redeeming the series of Prior Special Tax Bonds issued by each such District prior to their scheduled maturity in order to reduce the borrowing costs on such indebtedness; and Resolution No. 2005-223 Page 2 WHEREAS, the reduction in such borrowing costs will, in turn, result in a reduction in the rate of special taxes necessary to be levied within each of the Districts thereby resulting in savings to the owners of the properties subject to the levy of such special taxes; and WHEREAS, the City Council proposes to sell each series of the Special Tax Refunding Bonds to the Chula Vista Public Facilities Authority (the "Authority"); and WHEREAS, for the purposes of the issuance, sale and delivery of each series of the Special Tax Refunding Bonds, there are now on file with the City Clerk copies of the forms of: A. a separate Bond Indenture by and between the applicable District and U.S. Bank National Association, as fiscal agent (the "Fiscal Agent"), establishing the terms and conditions pertaining to the issuance of each series of the Special Tax Refunding Bonds (each, a "Bond Indenture" and, collectively, the "Bond Indentures"); B. the Refunding Bonds Purchase Agreement by and between the Authority and each of the Districts and the City related to the sale of the Special Tax Refunding Bonds and certain limited obligation refunding bonds to be issued by the City for certain assessment districts within the City (the "Refunding Bonds Purchase Agreement"); C. an Escrow Agreement by and between the applicable District and U.S. Bank National Association, as escrow agent, for each series of the Prior Special Tax Bonds to provide for the defeasance and redemption of each series of the Prior Special Tax Bonds (each, an "Escrow Agreement" and, collectively, the "Escrow Agreements"); and D. the Bond Purchase Agreement by and among the Authority, the City, the Districts and Stone & Youngberg LLC (the "Underwriter") relating to the purchase by the Underwriter of the Authority's Revenue Refunding Bonds, Series 2005A (the "Authority Bonds") (the "Bond Purchase Agreement"). WHEREAS, this City Council has reviewed and considered the Bond Indentures, the Refunding Bonds Purchase Agreement, the Bond Purchase Agreement and the Escrow Agreements 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 Special Tax Refunding Bonds 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 California, including the Act. NOW, THEREFORE, BE IT RESOLVED AND DETERMINED: L. .~ Resolution No. 2005-223 Page 3 SECTION I. Recitals. The above recitals are true and correct. SECTION 2. Bonds Authorized. Pursuant to the Act, this Resolution and the Bond Indentures, the Special Tax Refunding 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 each series of the Special Tax Refunding Bonds shall be as provided in each respective Bond Indenture as finally executed. In furtherance of the issuance of the Special Tax Refunding Bonds, the City Council hereby makes the following findings and determinations: (a) it is prudent in the management of the fiscal affairs of the City and each of the Districts to issue the Special Tax Refunding Bonds for the purpose, inter alia, of defeasing and redeeming the Prior Special Tax Bonds, (b) the total net interest cost to maturity of the each series of the Special Tax Refunding Bonds plus the principal amount of each series of such Special Tax Refunding Bonds will not exceed the total net interest cost to maturity of the series of the Prior Special Tax Bonds plus the principal amount of the series of the Prior Special Tax Bonds being defeased and refunded from the proceeds of such series of Special Tax Refunding Bonds, and (c) the issuance of each series of the Special Tax Refunding Bonds is in compliance with the City's Goals and Policies for Community Facilities Districts. The principal amount of the each series of Special Tax Refunding Bonds will be less than one fourth of the value of the property within the applicable District, as applicable, subject to the levy of the special taxes authorized under the Act securing such series of Special Tax Refunding Bonds, as confirmed by the aggregate assessed value of taxable parcels in such District. For purposes of Section 53363.2 of the Act, the City Council hereby further finds and determines that: (a) it is expected that the purchase of each series of the Special Tax Refunding Bonds will occur on the Closing Date (as such term is defined in each of the Bond Indentures), (b) the date, denomination, maturity dates, places of payment and form of each series of the Special Tax Refunding Bonds shall be as set forth in the applicable Bond Indenture, as executed, (c) the maximum annual interest rate to be paid on each series of Special Tax Refunding Bonds shall be five and one half percent (5.5%) per annum with the actual rate or rates to be set forth in each Bond Indenture as executed, (d) that either (i) the net present value savings resulting from the defeasance and refunding of each series of the Prior Special Tax Bonds shall be at least three percent (3.00%) of the principal amount of such series of the Prior Special Tax Bonds or (ii) for any series of the Prior Special Tax Bonds where such minimum level of present value of savings is not achieved, the City Manger has determined, in his professional judgment following consideration of the recommendation of the Director of Finance, that such refunding will result in such a level of annual savings that such refunding will nevertheless be in the best interests of the affected property owners; (e) the place of payment for each series of the Prior Special Tax Bonds shall be as set forth in the applicable Bond Indenture; and (1) the designated costs of issuing each series of the Special Tax Refunding Bonds shall be as described in Section 53363.8(a) of the Act, and as otherwise described in the applicable Bond Indenture, in the Official Statement for the Authority Bonds to finance the acquisition of the Special Tax Refunding Bonds and the closing certificates for the Special Tax Refunding Bonds, including but not limited to, a proportionate share of the fees and expenses of bond counsel, financial advisor, Resolution No. 2005-223 Page 4 special tax consultant, fiscal agent, escrow agent and escrow verification agent, purchaser's discount, costs of issuance of the Authority Bonds, fees for credit enhancement and ratings on the Authority Bonds, and costs of City staff incurred in connection with the sale and issuance of the Authority Bonds and the Special Tax Refunding Bonds. SECTION 3. Authorization and Conditions. The City Manager of the City or the Director of Finance and each of their specified designees (the "Authorized Officers"), acting for and on behalf of the Districts, 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 Districts subject to any limiting conditions contained herein and further subject to the approval thereof as to form by the City Attorney or her specified designee and Best Best & Krieger LLP, 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 Indentures. The form of each of the Bond Indentures on file in the City Clerk's officer is hereby approved. SECTION 5. Sale of Special Tax Refunding Bonds. This City Council hereby authorizes and approves the sale of the Special Tax Refunding Bonds by negotiation to the Authority. The form of the Refunding Bonds Purchase Agreement on file in the City Clerk's office is hereby approved. Notwithstanding the foregoing, the authorization to execute the Refunding Bonds Purchase Agreement is subject to the satisfaction of the following conditions precedent: (a) that the aggregate principal amount of each series of the Special Tax Refunding Bonds is equal to or less than the principal amount set for in Exhibit B hereto for such series, (b) that the final maturity of each series of the Special Tax Refunding Bonds shall not exceed the final maturity of the applicable series of the Prior Special Tax Bonds being refunded with the proceeds of Special Tax Refunding Bonds, (c) that the maximum interest rate on the Special Tax Refunding Bonds does not exceed the maximum interest rate specified in Section 2 above and (d) that the minimum level of savings specified in Section 2 above for each series of the Prior Special Tax Bonds being defeased and redeemed is achieved. SECTION 6. Bond Purchase Agreement. The form of the Bond Purchase Agreement on file in the City Clerk's office is hereby approved. SECTION 7. Escrow Agreement. The form of each of the Escrow Agreement on file in the City Clerk's office is hereby approved. SECTION 8. Actions. All actions heretofore taken by the officers and agents of the City, acting for and on behalf of each of the Districts, with respect to the sale and issuance of each series of the Special Tax Refunding Bonds are hereby approved, confirmed and ratified, and the proper officers of the City, acting for and on behalf of each of the Districts, 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 each I c Resolution No. 2005.223 Page 5 series of the Special Tax Refunding Bonds in accordance with the Act, this Resolution, the applicable Bond Indenture, the Refunding Bonds Purchase Agreement, the Bond Purchase Agreement, the applicable Escrow Agreement and any certificate, agreement, contract, and other document described in the documents herein approved and to consummate the lawful issuance and delivery of the Authority Bonds. SECTION 9. Effective Date. This resolution shall take effect from and after its adoption. Prepared by Approved as to form by L/})a A ,-:-: ~"J-t'f\l~ Maria achadoorian Finan e Director c(~ Ann Moore City Attorney Resolution No. 2005-223 Page 6 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 28th day of June, 2005, by the following vote: AYES: Councilmembers: Castaneda, Davis, McCann, Rindone, and Padilla NAYS: Councilmembers: None ABSENT: Councilmembers: None ATTEST: "- ~J~A. ~\~~O Susan Bigelow, MMC, City Cl k J 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. 2005-223 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 28th day of June, 2005. Executed this 28th day of June, 2005. --J J J A " t~~ D ~ Susan Bigelow, MMC, City Cl k Resolution No. 2005-223 Page 7 EXHIBIT A PRIOR SPECIAL TAX BONDS I. City ofChula Vista Community Facilities District No. 97-3 (Otay Ranch McMillin Spa One) Special Tax Bonds issued in the original principal amount of $ I 1,825,000; 2. City of Chula Vista Community Facilities District No. 99-1 (Otay Ranch Spa One- Portions of Village One, Village Five and Village One West) 1999 Special Tax Bonds issued in the original principal amount of $23,000,000; 3. City of Chula Vista Community Facilities District No. 99-1 (Otay Ranch Spa One- Portions of Village One, Village Five and Village One West) 2001 Special Tax Bonds issued in the original principal amount of$19,000,000; 4. City of Chula Vista Community Facilities District No. 2000-1 (Sunbow II - Villages 5 through 10) 2000 Special Tax Bonds issued in the original principal amount of$7,385,000; and 5. City ofChula Vista Community Facilities District No. 2001-1 (San Miguel Ranch) 2002 Improvement Area A Special Tax Bonds issued in the original principal amount of$1 4,425,000. Resolution No. 2005-223 Page 8 EXHIBIT B SPECIAL TAX REFUNDING BONDS 1. City ofChula Vista Community Facilities District No. 97-3 (Otay Ranch McMillin Spa One) 2005 Special Tax Refunding Bonds to be issued in a principal amount not to exceed $12,500,000; 2. City of Chula Vista Community Facilities District No. 99-1 (Otay Ranch Spa One - Portions of Village One, Village Five and Village One West) 2005 Special Tax Refunding Bonds to be issued in a principal amount not to exceed $47,500,000; 3. City of Chula Vista Community Facilities District No. 2000-1 (Sunbow 11- Villages 5 through 10) 2005 Special Tax Refunding Bonds to be issued in a principal amount not to exceed $8,000,000; and 4. City ofChula Vista Community Facilities District No. 2001-1 (San Miguel Ranch) 2005 Improvement Area A Special Tax Refunding Bonds to be issued in a principal amount not to exceed $16,000,000.