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HomeMy WebLinkAbout06-185 - Resolutions RESOLUTION NO. 06-185 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA,CALIFORNIA,ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2004-01 (RANCHO ETIWANDA ESTATES), AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF SPECIAL TAX BONDS OF THE DISTRICT, APPROVING THE FORM OF FISCAL AGENT AGREEMENT, BOND PURCHASE AGREEMENT, PRELIMINARY OFFICIAL STATEMENT AND OTHER DOCUMENTS AND AUTHORIZING CERTAIN ACTIONS IN CONNECTION WITH THE ISSUANCE OF SUCH BONDS WHEREAS, the CITY COUNCIL of the CITY OF RANCHO CUCAMONGA, 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"), such Community Facilities District designated as COMMUNITY FACILITIES NO.2004-01 (RANCHO ETIWANDA ESTATES)(the"Community Facilities District")for the purpose of financing the acquisition or construction of certain public improvements; and, WHEREAS, as required by the Act and prior to the initiation of proceedings to form the Community Facilities District, this City Council adopted a statement of local goals and policies concerning the use of the Act entitled the "City of Rancho Cucamonga Statement of Goals and Policies Regarding the Establishment of Community Facilities Districts" (the "Goals and Policies") which Goals and Policies are applicable to the Community Facilities District and the proposed issuance of bonds for the Community Facilities District; and WHEREAS,this City Council has previously declared its intention to issue bonds to finance the acquisition or construction of such improvements, such bonds to be issued pursuant to the terms and provisions of the Act and the Goals and Policies; and, WHEREAS, at this time this City Council desires to set forth the general terms and conditions relating to the authorization, issuance and administration of such bonds; and, WHEREAS, the forms of the following documents have been presented to and considered for approval by this City Council: A. Fiscal Agent Agreement by and between the City and Wells Fargo Bank, National Association, as fiscal agent (the "Fiscal Agent") setting forth the terms and conditions relating to the issuance and sale of bonds (the "Fiscal Agent Agreement"); B. Bond Purchase Agreement authorizing the sale of bonds to Stone & Youngberg LLC, the designated underwriter (the "Bond Purchase Agreement"); C. Preliminary Official Statement containing information including but not limited to the Community Facilities District and the bonds, including the terms and conditions thereof(the "Preliminary Official Statement"); and Resolution No. 06-185 Page 2 of 6 D. Continuing Disclosure Agreement by and between the City and Wells Fargo Bank, National Association, as dissemination agent, pursuant to which the Community Facilities District will be obligated to provide ongoing annual 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 Fiscal Agent Agreement,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 performed 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 performed or have been ordered to have been performed in due time,form and manner as required by the laws of the State of California, including the Act and the applicable policies and regulations of the City of Rancho Cucamonga. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2004-01 (RANCHO ETIWANDA ESTATES), DOES HEREBY RESOLVE, DECLARE, FIND, DETERMINE AND ORDER AS FOLLOWS: SECTION 1: Recitals. The above recitals are true and correct. SECTION 2: Determinations. This legislative body hereby makes the following determinations pertaining to the proposed issuance of the Bonds: (a) 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 will be at least 3 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 value of the property within Community Facilities District which will be subject to the special tax to pay debt service on the Bonds is at least 4 times the Land Secured Bonded Indebtedness Allocable to such properties. The foregoing determination is based upon the full cash value of such properties and development areas as shown upon an appraisal of the subject properties prepared by Bruce 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. Resolution No. 06-185 Page 3 of 6 (b) The terms and conditions of the Bonds as contained in the Fiscal Agent Agreement are consistent with and conform to the Goals and Policies. (c) As a result of the current status of development of the property within the Community Facilities District and the relative overall lack of diversity of ownership of property within the Community Facilities District, 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 Act, this Resolution and the Fiscal Agent Agreement,special tax bonds of the City designated as "City of Rancho Cucamonga Community Facilities District No. 2004- 01 (Rancho Etiwanda Estates) 2006 Special Tax Bonds," (the "Bonds") in an aggregate principal amount not to exceed $45,000,000 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 Fiscal Agent Agreement as finally executed. SECTION 4: Authorization and Conditions. The City Manager and such other official or officials of the City as may be designated by this City Council or the City Manager(each, an"Authorized Officer")are each hereby authorized and directed to execute and deliver the final form 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$45,000,000, an annual interest rate on the Bonds in excess of six percent (6.00%) per year and a purchase price for the Bonds not less than ninety eight percent(98%) 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,following consultation with and review by the City Attorney and Best Best & Krieger LLP, the City's bond counsel. SECTION 5: Fiscal Agent Agreement. The form of Fiscal Agent Agreement by and between the City 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,subject to the provisions of Section 4 above. Resolution No. 06-185 Page 4 of 6 SECTION 6: Official Statement and Continuing Disclosure Agreement. The City Council hereby approves the form 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 City Manager or, in the absence of the City Manager, another Authorized Officer. Pursuant to Rule 15c2-12 under the Securities Exchange Act of 1934 (the "Rule") the City Manager or, in the absence of the City Manager, another Authorized Officer is authorized to determine when the Preliminary Official Statement is deemed final, and the City Manager 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 City Manager or, in the absence of the City Manager, 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 form of Continuing Disclosure Agreement 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 4 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 form of the Bond Purchase Agreement is hereby approved and an Authorized Officer is hereby authorized and directed to execute the Bond Purchase Agreement upon the execution thereof by the Underwriter, subject to the provisions of Section 4 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 terms of the Act and the Fiscal Agent Agreement, 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 Fiscal Agent Agreement to complete all actions required to evidence the delivery of the Bonds upon the receipt of the purchase price thereof from the Underwriter. Resolution No. 06-185 Page 5 of 6 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, confirmed 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 Act,this Resolution, the Fiscal Agent Agreement, 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. Please see the following page for formal adoption,certification and signatures Resolution No: 06-185 Page 6 of 6 PASSED, APPROVED, AND ADOPTED this 7th day of June 2006. AYES: Alexander, Gutierrez, Michael, Spagnolo, Williams NOES: None ABSENT: None ABSTAINED: None GGA' William J. A ander, Mayor ATTEST: Debra J. Ad s, MC, City Clerk I, DEBRA J.ADAMS,CITY CLERK of the City of Rancho Cucamonga,California,do hereby certify that the foregoing Resolution was duly passed, approved and adopted by the City Council of the City of Rancho Cucamonga, California, at a Regular Meeting of said City Council held on the 7th day of June 2006. Executed this 8th day of June 2006, at Rancho Cucamonga, California. Debra J. Adams C C, City Clerk