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HomeMy WebLinkAbout99-127 - ResolutionsRESOLUTION NO. 99-127 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. 88-2 OF THE CITY OF RANCHO CUCAMONGA, AUTHORIZING ISSUANCE OF SPECIAL TAX REFUNDING BONDS, APPROVING THE FORMS OF A BOND INDENTURE, ACQUIRED OBLIGATIONS PURCHASE AGREEMENT AND ESCROW AGREEMENT AND AUTHORIZING OTHER ACTIONS IN CONNECTION THEREWITH WHEREAS, the CITY COUNCIL of the CITY OF RANCHO CUCAMONGA, CALIFORNIA ("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"), said Community Facilities District designated as COMMUNITY FACILITIES NO. 88-2 OF THE CITY OF RANCHO CUCAMONGA (the "District") for the purpose of financing the construction of certain public improvements; and, WHEREAS, the District did issue its Community Facilities District No. 88-2 of the City of Rancho Cucamonga Special Tax Bonds of which $2,920,000.® principal amount is currently outstanding (the "Prior Bonds") to finance the construction, installation and acquisition of certain public facilities and appurtenances; and WHEREAS, at this time in order to take advantage of the existence of favorable interest rates in the municipal bond market and the improved credit quality of the properties within the District securing the Prior Bonds as a result of the development, diversification of the ownership and increase in the value of such properties, the City Council desires to issue the Community Facilities District No. 88-2 Special Tax Refunding Bonds, Series 1999 (the "Bonds") in order to provide the funds, together with the moneys on deposit in the funds and accounts established for the Prior Bonds, necessary to (a) defease and refund the Prior Bonds and (b) fund the costs of issuing the Bonds and certain costs of administering the Bonds and the District; WHEREAS, it is proposed that the Bonds be sold by negotiated sale to the Rancho Cucamonga Public Finance Authority (the "Authority"); and WHEREAS, there has been prepared and filed with the City Clerk the forms of the bond indenture by and between the District and U.S. Bank Trust National Association, as fiscal agent (the "Bond Indenture") establishing the terms and conditions pertaining to the issuance, sale and administration of the Bonds; the Acquired Obligations Purchase Agreement among the District, the Authority (the "Acquired Obligations Purchase Agreement"), Community Facilities District No. 84-1 (Day Creek Drainage Channel) of the City of Rancho Cucamonga, Community Facilities District No. 93-3 of the City of Rancho Cucamonga, the City of Rancho Cucamonga and the Rancho Cucamonga Redevelopment Agency; and the escrow agreement by and between the District and U.S. Bank Trust National Association, as escrow agent (the "Escrow Agreement"); and Resolution No. 99-127 Page 2 WHEREAS, this City Council, with the aid of City staff, has reviewed and considered the Bond Indenture, the Acquired Obligations Purchase Agreement and the Escrow 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 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; and WHEREAS, the District desires to authorize the issuance and sale of the Bonds and the defeasance and refunding of the Prior Bonds. NOW, THEREFORE, BE IT RESOLVED, AND DETERMINED: 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 value of the property within District which will be subject to the special tax to pay debt service on the Bonds will be at least three (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 District or a special assessment levied on property within the District; B. The sale of the Bonds at private sale to the Authority will result in a lower overall cost to the District and will result in greater overall savings to the owners of property subject to the levy of special taxes; and C. The total net interest cost to maturity on the Bonds plus the principal amount of the Bonds will exceed the total net interest cost to maturity on the Prior Bonds to be refunded plus the principal amount of the Prior Bonds to be refunded. SECTION 3. Approval of Issuance and Sale of Bonds. This City Council hereby approves the issuance and sale of the Bonds pursuant to the provisions of the Bond Indenture and the Act. The proceeds of the Revenue Bonds may be expended to defease and refund the Prior Bonds and to pay the costs of the issuance, sale and delivery of the Bonds. Resolution No. 99-127 Page 3 SECTION 4. Bond Indenture. The form of the Bond Indenture relating to the Bonds presented at this meeting is hereby approved. The City Manager of the City and each of his specified designees (the "Authorized Officers"), acting for and on behalf of the District, are, and each of them is, hereby authorized and directed to execute, acknowledge and deliver the Bond Indenture in substantially the form approved hereby, 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 District, and as approved as to form by the legal advisor to the District or his specified designee and bond counsel, such approval to be conclusively evidenced by the execution and delivery thereof by such Authorized Officer. SECTION 5. Sale of the Bonds. This City Council hereby authorizes and approves the sale of the Bonds by negotiation to the Authority. The form of the Acquired Obligation Purchase Agreement is hereby approved and the Authorized Officers, acting for and on behalf of the District, are, and each of them is, hereby authorized and directed to execute the Acquired Obligation Purchase Agreement on behalf of the District upon the execution thereof by the Authority; provided, however, that the Authorized Officer shall execute the Acquired Obligations Purchase Agreement only if the aggregate principal amount of the Bonds is equal to or less than $ 20,460,000.®, the purchase price for the Bonds is not less than 98.84 % and the aggregate true interest cost of the Bonds shall not exceed 5.32 percent (5.32 %) per annum and the final maturity of the Bonds shall not be later than September 2, 2020. SECTION 6. Escrow Acjreement. The form of the Escrow Agreement presented at this meeting is hereby approved. The Authorized Officers, acting for and on behalf of the District, are, and each of them is, hereby authorized and directed to execute, acknowledge and deliver the Escrow Agreement in substantially the form approved hereby, 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 District, and as approved as to form by the legal advisor to the District or his Resolution No. 99-127 Page 4 specified designee and bond counsel, such approval to be conclusively evidenced by the execution and delivery thereof by such Authorized Officer. SECTION 7. Official Action. The Mayor, the Mayor Pro Tempore, the City Manager, the City Clerk, the Treasurer, the Finance Officer, any Authorized Officers, acting for and on behalf of the District, are, and each of them is, hereby authorized and directed, jointly and severally, for and in the name of the District, to do any and all things and take any and all actions, including without limitation, the execution and delivery of any and all assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and other documents which they, or any of them, may deem necessary and advisable in order to consummate the transactions contemplated by the documents approved pursuant to this Resolution and any such actions previously taken by such officers are hereby ratified and confirmed. In the event any such officer is unavailable or unable to execute and deliver any of the above-referenced documents, any other officer of the District may validly execute and deliver such document. SECTION 8. Effective Date. This Resolution shall take effect immediately upon passage and adoption. its PASSED, APPROVED, AND ADOPTED this 2"6 day of June, 1999. AYES: Alexander, Biane, Curatalo, Dutton, Williams NOES: None ABSENT: None ABSTAINED: None Resolution No. 99-127 Page 5 ATTEST: 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 2nd day of June, 1999. Executed this 3rd day of June, 1999, at Rancho Cucamonga, California.