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HomeMy WebLinkAboutResolution No. 02-C1330 0 RESOLUTION NO. 02-C133 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA AUTHORIZING THE ISSUANCE OF SPECIAL TAX BONDS FOR CITY OF AZUSA COMMUNITY FACILITIES DISTRICT NO. 2002-1 IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $10,000,000 AND APPROVING CERTAIN DOCUMENTS AND TAKING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH WHEREAS, the City Council of the City of Azusa (the ("City") has heretofore undertaken proceedings and declared the necessity to issue bonds on behalf of the City of Azusa Community Facilities District No. 2002-1 (Mountain Cove), County of Los Angeles, State of California (the "Community Facilities District') pursuant to the terms and conditions of the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act'); and WHEREAS, pursuant to a resolution adopted by the City of Azusa on April 15, 2002, the questions of whether bonds should be issued to finance the costs of construction and acquisition of certain public facilities and a special tax levy in order to pay the principal of and interest on such bonds were submitted to the qualified electors within the Community Facilities District and were approved by a two-thirds majority of the qualified electors at an election held on April 15, 2002; and WHEREAS, the City Council on April 15, 2002, declared that the propositions authorizing the issuance of bonds and the levy of special taxes, presented to the qualified electors of the Community Facilities District on April 15, 2002, received a two-thirds majority vote of the qualified electors voting at said election and each carried, and, accordingly, the Community Facilities District is hereby authorized to issue from time to time, as determined by the City Council, bonds for the benefit of the Community Facilities District and to take the necessary steps to levy the special tax; and WHEREAS, at its meeting on October 21, 2002, additional property was annexed to the Community Facilities District at which time, the qualified electors of the area to be annexed approved the Special Taxes and the issuance of bonds at an election held on October 21, 2002; WHEREAS, the City Council is now considering the issuance of Bonds in the aggregate principal amount of not to exceed $10,000,000 designated as the "City of Azusa Community Facilities District No. 2002-1 Special Tax Bonds, 2002 Series A (the 'Bonds") as permitted by the Act and Resolution No. 02-C42; and WHEREAS, the City Council has determined in accordance with Section 53360.4 of the California Government Code that a negotiated sale of the Bonds with E.J. DeLaRosa & Company (the "Underwriter") in accordance with the terms and conditions of the Purchase RVPUMKABA640238 0 0 Contract (the 'Purchase Contract") approved as to the form by the City Council will result in a lower overall cost to the Community Facilities District than a public sale; and WHEREAS, the City on behalf of the Community Facilities District, has caused to be prepared a Preliminary Official Statement (the "Preliminary Official Statement') containing certain information with respect to the Community Facilities District. NOW, THEREFORE, the City Council of the City of Azusa resolves as follows: Section 1. Findings. The City Council finds as follows: (1) each of the above recitals is true and correct; (2) that the sale of the Bonds at a private sale will result in a lower overall cost to the Community Facilities District; and (3) based upon the appraisal report for the land within the Community Facilities District prepared by David D. Kimura, MAI, hereby finds and determines that: (a) the Bonds do not present any unusual credit risk due to the provisions governing the Fiscal Agent Agreement defined herein; (b) The value of the real property subject to the Special Tax and the improvements thereon is more than three times the aggregate principal amount of Bonds; and (c) the Bond issue should proceed for the following public policy reasons: (i) orderly development of the land within the Community Facilities District; and (ii) there are significant public benefits contained within the project. Section 2. Approval of Issuance of Bonds and Fiscal Agent Agreement. The issuance of the Bonds in a principal amount of not to exceed $10,000,000 is hereby authorized pursuant to the Act. The Bonds shall mature on the dates, pay interest at the rates and shall be substantially in the form set forth in the Fiscal Agent Agreement presented at this meeting. Ali other provisions of the Bonds shall be governed by the terms and conditions set forth in such Fiscal Agent Agreement, which form of agreement is hereby approved and the Fiscal Agent Agreement, and the Mayor, City Manager or Assistant City Manager are authorized to execute and deliver said Fiscal Agent Agreement for and in the name of the City on behalf of the Community Facilities District with such additions thereto and changes therein as are recommended or approved by Bond Counsel to the Community Facilities District and the officers executing the same, with such approval to be conclusively evidenced by the execution and delivery of the Fiscal Agent Agreement. Section 3. Execution of Bonds. The Bonds shall be executed on behalf of the Community Facilities District by the manual or facsimile signature of the Mayor or the City Manager and attested with the manual or facsimile signature of the City Clerk. Section 4. Appointing of Fiscal Agent. BNY Western Trust is hereby appointed to act as Fiscal Agent for the Bonds and to assume the duties and obligations of Fiscal Agent under the Fiscal Agent Agreement. Payment of principal of and interest on the Bonds shall be made at the principal offices of the Fiscal Agent. RVPUB\KAB\640238 0 0 Section 5. Approval of Purchase Contract. The form of Purchase Contract presented at this meeting and the sale of the Bonds pursuant thereto upon the terms and conditions set forth therein is hereby approved and, subject to the provisions of Section 6 hereof, the Mayor, City Manager or Assistant City Manager is authorized to execute and deliver the Purchase Contract in the name of and on behalf of the Community Facilities District and the City in said form with such changes therein as the officer executing the same may approve and such matters as are authorized by Section 6 hereof, such approval to be conclusively evidenced by the execution and delivery thereof. Section 6. Superintendent Authorized to Establish Final Terms of the Sale of the Bonds. The City Manager or Assistant City Manager, upon such advice of staff as they may deem necessary, is hereby authorized and directed to act on behalf of the City to establish and determine (i) the final principal amount of the Bonds, which amount shall not exceed S 10,000,000 including Bonds which may be issued at an original issue discount, (ii) the final amounts of the various maturities and sinking fund payments of the Bonds the final maturity of such Bonds to be no later than September 1, 2032, (iii) the final interest rate on the Bonds, which rate shall not exceed seven percent (7%) per annum for any maturity of the Bonds, and (iv) the Underwriter's discount for the purchase of the Bonds, which shall not exceed one and six tenths (1.6%) of the aggregate principal amount of the Bonds including any original issue discount. Section 7. Approval of Preliminary Official Statement; Preparation of Final Official Statement. The Preliminary Official Statement is approved, and the City Manager or Assistant City Manager, is authorized to consent to and assist in the preparation of such modifications thereto as may be specified by Disclosure Counsel. The City Manager or Assistant City Manager, are authorized to determine, with the assistance of Bond Counsel, when the Preliminary Official Statement is to be deemed final within the meaning of Rule 15c2-12 of the Securities and Exchange Commission under the Securities Exchange Act of 1934 and to deliver a certificate to that effect to the Underwriter. The City Manager or Assistant City Manager, may authorize the Underwriter to distribute the Preliminary Official Statement as approved hereby, or as modified with the consent of the City Manager or Assistant City Manager, to prospective purchasers of the Bonds. The City Manager or Assistant City Manager, is authorized to participate in the preparation of the Final Official Statement, based on the Preliminary Official Statement, and such modifications thereto as may be agreed to by Disclosure Counsel and the Underwriter. The City Manager or Assistant City Manager, is authorized to sign the Final Official Statement on behalf of the City and the Community Facilities District. Section 8. Findings Regarding the Levy and Rates of Special Taxes. The City Council finds that the Community Facilities District will covenant in the Fiscal Agent Agreement, for the benefit of the owners of the Bonds, that to the extent it is legally permitted to do so (a) it will levy the Special Taxes for the payment of the Administrative Expenses (as defined therein) which are expected to be incurred in each fiscal year, and (b) it will not initiate proceedings under the Mello -Roos Community Facilities Act of 1982 to reduce the maximum Special Tax Rates (the "Maximum Rates") on property below the amounts which are necessary to pay such Administrative Expenses and to provide Special Tax Revenues (as defined therein) in an amount equal to one hundred ten percent (110%) of Maximum Annual Debt Service (as defined therein) on the outstanding Bonds. The City further finds and determines that any RVPUBIKAB\650238 0 reduction or limitation of the Special Tax rates below the Maximum Rates would interfere with the timely retirement of the Bonds. Section 9. Approval of Continuing Disclosure Certificate._ The Continuing Disclosure Certificate -Issuer is approved in the form submitted to the City Council at the meeting at which this resolution is adopted, and the City Manager or Assistant City Manager is authorized to execute and deliver said certificate on behalf of the Community Facilities District. Section 10. Covenants. The covenants set forth in the Fiscal Agent Agreement to be executed in accordance with Section 3 above shall be deemed to be covenants of the City in its capacity of the legislative body of the Community Facilities District. Section 11. Other Acts. All actions heretofore taken by officers and agents of the City and the Community Facilities District with respect to the sale and issuance of Bonds are hereby approved, confirmed and ratified, and the City Manager or Assistant City Manager and the City Clerk and other appropriate officials of the City and the Community Facilities District are hereby authorized and directed to take any actions and execute and deliver any and all documents as are necessary to accomplish the issuance, sale and delivery of the Bonds in accordance with the provisions of this Resolution. RVPUBTKAB\670238 0 0 PASSED, APPROVED and adopted by the City Council of the City Council of the City of Azusa at a regular meeting thereof held November 18, 2002, and approved by the following vote: ATTEST: City Clerk I HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council of the City of Azusa at a regular meeting thereof, held on the 18" day of November, 2002, by the following vote of the Council: AYES: COUNCILMEMBERS: HARDISON, STANFORD, ROCHA, CHAGNON, MADRID NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE City Clerk RVPUB\KABA640238 5