HomeMy WebLinkAboutRES NO. 95-117 11-20-95RESOLUTION NO. 95-I17
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TUSTIN AUTHORIZING THE ISSUANCE OF NOT TO
EXCEED $46,000,000 AGGREGATE PRINCIPAL AMOUNT
OF CITY OF TUSTIN LIMITED OBLIGATION
IMPROVEMENT BONDS, REASSESSMENT DISTRICT
NO. 95-1 (TUSTIN RANCH), 'APPROVING THE
EXECUTION AND DELIVERY OF A FISCAL AGENT
AGREEMENT,' AN ESCROW AGREEMENT, A BOND
PURCHASE AGREEMENT AND A CONTINUING
DISCLOSURE AGREEMENT AND THE.PREPARATION
OF AN OFFICIAL STATEMENT AND OTHER MATTERS
RELATED THERETO
Reassessment District No. 95-1 (Tustin Ranch)
WHEREAS, the City Council (the "City Council") of the City of Tustin (the "City"), by
Resolution' No. 86-81, adopted on June 16, 1986, resolved its intention to form City of Tustin
Assessment District No. 85-1 ("District 85-1") and to issue bonds to represent unpaid
.assessments therein;
WHEREAS, the City Council, by Resolution NO. 86-81, adopted on June 16, 1986,
confirmed said assessments;
WHEREAS, pursuant to Resolution No. 86-102 of the City Council, adopted on August
18, 1986, an Indenture of Trust, dated as of.August 1, 1986 (the "85-1 Indenture"), by and
between the City and Citibank, N. A., as trustee, and the Improvement Bond Act of 1915, being
Division 10 of the Califomia Streets and HighWays Code (the "Bond Law"), the Cityissued City
of Tustin Assessment District No. 85-1 Improvement Bonds (the "85-1 Bonds") in the original
principal mount of $50,650,000;
WltlgREAS, the City Council, by Resolution No. 88-61, adopted on June 13, 1988,
resolved its intention to form City of Tustin Assessment District No. 86-2 ("District 86-2") and
to issue bonds to represent unpaid assessments therein;
WHEREAS, the City Council, by Resolution No. 88-81, adopted on July 18, 1988,
conf'u-med said assessments;
WHEREAS, pursuant to Resolution No. 88-97 of the City Council, adopted on
SePtember 6, 1988, an Indenture of Trust, dated as of September 1, 1988 (the "86-2 Indenture"),
by and between the City and Citibank, N. A., as trustee, and the Bond Law, the City issued City
of Tustin Assessment District No. 86-2 Limited Obligation Improvement Bonds (the "86-2
Bonds") in the original principal amount of $81,400,000;
WHEREAS, State Street Bank and Trust Company, N.A. (the "Trustee") is the successor
trustee under the 85-1 Indenture and the 86-2 Indenture;
WHEREAS, certain savings and efficiencies may be obtained by refunding the
.$14,490,000 aggregate principal amount of 85-1 Bonds that have been converted to fixed interest
rates pursuant to the 85-1 IndentUre (the "Fixed 85-1 Bonds") and the'S35,910,000 aggregate
principal amount of 86-2 Bonds that have been converted to fixed interest rates pursuant to the
86-2 Indenture (the "Fixed 86-2 Bonds" and, together with the Fixed 85-1 Bonds, the "Prior
Bonds");
WHEREAS, the City Council, by a Resolution entitled "A Resolution of the City
Council of the City of Tustin of Intention to Levy Reassessments and to Issue Refunding Bonds
Upon the Security Thereof", adopted on November 20, 1995 (the "Resolution of Intention"), has
conducted reassessment and refunding proceedings under the Refunding Act of 1984 for 1915
Improvement Act Bonds, Division 11.5 (commencing with Section 9500) of the California
Streets and Highways Code for the City's Reassessment District 95-1 (Tustin Ranch) (the
"District") to which proceedings reference is hereby made for further particulars;
WHEREAS, there is on file with the Treasurer of the City a list of all reassessments
within the District which remain unpaid (the "List of Unpaid Reassessments"), to which list
reference is made for further particulars;
WHEREAS, the City desires to refund the Prior Bonds;
WHEREAS, in order to provide the moneys required to refund the. Prior Bonds, the City
desires to authorize the issuance of the City of Tustin Limited Obligation Improvement Bonds,
Reassessment District No. 95-1 (Tustin Ranch) (the "Bonds"), in an aggregate principal amount
of not to exceed $46,000,000;
WHEREAS, in order to provide for the authentication and delivery of the Bonds, to
establish and declare the terms and conditions upon which the Bonds are to be issued and
secured and to secure the payment of the principal thereof, premium, if any, and interest thereon,
the City proposes to enter into a Fiscal Agent Agreement with State Street Bank and Trust
Company. of California, N.A., as fiscal agent (the "Fiscal Agent") (such Fiscal Agent Agreement,
in the form presented to this meeting, with such changes, insertions and omissions as are made
pursuant to this Resolution, being referred to herein as the "Fiscal Agent Agreement");
WIlE.PEAS, in order to provide for the defeasance and redemption of the Prior Bonds,
the City proposes to enter into an Escrow Agreement (95-1) with State Street Bank and Trust
Company, N.A. as escrow bank (such Escrow Agreement in the form presented to this meeting,
with such changes, insertions and omissions as are made pursuant to this Resolution being
referred to herein as the "Escrow Agreement");
WHEREAS, the Tusfin Public Financing Authority (the "Authority") intends to issue its
Revenue Bonds (Tustin Ranch), Series A (the "Authority Bonds") and use a portion of the
proceeds of the sale thereof to purchase the Bonds from the City;
WHEREAS, the Authority has presented the City with a proposal, in the form of a Bond
Purchase Agreement, to purchase the Bonds (such Bond Purchase Agreement, in the form
presented to this meeting, with such changes, insertions and omissions as are made pursuant to
this Resolution, being referred to herein as the "Bond Purchase Agreement");
WHEREAS, PaineWebber Incorporated, as underwriter (the "Underwriter") has
submitted to the Authority a proposed form of an agreement to purchase the Authority Bonds;
WHEREAS, Rule 15c2-12 promulgated under the Securities Exchange Act of 1934
("Rule 15c2-12") requires that, in order to be able to purchase or sell the Authority Bonds, the
Underwriter must have reasonably determined that an obligated person has undertaken in a
written agreement or contract for the benefit of the holders of the Authority Bonds to provide
disclosure of certain financial information and certain material events on an ongoing basis;
WItEREAS, in order to cause such requirement to be satisfied, the City desires to enter
into a Continuing Disclosure Agreement (the ,'Continuing Disclosure Agreement") With the
Authority Trustee; ·-" .... ~
WHEREAS, there have been prepared and submitted to this meeting forms of:
(a) the Fiscal Agent Agreement;
(b) the Escrow Agreement;
(c) the Bond Purchase Agreement;
(d) the Continuing Disclosure Agreement; and
(e) the Preliminary Official Statement tb be used in connection with the offering and sale
of the Authority Bonds, which contains certain information about the City, the Fiscal Agent
Agreement, the Bonds, the District and the proceedings relating thereto (such Preliminary
'Official Statement in the form presented to this meeting, with such changes, insertions and
omissions as are made pursuant to this Resolution, being referred to herein as the "Preliminary
Official Statement"); and
WHEREAS, the City desires to proceed to issue and sell the Bonds and to authorize the
execution of such documents and the performance of such acts as may be necessary or desirable
to effect the offering, sale and issuance of the Bonds;
NOW, THEREFORE, BE IT RESOLVED by the City Council the City of TuStin as
follows:
Section 1. The reassessments now remaining unpaid are as shown on the List of Unpaid
Reassessments, which list is hereby approved and incorporated herein by this reference. The
total amount of the unpaid reassessments is not to exceed $46,000,000. For a particular
description of the lots, pieces and parcels of land bearing the respective reassessment numbers
set forth in the List of Unpaid Reassessments, reference is hereby made to the reassessment and
to the reassessment diagram, and any amendments thereto approved by the City Council, all as
recorded in the office of the Director of Public Works of the City, as the Superintendent of
Streets of the City, after confirmation thereof by the City Council.
Section 2. Subject to the provisions of Section 3 hereof, the issuance of the Bonds, in the
.aggregate principal amount of not to exceed $46,000,000, on the terms and conditions set forth
in, and subject to the limitations specified in, the Fiscal Agent Agreement, is hereby authorized
and approved. The Bonds shall be dated, shall bear interest at the rates, shall mature on the
dams, shall be issued in the form, and shall be as otherwise provided in the Fiscal Agent
Agreement, as the same shall be completed as provided in this Resolution.
Section 3. The Fiscal Agent Agreement, in substantially the form st/bmitted to this
meeting and made a part hereof as though set forth herein, be and the same is hereby approved.
The Mayor of the City, or such other member of the City Council as the Mayor may designate,
the City Manager of the City and the Director of Finance/Treasurer of the City (the "Authorized
Officers") are, and each of them is, hereby authorized and directed, for and in the name of the
City, to execute and deliver the Fiscal Agent Agreement in the form submitted to this meeting,
with such changes, insertions and omissions as the Authorized Officer executing the same may
require or approve, such requirement or approval to be conclusively evidenced by the execution
of the Fiscal Agent Agreement by such Authorized Officer; provided, however, that such
changes, insertions and omissions shall not authorize an aggregate principal amount of Bonds in
excess of $46,000,000, shall.not result in a final maturity date of the Bonds later than September
2, 2013 and shall not result in a true interest cost on the Bonds in excess of 7.0%.
Section 4. The Escrow Agreement, in substantially the form submitted to this meeting
and made a part hereof as though set forth in full herein, be and the same is hereby approved.
The Authorized Officers are, and each of them is, hereby authorized and directed, for and in the
name of the City, to execute and deliver the Escrow Agreement in the form presented to this
meeting, with such changes, insertions and omissions as the Authorized Officer executing the
same may require or approve, such requirement or approval to be conclusively evidenced by the
execution of the Escrow Agreement by such Authorized Officer.
Section 5. The Bond Purchase Agreement, in substantially the form submitted to this
meeting and made a part hereof as though set forth in full herein, be and the same is hereby
approved. The Authorized Officers are, and each of them is, hereby authorized and directed, for
and in the name of the City, to execute and deliver the Bond Purchase Agreement in the form
presented to this meeting, with such changes, insertions and omissions as the Authorized Officer
executing the same. may require or approve, such requirement or approval to be conclusively
evidenced by the execution of the Bond Purchase Agreement by such Authorized Officer.
Section 6. The Continuing Disclosure Agreement, in substantially flae form submitted to
this meeting and made a part hereof as though set forth in full herein, be and the same is hereby
approved. The Authorized Officers are, and each of them is, hereby authorized and directed, for
and in the name of the City, to execute and deliver the Continuing Disclosure Agreement in the
form presented to this meeting, with such changes,' insertions and omissions as the Authorized
Officer executing the same may require or approve, such requirement or approval to be
conclusively evidenced by the execution of the Continuing Disclosure Agreement by such
Authorized Officer.
Section 7. The Preliminary Official Statement, in substantially the form presented to this
meeting and made a part hereof as though set forth in full herein, with such changes therein as
may be approved by an Authorized Officer, be and the same is hereby approved, and the use of
the Preliminary Official Statement in connection with the offering and sale of the Authority
Bonds is hereby authorized and approved. The Authorized Officers are, and each of them is,
hereby authorized and directed, for and in the name of the City, to certify to PaineWebber
Incorporated, the underwriter of the Authority Bonds, that the Preliminary Official Statement has
been "deemed final" for purposes of Rule 15c2-12 promulgated by the Securities and Exchange
Commission.
Section 8. The preparation and delivery of a final Official Statement (the "Official
Statement"), and its use in connection with the offering and sale of the Authority Bonds, be and
the same is hereby authorized and approved. The Official Statement shall be in substantially the
form of the Preliminary Official Statement with such changes, insertions and omissions as may
be approved by an Authorized Officer, such approval to be conclusively evidenced by the
execution and delivery thereof. The Authorized Officers are, and each of them is, hereby
authorized and directed to execute the final Official Statement, and any amendment or
supplement thereto, for and in the name of the City.
Section 9. The Authorized Officers are hereby authorized and directed to invest/gate, or
cause to be investigated, the availability and economic viability of bond insurance for the Bonds
and/or the Authority Bonds and, ff such insurance is determined to be cost effective, to select a
bond insurer and to negotiate the terms of such bond insurance.
Section 10. The Authorized Officers are, and each of them hereby is, authorized and
directed to execute and deliver any and all documents and instruments and to do and cause to be
done any and all acts and things necessary or proper for carrying out the issuance of the Bonds
and the transactions contemplatgd by.the Fiscal Agent Agreement, the Escrow Agreement, thc
Bond Purchase Agreement, the Continuing Disclosure Agreement, the Official Statement and
this Resolution. ~ :''~ ~':~ ': '
Section 11. All actions heretofore taken by the officers and employees of the City with
respect to the District, the reassessments, the refunding of the Prior Bonds or the issuance and
sale of the Bonds, or in connection with or related to any of the agreements or documents
referenced herein, are hereby approved, confirmed and ratified.
Section 12. This Resolution shall take effect immediately upon its adoption.
APPROVED and ADOPTED by the City Council of the City of Tustin on November
20, 1995.
ATY'EST:
Jim Potts, Mayor
Pamela Stoker, City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
SS'
I, Pamela Stoker, City Clerk of the City of Tustin, California hereby certify that the
foregoing is a full, true and correct copy of a Resolution duly adopted at a regular meeting of the
City Council of said City duly and regularly held at the regular meeting place thereof on
November 20, 1995, of which meeting all of the members of said City Council had due notice
and at which a majority thereof were present; and that at said meeting said Resolution was
adopted by the following vote:
AYES:
COUNCIL MEMBERS:
NOES:
COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
An agenda of said meeting was posted at least 72 hours before said meeting at 300
Centennial Way, Tustin, California, a location freely accessible to members of the public, and a
brief general description of said Resolution appeared on said agenda,
I further certify that I have carefully compared the same with the original minutes of said
meeting on file and of record in my office; that the foregoing Resolution is a full, true and correct
copy of the original Resolution adopted at said meeting and entered in said minutes; and that said
Resolution has not been amended, modified or rescinded since the date of its adoption, and the
same is now in full force and effect.
Dated: ,1995
Pamela Stoker, City Clerk