HomeMy WebLinkAboutCC RES 88-097RESOLUTION NO. 88-97
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA AUTHORIZING THE ISSUANCE OF NOT TO EXCEED
$81,400,000 AGGREGATE PRINCIPAL AMOUNT OF CI.TY OF TUSTIN
ASSESSMENT DISTRICT NO. 86-2 LIMITED OBLIGATION IMPROVEMENT
BONDS AND AUTHORIZING CERTAIN OTHER .RELATED MATTERS
WHEREAS, the City Council of the City of Tustin, Californ
(the "City"), has undertaken proceedings to issue its Limi
Obligation Improvement Bonds under the Municipal Improvement Act of
1913, Division 12 of the Streets and Highways Code of California, and
the Improvement Bond Act of 1915, Division 10 of the Streets and
Highways Code of California;
WHEREAS, the City Council, by Resolution N~. 8S-61 adopted
June 13, 1988, resolved its intention to form City of Tustin
Assessment District No. 86-2 and to issue bonds to represent unpaid
assessments;
WHEREAS, the City Council by. Resolution NO o 88-81 adopted
July 18, 1988 confirmed the assessments which were recorded on
July 19, 1988 in the office of the 'Superintendent Of streets and for
which a Notice of Assessment was filed in the Office of the Orange
County Recorder on July 19, 1988;
.... ~ WHEREAS, a list of unpaid assessments has been filed with
~4 the City Clerk;
WHEREAS, the Treasurer of the City has determined the
unpaid assessments at the end of the 30-day period for payment of
such assessment, s;
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WHEREAS, the City intends to enter in~o an Indenture of
Trust, dated as of September 1, 1988, by and between the City and
Citibank N.A. (the "Indenture"), the proposed form of which is
attached as Exhibit A hereto, to effect the issuance of not to. exceed
$81,400,000 aggregate principal amount of its City of Tustin
Assessment District No. 86-2 Limited Obligation Improvement Bonds
(the "Bonds~ ");
WHEREAS, Merrill Lynch Capital Markets, Merrill Lynch,
Pierce, Fenner & Smith Incorporated (the "Underwriter") has submitted
a proposed form of the Purchase Contract dated September ].2, 1988 by
and between the City and the Underwriter (the "Purchase Contract"),
such form being attached as Exhibit B hereto~ to purchase the Bonds;
WHEREAS, Merrill Lynch, Pierce~ Fenner & Smith Incorporated
has submitted a Remarketing Agreement, dated as of September 1, 1988,
by and between the City and Merrill Lynch, Pierce, Fenner & Smith
Incorporated (the "Remarketing Agreement"), the proposed form of
which is attached hereto as Exhibit C;
94691o9o2535.14:5
WHEREAS, the Underwriter has submitted a Preliminary
Official Statement dated August 26, 1988 relating to the Bonds, for
approval, confirmation and ratification, which Preliminary Official
Statement is attached hereto as Exhibit D;
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WHEREAS, The Tokai Bank, Ltd. Los Angeles Agency has sub-
mitted a Reimbursement Agreement, dated as of September 1, 1988, by
and between the. Bank and the City, with its Irrevocable Letter of
Credit attached thereto (the "Reimbursement Agreement"), the proposed
form of wh'ich is attached as Exhibit E hereto, which Letter of Credit
will secure the payment and purcl~ase of the Bonds;
WHEREAS, The Irvine Company, the primary landowner in
Assessment District No. 86-2, has submitted a Protocol Agreement
dated as of September 1, 1988, by .and between the City and The Irvine
Company (the "Protocol Agreement"), the proposed for~ of which is
attached as Exhibit F .hereto; and
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WHEREAS, the City intends to enter into a second amendment
]0 (the "Second Amendment") to the Agreement for Payment of Costs for
Infrastructure Improvements, East Tustin Assessment District 86-2,
]] dated as of December 15, 1986, by and between the City and The Irvine
Company, the proposed form of which is attached as Exhibit G hereto.
BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL
1~ OF THE CITY OF TUSTIN AS FOLLOWS'
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SECTION 1. The City hereby authorizes the issuance of not
to exceed $81,400,000 aggregate principal amount of its City of
Tustin Assessment District No. 86-2 Limited' Obligation Improvement
Bonds pursuant to the Indenture.
SECTION 2. The Indenture is hereby approved and the Mayor
or Mayor Pro-Tern and City Clerk or Deputy' City Clerk are hereby
authorized on behalf of the City to execute the Indenture with such
additions, deletions and clarifications as approved by the City, such
execution being approval by the City for such additions, deletions
and clarifications.
SECTION 3. The Purchase Contract is hereby approved and
~0 .the Ma~;or or Mayor Pro-Tem is hereby authorized to execute the
Purchase Contract with such additions, deletions and clarifications
~] as approved by the City, such execution being approval of the City
for such additions, deletions or clarifications, provi,ded, however,
~ hat the term of the Bonds to be sold pursuant to the Purchase
ntract shall not exceed 30 years and the average interest rate of
~ he Bonds for the initial interest period or periods shall not exceed
.50% per annum.
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SECTION 4. The Remarketing Agreement is hereby approved
and the Mayor or Mayor Pro-Tern is hereby authorized to execute the
Remarketing Agreement with such additions, deletions and clarifica-
tions as approved by the City, such execution being approval..of the
City for such additions, deletions .or clarifications.
SECTION 5. The distribution of the Preliminary Official
Statement dated August 26, 1988 is hereby approved, .confirmed and
ratified, and the City hereby authorizes the preparation and distri-
bution of an Official Statement in substantially the form of the
Preliminary Official Statement, with such additions, deletions and
clarifications as approved by the City. The Mayor or Mayor Pro-Tem
is hereby authorized to execute and deliver the final Official
Statement, such execution being approval of the City for such
changes, additions, deletions and clarifications.
SECTION 6. The Reimbursement Agreement is hereby approved
and the Mayor or Mayor Pro-Tern and City Clerk or Deputy City Clerk
are hereby authorized to execute the Reimbursement Agreement with
such additions, deletions and clarifications as approved bY the City,
such execution being approval of the City for such additions, dele-
tions or clarifications.
SECTION 7. The Protocol Agreement .is hereby approved and
the Mayor or Mayor Pro-Tern is hereby authorized to execute the
Protocol Agreement with such additions, deletions and clarifications
as approved by the City, such execution being approval of the City
for such additions, deletions or clarifications.
SECTION 8. The Second Amendment is hereby approved and
the Mayor or Mayor Pro-Tern and City Clerk or Deputy City Clerk are
hereby authorized to execute the Second Amendment with such addi-
tions, deletions and clarifications as approved by the City, such
execution being approval of the City for such a~ditions, deletions or
clarifications.
SECTION 9. The Mayor, Finance Director, Treasurer, City
Clerk, Deputy City Clerk and other appropriate officers of the City
are hereby further 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 necessary and proper to carry out the transactions con-
templated by this Resolution.
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PASSED AND ADOPTED by the City Council of the City at a
regular me..e.t, ing.held on the 6th day of September, 1988.
'-'~Y'o'Ri OF CT~ CITY OF ~USTi'h
ATTEST'
TUSTIN
94691.9.2535.14'5
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §
CITY OF TUSTIN )
MARY E. WYNN, City Clerk and ex-officio Clerk of the City Council of the City of
Tustin, California, does hereby certify that the whole number of the members of
the City Council of the City of Tustin is five; that the above and foregoing
Resolution No. 88-97 was duly and regularly introduced, passed and adopted at an
adjourned regula'r meeting of the City Council held on the 6th day of September,_
!988, by the following vote:
AYES ' COUNCILPERSONS' Hoesterey, Kennedy, Edgar, Kelly, Prescott
NOES · COUNCILPERSONS' None
ABSTAINED' COUNCILPERSONS' None
ABSENT' COUNCILPERSONS' None
MARY E. I~YI~N, City~lerk
City ofT~tin, California