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HomeMy WebLinkAboutRES-99-6025 (ASSESSMENT DIST./LOMA)1 2 3 4 5 6 7 s 9 10 11 12 13 14 15 16 17 is 19 20 21 22 23 24 25 26 27 2s RESOLUTION NO. 99-6025 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF BONDS PURSUANT TO THE PROVISIONS OF THE IMPROVEMENT BOND ACT OF 1915 FOR ASSESSMENT DISTRICT NO. 97-2 (LOMA DRIVE UTILITY UNDERGROUNDING) AND APPROVING CERTAIN DOCUMENTS AND AUTHORIZING CERTAIN ACTIONS IN CONNECTION THEREWITH WHEREAS, this City Council has taken proceedings under the Municipal Improvement Act of 1913, Division 12 of the California Streets and Highways Code (the "Code"), for the formation of Assessment District No. 97-2 (Loma Drive Utility Undergrounding) (the "Assessment District") and has confirmed an assessment, which assessment and a related diagram were recorded in the office of the City Engineer, acting as the Superintendent of Streets, and with the County Recorder of the County of Los Angeles; and WHEREAS, a notice of assessment, as prescribed in Section 3114 of the Code, has been recorded with the County Recorder of the County of Los Angeles, whereupon the assessment attached as a lien upon the property assessed within the Assessment District as provided in Section 3115 of the Code; and WHEREAS, said proceedings provide that bonds would be issued pursuant to the Improvement Bond Act of 1915, Division 10 of the Code (the "Act") to represent and be secured by the unpaid assessments on the parcels within the Assessment District; and WHEREAS, this City Council has determined that the assessments upon the security of which such bonds are to be issued is $1,831,303, less the amount of bonds that would have been issued to represent assessments that are paid and may be paid on or before April 16, 1999; and WHEREAS, it is necessary and desirable that the City sell bonds (the "Bonds") to be `issued to represent the unpaid assessments; and WHEREAS, there have been presented to this City Council the forms of a Fiscal Agent Agreement By and Between the City and U.S. Trust Company, N.A. (the "Fiscal Agent Agreement"), a Continuing Disclosure Agreement By and Between the City and U.S. Trust -1- I 01 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Company, N.A. (the "Continuing Disclosure Agreement") and a Preliminary Official Statement relating to the Bonds (the "Preliminary Official Statement"); and WHEREAS, this City Council wishes to approve the Fiscal Agent Agreement, the I Continuing Disclosure Agreement and the Preliminary Official Statement; to authorize the distribution of the Preliminary Official Statement to prospective purchasers of the Bonds; and to authorize the issuance of the Bonds and the sale thereof to a purchaser of the Bonds to be determined as hereinafter set forth. NOW, THEREFORE, the City Council of the City of Hermosa Beach, County of Los I Angeles, DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER as follows: SECTION 1. The above recitals are all true and correct. SECTION 2. The Fiscal Agent Agreement is approved in substantially the form presented Ito the City Council; and the Mayor is authorized and directed, for and in the name of and on behalf of the City, to execute and the City Clerk to attest and to deliver to U.S. Trust Company, N.A. the Fiscal Agent Agreement in the form approved with such additions thereto and changes therein as may be approved or required by the City Manager or the City's Bond Counsel and Disclosure Counsel, Stradling Yocca Carlson & Rauth, a Professional Corporation (the "Bond Counsel") (and the insertion therein of the total principal amount of the Bonds and the principal amount and interest rate of each maturity of thereof, as set forth in the Bond Purchase Agreement upon the execution and delivery thereof as hereinafter authorized and the amounts to be deposited in the Improvement Fund and the Reserve Fund), such approval or requirement to be conclusively evidenced by the execution and delivery of the Fiscal Agent Agreement. SECTION 3. U.S. Trust Company, N.A. is hereby designated Fiscal Agent, Transfer Agent, Paying Agent and Registrar with respect to these proceedings and the Bonds to be issued, all as provided for in the Fiscal Agent Agreement. -2- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 4. Bonds in an aggregate principal amount not to exceed $1,831,303 shall be issued pursuant to the provisions of the Act upon the security of unpaid assessments levied within the Assessment District and as set forth in the Fiscal Agent Agreement. The Bonds shall be dated, be in such aggregate principal amount, bear interest at such rates, and mature on such dates and in such amounts as are set forth in the Bond Purchase Agreement upon the execution and delivery thereof as hereinafter authorized. The Bonds shall be issued substantially in the form of bonds set forth in the Act, except as such form may vary from the terms and conditions set forth in this Resolution and the Fiscal Agent Agreement. SECTION 5. NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY, THE COUNTY OF LOS ANGELES, THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE BONDS. THE CITY IS NOT OBLIGATED TO ADVANCE AVAILABLE FUNDS FROM THE CITY TREASURY TO THE REDEMPTION FUND IN THE EVENT OF A DELINQUENCY IN THE PAYMENT OF AN ASSESSMENT INSTALLMENT OR INSTALLMENTS. THE BONDS ARE NOT GENERAL OBLIGATIONS OF THE CITY; THEY ARE LIMITED OBLIGATIONS PAYABLE SOLELY FROM THE FUNDS SPECIFIED IN THE ACT AND THE FISCAL AGENT AGREEMENT. SECTION 6. The City Treasurer shall deposit in a special fund heretofore created and designated the "Assessment District No. 97-2 Improvement Fund" (the "Improvement Fund") the amounts received by the City Treasurer from the proceeds of the sale of the Bonds transferred to the City Treasurer pursuant to the Fiscal Agent Agreement. All moneys in the Improvement Fund shall be applied exclusively to the payment of the costs of the acquisition and construction of the Improvements described in the Assessment Engineer's Report concerning the Assessment District, as approved by the City Council and as now or hereafter amended or changed by appropriate change and modification proceedings, and all expenses incidental thereto, including the costs of issuing the Bonds. Any surplus remaining in the Improvement Fund after payment of all costs and -3- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I all legal charges, claims and expenses shall be used as set forth in the Fiscal Agent Agreement. SECTION 7. The provisions of Part 11.1 (commencing with Section 8760) of the Act,' providing an alternative procedure for the division of land and the Bonds, shall apply. SECTION 8. The Continuing Disclosure Agreement hereby is approved in substantially the form presented to the City Council; and the Mayor is hereby authorized and directed, for and in the name of and on behalf of the City, to execute and the City Clerk to attest and deliver to U.S. Trust Company, N.A. the Continuing Disclosure Agreement in the form hereby approved with such additions thereto and changes therein as may be approved or required by the City Manager or Bond Counsel, such approval or requirement to be conclusively evidenced by the execution and delivery of the Continuing Disclosure Agreement. SECTION 9. The Preliminary Official Statement presented at this meeting is hereby approved in substantially the form presented with such changes thereto as may be approved or required by the Mayor, or the City Manager or Bond Counsel to make such Preliminary Official Statement final as of its date, except for the omission of certain information, as permitted by Section 240.15c2-12(b)(1) of Title 17 of the Code of Federal Regulations (the "Rule"); and the distribution of such Preliminary Official Statement in connection with the sale of the Bonds, with such changes included, is hereby authorized. The Mayor is authorized and directed to execute and deliver a certificate relating to compliance with the Rule and a final Official Statement in substantially the form of the Preliminary Official Statement hereby approved, with such additions thereto and changes therein as are approved or required by the Mayor or the City Manager or Bond Counsel, such approval or requirement to be conclusively evidenced by the execution and delivery thereof. SECTION 10. The City's Financial Advisor, Project Finance Associates, is authorized to receive bids from a group of potential purchasers of the Bonds and to present to the -4- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 City Manager the purchaser agreeing to purchase the Bonds at the lowest net interest cost to the City and on terms to be set forth in a Bond Purchase Agreement to be approved by the City Manager and Bond Counsel provided that (a) the purchaser's discount, exclusive of original issue discount, shall not exceed two percent (2%) of the original aggregate principal amount of the Bonds, (b) the interest rates on the Bonds shall not exceed six and one-half percent (6.50%) and (c) such discount and interest rates shall have been approved by the City Manager; and, subject to such approval, the City Manager is hereby authorized and directed to evidence the City's acceptance of the offer made by executing and delivering to the purchaser the Bond Purchase Agreement. SECTION 11. The Fiscal Agent is hereby authorized and directed to authenticate the Bonds and to deliver them to The Depository Trust Company on behalf of the purchaser upon payment of the purchase price thereof. SECTION 12. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they may deem necessary or advisable in order to consummate the sale and delivery of the Bonds, and otherwise to effectuate the purposes of this Resolution; and such actions previously taken by such officers are hereby ratified and confirmed. SECTION 13. Any action authorized or directed in this Resolution to be taken or performed by the Mayor or the City Manager may be taken or performed by their designee with the same force and effect as if taken or performed by the Mayor or the City Manager, respectively. SECTION 14. If any section, subsection, sentence, clause or phrase of this Resolution shall be for any reason held by a court of competent jurisdiction to be unconstitutional, invalid or unenforceable, such holding shall not affect the validity of the remaining portions hereof. The City Council hereby declares that it would have passed this Resolution and each section, subsection, sentence, clause or phrase hereof irrespective of the fact that any one or more sections, -5- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 subsections, sentences, clauses or phrases be declared to be unconstitutional, invalid or unenforceable, and such holding shall not affect the validity of the remaining portions hereof. SECTION 15. This Resolution shall be liberally construed to the end that its purpose may be effected. No error, irregularity or informality and no neglect or omission herein or in any proceeding had pursuant hereto which does not directly affect the jurisdiction of the City Council shall void or invalidate this Resolution or such proceeding or any part thereof, or any act or determination made pursuant thereto. SECTION 16. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED, and ADOPTED this 10th day of August, 1999, of the City Council and MAYOR of the City of Hermosa Beach, California ATTEST: WOUBSIZZWO. 00 U,60-1-m-�m, APPROVED AS TO FORM: CITY ATTORNEY -6- STATE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF HERMOSA BEACH I, Naoma Valdes, Deputy City Clerk of the City Council of the City of Hermosa Beach, California, do hereby certify that the foregoing Resolution No. 99-6025 was duly and regularly passed, approved and adopted by the City Council of the City of Hermosa Beach at a Regular Meeting of said Council at the regular place thereof on August 10, 1999. The vote was as follows: AYES: Bowler, Reviczky, Mayor Oakes NOES: Benz, Edgerton ABSTAIN: None ABSENT: None DATED: August 11, 1999 r, Deputy City Clerk