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HomeMy WebLinkAbout2000-72 - Assessment District 78 - Little Balboa Island• RESOLUTION NO. 2000- 72 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING ISSUANCE OF BONDS AND APPROVING THE FORM OF CERTAIN BOND DOCUMENTS FOR ASSESSMENT DISTRICT NO. 78 (LITTLE BALBOA ISLAND) WHEREAS, this City Council of the City of Newport Beach has previously adopted its Resolution of Intention and initiated proceedings for the acquisition of certain public works of improvement, together with appurtenances and appurtenant work, in a special assessment district designated as Assessment District No. 78 (Little Balboa Island) (hereinafter referred to as the "Assessment District ") pursuant to the terms and provisions of the "Municipal Improvement Act of 1913 ", being Division 12 of the Streets and Highways Code of the State of California (the "Improvement Act'); WHEREAS, this legislative body, to finance the acquisition and construction of such improvements, declared in its Resolution of Intention to issue bonds against any unpaid assessments as certified by the Treasurer, such bonds to issue pursuant to the terms and provisions of the "Improvement Bond Act of 1915 ", being Division 10 of such Code (the "Bond Act'); WHEREAS, at this time this legislative body desires to set forth the general terms and conditions relating to the authorization, issuance and administration of such bonds; • WHEREAS, there has been presented, considered and ready for approval the form of a bond indenture and a form of Preliminary Official Statement, which documents contain information including but not limited to the Assessment District and the terms and conditions of the bonds; WHEREAS, there has also been presented for consideration by this legislative body a form of Bond Purchase Contract authorizing the sale of bonds to M. L. Stem & Co. Inc., as underwriter; NOW, THEREFORE, it is hereby Resolved, Determined, and Ordered as follows: SECTION 1. Recitals. The above recitals are true and correct. SECTION 2. Bonds Authorized. Pursuant to the Bond Act, this Resolution and the Bond Indenture (hereafter defined), limited obligation improvement bonds of the City for the Assessment District designated as "City of Newport Beach Assessment District No. 78 (Little Balboa Island) Limited Obligation Improvement Bonds" (the "Bonds ") in an aggregate principal amount not to exceed the unpaid assessments are hereby authorized to be issued, sold and delivered. The date, manner of payment, interest rate or rates, interest payment dates, denominations, form, registration privileges, manner of execution, place of payment, terms of redemption and other terms, covenants and conditions of the Bonds shall be as provided in the Bond Indenture as executed. SECTION 3. Authorization and Conditions. The City Manager, the Finance Director, and such other official of the City as may be designated by the City Council, or any of them (each an • "Authorized Officer "), are hereby authorized and directed to execute and deliver the various documents and instruments described in this Resolution with such additions and changes as the Authorized Officer deems advisable, provided that no additions or changes shall authorize an aggregate principal amount of Bonds in excess of the unpaid assessments. The approval of such 1 • additions or changes shall be conclusively evidenced by the execution and delivery of such documents or instruments by an Authorized Officer, upon consultation with and review by the City Attorney and bond counsel. SECTION 4. Bond Indenture. The form of Bond Indenture with respect to the Bonds as presented to this City Council and on file with the Finance Director is hereby approved. The Authorized Officer is hereby authorized and directed to cause the same to be completed and executed on behalf of the City, subject to Section 3 above. SECTION 5. Official Statement and Continuing Disclosure Agreement. The City Council hereby approves the form of the Preliminary Official Statement as presented to this City Council and on file with the Finance Director describing the financing described therein, together with any changes therein or additions thereto deemed advisable by the Authorized Officer. Pursuant to Rule 15c2 -12 under the Securities Exchange Act of 1934 (the "Rule ") the Authorized Officer is authorized to determine when the Preliminary Official Statement is deemed final, and the Authorized Official is hereby authorized and directed to provide written certification thereof. The execution of the final Official Statement, which shall include such changes and additions thereto deemed advisable by the Authorized Officer pursuant to the Rule, shall be conclusive evidence of the approval of the final Official Statement by the City. The Council hereby authorizes the distribution of the final Official Statement by the purchaser of the Bonds. The form of Continuing Disclosure Agreement as presented to this City Council and on file with the Finance Director is hereby approved. The Authorized Officer is hereby authorized and • directed to cause the same to be completed and executed on behalf of the City, subject to Section 3 above. SECTION 6. Sale of Bonds. This City Council hereby authorizes and approves the sale of the Bonds by negotiation to M. L. Stem & Co. Inc. (the "Underwriter "). The form of the Bond Purchase Agreement as presented to this City Council and on file with the Finance Director is hereby approved and the Authorized Officer is hereby authorized and directed to execute the Bond Purchase Agreement on behalf of the City upon the execution thereof by the Underwriter, subject to Section 3 and further subject to the following conditions: the aggregate principal amount of the bonds is equal to the unpaid assessments within the Assessment District, the underwriter's discount does not exceed two percent (2 %) and the net interest rate on the bonds shall not exceed seven percent (7 %) per annum.. SECTION 7. Bonds Prepared and Delivered. Upon the execution of the Bond Purchase Agreement, the Bonds shall be prepared, authenticated and delivered, all in accordance with the applicable terms of the Bond Act and the Bond Indenture, and the Authorized Officer and other responsible City officials are hereby authorized and directed to take such actions as are required under the Bond Purchase Agreement and the Bond Indenture to complete all actions required to evidence the delivery of the Bonds upon the receipt of the purchase price thereof from the Underwriter. SECTION 8. Annual Assessment Installments. A copy of the resolution confirming the • assessments, which assessments shall constitute the security for the Bonds, shall be delivered to the Finance Director, and the Finance Director shall keep or cause to be kept the record showing the several installments of principal and interest on the assessments which are to be collected each year during the term of the bonds. An annual portion of each reassessment, together with annual interest 2 • on said reassessment, shall be payable in the same manner and at the same time and in the same installment as the general property taxes of the County of Orange and shall be payable and become delinquent at the same time and in the same proportionate amount. Each year the annual installments shall be submitted to the County Auditor for purposes of collection. SECTION 9. Covenant to Initiate Foreclosure Proceedings. This legislative body does further specifically covenant for the benefit of the bondholders to commence and prosecute to completion foreclosure actions regarding delinquent installments of the assessments in the manner, within the time limits and pursuant to the terms and conditions as set forth in the Bond Indenture as submitted and approved through the adoption of this Resolution. SECTION 10. Actions. All actions heretofore taken by the officers and agents of the City with respect to the establishment of the Assessment District and the sale and issuance of the bonds are hereby approved, confirmed and ratified, and the proper officers of the City are hereby authorized and directed to do any and all things and take any and all actions and execute any and all certificates, agreements, contracts, and other documents, which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Bonds in accordance with Bond Act, this Resolution, the Bond Indenture, the Bond Purchase Agreement, the Continuing Disclosure Agreement, and any certificate, agreement, contract, and other document described in the documents herein approved. SECTION 11. Effective Date. This resolution shall take effect from and after its adoption. • PASSED, APPROVED and ADOPTED this 8th day of August, 2000. AYES: Glover, Ridgeway, O'Neil, Noyes NOES: ABSENT: Thomson, Adams, Debay ayor ATTEST: F • STATE OF CALIFORNIA } COUNTY OF ORANGE CITY OF NEWPORT BEACH } I, LAVONNE M. HARKLESS, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing resolution, being Resolution No. 2000 -72 was duly and regularly introduced before and adopted by the City Council of said City at a regular meeting of said Council, duly and regularly held on the 8th day of August, 2000, and that the same was so passed and adopted by the following vote, to wit: Ayes: Glover, Ridgeway, O'Neil, Mayor Noyes Noes: None Absent: Thomson, Adams, Debay Abstain: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the • official seal of said City this 9th day of August, 2000. (Seal) • City Clerk Newport Beach, California