RES-8930 Intention to Refund Outstanding Bonds Assessment District 86-1RESOLUTION NO. 8930
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ORANGE DECLARING ITS INTENTION TO REFUND THE
OUTSTANDING BONDS OF ASSESSMENT DISTRICT NO. 86-
1 EAST ORANGE); TO LEVY REASSESSMENTS AS
SECURITY FOR THE REFUNDING BONDS; TO CONTINUE THE LIEN
OF THE ORIGINAL ASSESSMENTS ON CERTAIN PARCELS
OF PROPERTY IN THE ASSESSMENT DISTRICT, AND
TO EMPLOY BOND COUNSEL, DISCLOSURE COUNSEL
AND FINANCIAL
ADVISOR.WHEREAS, on December 19, 1986, the City of Orange (the "
City")issued and sold bonds for Assessment District No. 86-1 (East Orange) of the
City of Orange designated City of Orange Improvement Bonds, Assessment District
No. 86-1 East Orange) and such bonds remain outstanding in the aggregate
principal amount of 11,680,000 (the "
Outstanding Bonds"); and WHEREAS, the City Council of the City (the "City
Council") has been advised by the Finance Director of the City that due to favorable
municipal bond interest rates, the Outstanding Bonds could be refunded at a significant savings
in annual debt service to the property owners within the
Assessment District; and WHEREAS, the City Council has determined, based on
such advice, that the public interest requires the refunding of the Outstanding Bonds as
permitted by and pursuant to proceedings to be conducted in accordance with the Refunding
Act of 1984 for 1915 Improvement ActBonds, Division 11.5 (commencing with Section
9500) of the Streets and Highways Code of the State ofCalifomia (
the "Refunding Act");NOW, THEREFORE, BE IT
RESOLVED, DETERMINED AND ORDERED by the City Council of the City of
Orange as follows:Section 1. RefundinJl;: Continuation of Liens of
OriJl;ina1 Assessments.The City Council determines that the public interest requires the
refunding of the Outstanding Bonds and declares its intention to refund the Outstanding
Bonds, to issue bonds to refund the Outstanding Bonds (the "Refunding Bonds")
and to levy reassessments on the parcels of property in the Assessment District as
security for the Refunding Bonds, all pursuant to the Refunding Act. It is further the intention
of the City Council to continue the liens of the original assessments levied on parcels
of property in the Assessment District, and which secure the payment of the principal of
and interest of the Outstanding Bonds, as security for the payment of the unpaid
installments of such assessments and the penalties and interest thereon, including the
installments of such assessments which have been posted to and are to be collected on the
tax assessment roll for the 1997-98 fiscal year and all unpaid and delinquent
installments of such assessments which were posted to the tax assessment roll
for
Section 2. R~ort. The City Manager is authorized and directed to have
NBS Government Finance Group, the firm employed by the City to assist the City in the
reassessment proceedings which are to be conducted pursuant to the Refunding Act (the
Reassessment Consultant"), prepare and file with the City Clerk a report containing all
of the matters required by Section 9523 of the Streets and Highways Code of the State of
California (the "Report"). In preparing the Report, the Reassessment Consultant shall
assume that the City will advance the maturity of all of the Outstanding Bonds to
September 2, 1998, and that in refunding the Outstanding Bonds, the City will pay the
principal amount thereof and accrued interest thereon to September 2, 1998, together with
a premium equal to three percent (3%) of said principal amount. The Reassessment
Consultant shall further assume that the maximum interest rate on the Refunding Bonds
will be 6.9% per annum. Upon receipt of the Report, the City Clerk shall present it to the
City Council for consideration.
Section 3. Reserve Fund. The City Council declares its intention to
provide in the resolution authorizing the issuance of the Refunding Bonds for the
establishment from the proceeds of the sale of the Refunding Bonds of a special reserve
fund for the Refunding Bonds pursuant to Part 16 (commencing with Section 8880) of
Division 10 of the Streets and Highways Code of the State of California. The estimated
amount of the special reserve fund shall be included in the total amount of the
reassessments and shall be separately identified in the Report to be prepared pursuant to
Section 2 hereof.
Section 4. Maximum Interest Rate on RefundinJl: Bonds. The maximum
rate of interest on the Refunding Bonds shall not exceed 6.9% per annum.
Section 5. DelinqJlent Assessment Installments. The City staff and the
Reassessment Consultant shall determine and make a recommendation to the City
Council as to whether it is in the best interests of the City and the owners of parcels of
property in the Assessment District as to which annual installments of the assessments
thereon are unpaid and delinquent to include such delinquent installments, and the
penalties and interest thereon, in the reassessments which will be levied on such parcels
as security for the payment of the principal of and interest on the Refunding Bonds.
Section 6. No City Obligation. The City Council determines, pursuant to
Section 8769 of the Streets and Highways Code of the State of California, that City will
not obligate itself to advance available funds from the City Treasury to cure any
deficiency which may occur in the bond redemption fund for the Refunding Bonds.
Section 7. Consultants. For purposes of the reassessment proceedings and
the issuance and sale of the Refunding Bonds, the law firm of Best, Best & Krieger LLP
is employed as Bond Counsel to the City; the law firm of Richards, Watson & Gershon is
employed as disclosure Counsel to the City; and the firm of Fie1dman, Rolapp &
Associates is employed as Financial Advisor to the City. The Mayor and City Clerk are
2
authorized and directed to execute contracts between such firms and the City in a form
approved by the City Attorney.
ADOPTED this 12th day of May, 1998.
ATTEST:
J6,inne Coontz
iayor ofthe City of Orang
J
LJ~&-N~4
Cassandra J. cart
City Clerk of the City of Orange
CERTIFICATION
I, Cassandra J. Cathcart, City Clerk of the City of Orange do hereby certif'y
that the foregoing resolution was adopted by the City Council of the City of Orange at a
regular meeting thereof held on the 12th day of May, 1998, by the following vote of the
Council:
AYES: COUNCILMEMBERS: MURPHY, SLATER, COONTZ, SPURGEON
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: ALVAREZ
ABSTAINED: COUNCILMEMBERS: NONE
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
official seal of the City of Orange this H- day of 1J7~ ,1998.
C;I-'J~A~~ eK~
lty Clerk of the of Orange
F:RES08930-Refunding86-1
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