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RES-8942 Intention to Refund Outstanding Bonds Assessment District No. 90-1RESOLUTION NO. 8942 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE DECLARING INTENTION TO REFUND THE OUTSTANDING BONDS OF ASSESSMENT DISTRICT NO. 90- 1 (CRAWFORD CANYON ROAD), TO LEVY REASSESSMENTS AS SECURITY FOR THE REFUNDING BONDS AND TO CONTINUE THE LIEN OF THE ORIGINAL ASSESSMENTS ON CERTAIN PARCELS OF PROPERTY IN THE ASSESSMENT DISTRICT, AND EMPLOYING BOND COUNSEL, DISCLOSURE COUNSEL, AND FINANCIAL ADVISOR, AND RATIFYING THE CITY MANAGER'S EMPLOYMENT OF REASSESSMENT CONSULTANT WHEREAS, on November 27,1990, the City of Orange (the "City") issued and sold bonds for Assessment District No. 90-1 (Crawford Canyon Road) of the City of Orange designated City of Orange Assessment District No. 90-1 (Crawford Canyon Road) Limited Obligation Improvement Bonds, and such bonds remain outstanding in the aggregate principal amount of 3,005,000 (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 armual 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 ofthe Outstanding Bonds as permitted by and pursuant to proceedings to be conducted in accordance with the Refunding Act of 1984 for 1915 Improvement Act Bonds,Division 11.5 (commencing with Section 9500) of the Streets and Highways Code of the State of California (the " Refunding Act");NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the City Council ofthe City of Orange as follows:Section 1. Refunding; Continuation of Liens of Original 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. Report. The City Manager is authorized and directed to have NBS Goverrunent 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 two percent (2%) of said principal amount. The Reassessment Consultant shall further assume that the maximum interest rate on the Refimding Bonds will be seven percent (7.0%) per armum. 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 pr()(:eeds 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 Refunding Bonds. The maximum rate of interest on the Refunding Bonds shall not exceed seven percent (7.0%) per armum. Section 5. Delinquent 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 armual 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 form 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 Dis,closure Counsel to the City, the firm of Fieldman, Rolapp & Associates is employed as Financial Advisor to the City, and the City Council hereby ratifies and confirms the City Manager's employment of the firm of NBS Goverrunent Finance Group as Reassessment Consultant. The Mayor is authorized and directed to execute, and the City Clerk is authorized and directed to attest, contracts between Bond Counsel, Disclosure Counsel and Financial Advisor and the City in a form approved by the City Attorney. R<:so No. 8942 2 ADOPTED this 26th day of May, 1998. e Coontz, Mayor of the Ci of Orange ATTEST: I, Cassandra J. Cathcart, City Clerk of the City of Orange do hereby certifY that the foregoing resolution was adopted by the City Council of the City of Orange at a regular meeting thereof held on the 26th day of May, 1998, by the following vote of the Council: J\l'ES: MURPHY, SLATER, COONTZ, SPURGEON, ALVAREZ NOES: NONE ABSENT: NONE ABSTAINED: NONE IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Orange this 26th day of May, 1998. Cassandra Cathcart, it Clerk ofthe City of Orange dg 3 Reso No. 8942