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RES-7922 Authorizing Issuance of Special Tax Bonds for Community Facilities District No. 91-2 Serrano HeigtsRESOLUTION NO.7922 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE AUTHORIZING THE ISSUANCE OF SPECIAL TAX BONDS OF THE CITY OF ORANGE FOR CITY OF ORANGE COMMUNITY FACILITIES DISTRICT NO. 91-2 ( SERRANO HEIGHTS PUBLIC IMPROVEMENTS), APPROVING AND DIRECTING THE EXECUTION OF A FISCAL AGENT AGREEMENT, AND APPROVING OTHER RELATED DOCUMENTS AND ACTIONS Community Serrano Facilities District No. 91-2 Heights Public Improvements)WHEREAS, this City Council has conducted proceedings under and pursuant to the Mello-Roos Community Facilities Act of 1982,as amended (the "Act"), to form the City of Orange Community Facilities District No. 91-2 ( Serrano Heights Public Improvements)the "District"), to authorize the levy of special taxes upon the land within the District, and to issue bonds secured by said special taxes the proceeds of which are to be used to finance certain facilities (the "Facilities"), all as described in the Resolutions entitled, "A Resolution of the City council of the City of Orange of Formation of City of Orange Community Facilities District No. 91- 2 (Serrano Heights Public Improvements),Authorizing the Levy of a Special Tax within the District,Preliminarily Establishing an Appropriations Limit for the District and Submitting Levy of the Special Tax and the Establishment of the Appropriations Limit to the Qualified Electors of the District" and "A Resolution of the City Council of the City of Orange Determining the Necessity to Incur Bonded Indebtedness within the City of Orange Community Facilities District No. 91- 2 ( Serrano Heights Public Improvements) and Submitting proposition to the Qualified Electors of the District", adopted by this date; and WHEREAS, pursuant to said resolutions, an election was held within the District on this date and the qualified electors approved the propositions of the incurrence of the bonded debt and the levy of the special tax by more than two-thirds of the votes cast at said special election; and WHEREAS, there have been submitted to this City Council certain documents providing for the issuance of bonds of the City for the District and the use of the proceeds of those bonds to finance the Facilities and this City Council, with the aid of its staff, has reviewed said documents and found them to be in proper order; and WHEREAS, all conditions, things and acts required to exist,to have happened and to have been performed precedent to and in the issuance of said bonds and the contemplated by this Resolution and the documents referred to herein exist, have happened and have been performed in due time, form and manner as required by the laws of the State of California, including the Act. NOW, THEREFORE, BE IT RESOLVED by the City council of the City of Orange as follows: Section I. Pursuant to the Act, this Resolution and the Fiscal Agent Agreement (hereafter defined), special tax bonds of the City for the District designated as "City of Orange Community Facilities District No. 91-2 (Serrano Heights Public Improvements)Special Tax Bonds, Series 1992A" (the "Bonds") in an aggregate principal amount not to exceed $40,000,000 are hereby authorized to be issued. The Bonds shall be executed in the form set forth in and otherwise as provided in the Fiscal Agent Agreement.Section II. The proposed Fiscal Agent Agreement (the " Fiscal Agent Agreement") with respect to the Bonds, in the form presented to this City Council at this meeting, is hereby approved. The Mayor is hereby authorized and directed to execute and deliver the Fiscal Agent Agreement and the City Clerk is hereby authorized and directed to attest the Mayor's signature thereto, in substantially said form, with such additions thereto or changes therein as are approved by the City Manager upon consultation with Bond Counsel including such additions or changes as are necessary or advisable in accordance with Section VII hereof, the approval of such additions or changes to be conclusively evidenced by the execution and delivery of the Fiscal Agent Agreement by the City. 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 of the Bonds shall be as provided in the Fiscal Agent Agreement as finally executed.Section III. The proposed form of purchase contract for the Bonds (the "purchase contract") between the City and Stone &Youngberg (the "Underwriter"), in the form presented to this City Council at this meeting, is hereby approved. The Mayor is hereby authorized and directed, for and in the name and on behalf of the City, to accept the offer of the Underwriter to purchase the Bonds contained in the purchase contract and to execute and deliver said purchase contract and the City Clerk is hereby authorized and directed to attest the Mayor's signature thereto, in said form,with such additions thereto or changes therein as are recommended or approved by the City Manager upon consultation with Bond Counsel (provided that no additions or changes shall authorize an aggregate principal amount of Bonds in excess of $40,000,000, or result in an initial true interest cost on the Bonds in excess of 10% per annum, or in an underwriter's discount in excess of 3% of the principal amount of the Bonds), the approval of such additions or changes to be conclusively evidenced by the execution and delivery by the City of said purchase contract. 2-Resolution No. This City Council hereby finds and determines that the sale of the Bonds at negotiated sale as contemplated by the purchase contract will result in a lower overall cost. Section IV. The City hereby covenants, for the benefit of the Bondowners, to commence and diligently pursue to completion any foreclosure action regarding delinquent installments of any amount levied as a special tax for the payment of interest or principal of the Bonds, said foreclosure action to be commenced and pursued as more completely set forth in the Fiscal Agent Agreement. Section V. The proposed form of official statement relating to the Bonds (the "Official Statement"), in the form presented to this meeting, is hereby approved. The Mayor is hereby authorized and directed, for and in the name and on behalf of the City, to execute the Official Statement in said form, with such additions thereto or changes therein as are recommended or approved by the City Manager upon consultation with Bond Counsel to the City, the approval of such additions or changes to be conclusively evidenced by the execution and delivery by the City of said Official Sta tement. The Underwriter is hereby authorized to distribute copies of said Official Statement to persons who may be interested in the purchase of the Bonds and is directed to deliver such copies to all actual purchasers of the Bonds. Distribution by the Underwriter of a preliminary official statement, substantially in the form of the Official Statement presented to this meeting, is hereby approved and authorized. The City Manager is hereby authorized to execute a certificate or certificates to the effect that the Official Statement and such preliminary official statement were deemed final" as of their respective dates for purposes of Rule 15c2- 12 of the Securities Exchange Act of 1934, and is authorized to so deem such statements final.Section VI. The Bonds, when executed, shall be delivered to the Fiscal Agent for authentication. The Fiscal Agent is hereby requested and directed to authenticate the Bonds by executing the Fiscal Agent's certificate of authentication and registration appearing thereon, and to deliver the Bonds, when duly executed and authenticated, to the Underwriter in accordance with written instructions executed on behalf of the City by the City Manager,which instructions such officer is hereby authorized and directed,for and in the name and on behalf of the City, to execute and deliver to the Fiscal Agent. Such instructions shall provide for the delivery of the Bonds to the Underwriter in accordance with the purchase contract, upon payment of the purchase price therefor.Section VII. All and agents of the City District and the sale approved, confirmed and actions heretofore taken by the officers with respect to the establishment of the and issuance of the Bonds are hereby ratified, and the proper officers of the 3-Resolution No. 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 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 this resolution, and any certificate, agreement, and other document described in the documents herein approved. Section VIII. after its adoption. This resolution shall take effect from and ADOPTED this 17th day of December, 1991. ATTEST: Q~ City Cl k oft'he#ity of Orange I hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Orange at a regular meeting thereof held on the .J..:li)l day of De""mher , 1991, by the following vote: AYES: NOES: ABSENT: COUNCIL MEMBERS: STEINER, BARRERA, MAYOR BEYER, COONTZ, SPURGEON COUNCIL MEMBERS: NONE COUNCIL MEMBERS: NONE Q{#-#W!4city Clerk f t#c:0(yof Orange 4- Resolution No. 7922