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°. <br />REQUEST FOR <br />SUCCESSOR AGENCY <br />ACTION` <br />MEETING DATE: <br />OCTOBER 1, 2012 <br />TITLE: <br />AGREEMENT WITH BLX GROUP, LLC FOR <br />TAX EXEMPT BOND IRS COMPLIANCE <br />CLERK OF THE COUNCIL USE ONLY: <br />APPROVED <br />? As Recommended <br />? As Amended <br />? Implementing Resolution <br />? Other <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and Clerk of the Council, acting as the Successor Agency, to execute <br />the attached agreement with BLX Group, LLC to provide arbitrage tax allocation bond rebate <br />analyses services for tax allocation bonds in an amount not to exceed $7,000, subject to non- <br />substantive changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />On January 9, 2012, City Council adopted Resolution No. 2012-002 and designated the City of <br />Santa Ana as the Successor Agency for the former Community Redevelopment Agency of the <br />City of Santa Ana (RDA), and the Housing Authority of the City of Santa Ana as the Successor <br />Housing Agency pursuant to California Health and Safety Code Section 34176. On February 1, <br />2012, the former redevelopment agency was dissolved and the City assumed the role of the <br />Successor Agency. <br />One component of the winding down process of the former redevelopment agency's activities <br />includes ensuring compliance with all bond covenants. There are two outstanding bonds of the <br />former RDA: South Main Street Redevelopment Project Tax Allocation Bonds, Series 2003A and <br />Series 200313; Merged Project Area Tax Allocation Bonds, Series A. The bond indenture <br />documents for both bonds require compliance with section 148(f) of the Tax Code, relating to the <br />rebate of excess investment earnings, if any. <br />BLX Group, LLC has the specialized skill and knowledge to provide the service. BLX Group, LLC <br />has provided this service for the former RDA since the issuance of each bond, and therefore has <br />the historical information and experience with these particular bonds. Staff recommends the City, <br />acting as the Successor Agency, enter into this agreement. <br />5-1