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Resolution, Agreement, and Appropriation Adjustment — Tax Allocation Bonds, Series 2003A October 4, 2016 Page 2 SUCCESSOR AGENCY ACTION 1. Adopt a resolution approving a plan for spending excess tax allocation bond proceeds from the 2003 Series A Tax Allocation Bonds, authorizing a bond proceeds expenditure agreement with the City of Santa Ana, directing the transfer of funds to the City, and making certain findings in connection therewith. 2. Authorize the City Manager and the Clerk of the Council to execute the Bond Proceeds Expenditure Agreement with the City of Santa Ana to transfer current excess bond proceeds in the amount of $2,515,560.32 and any future excess bond proceeds to the City for capital improvements, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION Pursuant to Part 1.85 of Division 24 of the California Health & Safety Code ( "Dissolution Law "), the City Council on January 9, 2012, elected for the City to act as the "Successor Agency" to the dissolved Community Redevelopment Agency ( "Agency "). On February 1, 2012, in accordance with the Dissolution Law and the California Supreme Court's decision in California Redevelopment Association v. Matosantos, Case No. S194861, the Agency was dissolved and the City began to serve as the "Successor Agency." The City Council serves as the governing body of the Successor Agency under the Dissolution Law as amended by AB 1484, AB 471, and SB 107, to administer the enforceable obligations of the Agency and otherwise unwind the Agency's affairs. All actions of the Successor Agency are subject to the review and approval by the Oversight Board. The Agency previously issued its South Main Street Redevelopment Project, Tax Allocation Bonds, Series 2003A, in the amount of $20,945,000 and Tax Allocation Refunding Bonds, Series 2003B, in the amount of $34,145,000. The Series 2003A bonds were issued to fund redevelopment activities of benefit to the South Main Street Redevelopment Project Area. The Series 2003B bonds were issued to refund the Agency's bonds issued in 1993. Of the $20,945,000 in bond proceeds from Series 2003A, the Agency expended the majority of the proceeds in compliance with the bond covenants prior to the dissolution of the Agency. The Dissolution Law prohibited the Agency from creating new debts and incurring any new obligations. Therefore, bond proceeds in the amount of $2,515,560.32 are currently remaining as of August 31, 2016. Health and Safety Code Section 34191.4(c) allows a successor agency that has received a finding of completion to use bond proceeds from bonds issued prior to January 1, 2011 for the purposes for which the bonds were sold. The Successor Agency received its Finding of Completion on November 26, 2014, and accordingly it now has authority to expend the proceeds in a manner consistent with the original bond covenants. In order to accomplish this, the Successor Agency included the remaining bond 3 -2