HomeMy WebLinkAboutSA 2018-003SUCCESSOR AGENCY RESOLUTION NO. 2018-003
RESOLUTION OF THE SUCCESSOR AGENCY TO THE
COMMUNITY REDEVELOPMENT AGENCY OF THE CITY
OF SANTA ANA APPROVING THE PRELIMINARY
OFFICIAL STATEMENT IN CONNECTION WITH THE
SALE AND DELIVERY OF ITS TAX ALLOCATION
REFUNDING BONDS; MAKING CERTAIN
DETERMINATIONS RELATING THERETO; AND
AUTHORIZING CERTAIN OTHER ACTIONS IN
CONNECTION THEREWITH
WHEREAS, pursuant to the Community Redevelopment Law (Part 1 of Division
24 of the Health and Safety Code of the State of California and referred to herein as the
"Law"), the City Council of the City of Santa Ana (the "City") created the former
Community Redevelopment Agency of the City of Santa Ana (the "Former RDA");
WHEREAS, the Former RDA was a redevelopment agency, a public body,
corporate and politic duly created, established and authorized to transact business and
exercise its powers, all under and pursuant to the Law, and the powers of such agency
included the power to issue bonds for any of its corporate purposes;
WHEREAS, the City agreed to serve as the successor agency (referred to herein
as the "Successor Agency') to the Former RDA commencing on February 1, 2012,
pursuant to Assembly Bill X1 26 ("ABX1 26");
WHEREAS, on June 27, 2012, as part of the Fiscal Year 2012-2013 State of
California budget bill, the Governor signed into law Assembly Bill 1484 ("AB 1484"),
which modified or added to some of the provisions of ABX1 26, including provisions
related to the refunding of outstanding redevelopment agency bonds and the
expenditure of remaining bond proceeds derived from redevelopment agency bonds
issued on or before December 31, 2010;
WHEREAS, Senate Bill No. 107 ("AB 107"), a follow on bill to ABX1 26 and AB
1484, was enacted on September 22, 2015, and provides additional terms and
amendments for operations of a successor agency;
WHEREAS, Health & Safety Code Section 34177.5(a)(1) authorizes successor
agencies to refund outstanding bonds provided that: (i) the total interest cost to maturity
on the refunding bonds or other indebtedness plus the principal amount of the
refunding bonds or other indebtedness shall not exceed the total remaining interest cost
to maturity on the bonds or other indebtedness to be refunded plus the remaining
principal of the bonds or other indebtedness to be refunded; and, (ii) the principal
amount of the refunding bonds or other indebtedness shall not exceed the amount
required to defease the refunded bonds or other indebtedness, to establish customary
debt service reserves, and to pay related costs of issuance;
Resolution No. 2018-003
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WHEREAS, the Successor Agency has determined, to the extent authorized by
California Health and Safety Code Section 34177.5(a), to issue its Successor Agency to
the former Community Redevelopment Agency of the City of Santa Ana Tax Allocation
Refunding Bonds, in one or more series, one of which may be federally taxable if
determined by bond counsel to be required under federal tax law, and with such other
name and series designation as shall be deemed appropriate (the "Bonds"), for the
purpose of: (i) refinancing certain redevelopment activities of the Former RDA through
the refunding of certain outstanding bonds of the Former RDA; (ii) paying the costs of
issuing the Bonds; (iii) funding a reserve account and/or providing for a reserve policy or
surety for deposit to the reserve account for the Bonds; and, (iv) if advisable, paying for
the cost of municipal bond insurance and/or a surety to fund the reserve account for the
Bonds in lieu of funding all or a portion of such reserve account with bond proceeds;
WHEREAS, there is approximately $5,831,788 of unspent proceeds of the
Community Redevelopment Agency of the City of Santa Ana Tax Allocation Bonds
(Merged Project Area), 2011 Series A (the "Series 2011 Bonds"), which the Successor
Agency expects to apply in accordance with Health and Safety Code Section
34191.4(c)(2) to the defeasance of the Series 2011 Bonds, as specified in its resolution
adopted on July 17, 2018; and,
WHEREAS, a copy of the Official Statement in preliminary form, a final form of
which will be executed by the Successor Agency in connection with the issuance, sale
and delivery of the Bonds, is on file with the Secretary of the Successor Agency.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA ANA
ACTING AS SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF SANTA ANA DOES HEREBY RESOLVE AS FOLLOWS:
1. Acknowledgement of Prior Approval of Issuance of Bonds. The City Council
acting for the Successor Agency, acknowledges that it adopted its resolution
on July 17, 2018, and through such resolution it approved the issuance of the
Bonds and related financing documents.
2. Approval of Preliminary Official Statement. The form, terms and provisions of
the Preliminary Official Statement on file with the Secretary of the Successor
Agency are approved, and the Successor Agency hereby approves the
distribution of the Preliminary Official Statement to prospective purchasers of
the Bonds. The City Manager, or designee ("Authorized Officer," acting for
the Successor Agency), is authorized to certify on behalf of the Successor
Agency that the Preliminary Official Statement is deemed final as of its date,
within the meaning of Rule 15c2-12 promulgated under the Securities
Exchange Act of 1934, as amended. Any Authorized Officer is authorized to
execute, at the time of sale of the Bonds, said form of Preliminary Official
Statement, as revised to include pricing information in the form of a final
Official Statement (the "Official Statement'), with such changes and
insertions therein as may be necessary to cause the same to carry out the
intent of this Resolution and as are approved by counsel to the Successor
Agency, such approval to be conclusively evidenced by the delivery thereof.
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3. Ratification of Direction to Apply Unspent Proceeds. The City Council acting
for the Successor Agency, ratifies and confirms its direction to transfer
unspent proceeds of the Series 2011 Bonds in the amount of approximately
$5,831,789 (as of August 31, 2018) and/or the amount upon closing of the
financial transaction to the respective redemption fund, and to apply such
proceeds to defease an equal amount of outstanding Series 2011 Bonds, as
specified in its resolution adopted on July 17, 2018, in accordance with
Health & Safety Code Section 34191.4(c).
4. Other Acts. The officers and staff of the Successor Agency are hereby
authorized and directed, jointly and severally, to do any and all things to
execute and deliver any and all documents, which in consultation with Orrick,
Herrington & Sutcliffe LLP, the Successor Agency's bond counsel, they may
deem necessary or advisable in order to consummate the issuance, sale and
delivery of the Bonds, or otherwise effectuate the purposes of this Resolution,
and any and all such actions previously taken by such officers or staff
members are hereby ratified and confirmed.
5. Effective Date. This Resolution shall take effect upon adoption.
ADOPTED this 2nd day of October, 2018.
APPROVED AS TO FORM:
Sonia R. Carvalho.
City Attorney
AYES:
NOES:
Councilmembers Benavides, Martinez, Pulido, Solorio, Tinalero
Villegas (6)
Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
None (0)
None (0)
Sarmiento (1)
Resolution No. 2018-076
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CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the
attached Resolution No. 2018-003 to be the original resolution adopted by the City
Council acting as the Successor Agency on October 2, 2018.
Date: /�O � s �g4'V.f r/
�
Maria D. Huizar
Clerk of the Council
City of Santa Ana
Resolution No. 2018-003
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