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HomeMy WebLinkAboutResolution No. 2015-R7 (2)RESOLUTION NO. 2015-117 RESOLUTION OF THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF AZUSA PRELIMINARILY CONSIDERING THE ISSUANCE OF ITS REFUNDING BONDS; APPOINTING FINANCIAL AND LEGAL CONSULTANTS IN CONNECTION WITH THE PROPOSED REFUNDING; MAKING CERTAIN DETERMINATIONS RELATING THERETO; AND AUTHORIZING CERTAIN OTHER ACTION 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 Azusa (the "City") created the Redevelopment Agency of the City of Azusa (the "RDA"); and WHEREAS, the 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; and WHEREAS, California Assembly Bill No. 26 (First Extraordinary Session) ("ABX1 26") adopted on June 29, 2011, dissolved all redevelopment agencies and community development agencies in existence in the State of California, as of February 1, 2012, and designated "successor agencies" and "oversight boards" to satisfy "enforceable obligations" of the former redevelopment agencies and administer dissolution and wind down of the former redevelopment agencies; and WHEREAS, the City agreed to serve as the successor agency (referred to herein as the "Agency") to the RDA commencing upon the dissolution of the RDA on February 1, 2012 pursuant to ABX 1 26; and WHEREAS, on June 27, 2012 as part of the Fiscal Year 2012-13 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 ABXI 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; and WHEREAS, Health & Safety Code Section 34177.5(a) 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; and OHSUSA:762116499.1 5-5 WHEREAS, the Agency has solicited a report of an independent financial advisor entitled (a copy of which is presented at this meeting) and employed such advisor in developing financing proposals for consideration by the Agency and it is understood that such report, as it may be further revised, may be made available to the Department of Finance at its request; and WHEREAS, subject to compliance with the requirements of Health & Safety Code Section 34177.5, the Agency is preliminarily considering the issuance of refunding bonds (the "Refunding Bonds") to refund the outstanding bonds of the RDA described in Exhibit A attached hereto; provided reasonable interest rate savings can be obtained through such refunding; and WHEREAS, the Agency desires to appoint members of the financing team to prepare documents and to assist with the performance of such acts as may be necessary or desirable to effect the offering, sale and issuance of the Refunding Bonds. NOW, THEREFORE, BE IT RESOLVED BY THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA AS FOLLOWS: Section 1. Approval of Refunding. The Agency is hereby authorized to proceed with the refunding of the outstanding RDA bonds identified in Exhibit A attached hereto, to the extent permitted under Health and Safety Code Section 34177.5(a), and subject to the review and approval of the Agency's Oversight Board and the California Department of Finance. Section 2. City Manager and Director of Finance. The City Administrator and the Director of Finance, each acting for the Successor Agency, are hereby authorized to take whatever action may be necessary to carry out the purposes of this Resolution pursuant to ABX 1 26 and AB 1484. Section 3. Recovery of Costs. The Agency is hereby authorized to recover its costs of issuance with respect to the Refunding Bonds including the cost of reimbursing the City for staff time and costs spent with respect to the Refunding Bonds. Section 4. Bond Issuance Services. Stifel, Nicolaus & Company, Incorporated is hereby appointed as Underwriter, Orrick, Herrington and Sutcliffe LLP is hereby appointed as Bond Counsel, Fulbright & Jaworski is hereby appointed Disclosure Counsel and Urban Futures, Inc. is hereby appointed as Financial Advisor in connection with the proposed issuance of Refunding Bonds. The City Manager and the Director of Finance, acting for the City, are each individually authorized to execute contracts for such services and any other related services as may be required to defease and/or refund the outstanding RDA Bonds proposed to be refunded through the issuance of the Refunding Bonds. OHSUSA:762116499.1 -2- 5-5 Section 5. Other Acts. The officers and staff of the City 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 City's bond counsel, they may deem necessary or advisable in order to 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. Section 6. Effective Date. This Resolution shall take effect upon adoption. PASSED, APPROVED AND ADOPTED this 181h day of May, 2015. � 4211,& All./. seph Romero Rocha Mayor ATTEST: 4ar Jif r e Cornejo, J>L City Clerk OHSUSA:762116499.1 -3- 5-5 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Resolution No. 2015-R7 was duly adopted by the City Council of the City of Azusa at a regular meeting thereof, held on the 181h day of May, 2015, by the following vote of Council: AYES: AGENCY MEMBERS NOES: AGENCY MEMBERS ABSENT: AGENCY MEMBERS City Clerk APPROVED AS TO FORM: Best est & Krieger, LLP City ttorney GONZALES, MACIAS, ALVAREZ, ROCHA NONE CARRILLO OHSUSA:762116499.1 -4- 5-5 EXHIBIT A PRIOR RDA BONDS TO PROPOSED TO BE REFUNDED (a) $9,022,800 Redevelopment Agency of the City of Azusa Amended and Restated Merged Central Business District and West End Redevelopment Project Area Tax Allocation Bonds 2005 Series A. (All still outstanding). (b) $11,580,000 Redevelopment Agency of the City of Azusa Amended and Restated Merged Central Business District and West End Redevelopment Project Area Housing Tax Allocation Bonds 2008 Series B. ($10,565,000 outstanding now with $155,000 maturing on 8-1-15, a date prior to the anticipated refunding closing). (c) $15,780,000 Redevelopment Agency of the City of Azusa Amended and Restated Merged Central Business District and West End Redevelopment Project Area Taxable Tax Allocation Bonds (Subordinate Lien) 2007 Series A. ($12,920,000 outstanding now with $505,000 maturing on 8-1-15, a date prior to the anticipated refunding closing). OHSUSA:762116499.1 5-5