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HomeMy WebLinkAboutAGENDA REPORT 2001 1117 CC SPC ITEM 04CMOORPARK PUBLIC FINANCING AGENDA REPORT ITEM '-�' c. aw�� e k a►-deA C1Tll OF IOORPARK, CAL TFOR.NIA Redevelopment Agenev Meeting of —I 1- 13 — C' f ACTION: 4px � - c'�'c 2 AUTHtITY��� TO: Honorable President and Directors of the Financing Authority Board FROM: Steven Kueny, Chief Administrative Officer Prepared by Hugh R. Riley, Deputy C.A.14V DATE: November 8, 2001 (Authority Meeting of 11/13/01) SUBJECT: Consider Adoption of Resolution No. 2001 - Authorizing the Purchase and Sale of 2001 Tax Allocation Revenue Bonds of the Redevelopment Agency of the City of Moorpark and Approving Other Matters Related Thereto. BACKGROUND The Redevelopment Agency of the City of Moorpark will be issuing Tax Allocation Bonds in an amount to net $10,000,000 to provide funding for various improvements as stated in the March 2000 space needs report. The Moorpark Public Financing Authority was established in 1993 so that the City and the Agency could take advantage of new California law passed in 1986 that simplified public financing bond issue procedures and made the process far more efficient. The creation and use of the authority does not change the fact that the bonds will not be financial obligations of the City of Moorpark. DISCUSSION As part of the Bond issuance process, and in order to negotiate the best pricing of the 2001 Tax Allocation Bonds with the underwriter, it is necessary that the Bonds be purchased from the Agency by the Financing Authority. The Authority will then resell the Bonds to the underwriter. Moorpark Public Financing Authority November 8, 2001 Page 2 STAFF RECOMMENDATION Adopt Resolution No.2001 - Authorizing the Purchase and Sale of 2001 Tax Allocation Revenue Bonds of the Redevelopment Agency of the City of Moorpark and Approving Other Matters Related Thereto. Attachment: Resolution No. 2001 - RESOLUTION NO. 2001- A RESOLUTION OF THE PUBLIC FINANCING AUTHORITY OF THE CITY OF MOORPARK, CALIFORNIA, AUTHORIZING THE PURCHASE AND SALE OF 2001 TAX ALLOCATION REVENUE BONDS OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK AND APPROVING OTHER MATTERS RELATED THERETO WHEREAS, the City of Moorpark (the "City ") and the Redevelopment Agency of the City of Moorpark (the "Agency ") have entered into a Joint Exercise of Powers Agreement creating the Moorpark Public Financing Authority (the "Authority "); WHEREAS, pursuant to Article 4 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the "Act ") , the Authority is authorized to purchase bonds issued by the Agency for financing and refinancing public capital improvements, working capital, liability and other insurance needs, or projects whenever there are significant public benefits, as determined by the Authority; WHEREAS, pursuant to the Act and the Agreement, the Authority is further authorized to sell bonds so purchased to public or private purchasers at public or negotiated sale; WHEREAS, the Authority desires to purchase from the Agency not to exceed $12,500,000 initial principal amount of tax allocation revenue bonds (the "Bonds ") , solely from the proceeds received from the Authority's concurrent sale of the Bonds to U.S. Bancorp Piper Jaffray (the "Underwriter "); WHEREAS, the Agency has caused a bond purchase agreement to be submitted to the Authority for approval; and WHEREAS, the Authority now desires to approve the bond purchase agreement and any other documents necessary for the purchase and sale of the Bonds as provided below. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1 Pursuant to the Act, the Board of Directors hereby finds and determines that the issuance of the Bonds and the purchase and sale thereof by the Authority will result in savings in effective interest rates, bond underwriting costs and Resolution No. 2001 - Page 2 bond issuance costs and thereby result in significant public benefits to the Agency and the Authority within the contemplation of Section 6586 of the Act. SECTION 2. The proposed bond purchase agreement (the "Purchase Contract ") , by and among the Agency, the Authority and the Underwriter, in the form on file with the Secretary of the Authority, is hereby approved. The Executive Director of the Authority is hereby authorized and directed, for and in the name and on behalf of the Authority, to accept the request that the Authority purchase the Bonds from the Agency and to accept the offer of the Underwriter to purchase the Bonds from the Authority, each subject to the terms and conditions of the Purchase Contract, and to execute and deliver the Purchase Contract to the Agency and the Underwriter; provided, however, that, the net interest cost of the Bonds shall not exceed 7.000% per annum and the purchase price paid by the Underwriter for the purchase of the Bonds shall be not less than 98.650 of the par amount thereof, excluding any original issue discount on the Bonds. The final principal amount of the Bonds shall be the amount set forth in the executed Purchase Contract, not to exceed $12,500,000. The approval of any additions or changes in such form shall be conclusively evidenced by such execution and delivery of the Purchase Contract. SECTION 3. The Preliminary Official Statement relating to the Bonds, together with such amendments and supplements as shall be necessary or convenient to accurately describe the Bonds in accordance with the Purchase Contract, this Resolution and the other related proceedings and documents, is hereby approved for distribution to such broker - dealers, banking institution and other persons as may be interested in purchasing the Bonds. The form of final Official Statement, together with such amendments and supplements as shall be necessary or convenient to accurately describe the Bonds in accordance with the Purchase Contract, this Resolution and the other related proceedings and documents, is hereby approved for distribution to the purchasers of the Bonds. SECTION 4. The Chairman, the Executive Director, the Treasurer and the Secretary of the Authority, and any and all other officers of the Authority, are hereby authorized and directed, for and in the name and on behalf of the Authority, to do any and all things and take any and all actions, including execution and delivery of any and all assignments, certificates, Resolution No. 2001 - Page 3 requisitions, agreements, notices, consents, instruments of conveyance, warrants and other documents which they, or any of them, may deem necessary or advisable in order to consummate the lawful purchase and sale of the Bonds as described herein. Whenever in this resolution any officer of the Authority is authorized to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf in the case such officer shall be absent or unavailable. SECTION 6 The Authority Secretary shall certify to the adoption resolution of this resolution and shall cause a certified to be filed in the book of original Resolutions. PASSED AND ADOPTED this day of , Patrick Hunter, President ATTEST: Deborah S. Traffenstedt Authority Secretary �4