HomeMy WebLinkAboutRES SA 2016 12 2016 0302 RESOLUTION NO. SA-2016-12
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK ACTING AS THE SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK,
CALIFORNIA, REQUESTING DIRECTION TO UNDERTAKE
PROCEEDINGS FOR THE ISSUANCE OF 2016 TAX
ALLOCATION REFUNDING BONDS TO REFUND CERTAIN
OUTSTANDING OBLIGATIONS OF THE FORMER
REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK,
APPROVING THE ISSUANCE OF SUCH REFUNDING BONDS
AND THE EXECUTION AND DELIVERY OF A FOURTH
SUPPLEMENTAL INDENTURE OF TRUST AND ESCROW
AGREEMENT AND PROVIDING OTHER MATTERS RELATING
TO THE ISSUANCE OF THE REFUNDING BONDS
WHEREAS, the Redevelopment Agency of the City of Moorpark (the "Former
Agency") was a public body, corporate and politic, duly established and authorized to
transact business and exercise powers under and pursuant to the provisions of the
Community Redevelopment Law of the State of California, constituting Part 1 of Division
24 of the Health and Safety Code of the State (the "Redevelopment Law"); and
WHEREAS, a redevelopment plan for the Moorpark Redevelopment Project was
adopted in compliance with all requirements of the Redevelopment Law; and
WHEREAS, pursuant to Section 34172(a) of the California Health and Safety
Code (unless otherwise noted, all Section references hereinafter being to such Code),
the Former Agency has been dissolved and no longer exists as a public body, corporate
and politic, and pursuant to Section 34173, the City of Moorpark has become the
successor entity to the Former Agency (the "Successor Agency"); and
WHEREAS, prior to the dissolution of the Former Agency, the Former Agency
issued its (i) $9,860,000 initial principal amount of Redevelopment Agency of the City of
Moorpark, Moorpark Redevelopment Project 1999 Tax Allocation Refunding Bonds (the
"1999 Bonds") for the purpose of refunding in full, the Former Agency's Moorpark
Redevelopment Project 1993 Tax Allocation Bonds; (ii) $11,625,000 initial principal
amount of Redevelopment Agency of the City of Moorpark, Moorpark Redevelopment
Project 2001 Tax Allocation Bonds (the "2001 Bonds") for the purpose of financing
redevelopment projects of the Former Agency; and (iii) $11,695,000 initial principal
amount of the Redevelopment Agency of the City of Moorpark, Moorpark
Redevelopment Project 2006 Tax Allocation Bonds (the "2006 Bonds"), for the purpose
of financing redevelopment projects of the Former Agency; and
WHEREAS, Section 34177.5(a)(1) authorizes the Successor Agency to
undertake proceedings for the refunding of outstanding bonds and other obligations of
the Former Agency in order to achieve debt service savings within the parameters set
forth in Section 34177.5(a)(1) (the "Savings Parameters"), and to issue bonds for such
purpose pursuant to Article 11 (commencing with Section 53580) of Chapter 3 of Part 1
of Division 2 of Title 5 of the Government Code (the "Refunding Law"); and
Resolution No. SA-2016-12
Page 2
WHEREAS, on November 18, 2014, the Successor Agency issued its 2014 Tax
Allocation Refunding Bonds (the "2014 Bonds") to refund the 1999 Bonds and 2001
Bonds, pursuant to the Law, the Refunding Law, approval of the Oversight Board and
Department of Finance, and a supplement to an Indenture of Trust, dated as of May 1,
1999 (the "Original Indenture"), by and between The Bank of New York Mellon Trust
Company, N.A. and the Former Agency; and
WHEREAS, the Successor Agency has determined, based on current conditions
in the municipal bond market, that it will achieve debt service savings in compliance with
the Savings Parameters as evidenced by the analysis prepared by its Municipal
Advisor, describing potential savings that will accrue to the Successor Agency and to
applicable taxing entities as a result of the refunding of the 2006 Bonds (the "Debt
Service Savings Analysis"); and
WHEREAS, the Successor Agency proposes to achieve the potential debt
service savings evidenced by the Debt Service Savings Analysis by refunding the 2006
Bonds from the issuance of its Successor Agency to the Redevelopment Agency of the
City of Moorpark 2016 Tax Allocation Refunding Bonds (the "Refunding Bonds")
pursuant to the Law, the Refunding Law and a Fourth Supplemental Indenture of Trust
(the "Fourth Supplement"), supplementing the Original Indenture, as supplemented by a
First Supplemental Indenture of Trust, dated as of December 1, 2001 (the "First
Supplement"), a Second Supplemental Indenture of Trust, dated as of December 1,
2006 (the "Second Supplement") and a Third Supplemental Indenture of Trust, dated as
of November 1, 2014 (the "Third Supplement" and together with the Original Indenture
and all supplements, the "Indenture"), which Fourth Supplement is on file with the
Secretary; and
WHEREAS, debt service on the Refunding Bonds will be payable on a parity
basis with the 2014 Bonds; and
WHEREAS, pursuant to Section 34179, an oversight board (the "Oversight
Board") has been established for the Successor Agency and the Successor Agency
requests that the Oversight Board direct the Successor Agency to undertake
proceedings for the issuance of the Refunding Bonds, it being understood that such
direction by the Oversight Board will enable the Successor Agency to recover its related
costs in connection with the refunding proceedings, as authorized by Section
34177.5(f); and
WHEREAS, the Successor Agency, with the aid of its staff, has reviewed the
Indenture and the Escrow Deposit and Trust Agreement relating to the refunding of the
2006 Bonds (the "Escrow Agreement") and the Successor Agency wishes to approve
the Indenture and the issuance, sale and delivery of the Refunding Bonds and to
approve the Escrow Agreement; and
WHEREAS, the Successor Agency also requests that the Oversight Board
approve the issuance, sale and delivery of the Refunding Bonds by the Successor
Resolution No. SA-2016-12
Page 3
Agency, as authorized by Section 34177.5(f), and that the Oversight Board make
certain determinations described below on which the Successor Agency will rely in
undertaking the refunding proceedings and the issuance, sale and delivery of the
Refunding Bonds; and
WHEREAS, the Successor Agency shall determine if the best interests of the
Successor Agency are served by selling the Refunding Bonds by public or private sale;
if the Successor Agency determines to utilize a public sale, staff of the Successor
Agency shall select an underwriter and cause to be prepared a form of Purchase
Contract as needed for a public sale of the Refunding Bonds, to be entered into with the
underwriter for purchase and sale of the Refunding Bonds and providing reasonable
compensation to the underwriter for services performed thereunder, the form of which
will be submitted to the governing board of the Successor Agency for approval at a
future meeting and direction to implement the sale and delivery of the Refunding Bonds
to the underwriter pursuant to the purchase contract; and
WHEREAS, following approval by the Oversight Board of the issuance of the
Refunding Bonds by the Successor Agency and effective upon approval by the
California Department of Finance of such Oversight Board approval, the Successor
Agency, with the assistance of Jones Hall, as its legal counsel, and Urban Futures, Inc.,
as its Municipal Advisor, will cause to be prepared a form of Official Statement as
needed for a public sale of the Refunding Bonds for distribution by the underwriter of the
Refunding Bonds to persons and institutions interested in purchasing the Refunding
Bonds, describing the Refunding Bonds and containing material information relating to
the Refunding Bonds, the preliminary form of which will be submitted to the governing
board of the Successor Agency for approval at a future meeting.
NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SUCCESSOR
AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOOPARK, DOES
HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Determination of Savings. The Successor Agency has
determined that there are significant potential savings available to the Successor
Agency and to applicable taxing entities in compliance with the Savings Parameters by
the issuance by the Successor Agency of the Refunding Bonds to provide funds to
refund the 2006 Bonds, all as evidenced by the Debt Service Savings Analysis on file
with the Secretary of the Successor Agency, which Debt Service Savings Analysis is
hereby approved.
SECTION 2. Request for Direction. The Oversight Board is hereby requested
to direct the Successor Agency to undertake the refunding proceedings pursuant to
Section 34177.5(a)(1) for the issuance, sale and delivery of the Refunding Bonds.
SECTION 3. Approval of Issuance of the Refunding Bonds. The Successor
Agency hereby authorizes and approves the issuance of the Refunding Bonds pursuant
to the Refunding Law in the aggregate principal amount of not to exceed $12,500,000
for the purpose of providing funds to refinance the 2006 Bonds in whole or in part. The
Resolution No. SA-2016-12
Page 4
Successor Agency further authorizes the sale of the Refunding Bonds, provided that the
Refunding Bonds shall bear interest at such rates and shall be sold at such a price so
as to achieve the Savings Parameters required to be met by Section 34177.5(a)(1).
SECTION 4. Indenture of Trust. The Successor Agency hereby approves the
Indenture, including the Fourth Supplement, prescribing the terms and provisions of the
Refunding Bonds and the application of the proceeds of the Refunding Bonds. Each of
the Mayor, as the presiding officer of the Successor Agency, or the City Manager of the
City of Moorpark, as the chief administrative officer of the Successor Agency, or a
designee of such authorized individual (each, an "Authorized Officer"), is hereby
authorized and directed to execute and deliver, and the City Clerk, as the secretary of
the Successor Agency, is hereby authorized and directed to attest to, the Fourth
Supplement and the Refunding Bonds for and in the name and on behalf of the
Successor Agency, in substantially the form on file with the City Clerk, with such
changes therein, deletions therefrom and additions thereto as the Authorized Officer
shall approve, such approval to be conclusively evidenced by the execution and delivery
of the Fourth Supplement. The Successor Agency hereby authorizes the delivery and
performance of the Fourth Supplement.
SECTION 5. Issuance in Separate Series. The Refunding Bonds may be
issued as a single issue, or from time to time in separate series, as the Successor
Agency shall determine. The approval of the issuance of the Refunding Bonds by the
Successor Agency and by the Oversight Board shall constitute the approval of each and
every separate series of Refunding Bonds, without the need for any further approval
from the Oversight Board, provided that each such separate series of Refunding Bonds
complies with the Saving Parameters required to be met by Section 34177.5(a)(1).
SECTION 6. Municipal Bond Insurance and Surety Bonds. The Authorized
Officers, each acting alone, are hereby authorized and directed to take all actions
necessary to obtain a municipal bond insurance policy for the Refunding Bonds and a
debt service reserve fund insurance policy for the Refunding Bonds from a municipal
bond insurance company if it is determined, upon consultation with the Municipal
Advisor, that such municipal bond insurance policy and/or debt service reserve fund
insurance policy will reduce the true interest costs with respect to the Refunding Bonds.
SECTION 7. Escrow Agreement. The Successor Agency hereby approves
the Escrow Agreement (which may be a separate agreement for each series)
prescribing the provisions for refunding the 2006 Bonds. Each Authorized Officer is
hereby authorized and directed to execute and deliver, and the City Clerk, as the
secretary of the Successor Agency, is hereby authorized and directed to attest to, the
Escrow Agreement for and in the name and on behalf of the Successor Agency, in
substantially the form on file with the City Clerk, with such changes therein, deletions
therefrom and additions thereto as the Authorized Officer shall approve, such approval
to be conclusively evidenced by the execution and delivery of the Escrow Agreement.
The Successor Agency hereby authorizes the delivery and performance of the Escrow
Agreement, and any additional escrow agreements determined to be necessary by an
Authorized Officer in order to refinance the 2006 Bonds.
Resolution No. SA-2016-12
Page 5
SECTION 8. Oversight Board Approval of the Issuance of the Refunding
Bonds. The Successor Agency hereby requests that the Oversight Board approve the
issuance, sale and delivery of the Refunding Bonds pursuant to this Resolution and the
Indenture, as above described.
SECTION 9. Filing of this Resolution. The Secretary of the Successor
Agency is hereby authorized and directed to file a certified copy of this Resolution with
the Oversight Board, together with the Debt Service Savings Analysis, and, as provided
in Section 341800), with the Ventura County Administrative Officer, the Ventura County
Auditor-Controller and the California Department of Finance.
SECTION 10. Determinations by the Oversight Board. The Successor Agency
requests that the Oversight Board make the following determinations upon which the
Successor Agency will rely in undertaking the refunding proceedings and the issuance,
sale and delivery of the Refunding Bonds:
(a) The Successor Agency is authorized, as provided in Section
34177.5(f), to recover its costs related to the issuance of the Refunding Bonds
from the proceeds of the Refunding Bonds, including the cost of reimbursing the
City of Moorpark for administrative staff time spent with respect to the
authorization, issuance, sale and delivery of the Refunding Bonds;
(b) The application of proceeds of the Refunding Bonds by the
Successor Agency to the refunding and defeasance of the 2006 Bonds, as well
as to the payment by the Successor Agency of all costs of issuance of the
Refunding Bonds, as provided in Section 34177.5(a), shall be implemented by
the Successor Agency promptly upon sale and delivery of the Refunding Bonds,
and, notwithstanding Section 34177.3 or any other provision of law to the
contrary, no further approval of the Oversight Board, the California Department of
Finance, the Ventura County Auditor-Controller or any other person or entity
other than the Successor Agency shall be required;
(c) The Successor Agency shall be entitled to receive its full
Administrative Cost Allowance under Section 34181(a)(3) without any deductions
with respect to continuing costs related to the Refunding Bonds, such as
trustee's fees, auditing and fiscal consultant fees and continuing disclosure and
rating agency costs (collectively, "Continuing Costs of Issuance"), and such
Continuing Costs of Issuance shall be payable from property tax revenues
pursuant to Section 34183. In addition and as provided by Section 34177.5(f), if
the Successor Agency is unable to complete the issuance of the Refunding
Bonds for any reason, the Successor Agency shall, nevertheless, be entitled to
recover its costs incurred with respect to the refunding proceedings from such
property tax revenues pursuant to Section 34183 without reduction in its
Administrative Cost Allowance.
Resolution No. SA-2016-12
Page 6
SECTION 11. Appointments. The appointments of Urban Futures, Inc., as
Municipal Advisor and Jones Hall, A Professional Law Corporation, as bond counsel
and disclosure counsel are hereby confirmed to act on behalf of the Successor Agency
in the presentation of this Resolution and the Debt Service Savings Analysis to the
Oversight Board and for purposes of the proceedings for the issuance, sale and delivery
of the Refunding Bonds.
SECTION 12. Official Actions. The Authorized Officers and any and all other
officers of the Successor Agency are hereby authorized and directed, for and in the
name and on behalf of the Successor Agency, to do any and all things and take any and
all actions, which they, or any of them, may deem necessary or advisable in obtaining
the requested approvals by the Oversight Board and the California Department of
Finance and to implement the sale and delivery of the Refunding Bonds by public or
private sale. Whenever in this Resolution any officer of the Successor Agency is
directed 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 is absent
or unavailable.
SECTION 13. Effective Date. This Resolution shall take effect from and after
its passage and adoption.
SECTION 14. The Secretary of the Successor Agency shall certify to the
adoption of this resolution and shall cause a certified resolution to be filed in the book of
original Resolutions.
PASSED AND ADOPTED this 2nd day of March, 2016.
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ice S. Paivin, Chair
ATTEST:
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Maureen Benson, Agency Secretary £ e I
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Resolution No. SA-2016-12
Page 7
STATE OF CALIFORNIA
COUNTY OF VENTURA ) ss.
CITY OF MOORPARK
I, Maureen Benson, Secretary of the Successor Agency of the Redevelopment
Agency of the City of Moorpark, California, do hereby certify under penalty of perjury
that the foregoing Resolution No. SA-2016-12 was adopted by the Successor Agency of
the Redevelopment Agency of the City of Moorpark at a regular meeting held on the
2nd day of March, 2016, and that the same was adopted by the following vote:
AYES: Agency Members Mikos, Millhouse, Pollock, Van Dam, and Chair
Parvin
NOES: None
ABSENT: None
ABSTAIN: None
WITNESS my hand and the official seal of said City this 7th day of March, 2016.
Maureen Benson, Agency Secretary
(seal)
104.1760114
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