Loading...
HomeMy WebLinkAboutOSB Resolution 2014-06 12/03/2014Resolution No. 2014-06 Petaluma Oversight Board to the Petaluma Community Development Successor Agency RESOLUTION OF THE OVERSIGHT BOARD FORMED PURSUANT TO HEALTH AND SAFETY CODE SECTION 34179 TO OVERSEE THE PETALUMA COMMUNITY DEVELOPMENT SUCCESSOR AGENCY APPROVING PROCEEDINGS FOR THE REFUNDING OF OUTSTANDING OBLIGATIONS OF THE FORMER PETALUMA COMMUNITY DEVELOPMENT COMMISSION, APPROVING ISSUANCE OF REFUNDING BONDS, AND MAKING CERTAIN DETERMINATIONS AND PROVIDING OTHER MATTERS RELATING THERETO WHEREAS, pursuant to Section 34172(a) of the California Health and Safety Code (all Section references hereinafter being to such Code), the Petaluma Community Development Commission (the "Former Commission") has been dissolved and no longer exists as a public body, corporate and politic, and pursuant to Section 34173, the City of Petaluma (the "City') has become the successor entity to the Former Commission (in such capacity, the "Successor Agency"); and WHEREAS, prior to its dissolution, the Former Commission issued its $23,630,000 aggregate principal amount of Petaluma Community Development Commission Petaluma Community Development Project Tax Allocation Bonds, Series 2003A (the "2003 Bonds") for the purpose of financing and refinancing portions of the Petaluma Community Development Project; and WHEREAS, as of November 1, 2014, the 2003 Bonds are outstanding in the principal amount of $19,870,000; and WHEREAS, prior to its dissolution, the Former Commission issued its $18,355,000 aggregate principal amount of Petaluma Community Development Commission Petaluma Community Development Project Refunding Tax Allocation Bonds, Series 2005A (the "2005 Bonds") for the purpose of financing portions of the Petaluma Community Development Project; and WHEREAS, as of December 1, 2014, the 2005 Bonds are outstanding in the principal amount of $16,565,000; and OSB Resolution No." -1014-06 Page 7 WHEREAS, Section 34177.5 authorizes the Successor Agency to undertake proceedings for the refunding of outstanding bonds and other obligations of the Former Commission, subject to the conditions precedent contained in Section 34177.5; and WHEREAS, pursuant to Section 34179, this oversight board (the "Oversight Board") has been established for the Successor Agency; and WHEREAS, the Successor Agency has caused an analysis (the "Debt Service Savings Analysis") to be made of the potential savings that will accrue to the Successor Agency and to applicable taxing entities as a result of refunding the 2003 Bonds and the 2005 Bonds, and has presented the Debt Service Savings Analysis to the Oversight Board for its consideration; and WHEREAS, the Successor Agency has requested that the Oversight Board approve such refunding proceedings; and WHEREAS, the Successor Agency has further requested that the Oversight Board make certain determinations upon which the Successor Agency will rely in undertaking the refunding proceedings, and the Oversight Board makes such determinations as set forth below: and WHEREAS, Sections 34177.5(0 and 34180(b) require Oversight Board approval of the issuance of the Refunding Bonds (as defined below) for the purpose of refunding the 2003 Bonds and 2005 Bonds; NOW, THEREFORE, BE IT RESOLVED that the Oversight Board to the Petaluma Community Development Successor Agency, hereby finds, resolves, and determines, as follows: 1. The foregoing recitals are true and correct and are incorporated herein by reference. 2. The Successor Agency has filed the Debt Service Savings Analysis, together with a certified copy of its Resolution No. 2014-04, adopted on December 1, 2014 (the "Successor Agency Resolution"), with the Oversight Board, which Debt Service Savings Analysis is hereby acknowledged as demonstrating the potential savings that would result from the refunding of the 2003 Bonds and the 2005 Bonds. 0SI3 Resolution No. 2014-06 Page 2 3. As requested pursuant to the Successor Agency Resolution, the Oversight Board hereby approves the undertaking of the Successor Agency to refund the 2003 Bonds and the 2005 Bonds by the issuance of the Successor Agency's "Petaluma Community Development Successor Agency Merged Project Area Tax Allocation Refunding Bonds, Series 2014" (the "Series 2014 Bonds") and its "Petaluma Community Development Successor Agency Merged Project Area Tax Allocation Refunding Bonds, Series 2015" (the "Series 2015 Bonds" and together with the Series 2014 Bonds, the "Refunding Bonds"); 4. As requested pursuant to the Successor Agency Resolution, the Oversight Board hereby makes the following determinations upon which the Successor Agency will rely in its issuance of the Series 2014 Bonds and the Series 2015 Bonds, and the refunding of the 2003 Bonds and the 2005 Bonds from the respective proceeds thereof: (a) The Successor Agency is authorized, as provided in Section 34177.5(0, to recover its costs related to the issuance of each of the Series 2014 Bonds and the Series 2015 Bonds from the respective proceeds of the Series 2014 Bonds and the Series 2015 Bonds, including the cost of reimbursing the City for administrative staff time spent with respect to the authorization, issuance, sale and delivery of each of the Series 2014 Bonds and the Series 2015 Bonds; (b) The application of proceeds of the Series 2014 Bonds and the Series 2015 Bonds by the Successor Agency to the refunding of the 2003 Bonds and the 2005 Bonds, respectively, as well as the funding of a reserve fund for each of the Series 2014 Bonds and the Series 2015 Bonds, and payment by the Successor Agency of costs of issuance thereof, as provided in Section 34177.5(a), shall be implemented by the Successor Agency promptly upon delivery of the Series 2014 Bonds and the Series 2015 Bonds to their initial purchasers, notwithstanding Section 34177.3 or any other provision of law to the contrary, without requiring further approval of the Oversight Board, the California Department of Finance, the Sonoma County Auditor -Controller or any other person or entity other than the Successor Agency; and (c) The Successor Agency shall be entitled to receive its full allocation of $250,000 Administrative Cost Allowance under Section 34183(a)(3) without any deductions with respect to continuing costs related to each of the Series 2014 Bonds and the Series 2015 Bonds, such as trustee's fees, and auditing and fiscal consultant fees (collectively, "Continuing Costs of Issuance"), and such OSB Resolution No. 2014-06 Page 3 Continuing Costs of Issuance shall be payable from property tax revenues pursuant to Section 34183. S. The Oversight Board hereby approves issuance of the Refunding Bonds, and finds that such issuance is in the financial interests of the taxing entities, so long as: (i) the limitations set forth in Section 34177.5(a)(1) are satisfied with respect to lower debt service on the Series 2014 Bonds and the Series 2015 Bonds compared to scheduled debt service on the 2003 Bonds and the 2005 Bonds, respectively; and (ii) the Savings Parameters, as defined in Section 1 of the Successor Agency Resolution, are achieved. 6. The Successor Agency is authorized to take all such further actions as necessary to implement the intent of this Resolution, including without limitation, the execution of the agreements with the Financial Advisor, Bond Counsel, and Placement Agent as described in the Successor Agency Resolution. 7. This Resolution shall take effect upon its passage and adoption. REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Petaluma Oversight Board to the Petaluma Community Development Successor Agency at a Regular Meeting on the 3rd of December, 2014, by the following vote: AYES: Driven, Chair Healy, Herrington, Vice Chair Rabbitt, Scharer NOES: None ABSENT: Davis, Jolley ABSTAIN: None ATTEST: Recording Secretary Pro Tem Chair OSB Resolution No, 2014-06 Page'4