Loading...
HomeMy WebLinkAboutPCDSA Resolution 2015-02 06/01/2015Resolution No. 2015 -02 of the Petaluma Community Development Successor Agency RESOLUTION OF THE GOVERNING BOARD OF THE PETALUMA COMMUNITY DEVELOPMENT SUCCESSOR AGENCY APPROVING AN AGREEMENT REGARDING EXPENDITURE OF EXCESS BOND PROCEEDS AND AUTHORIZING THE TRANSFER OF EXCESS BOND PROCEEDS TO THE CITY OF PETALUMA WHEREAS, pursuant to authority granted under Community Redevelopment Law (California Health and Safety Code Section 33000 etseq.) ( "CRL "), the former Petaluma Community Development Commission ( "Redevelopment Agency ") had responsibility to implement the Redevelopment Plans for the Petaluma Community Development project area and the Central Business District project area (collectively, the "Project Areas "); and WHEREAS, pursuant to that certain Indenture of Trust dated as of April 1, 2007, and executed by and between the Redevelopment Agency and U.S. Bank Association as Trustee (the "Indenture "), the Redevelopment Agency issued Tax Allocation Bonds, Series 2007 in the original principal amount of $31,825,000 (the `Bonds "); and WHEREAS, pursuant to Resolution No. 2012 -007 N.C.S., adopted by the City Council on January 9, 2012, the City agreed to serve as the Successor Agency to the Redevelopment Agency ( "Successor Agency ") commencing upon dissolution of the Redevelopment Agency on February 1, 2012 pursuant to Assembly Bill x126 ( "AB 26 "); and WHEREAS, pursuant to Health and Safety Code Section 34179.7, the Successor Agency received its finding of completion from the Department of Finance on May 29, 2013; and WHEREAS, Health and Safety Code Section 34191.4(c) provides that once a successor agency has received a finding of completion, the successor agency is authorized to use the proceeds of bonds issued on or before December 31, 2010 for the purposes for which the bonds were sold and is further authorized to expend bond proceeds in excess of amounts needed to satisfy previously approved enforceable obligations ( "Excess Bond Proceeds ") in a manner consistent with the original bond covenants; and WHEREAS, Health and Safety Code Section 34191.4(c) further provides that the expenditure of Excess Bond Proceeds must be listed separately on the Recognized Obligation Payment Schedule (`BOPS "); and WHEREAS, Successor Agency staff have prepared an Agreement Regarding Expenditure of Excess Bond Proceeds ( "Agreement ") that provides for the transfer of Excess Bond Proceeds to the City and commits the City to use the Excess Bond Proceeds for purposes consistent with the Bond covenants; and WHEREAS, the Agreement is attached to this Resolution as Exhibit A and incorporated herein; and PCDSA Resolution No. 2015 -02 Page 1 WHEREAS, the execution of the Agreement and the acceptance of Excess Bond Proceeds were approved by the City Council by Resolution 2015 -080 N.C.S. adopted on June 1, 2015; and WHEREAS, the execution of the Agreement and the transfer of Excess Bond Proceeds to the City were approved by the Oversight Board to the Successor Agency by Resolution 2015 -02 adopted on June 2, 2015; and WHEREAS, the Oversight Board directed the Successor Agency to include the Agreement on the Successor Agency's ROPS for the period January through June, 2016. NOW, THEREFORE, BE IT RESOLVED by the Governing Board of the Petaluma Community Development Successor Agency: 1. The facts stated in the foregoing Recitals are hereby acknowledged and affirmed. 2. The Agreement is approved, and the Executive Director or his designee is authorized to execute the Agreement on behalf of the Successor Agency substantially in the form presented to this Board. 3. The Successor Agency is authorized and directed to transfer the Excess Bond Proceeds to the City for use for purposes consistent with the Agreement, the Bond covenants and the applicable provisions of the CRL. 4. The Executive Director and his designees are authorized to take such further ac ions as may be necessary to carry out the intent of this Resolution, including without limitation, the listing of the Agreement and the transfer of the Excess Bond Proceeds to the City on the Recognized Obligation Payment Schedule for the January - June 2016 period. REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Petaluma Community Development Successor Agency at a Regular Meeting on the 1St of June, 2015, by the following vote: AYES: Albertson, Barrett, Glass, Healy, Kearney, King, Miller NOES: None ABSENT: None ABSTAIP: None ATTEST: ((Lak�� a� , Recording Secretary Approvedbto `for General Co nsel f air PCDSA Resolution No. 2015 -02 Page 2 Exhibit A AGREEMENT REGARDING EXPENDITURE OF EXCESS BOND PROCEEDS This Agreement Regarding Expenditure of Excess Bond Proceeds (this "Agreement ") is entered into effective as of , 2015 ( "Effective Date ") by and between the Petaluma. Community Development Successor Agency ( "Successor Agency ") and the City of Petaluma, a municipal corporation ( "City "). The Successor Agency and the City are hereinafter collectively referred to as the "Parties." RECITALS A. Pursuant to authority granted under Community Redevelopment Law (California Health and Safety Code Section 33000 et seq.) ( "CRL "), the former Petaluma Community Development Commission ( "Redevelopment Agency ") had responsibility to implement the R;: development Plans for the Petaluma Community Development Project and Central Business District Project (collectively, the "Project Areas "). B. Pursuant to that certain Indenture of Trust dated as of April 1, 2007 executed by and between the Redevelopment Agency and US National Bank Association as Trustee (the "Indenture "), the Redevelopment Agency issued Tax Allocation Bonds, Series 2007 in the original principal amount of $31,825,000 (the "Bonds "). C. Pursuant to Resolution No. 2012 -007 N.C.S., adopted by the City Council on January 9, 2012, the City agreed to serve as the successor agency to the Redevelopment Agency commencing upon dissolution of the Redevelopment Agency on February 1, 2012 pursuant to Assembly Bill x 1 26 ( "AB 26 "); D. Pursuant to Health and Safety Code Section 341793, the Successor Agency received its finding of completion from the Department of Finance on May 29, 2013; E. Health and Safety Code Section 34191.4(c) provides that once a successor agency has received a finding of completion, the successor agency is authorized to use the proceeds of bonds issued on or before December 31, 2010 for the purposes for which the bonds were sold, and is further authorized to expend bond proceeds in excess of amounts needed to satisfy previously approved enforceable obligations ( "Excess Bond Proceeds ") in a manner consistent with the original bond covenants; F. Health and Safety Code Section 34191.4(c) further provides that the expenditure of Excess Bond Proceeds must be listed separately on the Recognized Obligation Payment Schedule ("ROPS"). G. The Parties desire to enter into this Agreement to address the use of Excess Bond Proceeds for the purposes identified herein and consistent with the Bond covenants, and to provide for the transfer of Excess Bond Proceeds to the City to be used for such purposes. H. The execution of this Agreement was approved by the City Council and by the governing board of the Successor Agency by resolutions adopted on June 1, 2015, PCDSA Resolution No. 2015 -02 Page 3 I. The execution of this Agreement by the Successor Agency was approved by the Oversight Board by resolution adopted on June 2, 2015. NOW, THEREFORE, in consideration of the mutual covenants, conditions and promises herein contained, the Parties hereby agree as follows. 1. Incorporation of Recitals. The Parties acknowledge the truth of the foregoing Recitals which by this reference are incorporated into this Agreement. 2. Term. The term of this Agreement shall commence on the Effective Date, and shall continue in effect until the date that all Excess Bond Proceeds are expended in accordance with the requirements of this Agreement. 3. Use of Excess Bond Proceeds, The City agrees that it shall use the Excess Bond Proceeds solely for the purposes identified in this Section 3, or for other public improvement projects consistent with the Bond covenants and applicable provisions of the CRL. Among other projects, the City agrees to use the Excess Bond Proceeds for the following: The East Washington / Highway 101 Interchange and Old Redwood Highway / Highway 101 Interchange. 4. Transfer of Excess Bond Proceeds. Once the transfer of Excess Bond Proceeds has been listed on an approved ROPS, the Successor Agency shall transfer all remaining Excess Bond Proceeds to the City, and the City shall deposit such funds into an Excess Bond Proceeds Fund for City's use in accordance with the terms, conditions, and purposes set forth in this Agreement. As of the Effective Date, the amount of Excess Bond Proceeds is approximately Two Hundred Eight Thousand Dollars ($208,000). 5. Project Approvals; Environmental Review. This Agreement is not intended to limit in any manner the discretion of the City in connection with the issuance of approvals and entitlements for any projects funded with Excess Bond Proceeds, including without limitation, the undertaking and completion of any required environmental review pursuant to CEQA and NEPA, as applicable, and the review and approval of plans and specifications. 6. Severability. If any term, provision, covenant, or condition set forth in this Agreement is held by the final judgment of a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions, covenants, and conditions shall continue in full force and effect to the extent that the basic intent of the Parties as expressed herein can be accomplished. In addition, the Parties shall cooperate in good faith in an effort to amend or modify this Agreement in a manner such that the purpose of any invalidated or voided provision, covenant, or condition can be accomplished to the maximum extent legally permissible. 7. No Third -Party Beneficiaries; Assignments. Nothing in this Agreement is intended to create any third -party beneficiaries to this Agreement, and no person or entity other than the Successor Agency and the City, and the permitted successors and assigns of either of them, shall be authorized to enforce the provisions of this Agreement. 8. Further Assurances. Each Party agrees to execute, acknowledge and deliver all additional documents and instruments, and to take such other actions as may be reasonably necessary to carry out the intent of the transactions contemplated by this Agreement. 9. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. PCDSA Resolution No. 2015 -02 Page 4 10. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which shall constitute but one and the same instrument. 11. Amendments. This Agreement may be modified or amended, in whole or in part, only by an instrument in writing, executed by the Parties. IN WITNESS WHEREOF, the Parties have executed this Agreement effective as of the date first written above. CITY: SUCCESSOR AGENCY: CITY OF PETALUMA, a PETALUMA COMMUNITY municipal corporation DEVELOPMENT SUCCESSOR AGENCY By: By: City Manager , Executive Director ATTEST: ATTEST: City Clerk Secretary APPROVED AS TO FORM APPROVED AS TO FORM By: By: City Attorney Successor Agency Counsel PCDSA Resolution No. 2015 -02 Page 5