HomeMy WebLinkAbout2015-250 I RESOLUTION NO. 2015-250
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL ACTING AS
THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF
3 THE CITY OF SAN BERNARDINO APPROVING A FORM OF
4 PRELIMINARY OFFICIAL STATEMENT IN CONNECTION WITH THE
SALE AND DELIVERY OF ITS TAX ALLOCATION REFUNDING BONDS;
5 MAKING CERTAIN DETERMINATIONS RELATING THERETO; AND
AUTHORIZING CERTAIN OTHER ACTION IN CONNECTION
6 THEREWITH (44112)
7 WHEREAS, pursuant to the Community Redevelopment Law (Part 1 of Division 24 of the
8 Health and Safety Code of the State of California and referred to herein as the "Law"), the Mayor
9 and Common Council of the City of San Bernardino (the "City") created the Redevelopment
10 Agency of the City of San Bernardino (the "RDA"); and
11 WHEREAS, the RDA was a redevelopment agency, a public body, corporate and politic
12 duly created, established and authorized to transact business and exercise its powers, all under and
13 pursuant to the Law, and the powers of such agency included the power to issue bonds for any of its
14 corporate purposes; and
15 WHEREAS, the City agreed to serve as the successor agency (referred to herein as the
16 «Successor Agency") to the RDA commencing upon the dissolution of the RDA on February 1,
17 2012 pursuant to Assembly Bill X1 26 ("AB X1 26"); and
18 WHEREAS, on June 27, 2012 as part of the Fiscal Year 2012-2013 State of California
19 budget bill, the Governor signed into law Assembly Bill 1484 (the "AB 1484"), which modified or
20 added to some of the provisions of AB X1 26, including provisions related to the refunding of
21 outstanding redevelopment agency bonds and the expenditure of remaining bond proceeds derived
22 from redevelopment agency bonds issued on or before December 31, 2010; and
23 WHEREAS, California Health & Safety Code (the "HSC") § 34177.5(a)(1) authorizes
24 successor agencies to refund outstanding bonds provided that (i) the total interest cost to maturity on
25 the refunding bonds or other indebtedness plus the principal amount of the refunding bonds or other
26 indebtedness shall not exceed the total remaining interest cost to maturity on the bonds or other
27 indebtedness to be refunded plus the remaining principal of the bonds or other indebtedness to be
28 refunded, and (ii) the principal amount of the refunding bonds or other indebtedness shall not
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1 exceed the amount required to defease the refunded bonds or other indebtedness, to establish
2 customary debt service reserves, and to pay related costs of issuance; and
3 WHEREAS, HSC § 34177.5(a)(2) authorizes successor agencies to refund outstanding
4 bonds or other indebtedness to finance debt service spikes, including balloon maturities, on existing
5 indebtedness, provided that: (i) the existing indebtedness is not accelerated, except to the extent
6 necessary to achieve substantially level debt service; and (ii) the principal amount of the bonds or
7 other indebtedness shall not exceed the amount required to finance the debt service spikes, including
8 establishing customary debt service reserves and paying related costs of issuance; and
9 WHEREAS, on May 18, 2015, the Successor Agency adopted Resolution No. 2015-104
10 (the "Successor Agency Bond Resolution"), determining to proceed with the issuance of bonds to
11 refund all or a portion of certain Outstanding RDA Obligations identified in Exhibit A to the
12 Successor Agency Bond Resolution (the "Outstanding RDA Obligations") to provide debt service
13 savings to the Successor Agency and to finance debt service spikes, including balloon maturities, to
14 avoid the possibility of default on certain Outstanding RDA Obligations; and
15 WHEREAS, on May 19, 2015, the Oversight Board adopted Resolution No. SBOB 2015-
16 05 authorizing the Successor Agency to refund the Outstanding RDA Obligations; and
17 WHEREAS, on July 24, 2015 the California Department of Finance issued its letter
18 approving the Oversight Board's Resolution No. SBOB 2015-05 authorizing the Successor Agency
19 to refund the Outstanding RDA Obligations; and
20 WHEREAS, the Successor Agency has determined, to the extent authorized by HSC §
21 34177.5(a), to issue its Successor Agency to the Redevelopment Agency of the City of San
22 Bernardino Tax Allocation Refunding Bonds, in one or more series, one of which may be federally
23 taxable if determined by bond counsel to be required under federal tax law, and with such other
24 name and series designation as shall be deemed appropriate (the "Refunding Bonds"), for the
25 purpose of(i) refunding all or a portion of the Outstanding RDA Obligations, (ii) paying the costs of
26 issuing the Refunding Bonds, (iii) funding a reserve account and/or providing for a reserve policy or
27 surety for deposit to the reserve account for the Refunding Bonds and (iv) if advisable, paying for
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1 the cost of municipal bond insurance and/or a surety to fund the reserve account for the Refunding
2 Bonds in lieu of funding all or a portion of such reserve account with bond proceeds; and
3 WHEREAS, a copy of a form of Official Statement in preliminary form, a final form of
4 which will be executed by the Successor Agency in connection with the issuance, sale and delivery
5 of the Refunding Bonds, is on file with the Secretary and is appended to the staff report that
6 accompanies this Resolution; and
7 WHEREAS, this Resolution has been reviewed with respect to applicability of the
8 California Environmental Quality Act (the "CEQA"), the State CEQA Guidelines (California Code
9 of Regulations, Title 14, §§ 15000 et seq., hereafter the "Guidelines"), and the City's environmental
10 guidelines; and
11 WHEREAS, this Resolution is not a "project" for purposes of CEQA, as that term is
12 defined by Guidelines § 15378, because this Resolution is an organizational or administrative
13 activity that will not result in a direct or indirect physical change in the environment, per §
14 15378(b)(5) of the Guidelines; and
15 WHEREAS, all of the prerequisites with respect to the approval of this Resolution have
16 been met.
17 NOW, THEREFORE, BE IT RESOLVED by the Successor Agency to the
18 Redevelopment Agency of the City of San Bernardino, as follows:
19 Section 1. Recitals. The foregoing recitals are true and correct and are a substantive
20 part of this Resolution.
21 Section 2. Acknowledgement of Prior Approval of Issuance of Refunding Bonds.
22 The Mayor and Common Council of the City acting for the Successor Agency, acknowledges that it
23 adopted the Successor Agency Bond Resolution No. 2015-104, and through such Resolution it
24 approved the issuance of the Refunding Bonds and related financing documents.
25 Section 3. Approval of Preliminary Official Statement. The form, terms and
26 provisions of the Preliminary Official Statement on file with the Secretary are approved and the
27 Successor Agency hereby approves the distribution of the Preliminary Official Statement to
28 prospective purchasers of the Refunding Bonds. The Successor Agency Chairperson, the Successor
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I Agency Executive Director, the Deputy City Manager and the Successor Agency Secretary (each an
2 "Authorized Officer," acting for the Successor Agency), each acting alone, is authorized to certify
3 on behalf of the Successor Agency that the Preliminary Official Statement is deemed final as of its
4 date, within the meaning of rule 15c2-12 promulgated under the Securities Exchange Act of 1934.
5 Any Authorized Officer, acting alone, is authorized to execute, at the time of sale of the Refunding
6 Bonds, said form of Preliminary Official Statement as revised to including pricing information in
7 the form of a final Official Statement (the "Official Statement"), with such changes and insertions
8 therein as may be necessary to cause the same to carry out the intent of this Resolution and as are
9 approved by counsel to the Successor Agency, such approval to be conclusively evidenced by the
10 delivery thereof.
11 Section 4. Other Acts. The officers and staff of the Successor Agency are hereby
12 authorized and directed, jointly and severally, to do any and all things, which in consultation with
13 Orrick, Herrington & Sutcliffe LLP, the Successor Agency's bond counsel, they may deem
14 necessary or advisable in order to consummate the issuance, sale and delivery of the Refunding
15 Bonds, or otherwise effectuate the purposes of this Resolution, and any and all such actions
16 previously taken by such officers or staff members are hereby ratified and confirmed.
17 Section 5. This Resolution shall take effect upon its adoption and execution in the
18 manner as required by the City Charter.
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2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL ACTING AS
THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF
3 THE CITY OF SAN BERNARDINO APPROVING A FORM OF
4 PRELIMINARY OFFICIAL STATEMENT IN CONNECTION WITH THE
SALE AND DELIVERY OF ITS TAX ALLOCATION REFUNDING BONDS;
5 MAKING CERTAIN DETERMINATIONS RELATING THERETO; AND
AUTHORIZING CERTAIN OTHER ACTION IN CONNECTION
6 THEREWITH (#4112)
7 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Successor Agency
8 to the Redevelopment Agency of the City of San Bernardino, at a meeting thereof, held on the 2'd
9 day of November, 2015, by the following vote, to wit:
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11 Council Members Ayes Nays Abstain Absent
12 MARQUEZ X
BARRIOS X
13
VALDIVIA X
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SHORETT X
15 NICKEL X
16 JOHNSON X
17 MULVIHILL X
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Georgeann Fidina, CMC, C Clerk
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The foregoing Resolution is hereby approved this (l' 4 day of November 2015.
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Ile I t
23 R. Carey Davis Chairman
Successor Ageficy to the
24 Redevelopment Agency of the
City of San Bernardino
25 Approved as to Form:
26 Gary D. Saenz, City Attorney
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By:
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