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HomeMy WebLinkAboutCC Resolution 13904 (Public Improvement Agreement)CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLUTION NO. 13904 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING THE PUBLIC IMPROVEMENT AGREEMENT FOR USE OF BOND PROCEEDS BETWEEN THE CITY OF SAN RAFAEL AND THE SAN RAFAEL SUCCESSOR AGENCY WHEREAS, under ABx 126 enacted in June 2011, as amended by AB 1484 enacted in June 2012 (collectively, the "Dissolution Law"), the City of San Rafael (the "City") and the San Rafael Successor Agency (the "Successor Agency") are required to take certain actions regarding bonds issued by the Redevelopment Agency of the City of San Rafael (the "Former Agency") prior to its dissolution on February 1, 2012; and WHEREAS, by letter dated November 24, 2014, the California Department of Finance ("DOF") issued to the Successor Agency a finding of completion in accordance with Health and Safety Code Section 34179.7 (the "Finding of Completion"), signifying the Successor Agency's full compliance with specified payment obligations; and WHEREAS, prior to the dissolution of the Former Agency: 1. Under California Community Redevelopment Law (Health and Safety Code Section 33000 et seMc ; the "Redevelopment Law"), the Former Agency was responsible for implementing the Redevelopment Plan (the "Redevelopment Plan") for the Central San Rafael Redevelopment Project Area (the "Project Area"), including the provision and enhancement of public facilities and infrastructure benefitting the Project Area; and 2. Under the Fifth Supplemental Resolution dated as of September 16, 2002, (the "2002 Bond Resolution"), and related bond documents (the "2002 Bond Documents"), the Former Agency issued San Rafael Redevelopment Agency Tax Allocation Bonds Series 2002 in the principal amount of $ 25,020,000 (the "2002 Bonds") for the purpose of funding the San Rafael Corporation Yard and additional public improvements for the benefit of the Project Area and in furtherance of the Redevelopment Plan; and 3. Under the Sixth Supplemental Resolution dated as of November 16, 2009, (the "2009 Bond Resolution"), and related bond documents (the "2009 Bond Documents"), the Former Agency issued San Rafael Redevelopment Agency Tax Allocation Bonds Series 2009 in the principal amount of $ 14,660,000 (the "2009 Bonds") for the purpose of refunding the current interest 1999 bonds, and to fund street, parking and other public improvements for the benefit of the Project Area and in furtherance of the Redevelopment Plan; and 4. Under the Fourth Supplemental Resolution dated as of June 7, 1999, (the "1999 Bond Resolution"), and related bond documents (the "1999 Bond Documents"), the Former Agency issued San Rafael Redevelopment Agency Tax Allocation Bonds Series 1999 in the principal amount of $ 23,504,004.10 (the " 1999 Bonds") of current interest bonds and capital appreciation bonds for the purpose of funding improvements to the Pickleweed Community Center and playing fields, the Grand Avenue Bridge, Mahon Creek Improvements, Downtown Parking Structure, Gerstle Park childcare facility, Bret Harte Strom Drainage, West Francisco Blvd. Utility Undergrounding and additional public improvements for the benefit of the Project Area and in furtherance of the Redevelopment Plan; and WHEREAS, there remain $ 1,458,428 of unencumbered net proceeds of the 2002 Bonds (the "Remaining 2002 Bond Proceeds"), and $594,609 of unencumbered net proceeds of the 2009 Bonds (the "Remaining 2009 Bond Proceeds"), and $30,744 of unencumbered net proceeds of the 1999 Bonds Capital Appreciation Bonds (the "Remaining 1999 Bond Proceeds"), a total of $2,083,781 is held by the Bond Trustee and the Successor Agency; and WHEREAS, Health and Safety Code Section 34191.4(c), which applies to successor agencies that have received a finding of completion from the DOF, provides, in relevant part: "Bond proceeds derived from bonds issued on or before December 31, 2010, shall be used for the purposes for which the bonds were sold. Nonvithstanding... any... conflicting provision of law, bond proceeds in excess of the amounts needed to satisfy approved enforceable obligation shall thereafter be expended in a manner consistent with the original bond covenants ... An expenditure pursuant to this paragraph shall constitute the creation of an excess bond proceeds obligation to be paid from the excess proceeds. Excess bond proceeds shall be listed separately on the Recognized Obligation Payment Schedule submitted by the successor agency"; and WHEREAS, in accordance with Health and Safety Code Section 34191.4(c), the Successor Agency and the City desire to enter into a Public Improvement Agreement for Use of Bond Proceeds (the "Agreement"), whereby the Successor Agency will grant and provide to the City the Remaining 2002 Bond Proceeds in the amount of $ 1,458,428; Remaining 2009 Bond Proceeds in the amount of $ 594,609; and the Remaining 1999 Bond Proceeds in the amount of $30,744; and the City will utilize the Remaining 2002 Bond Proceeds, the Remaining 2009 Bond Proceeds and the Remaining 1999 Bond Proceeds for public improvements consistent with the 2002 Bond Documents, the 2009 Bond Documents and the 1999 Bond Documents, respectively, including providing design, construction, construction administration, inspection, and permit services, and entering into one or more construction contracts if required; and WHEREAS, for the reasons summarized below, the Agreement constitutes the creation of an excess proceeds obligation authorized by Health and Safety Code Section 34191.4(c) that shall be paid from the Remaining 2002 Bond Proceeds, Remaining 2009 Bond Proceeds and the Remaining 1999 Bond Proceeds: K 1. Health and Safety Code Section 34191.4(c) applies to the Successor Agency because the Successor Agency has received its Finding of Completion from DOR The Finding of Completion expressly states in relevant part: a. "The [Successor] Agency may now do the following:... Utilize proceeds derived from bonds issued prior to January 1, 2011 in a manner consistent with the original bond covenants per HSC section 34191.4(c)"; and 2. The Remaining 2002, 2009 and 1999 Bond Proceeds to be expended under this Agreement constitute "bond proceeds derived from bonds issued on or before December 31, 2010" in that the 2002 Bonds were issued on October 24, 2002, the 2009 Bonds were issued on December 30, 2009, and the 1999 Bonds were issued on June 30, 1999; and 3. The Remaining 2002, 2009 and 1999 Bond Proceeds to be expended under this Agreement also constitute "bond proceeds in excess of the amounts needed to satisfy approved enforceable obligations" in that the Remaining 2002, 2009 and 1999 Bond Proceeds constitute unencumbered proceeds of the 2002, 2009 and 1999 Bonds, respectively, received by the Successor Agency from the Former Agency that are not needed to satisfy any "enforceable obligation", as that term is defined in Health and Safety Code Section 34171(d); and 4. Expenditure of the Remaining 2002 Bond Proceeds by the Successor Agency under this Agreement is "for the purposes for which the bonds were issued" and "in a manner consistent with the original bond covenants", which purpose and covenants are found primarily in the 2002 Bond Resolution and the 2002 Bond Documents. Specifically, the 2002 Bond Documents provide that the Remaining 2002 Bond Proceeds will be spent for public improvements within the Redevelopment Project Area; and 5. Expenditure of the Remaining 2009 Bond Proceeds by the Successor Agency under this Agreement is "for the purposes for which the bonds were issued" and "in a manner consistent with the original bond covenants", which purpose and covenants are found primarily in the 2009 Bond Resolution and the 2009 Bond Documents. Specifically, the 2009 Bond Documents provide that the Remaining 2009 Bond Proceeds will be spent for public improvements within the Redevelopment Project Area; and 6. Expenditure of the Remaining 1999 Bond Proceeds by the Successor Agency under this Agreement is "for the purposes for which the bonds were issued" and "in a manner consistent with the original bond covenants", which purpose and covenants are found primarily in the 1999 Bond Resolution and the 1999 Bond Documents. Specifically, the 1999 Bond Documents provide that the Remaining 1999 Bond Proceeds will be spent for public improvements within the Redevelopment Project Area; and WHEREAS, Health and Safety Code Section 34180(h) requires that any agreement between a successor agency and the city that formed a dissolved redevelopment agency, such as the Agreement, must be approved by the successor agency's oversight board; and 3 WHEREAS, on February 6, 2014 the Oversight Board approved the Agreement consequently, the Agreement will become effective upon certain other actions under the Dissolution Law, as fully provided in Section 2.10 of the Agreement (the "Effective Date") NOW, THEREFORE, BE IT RESOLVED, the San Rafael City Council hereby finds, resolves, and determines as follows: Section 1. Recitals Correct. The foregoing recitals are true and correct. Section 2. CEQA Findings. Under Title 14 of the California Code of Regulations, Section 15378(b)(4), the Agreement is exempt from the requirements of the California Environmental Quality Act (CEQA) in that it is not a project because it only provides a funding mechanism for unspecified projects. Section 3. Approval of Agreement. Pursuant to Health and Safety Code Section 34180(h), hereby approves the entry by the City into the Agreement with the Successor Agency, and the execution of the Agreement by the City Manager or designee on behalf of the City of San Rafael, substantially in the form attached to this Resolution, with any additional changes as required by the City Attorney. Section 4. Notice to DOF. The Successor Agency hereby directs the Clerk to provide written notice and information about this Resolution to the DOF in accordance with Health and Safety code Section 34179(h). The actions set forth in this Resolution shall be subject to effectiveness in accordance with Health and Safety Code 34179(h). BE IT FURTHER RESOLVED that this Resolution shall take effect at the time and in the manner prescribed in Health and Safety Code Section 34179(h). I, Esther C. Beirne, City Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the San Rafael City Council, held on Monday, the twentieth day of April 2015, by the following vote, to wit: AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin & Vice -Mayor McCullough NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Mayor Phillips --z51Az z et . 9_zo_e9-,<, ESTHER C. BEIRNE, City Clerk 4