HomeMy WebLinkAboutSA Resolution 2015-01 (Public Improvement Agr)RESOLUTION NO. 2015-01
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL IN
THE CITY'S CAPACITY AS SUCCESSOR AGENCY OF THE SAN RAFAEL
REDEVELOPMENT AGENCY, 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 sec; 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. Notwithstanding ... any... conflicting
provision of lavv, bond proceeds in excess of the amnounts 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:
N.
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:
"The [Successo l 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
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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 Successor Agency to the
Redevelopment Agency of the City of San Rafael 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 Successor Agency into the Agreement with the City,
and the execution of the Agreement by the Successor Agency's Executive Director or designee
on behalf of the Successor Agency, substantially in the form attached to this Resolution, with
any additional changes 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, Secretary of the San Rafael Successor Agency, hereby certify that the
foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the
San Rafael Successor Agency, held on Monday, the twentieth day of April 2015, by the
following vote, to wit:
AYES: Members: Bushey, Colin, Gamblin and Vice -Chair McCullough
NOES: Members: None
ABSENT: Members: Chairman Phillips
Esther C. Beirne, Secretary, San Rafael Successor Agency
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