HomeMy WebLinkAboutED JPFA Sale of RA Bonds, Series 2009CITY OF
SAN RAFAEL
AGENDA ITEM NO.: 1
MEETING DATE: November 16, 2009
San Rafael Joint Powers Authority Agenda Report
SUBJECT: RESOLUTION OF THE SAN RAFAEL JOINT POWERS FINANCING
AUTHORITY AUTHORIZING THE PURCHASE AND SALE OF NOT TO EXCEED
$16,000,000 AGGREGATE PRINCIPAL AMOUNT OF SAN RAFAEL REDEVELOPMENT
AGENCY CENTRAL SAN RAFAEL REDEVELOPMENT PROJECT TAX ALLOCATION
REFUNDING BONDS, SERIES 2009, UPON CERTAIN TERMS AND CONDITIONS, AND
PROVIDING OTHER MATTERS PROPERLY RELATING THERETO
Department: Redevelopment
Prepared by: ^}4" W Initials:
Nancy Mackle, Economic Development Director
RECOMMENDATION: Staff recommends that the Joint Powers Authority adopt the attached
resolution authorizing the issuance of not to exceed $16,000,000 principal amount of Tax Allocation
Refunding Bonds, and authorize the City Manager and Economic Development Director to undertake
actions associated with the bond issuance.
BACKGROUND: Staff is proposing that the 2009 Refunding Bonds be sold as a negotiated
transaction whereby the underwriter will purchase the Bonds from the San Rafael Joint Powers
Authority ("JPA") at a previously negotiated price. Refunding bonds are generally sold in this manner
because of the sensitive timing of defeasing the old bonds and issuing the new bonds. State Law
requires JPA involvement on any Redevelopment Agency tax allocation bonds that are the subject of
negotiated transaction.
ANALYSIS: The Resolution approves the Bond Purchase contract between the Redevelopment
Agency, the JPA and the underwriter (E.J. De La Rosa & Co.). The Agency Resolution being adopted
at the same time as the Authority Resolution limits the true interest cost of the Refunding Bonds to 4%
per annum and limits the underwriters compensation to 1 % of the par amount of the Refunding Bonds.
The Resolution further authorizes members of the JPA, the JPA Executive Director and the JPA
Treasurer, each acting alone, to purchase the Refunding Bonds from the Redevelopment Agency on
behalf of the JPA and resell them to the underwriter pursuant to the terms of the Purchase Agreement.
FISCAL IMPACT: The Authority is acting as a conduit and its financial exposure is limited to
purchasing the Agency Bonds with proceeds received from the Authority's concurrent sale of the
Bonds to the underwriter.
FOR AGENCY SECRETARY ONLY
File No.:
Agency Meeting:
Disposition:
OPTIONS:
• Adopt the attached resolution.
• Reject the resolution and bond refunding. Staff does not recommend this option, as the Agency
will lose the opportunity to raise additional funds.
ACTION REQUIRED: Adopt the attached resolution.
ATTACHMENTS: A: Bond Purchase Contract
26058-07 JH:SM:Idw 10/06/09
10/27/09
10/28/09
RESOLUTION NO. 09 -
RESOLUTION OF THE CITY OF SAN RAFAEL JOINT POWERS FINANCING AUTHORITY
AUTHORIZING THE PURCHASE AND SALE OF NOT TO EXCEED $16,000,000 PRINCIPAL
AMOUNT OF SAN RAFAEL REDEVELOPMENT AGENCY CENTRAL SAN RAFAEL
REDEVELOPMENT PROJECT TAX ALLOCATION REFUNDING BONDS, SERIES 2009,
UPON CERTAIN TERMS AND CONDITIONS, AND PROVIDING OTHER MATTERS
PROPERLY RELATING THERETO
WHEREAS, the City of San Rafael (the "City") and the San Rafael Redevelopment
Agency (the "Agency") have entered into a Joint Exercise of Powers Agreement, dated as of
April 20, 1992 (the "Agreement"), creating the City of San Rafael Joint Powers Financing
Authority (the "Authority");
WHEREAS, pursuant to Article 4 of Chapter 5 of Division 7 of Title 1 of the California
Government Code (the "Act") and the Agreement, the Authority is authorized to purchase bonds
issued by the Agency for financing and refinancing public capital improvements, working capital,
liability and other insurance needs, or projects whenever there are significant public benefits, as
determined by the Agency;
WHEREAS, pursuant to the Act and the Agreement the Authority is further authorized to
sell bonds so purchased to public or private purchasers at public or negotiated sale; and
WHEREAS, the Authority desires to purchase from the Agency not to exceed
$16,000,000 aggregate principal amount of San Rafael Redevelopment Agency Central San
Rafael Redevelopment Project Tax Allocation Refunding Bonds, Series 2009, solely from the
proceeds received from the Authority's concurrent sale of the Bonds to E. J. De La Rosa & Co.,
Inc. (the "Underwrite');
NOW, THEREFORE, BE IT RESOLVED by the governing board of the City of San
Rafael Joint Powers Financing Authority, as follows:
Section 1. The foregoing recitals are true and correct and this Authority so finds and
determines.
Section 2. The proposed form of bond purchase agreement (the "Purchase Contract"),
by and among the Agency, the Authority and the Underwriter, substantially in the form on file
with the Secretary of the Authority, is hereby approved. The Chairman, the Vice Chairman, the
Executive Director or the Treasurer of the Authority, each acting alone, are hereby authorized
and directed, for and in the name and on behalf of the Authority, to purchase the Bonds from the
Agency and to accept the offer of the Underwriter to purchase the Bonds from the Authority,
subject to the terms and conditions of the Purchase Contract, and to execute and deliver the
Purchase Contract to the Agency and the Underwriter; provided, however, that the true interest
cost on all of the Bonds shall not exceed 4.00% per annum and the Underwriter's discount or
compensation (excluding original issue discount and original issue premium) shall not be
greater than 1.00% of the par amount of the Bonds, excluding any original issue discount on the
Bonds. The approval of any additions or changes in such form shall be conclusively evidenced
by such execution and delivery of the Purchase Contract.
I, ESTHER C. BEIRNE, Secretary of the City of San Rafael Joint Powers Financing
Authority, hereby certify that the foregoing resolution was duly and regularly introduced and
adopted at a special joint meeting of the City of San Rafael Joint Powers Financing Authority
held on the 16th day of November, 2009, by the following vote, to wit:
AYES: BOARD MEMBERS:
NOES: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
ESTHER C. BEIRNE, Secretary
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