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Home My WebLink About2007-062 - Certificates of Participation Gas Tax Secured Local Street Improvement JWF 8/13/07 RESOLUTION NO. 2007-062 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE EXECUTION AND DELIVERY OF CITY OF SANTA ANA (COUNTY OF ORANGE, CALIFORNIA) CERTIFICATES OF PARTICIPATION (2007 GAS TAX SECURED LOCAL STREET IMPROVEMENT PROJECT) PURSUANT TO A TRUST AGREEMENT, AUTHORIZING THE EXECUTION AND DELIVERY OF AN INSTALLMENT SALE AGREEMENT AND THE FILING OF A VALIDATION ACTION, AND OTHER MATTERS RELATING THERETO BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The Santa Ana Financing Authority (the "Authority") is empowered to assist the City of Santa Ana (the "City") in financing certain public capital improvements pursuant to Article 4 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California and pursuant to that certain Joint Exercise of Powers Agreement by and between the City of Santa Ana and the Community Redevelopment Agency of the City of Santa Ana, dated August 1, 1993; B. The City has determined to enter into a 2007 Installment Sale Agreement with the Authority, in the form presented to this meeting (with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the "Installment Sale Agreement") in order to apply certain motor vehicle fuel tax revenues received by the City to acquire certain public capital improvements consisting of street resurfacing and related improvements (as more fully described in the Installment Sale Agreement) for the benefit of the City in accordance with Article XIX, Section 1 of the California Constitution (collectively, the "Street Improvement Project"); C. In order to provide for the delivery of the City of Santa Ana (County of Orange, California) Certificates of Participation (2007 Gas Tax Secured Local Street Improvement Project) (the "Certificates") and to establish and declare the terms and conditions upon which the Certificates are to be executed and delivered and secured, the Authority proposes to enter into a Trust Agreement with The Bank of New York Trust Company, N.A. (such Trust Agreement, in the form presented to this meeting, with such Resolution No. 2007-062 Page 1 of 4 changes, insertions and omiSSions as are made pursuant to this Resolution, being referred to herein as the "Trust Agreement"); D. The City may determine that securing the timely payment of the principal and interest evidenced by the Certificates by obtaining a bond insurance policy with respect thereto could be economically advantageous to the City; E. The City is a member of the Authority and the Street Improvement Project is to be located within the boundaries of the City; E. The City hereby finds that the financing of such public capital improvements within the City will result in significant public benefits in the form of demonstrable savings in effective interest rates, and the more efficient delivery of City services such as the Street Improvement Project; F. On this date, the City held a public hearing on the financing of such public capital improvements within the City in accordance with Section 6586.5 of the Act, which hearing was held at 22 Civic Center Plaza, Santa Ana, California; G. In accordance with Section 6586.5 of the Act, notice of such hearing was published once at least five days prior to the hearing in a newspaper of general circulation in the City of Santa Ana; and H. All acts, conditions and things required by the laws of the State of California and the City Charter of the City to exist, to have happened and to have been performed precedent to and in connection with the consummation of such financing authorized hereby do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the City is now duly authorized and empowered, pursuant to each and every requirement of law, to consummate such financing for the purpose, in the manner and upon the terms herein provided. Section 2. The foregoing recitals herein contained are true and correct and the City Council so finds. Section 3. The Street Improvement Project is hereby approved. The Director of Public Works is hereby authorized to implement the Street Improvement Project in accordance with the provisions of the Installment Sale Agreement and this Resolution. Section 4. The form of the Installment Sale Agreement, on file with the Clerk of the Council, is hereby approved, and the City Manager, the City Attorney, the Clerk of the Council, the City Treasurer and the Executive Director of Finance and Management Services of the City (the "Authorized Officers"), are each hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Installment Sale Agreement in substantially said form, with such changes, insertions and omissions therein as the Authorized Officer executing the same and the City Resolution No. 2007-062 Page 2 of 4 Attorney may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof; provided, however, that the aggregate amount of the principal components of the installment payments shall not exceed $70,000,000 and the true interest cost applicable to the interest components of the installment payments shall not exceed 6.00% per annum. Section 5. The form of Trust Agreement, on file with the Clerk of the Council, with such changes, insertions and omissions therein as may be approved by an Authorized Officer and the City Attorney, is hereby approved. The execution and delivery of the Certificates, on the terms and conditions set forth in, and subject to the limitations specified in, the Trust Agreement, is hereby authorized and approved. The Certificates shall be dated, shall bear interest at the rates, shall mature on the dates, shall be subject to call and redemption, shall be issued in the form and shall be as otherwise provided in the Trust Agreement, as the same shall be completed; provided, however, that the aggregate amount of the Certificates shall not exceed $70,000,000, the final maturity date of the Certificates shall be no later than January 1, 2040 and the true interest cost applicable to the Certificates shall not exceed 6.00% per annum and, provided, further, that such changes, insertions and omissions shall be consistent with the terms of the Certificates as finally executed. Section 6. The execution and delivery of the Certificates, on the terms and conditions set forth in, and subject to the limitations specified in, the Trust Agreement, is hereby authorized and approved. The Certificates shall be dated, shall bear interest at the rates, shall mature on the dates, shall be subject to call and redemption, shall be issued in the form and shall be as otherwise provided in the Trust Agreement, as the same shall be completed as provided in this Resolution. Section 7. The Authorized Officers are each hereby authorized and directed to apply for municipal bond insurance for the Certificates and to obtain such insurance if the present value cost of such insurance is less than the present value of the estimated interest savings with respect to the Certificates. The Authorized Officers are each hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver a contract for such insurance if such contract is deemed by the Authorized Officer executing the same to be in the best interests of the City, such determination to be conclusively evidenced by such Authorized Officer's execution and delivery of such contract. Section 8. The Authorized Officers are, and each of them is, authorized and directed, for and in the name of the City, to bring a validation action under Section 860 of the California Code of Civil Procedure to determine the legality and validity of the Installment Sale Agreement, the Trust Agreement, the Certificates and the other documents and proceedings authorized pursuant to this Resolution. Section 9. The Authorized Officers and other officers, employees and agents of the City are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable in order to consummate the transactions herein authorized and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution. Resolution No. 2007-062 Page 3 of 4 Section 10. All actions heretofore taken by the various officers, employees and agents of the City with respect to the transactions set forth above are hereby approved, confirmed and ratified. Section 11. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this 20th day of AUQust, 2007. (ljJ~- c, ~t Miguel A. Pulido Mayor - -~....~ .............. .------- t/ AYES: Councilmembers Alvarez, Benavides. Bustamante. Martinez. Sarmiento. Tinaiero (6) Councilmembers None (0) Councilmembers None (0) Councilmembers Pulido (1) NOES: ABSTAIN: NOT PRESENT: CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2007-062 be the original resolution adopted by the City Council of the City of Santa Ana on AUQust 20.2007. Date: 9?r? C5 Patricia E. Healy Clerk of the Council City of Santa Ana Resolution No. 2007-062 Page 4 of 4