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HomeMy WebLinkAbout2008-053 - Execution of a Joint Exercise of Powers Agreement jwf 6/20/2008 RESOLUTION NO. 2008-053 RESOLUTION APPROVING, AUTHORIZING, AND DIRECTING EXECUTION OF A JOINT EXERCISE OF POWERS AGREEMENT RELATING TO THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY AND APPROVING THE ISSUANCE OF REVENUE BONDS BY THE AUTHORITY FOR THE PURPOSE OF FINANCING THE ACQUISITION, CONSTRUCTION AND IMPROVEMENT OF CERTAIN FACILITIES FOR THE BENEFIT OF ORANGE COUNTY EDUCATIONAL ARTS ACADEMY. 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. Pursuant Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the "Act"), certain public agencies (the "Members") have entered into a Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, effective as of January 1, 2004 (the "Agreement") in order to form the California Municipal Finance Authority (the "Authority"), for the purpose of promoting economic, cultural and community development, and in order to exercise any powers common to the Members, including the issuance of bonds, notes or other evidences of indebtedness; and, B. The City of Santa Ana (the "City"), has determined that it is in the public interest and for the public benefit that the City become a Member of the Authority in order to facilitate the promotion of economic, cultural and community development activities in the City, including the financing of projects therefor by the Authority; and, C. There is now before this City Council (the "City Council") the form of the Agreement; and, D. The Agreement has been filed with the City, and the members of the City Council, with the assistance of its staff, have reviewed said document; and, E. The Authority is authorized to issue and sell revenue bonds for the purpose, among others, of financing or refinancing the construction of capital projects; and, Resolution No. 2008-053 Page 1 of 4 F. Orange County Educational Arts Academy, a California nonprofit public benefit corporation (the "Borrower"), has requested that the Authority issue and sell revenue bonds in the maximum principal amount of $11,500,000 (the "Bonds") for the purpose of making a loan to the Borrower, to enable the Borrower to finance the costs of the acquisition, construction and improvement of an approximate 43,400 square foot charter public school facility to serve grades K through 8 and house related administrative and other support functions, located at 825 North Broadway, Santa Ana, California (the "Project"); and, G. In order for the interest on the Bonds to be tax-exempt, Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), requires that an "applicable elected representative" of the governmental unit, the geographic jurisdiction of which contains the site of facilities to be financed with the proceeds of the Bonds, hold a public hearing on the issuance of the Bonds and approve the issuance of the Bonds following such hearing; and H. The Authority has determined that the City Council is an "applicable elected representative" for purposes of holding such hearing; and, I. The Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Agreement; and, J. Notice of such public hearing has been duly given as required by the Code, and this City Council has heretofore held such public hearing at which all interested persons were given an opportunity to be heard on all matters relative to the financing of the Project and the Authority's issuance of the Bonds therefor; and K. It is in the public interest and for the public benefit that the City Council approve the issuance of the Bonds by the Authority for the aforesaid purposes. Section 2. The Agreement is hereby approved and the City Manager is hereby authorized and directed to execute said document, and the Clerk of the Council is hereby authorized and directed to attest thereto. Section 3. The City Council hereby approves the issuance of the Bonds by the Authority. It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds (a) by the "applicable elected representative" of the governmental unit having jurisdiction over the area in which the Project is located in accordance with Section 147(f) of the Code and (b) by the City in accordance with Section 4 of the Agreement. Resolution No. 2008-053 Page 2 of 4 Section 4. The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to the Bonds. Section 5. The adoption of this Resolution shall not obligate the City or any department thereof to: (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, rehabilitation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. Section 6. The City Manager, the Director of Finance and Management Services, the Clerk of the Council and all other proper officers and officials of the City are hereby authorized and directed to execute such other agreements, documents and certificates, and to perform such other acts and deeds, as may be necessary or convenient to effect the purposes of this Resolution and the transactions herein authorized. Section 7. 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 7th day of July, 2008. . uel A. Pulido Mayor AS TO FORM.:..-- ..------ - ------- rney A ouncilmembers: Alvarez. Benavides. Bustamante. Martinez. Pulido. Sarmiento. Tinaiero (7) NOES: Councilmembers: None (0) ABSTAIN: Councilmembers: None (0) NOT PRESENT: Councilmembers: None (0) Resolution No. 2008-053 Page 3 of 4 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2008-053 to be the original resolution adopted by the City Council of the City of Santa Ana on Julv 7. 2008. Date: 7- /6 -tJ<i Patricia E. Healy Clerk of the Council City of Santa Ana Resolution No. 2008-053 Page 4 of4