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HomeMy WebLinkAbout2010-055 - Improvement of Certain Educational Facilities and Certain Other Matters Pertaining Thereto• RESOLUTION NO. 2010-055 Iss11/2/10 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE ISSUANCE OF REVENUE BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY FOR THE PURPOSE OF FINANCING OR REFINANCING THE ACQUISITION, CONSTRUCTION AND IMPROVEMENT OF CERTAIN EDUCATIONAL FACILITIES AND CERTAIN OTHER MATTERS PERTAINING 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. Pursuant to 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, dated 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, California (the "City"), is a Member of the Authority, and C. 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 D. The Roman Catholic Bishop of Orange, a corporation sole organized and existing under the laws of the State if California and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986 (the "Borrower") has requested that the Authority issue and sell revenue bonds in the maximum principal amount of $25,500,000 (the "Bonds") for the purpose of making a loan to the Borrower, for the benefit of Mater Dei High School (the "School") to enable the Borrower to refinance certain of the costs of the acquisition, construction and improvement of certain of the • educational facilities of the School located at 1202 W. Edinger Avenue, Santa Ana, California 92707 and owned by the Borrower and the Resolution No. 2010-055 Page 1 of 4 acquisition of certain parcels of land adjacent to the School's campus (the "Project"); and E. The Borrower has requested the issuance of the Bonds in order to effect savings in interest rate and/or issuance costs to effect significant public benefits pursuant to the Act; and F. 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 the "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 G. The City Council of the City of Santa Ana (the "Council") is the elected legislative body of the City and so is the "applicable elected representative" qualified to hold a public hearing with respect to the issuance of the bonds; and H. The Authority has requested that the Council approve the issuance of the Bonds by the Authority to satisfy the public approval requirement of section 147(f) of the Code, the requirements of Section 6586.5 of the Act, and the requirements of Section 4 of the Agreement; and 1. Pursuant to section 147(f) of the Code, the Council has, following notice duly given, held a public hearing at which all interested persons were given an opportunity to be heard on all matters regarding the financing or refinancing of the Project and the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority. Section 2. The City Council hereby approves the issuance of the Bonds by the Authority and finds the Project will effect significant public benefits, including demonstrable savings in effective interest rate costs. It is the purpose and intent of the Council that this resolution constitutes 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; (b) by the City Council in accordance with Section 6586.5 of the Act; and (c) by the City Council in accordance with Section 4 of the Agreement. The Bonds may be issued in one or more series and at one time or at several times pursuant to a plan of financing for the Project. Section 3. 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. Resolution No. 2010-055 Page 2 of 4 Section 4. 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 5. 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, jointly and severally, to do any and all things and to execute and deliver any and all documents that they deem necessary or advisable in order to carry out, give effect to, and comply with the terms and intent of this resolution and the financing transaction approved hereby. Section 6. The Clerk of the Council shall forward a certified copy of this Resolution to the Authority in care of its counsel: Harriet M. Welch, Esq. Squire, Sanders & Dempsey, LLP 555 South Flower St., Suite 3100 Los Angeles, CA 90071-2300 Section7. 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 15th day of November, 2010. APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney By: L ura Sheedy Assistant City Attorney Resolution No. 2010-055 Page 3 of 4 AYES: Councilmembers: Alvarez, Benavides, Bustamante Martinez Pulido. Sarmiento, Tinaiero (7) NOES: Councilmembers: None (0) ABSTAIN: Councilmembers: None (0) NOT PRESENT: Councilmembers: None (0) CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2010-055 to be the original resolution adopted by the City Council of the City of Santa Ana on November 15, 2010. Date: Clerk of the Council City of Santa Ana Resolution No. 2010-055 Page 4 of 4