HomeMy WebLinkAbout2016-037 - Nova Academy Children's Foundation or Affiliate ThereofRESOLUTION NO. 2016 -037
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA
APPROVING THE ISSUANCE OF REVENUE BONDS BY THE
CALIFORNIA MUNICIPAL FINANCE AUTHORITY IN ONE OR MORE
SERIES IN A MAXIMUM AMOUNT OF $19,000,000 FOR THE PURPOSE
OF FINANCING THE ACQUISITION OF CERTAIN FACILITIES FOR THE
BENEFIT OF NOVA ACADEMY CHILDREN'S FOUNDATION OR AN
AFFILIATE THEREOF
WHEREAS, 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
WHEREAS, the City of Santa Ana, California (the "City "), is a Member of the
Authority; and
WHEREAS, 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
WHEREAS, NOVA Academy, a California nonprofit public benefit corporation
( "NOVA "), has applied for financing under the Act, for the purpose of financing the
acquisition, construction, expansion, remodeling, renovation, improvement, furnishing,
and equipping of certain charter school educational facilities to be owned by NOVA
Academy Facilities, LLC, a California limited liability company (the "Borrower "), the sole
member of which is Nova Academy Children's Foundation, Inc., a California nonprofit
public benefit corporation (the "Foundation "), and leased to NOVA (the "Lessee ") for the
use and occupancy of NOVA Academy Early College High School, a charter school
established pursuant to the Charter Schools Act of 1992 (Part 26.8 of Division 4 of Title
2 of the Education Code); and
WHEREAS, the Lessee has requested that the Authority issue and sell revenue
bonds in the maximum principal amount of $19,000,000.00 (the "Bonds ") in one or more
series for the purpose of making a loan to the Borrower to finance the costs of (a)
acquiring land and education and related facilities located at 500 W Santa Ana Blvd.,
City of Santa Ana, County of Orange, California (the "Facilities "), for use by the Lessee,
currently serving students in grades 9 -12; (b) funding a debt service reserve fund for the
Bonds; (c) paying capitalized interest on the Bonds; and (d) paying certain Bond
issuance expenses (collectively, the "Project "); and
Resolution No. 2016 -037
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WHEREAS, the Borrower will lease the Facilities to the Lessee pursuant to a
Lease Agreement dated as of August 1, 2016 (or such other date as approved by the
Authority) (the "Lease "); and
WHEREAS, Section 4 of the Agreement provides that the Authority shall not
issue bonds with respect to any project located in the jurisdiction of one or more
member agencies unless the governing body of any such member, or its duly
authorized representative, shall approve, conditionally or unconditionally, the project,
including the issuance of bonds therefor; and
WHEREAS, the Authority has requested that the City Council of the City of Santa
Ana approve the issuance of the Bonds by the Authority in order to satisfy the
requirements of Section 4 of the Agreement; and
WHEREAS, 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;
and
WHEREAS, the City Council has, following notice duly given, held a public
hearing regarding the issuance of the Bonds, and now desires to approve the issuance
of the Bonds by the Authority;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SANTA ANA, AS FOLLOWS;
Section 1. The foregoing resolutions are true and correct.
Section 2. 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 in accordance with Section 4 of the Agreement.
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.
Section 4. The adoption of this Resolution shall not obligate the City or any
department thereof to (i) provide any financing to acquire, rehabilitate or improve 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 authorized signatories, the City Clerk 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.
Resolution No. 2016 -037
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Section 6. The Clerk shall forward a certified copy of this Resolution to the
Authority in care of its counsel:
Ronald E. Lee, Esq.
Jones Hall
650 California Street, 18th Floor
San Francisco, CA 94108
Section 7. This resolution shall take effect immediately upon its passage.
ADOPTED by the City Council of the City of Santa Ana at a regular
meeting of the City Council held on the 7th day of June 2016.
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By: of ,�
John M. Funk
Assistant City Attorney
AYES: Councilmembers: Amezcua, Benavides, Pulido, Reyna, Tinaiero (5)
NOES: Councilmembers:
ABSTAIN: Councilmembers:
NOT PRESENT: Councilmembers: Martinez, Sarmiento (2)
Resolution No. 2016 -037
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CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached
Resolution No. 2016 -037 to be the original resolution adopted by the City Council of the
City of Santa Ana on June 7, 2016.
Date: _� / /�o %/v
Resolution No. 2016 -037
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Clerk of the Council
City of Santa Ana