HomeMy WebLinkAbout2019-05-28 - RESOLUTIONS - APPROVING THE ISSUANCE OF THE SANTA CLARITA PFA AU (2)RESOLUTION NO. 19-19
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
CLARITA, CALIFORNIA, APPROVING THE ISSUANCE OF THE SANTA
CLARITA PUBLIC FINANCING AUTHORITY LEASE REVENUE BONDS
(SHERIFF STATION PROJECT), SERIES 2019, IN THE AGGREGATE
PRINCIPAL AMOUNT NOT TO EXCEED $30,000,000, APPROVING THE
EXECUTION AND DELIVERY OF A SITE LEASE, A LEASE AGREEMENT,
A CONTINUING DISCLOSURE CERTIFICATE, A PRELIMINARY
OFFICIAL STATEMENT, A FINAL OFFICIAL STATEMENT AND SALE
DOCUMENTS; APPROVING THE RETENTION OF CERTAIN
PROFESSIONAL FIRMS; AND AUTHORIZING THE TAKING OF CERTAIN
ACTIONS IN CONNECTION THEREWITH
WHEREAS, pursuant to Articles 1 through 4 (commencing with Section 6500) of
Chapter 5, Division 7, Title 1 of the Government Code of the State of California (the "Act"), the
City of Santa Clarita, California (the "City"), and the Redevelopment Agency of the City of
Santa Clarita have heretofore entered into that certain Joint Exercise of Powers Agreement, dated
as of July 9, 1991, and as amended on May 10, 2016, by and among the City, the City as
successor agency to the Redevelopment Agency of the City of Santa Clarita, and the Santa
Clarita Parking Authority, relating to the Santa Clarita Public Financing Authority (the
"Authority"), for the purpose, among other things, of issuing its bonds to be used to provide
financing and refinancing for public capital improvements of the City; and
WHEREAS, the City desires to construct an approximately 46,500 square foot
sheriff station building and approximately 4,100 square foot service maintenance building to be
located on approximately 7.6 net acres of City property at 26201 Golden Valley Road within the
City (the "Project'); and
WHEREAS, the City has requested that the Authority issue its Lease Revenue
Bonds (Sheriff Station Project) Series 2019 (the "Bonds") for the purpose of financing a portion
of the costs of the Project, to pay for capitalized interest and to pay for the costs of issuing the
Bonds; and
WHEREAS, the Bonds are to be issued pursuant an Indenture (the "Indenture"),
by and between the Authority and a trustee, and pursuant to the Marks -Roos Local Bond Pooling
Act of 1985 (the "Bond Law"), constituting Article 4 (commencing with Section 6584) of the
Act; and
WHEREAS, the City has heretofore held a noticed public hearing pursuant to
Section 6586.5(a)(2) of the Act; and
WHEREAS, Senate Bill 450 (Chapter 625 of the 2017-2018 Session of the
California Legislature) ("SB 450") requires that the governing body of a public body obtain prior
to authorizing the issuance of bonds with a term of greater than 13 months, good faith estimates
of the following information in a meeting open to the public: (a) the true interest cost of the
bonds, (b) the sum of all fees and charges paid to third parties with respect to the bonds, (c) the
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amount of proceeds of the bonds expected to be received net of the fees and charges paid to third
parties and any reserves or capitalized interest paid or funded with proceeds of the bonds, and (d)
the sum total of all debt service payments on the bonds calculated to the final maturity of the
bonds plus the fees and charges paid to third parties not paid with the proceeds of the bonds; and
WHEREAS, it is proposed that the Bonds be sold on a competitive basis in
accordance with the terms and provisions of an Official Notice Inviting Bids (the "Official
Notice Inviting Bids"), the proposed form of which has been presented to this City Council; and
WHEREAS, it is proposed that the City and the Authority enter into a Site Lease
(the "Site Lease") pursuant to which the City will lease the net 7.6 acre City property located at
26201 Golden Valley Road in the City (the "Site") to the Authority; and
WHEREAS, it is proposed that the City and the Authority enter into a Lease
Agreement (the "Lease") pursuant to which City will lease back the Site and the Project
(collectively, the "Leased Property") from the Authority, the form of which is on file with the
City Clerk of the City; and
WHEREAS, under the Lease, the City will be obligated to make base rental
payments to the Authority which the Authority will use to pay debt service on the Bonds; and
WHEREAS, to fulfill the requirements of Rule 15c2-12 (as defined herein), the
City will enter into a Continuing Disclosure Certificate (the "Continuing Disclosure
Certificate"), with respect to the Bonds, whereby the City will agree to provide disclosure reports
and notices of certain enumerated events pursuant to the Rule; and
WHEREAS, there have been presented to this meeting the proposed forms of the
following documents:
(a) the Site Lease;
(b) the Lease;
(c) the Continuing Disclosure Certificate;
(d) the Preliminary Official Statement;
(e) the Official Notice Inviting Bids; and
WHEREAS, the City Council has reviewed the documentation related to the
issuance of the Bonds, which documentation is on file with the City Clerk of the City.
NOW, THEREFORE, the City Council of the City of Santa Clarita, California,
does hereby resolve as follows:
SECTION 1. Recitals. All of the above recitals are true and correct and the City
Council so finds.
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SECTION 2. Public Benefit. City Council hereby finds and determines that the
issuance of the Bonds will result in significant public benefits within the contemplation of
Section 6586 of the Act.
SECTION 3. Approval of Bonds. The City hereby approves the issuance by the
Authority of the Bonds. The Bonds are hereby approved to finance a portion of the costs of the
Project, to pay for capitalized interest and to pay for the costs of issuing the Bonds.
SECTION 4. Approval of Site Lease. The Site Lease, in substantially the form
on file with the City Clerk of the City and presented to the City Council at this meeting, is hereby
approved. Any one of the Mayor, the City Manager of the City, the Assistant City Manager or
City Treasurer (each, an "Authorized Officer"), is hereby authorized and directed, for and in the
name and on behalf of the City, to execute and deliver the Site Lease, with such revisions,
amendments and completions as shall be approved by an Authorized Officer, with the advice of
Bond Counsel in consultation with the City Attorney, such approval to be conclusively
evidenced by such execution and delivery, and the City Clerk is hereby authorized to attest to
such execution.
SECTION 5. Approval of the Lease. The Lease, in substantially the form on file
with the City Clerk of the City and presented to the City Council at this meeting, is hereby
approved. Any Authorized Officer is hereby authorized to execute the Lease in substantially the
form on file, with such revisions, amendments and completions as shall be approved by an
Authorized Officer, with the advice of Bond Counsel in consultation with the City Attorney,
such approval to be conclusively evidenced by the execution and delivery thereof, and the City
Clerk is hereby authorized to attest to such execution.
SECTION 6. Approval of the Preliminary Official Statement and the Official
Statement. The Preliminary Official Statement, in substantially the form on file with the City
Clerk of the City and presented to the City Council at this meeting, is hereby approved with such
revisions, amendments and completions as shall be approved by an Authorized Officer to make
the Preliminary Official Statement final as of its date, except for the omission of certain
information, as permitted by Section 240.15c2 -12(b)(1) of Title 17 of the Code of Federal
Regulations ("Rule 15c2-12"). Any Authorized Officer is authorized to execute a certificate
relating to the finality of the Preliminary Official Statements under Rule 15c2-12. An Authorized
Officer is authorized and directed to execute and deliver the final Official Statement in
substantially the form of the Preliminary Official Statement, with such additions and changes as
may be approved by an Authorized Officer executing the same with the advice of Disclosure
Counsel in consultation with the City Attorney, such approval to be conclusively evidenced by
the execution and delivery thereof.
SECTION 7. Approval of the Continuing Disclosure Certificate. The Continuing
Disclosure Certificate, in substantially the form on file with the City Clerk of the City and
presented to the City Council at this meeting, are hereby approved. Any Authorized Officer is
hereby authorized to execute the Continuing Disclosure Certificate in substantially the form on
file, with such revisions, amendments and completions as shall be approved by an Authorized
Officer, with the advice of Bond Counsel in consultation with the City Attorney, such approval
to be conclusively evidenced by the execution and delivery thereof.
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SECTION 8. Approval of Official Notice Inviting Bids. The City hereby
authorizes and directs that the Bonds be sold on a competitive basis. Any Authorized Officer is
hereby authorized to undertake all appropriate steps to implement the sale of the Bonds. The total
principal amount of Bonds shall not exceed $30,000,000 and the true interest cost of the Bonds
shall not exceed 4.00%. The Official Notice Inviting Bids, in substantially the form on file with
the City Clerk of the City and presented to the City Council at this meeting, is hereby approved.
The terms and conditions of the offering and sale of the Bonds shall be as specified in the
Official Notice Inviting Bids. Bids for the purchase of the Bonds shall be received at the time
and place set forth in the Official Notice Inviting Bids.
SECTION 9. Good Faith Estimates. In accordance with SB 450, good faith
estimates of the following have been presented to this meeting: (a) the true interest cost of the
Bonds, (b) the sum of all fees and charges paid to third parties with respect to the Bonds, (c) the
amount of proceeds of the Bonds expected to be received net of the fees and charges paid to third
parties and any reserves or capitalized interest paid or funded with proceeds of the Bonds, and
(d) the sum total of all debt service payments on the Bonds calculated to the final maturity of the
Bonds plus the fees and charges paid to third parties not paid with the proceeds of the Bonds.
SECTION 10. Official Actions. The Authorized Officers, the City Clerk and all
other officers of the City are hereby authorized and directed, for and in the name and on behalf
of the City, to do any and all things and take any and all other actions, including the publication
of any notices necessary or desirable in connection with the financing of the Project, the sale of
the Bonds, procurement of municipal bond insurance and/or a reserve surety, and execution and
delivery of any and all assignments, certificates, requisitions, agreements, notices, consents,
instruments of conveyance, warrants, escrow instructions and other documents, which they, or
any of them, deem necessary or advisable to consummate the lawful issuance and sale of the
Bonds and the consummation of the transactions as described herein.
SECTION 11. Approval of Certain Financing Team Members. The City Council
hereby approves the appointment of (a) Norton Rose Fulbright US LLP, to provide Bond
Counsel and Disclosure Counsel services in connection with the Bonds, (b) Columbia Capital
Management, LLC, as Municipal Advisor in connection with the Bonds, (c) The Bank of New
York Mellon Trust Company, N.A., as Trustee, and Digital Assurance Certification LLC, as
Dissemination Agent, in connection with the Bonds, upon such terms and conditions as approved
by any Authorized Officer.
SECTION 12. Ratification. All actions heretofore taken by any Authorized
Officer or any officer, employee or agent of the City with respect to the issuance, delivery and
sale of the Bonds or in connection with or related to any of the agreements referred to herein, are
hereby approved, confirmed and ratified.
SECTION 13. Effective Date of Resolution. This Resolution shall take effect
immediately upon its adoption.
SECTION 14. The City Clerk shall certify to the adoption of this resolution.
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PASSED, APPROVED, AND ADOPTED this 28`h day of May 2019.
ATTEST:
CITY CLERK
DATE: 0// C)
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the
foregoing Resolution No. 19-19 was duly adopted by the City Council of the City of Santa
Clarita at a regular meeting thereof, held on the 281h day of May 2019, by the following vote:
AYES: COUNCILMEMBERS: Smyth, Miranda, Kellar, Weste, McLean
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
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CITY CLERK