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HomeMy WebLinkAbout2019-10-22 - RESOLUTIONS - APPROVING THE ISSUANCE OF REVENUE BONDS BY THE MUN (2) RESOLUTION NO. 19-52 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA APPROVING THE ISSUANCE OF REVENUE BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY FOR THE PURPOSE OF FINANCING THE ACQUISITION, CONSTRUCTION, IMPROVEMENT, RENOVATION AND EQUIPPING OF CERTAIN EDUCATIONAL FACILITIES AND AMENITIES FOR THE BENEFIT OF THE MASTER'S UNIVERSITY AND SEMINARY AND REFINANCING THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY VARIABLE RATE REVENUE BONDS (THE MASTER'S COLLEGE) SERIES 2014 AND CERTAIN OTHER MATTERS PERTAINING THERETO 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 "CMFA"), 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 Clarita, California (the "City") is a Member of the CMFA; and WHEREAS, The Master's University and Seminary (formerly, The Master's College and Seminary), a nonprofit public benefit corporation duly organized and existing under the laws of the State of California and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986 (the "Borrower"), has requested that the CMFA issue and sell revenue bonds in an aggregate principal amount not to exceed $35,000,000 (the "Bonds") for the purpose of making a loan to the Borrower to enable the Borrower to (i) finance all or a portion of the acquisition, construction, improvement, renovation, and equipping of certain educational facilities and amenities for the benefit of the Borrower, to be owned and operated by the Borrower, (ii) refinance the outstanding principal amount of the California Statewide Communities Development Authority Variable Rate Revenue Bonds (The Master's College) Series 2014, issued by the California Statewide Communities Development Authority for the purpose of refinancing indebtedness incurred by the Borrower in connection with certain capital projects of the Borrower located within the territorial limits of the City and (iii) pay certain costs of issuance with respect to the Bonds (together, the "Project"); and WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986 (the "Code"), the issuance of the Bonds by the CMFA must be approved by the City because the Project is located and to be located within the territorial limits of the City; and WHEREAS, the City Council of the City (the "City Council") is the elected legislative body of the City and is one of the "applicable elected representatives" required to approve the issuance of the Bonds under Section 147(f) of the Code; and 1 WHEREAS, the CMFA has requested that the City Council approve the issuance of the Bonds by the CMFA in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Agreement, among certain local agencies, including the City; and WHEREAS, pursuant to Section 147(f) of the Code, 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 CMFA; and WHEREAS, the CMFA has requested that the City Council approve the issuance of the Bonds by the CMFA in order to satisfy the requirements of Section 4 of the Agreement; and WHEREAS, the Bonds shall not be deemed to constitute a debt of the City or a pledge of the faith and credit of the City, but shall be special limited obligations of the Authority payable solely from the loan repayments to be made by the Borrower to the Authority, and shall contain on the face thereof a statement to the effect that neither the faith and credit nor the taxing power of the City is pledged to the payment of the principal of or interest on the Bonds; and WHEREAS, the City Council has determined that approval of the issuance of the Bonds is to satisfy the requirements of Section 147(f) of the Code, and shall in no event constitute an endorsement of the Bonds or the Project or the creditworthiness of the Borrower, nor shall such approval in any event be construed to obligate the City for the payment of the principal of or premium or interest on the Bonds or for the performance of any pledge, mortgage, or obligation, or agreement of any kind whatsoever which may be undertaken by the Authority, or to constitute the Bonds or any of the agreements or obligations of the Authority an indebtedness of the City, within the meaning of any constitutional or statutory provision whatsoever. NOW, THEREFORE, the City Council of the City of Santa Clarita, California, does hereby resolve as follows: SECTION 1 . All of the above recitals are true and correct and the City Council so finds. SECTION 2. The City Council hereby approves the issuance of the Bonds by the CMFA and finds the Project will create the significant public benefits set forth in foregoing recitals. It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds by the CMFA, for the purposes of(a) Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located and to be located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement, and Section 6586.5 of the Act. SECTION 3. The issuance of the Bonds shall be subject to approval by the CMFA of all financing documents relating thereto to which the CMFA 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 or refinancing with respect the Project; (ii) make any contribution or advance any funds whatsoever to the CMFA; or (iii) take any further action with respect to the CMFA or its membership therein. SECTION 5. The executing officer(s), 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 to effect the purposes of this resolution and the transactions herein authorized. SECTION 6. The Clerk shall forward a certified copy of this resolution to the CMFA in care of its counsel: Ronald E. Lee, Esq. Jones Hall, a Professional Law Corporation 475 Sansome Street, Suite 1700 San Francisco, CA 94111 SECTION 7. This resolution shall take effect immediately upon its adoption. SECTION 8. The City Clerk shall certify to the adoption of this resolution. PASSED, APPROVED, AND ADOPTED this 22nd day of October 2019. JJ4di2rC ' MAY ATTEST: L'17 CITY CLERK DATE /` ! (1/7q 3 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 19-52 was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 22"d day of October 2019, by the following vote: AYES: COUNCILMEMBERS: Kellar, Miranda, Smyth, McLean NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None RECUSE: COUNCILMEMBERS: Weste CITY CLERK 4