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Home My WebLink About1995-06-27 - AGENDA REPORTS - PROMISSORY NOTE (2)Q!� ' NEW BUSINESS DATE: June 27, 1995 City Item to bpresented by: / Steve Stark S SUBJECT: SUBSTITUTION OF PUBLIC FINANCING AUTHORITY PROJECTS AND ACCEPTANCE OF PROMISSORY NOTE DEPARTMENT: Finance BACKGROUND On October 1, 1991 the Santa Clarita Public Financing Authority (PFA) issued $22,940,000 of Revenue Bonds - Series 1991. The proceeds were used to finance and/or refinance the design, acquisition, improvement or construction of land, the City Hall Building and certain road improvements, and to refinance certain debt. Under the conditions of the Revenue Bond Official Statement, the City may substitute other real property or improvements or equipment for all or any portion of the projects. Currently, there are two projects that staff is recommending for substitution under the conditions of the Revenue Bond Official Statement. Below is a description of each project: 1. In February, 1994, City Council and the Community Recovery Agency Board approved the redevelopment plan to respond to earthquake relief; infrastructure emergency mitigation needs; economic development and community revitalization; and housing improvements. Pursuant to Section 6546 (f) of the Bond Law, this type of program for public improvements falls within the definition of an eligible project for a substitute PFA project. At this time, it is in the interest of the City to designate the amounts required to support Community Recovery Agency (CRA) expenditures as a substitute project. By taking this action, the City has a vehicle to loan the (CRA) amounts required to perform Agency activity. In March, 1994 the City approved a General Fund Promissory Note (credit line) for an amount not to exceed $250,000 to be used towards and ultimately receive reimbursement for City staff and the operating costs provided to the CRA during FY93/94. The actual costs for FY93/94 totaled $250,746. For YY94/95 expenditures are estimated at $737,850 and FY95/96 proposed budget is $502,395. Staffs recommends Council to accept the execution of a promissory note with the CRA for the remaining credit line needed to cover FY93/94 expenditures, FY94/95 year end estimates and FY95/96 proposed budget for a total amount not to exceed $1,250,000. Adopted: M._._ 5s— Ag:--!-- Item:s 2. As a result of the January 17, 1994 earthquake, certain earthquake related capital projects qualified for FHWA (Federal Highway Administration) grant funding. The matching ratio for all restoration work and emergency repair work completed more than 180 days after the disaster is 88.53%. The City desires to substitute FHWA earthquake projects requiring a City match of 11.47% as an eligible PFA project. RECOMMENDATION Adopt Resolution Numbers 95-75 & 95-81. ATTACHMENT Attachment A Resolution Number 95-75 Resolution Number 95-81 Lagendsub COMMUNITY RECOVERY AGENCY Consultant Costs Attorney Fees Staff Time & Costs Operations & Maintenance Capital E ui ment Indirect Staff Time & Costs Reimburse Space Rent 1/2 Economic Development ATTACHMENT A FY94/95 FY 95/96 YEAR END PROPOSED ESTIMATE BUDGET 107 101 62,100 150,000 41,500 14,895 0 110,000 TOTAL 737,850 502,395 craatt RESOLUTION NO. 95-75 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, DESIGNATING THE SUBSTITUTION OF CAPITAL IMPROVEMENTS ON EXHIBIT D TO THE FISCAL AGENT AGREEMENT, BASE LEASE AND LEASE AGREEMENT IN CONNECTION WITH THE PREVIOUSLY ISSUED $22,940,000 CERTIFICATES OF PARTICIPATION. WHEREAS, The City of Santa Clarita, California (the "City"), and the Redevelopment Agency of the City of Santa Clarita (the "Agency") previously provided funds to finance and/or refinance the acquisition, improvement, equipping and construction of certain projects by the execution and delivery of Certificates of Participation (Capital Improvement Projects) Evidencing A Proportionate Interest of the Owners Thereof In Lease Payments To Be Made By The City of Santa Clarita (Los Angeles County, California) To The Redevelopment Agency of the City of Santa Clarita (the "Certificates"), dated October 1, 1991, in the principal amount of $22,940,000; and WHEREAS, in connection with the execution and delivery of the Certificates there were executed the Fiscal Agent Agreement dated as of October 1, 1991 (the "Fiscal Agent Agreement"), by and between the City and the Santa Clarita Public Finance Authority, the Base Lease dated as of October 1, 1991 (the "Base Lease"), by and between the City and the Agency, and the Lease Agreement dated as of October 1, 1991 (the "Lease Agreement"), by and between the Agency and the City; and WHEREAS, Exhibit.D to the Fiscal Agent Agreement, the Base Lease and the Lease Agreement describes the projects to be financed and/or refinanced with the proceeds of the Certificates, and further specifies the designation of substitute capital improvements by resolution of the City Council of the City; and WHEREAS, it is in the best interests of the City to designate the financing and/or refinancing of certain substitute capital improvements with the proceeds of the Certificates, pursuant to Exhibit D to the Fiscal Agent Agreement, the Base Lease and the Lease Agreement; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND DECLARE AS FOLLOWS: Section 1. Recitals. The above recitals are all true and correct. Section 2. Findings and Determinations. The City Council hereby finds and determines that it is in the best interests of the City to designate the financing and/or refinancing of certain substitute capital improvements with the proceeds of the Certificates, pursuant to Exhibit D of the Fiscal Agent Agreement, the Base Lease and the Lease Agreement. Section 3. Substitute Projects. The following capital improvements are hereby designated as substitute Projects, pursuant to Exhibit D to the Fiscal Agent Agreement, the Base Lease and the Lease Agreement: 1. Redevelopment Agency of the City of Santa Clarita Activity Expenditures authorized under the redevelopment plan adopted and approved by Ordinance No. 94-3 of the City adopted on February 22, 1994. 2. FHWA (Federal Highway Administration), earthquake related capital projects. Section 4. Effectiveness. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED by the City Council of the City of Santa Clarita at a regular meeting held on the day of 1995. CITY OF SANTA CLARITA, CALIFORNIA MAYOR ATTEST: CITY CLERK STATE OF CALIFORNIA )ss COUNTY OF LOS ANGELES I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof; held on the day of , 1995, by the following vote of the Council; AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK ftk.0 dV95-75r. RESOLUTION NO. 95-81 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, AUTHORIZING A LOAN OF AN AMOUNT NOT TO EXCEED $1,250,000 TO THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARITA; ACCEPTING AND AUTHORIZING THE ACKNOWLEDGMENT OF A PROMISSORY NOTE WITH THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARITA IN CONNECTION THEREWITH; AND AUTHORIZING CITY OFFICIALS, STAFF AND OTHER PARTIES TO ACCOMPLISH THE ACCEPTANCE AND ACKNOWLEDGMENT OF SAID PROMISSORY NOTE. WHEREAS, the Redevelopment Agency of the City of Santa Clarita (the "Agency") is a redevelopment agency and public body, corporate and politic, duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the Community Redevelopment Law (consisting of Part 1 of Division 24, commencing with Section 33000, as amended, of the California Health and Safety Code) ( the "Redevelopment Law"), and the powers of the Agency include the power to borrow money from the City of Santa Clarita, California (the "City'), and to issue notes and other instruments necessary or convenient to the exercise of such power; and WHEREAS, the City is a general law city and municipal corporation organized and existing under the laws of the State of California, with full right, power and authority to loan money to the Agency and to accept and acknowledge notes and other instruments necessary or convenient to the exercise of such power; and WHEREAS, a redevelopment plan for a redevelopment project known and designated as the "Project Area" has been adopted and approved by Ordinance No. 94-3 of the City adopted on February 22, 1994 (the "Plan"), and all requirements of law for and precedent to the adoption and approval of the Plan have been complied with; and WHEREAS, for the corporate purposes of the City, the City proposes to authorize the lending of an amount not to exceed $1,250,000 to the Agency and, in connection therewith, accept and acknowledge a Promissory Note dated as of June 27, 1995 (the "Note"), executed and delivered by the agency in favor of the City to finance a portion of the costs of implementing the Plan and to pay costs in connection with the execution and delivery of the Note; and WHEREAS, the Agency duly adopted ,its Resolution No. RDA95-5 on June 27, 1995, which provides for, inter alia, the authorization to borrow money from the City and execute and deliver the Note; the authorization of and direction to Agency General Counsel to prepare all other documents pertaining to the execution and delivery of the Note; and the execution of such documents by Agency officials, and the authorization for Agency officials and staff to take such actions as are necessary to accomplish the execution and delivery of the Note; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND DECLARE THAT: Section 1. Loan to Agency Authorized. The City is hereby authorized to lend an amount not to exceed $1,250,000 to the Agency for certain lawful and public purposes, including, without limitation, the purposes set forth in the foregoing recitals. Section 2. Promissory Note. The City hereby approves the Note in substantially the form on file with the City Clerk, together with any changes therein or additions thereto approved by the Mayor or the Vice -Mayor and subject to City Attorney approval. The Mayor or Vice - Mayor shall accept and acknowledge the Note, the City Clerk shall attest to such signature, in the name and on behalf of the City, and the execution and attestation thereof shall be conclusive evidence of approval of any such changes and additions. Section 3. Authorization to Proceed. All actions heretofore taken by the officers and agents of the City with respect to lending money to the Agency and the acceptance and acknowledgment of the Note are hereby approved, confirmed and ratified. The City hereby authorizes and directs the City Attorney to prepare all other documents in connection with the lending of money to the Agency; to advise the City in connection therewith; and to otherwise accomplish the lawful and expeditious acceptance and acknowledgment of the Note.. City officials and staff are hereby authorized and directed to assist and cooperate in connection with the execution and delivery of the Note by the Agency and to take any and all actions which they, or any of them, may deem necessary or advisable in order to consummate the transactions described herein including, but not limited to, the execution and delivery of any and all agreements, certificates, instruments and other documents. Section 4. Effectiveness. This Resolution shall take effect from and after its adoption by the City Council of the City. PASSED AND ADOPTED by the City Council of the City of Santa Clarita at a regular meeting held on the day of .1 1995. CITY OF SANTA: CLARITA, CALIFORNIA MAYOR ATTEST: CITY CLERK STATE OF CALIFORNIA )ss COUNTY OF LOS ANGELES ) I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the day of 1995, by the following vote of the City Council: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK firdwu d/9&Btres