HomeMy WebLinkAboutReso 2005-104
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RESOLUTION NO. 2005-104
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE BORROWING OF FUNDS
BY THE REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA FROM CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY AND
PROVIDING OTHER MATTERS RELATING THERETO
WHEREAS, the California Statewide Communities Development Authority (the
"Authority") is a joint powers authority duly organized and existing under and pursuant to that
certain "Amended and Restated Joint Exercise of Powers Agreement Relating to the California
Statewide Communities Development Authority", dated as of June 1, 1988, and under the
provisions of Articles I through 4 (commencing with Section 6500) of Chapter 5 of Division 7 of
Title I of the Government Code of the State of California (the "Act"), and is authorized pursuant
to Article 4 ofthe Act (the "Bond Law") to issue bonds, notes and other obligations; and
WHEREAS, the Redevelopment Agency of the City of Chula Vista (the "Agency") is a
public body, corporate and politic, duly established and authorized to transact business and
exercise powers under and pursuant to the provisions of Part 1 of Division 24 of the Health and
Safety Code of the State of California; and
WHEREAS, Section 33681.15 of the California Health and Safety Code authorizes the
Authority to issue bonds, notes or other obligations to provide funds to make loans to
redevelopment agencies to make the payments required by Section 33681.12 of the California
Health and Safety Code, namely payments to the applicable county auditor for deposit in the
county's Educational Revenue Augmentation Fund (the "ERAF Payment"); and
WHEREAS, in order to make loans for such purpose to redevelopment agencies, the
Authority has determined to issue its California Statewide Communities Development Authority
2005 Taxable Revenue Bonds, Series A (CRA/ERAF Loan Program) in the aggregate principal
amount not to exceed $50,000,000 (the "Bonds"); and
WHEREAS, in order to make its ERAF Payment for fiscal year 2004/2005, the Agency
desires to obtain a loan from the Authority from the proceeds of the Bonds in the amount not to
exceed $855,000 (the "Loan") pursuant to the terms and conditions set forth in the Loan
Agreement, dated as of April 1, 2005, by and between the Agency and the Authority (the "Loan
Agreement"); and
WHEREAS, as a condition precedent to entering into the Loan Agreement, said Section
33681.15 requires that the Agency obtain the prior approval of this City Council, which City
Council is a "legislative body" for purposes of Section 33681.15, by resolution adopted by a
majority of this City Council that recites that a first lien will be created on property tax revenues
of the City to secure repayment of the Loan; and
WHEREAS, this City Council desires to make the recitals set forth below and to approve
the making of the Loan by the Authority to the Agency pursuant to the Loan Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City ofChula Vista
(the "City") that:
Resolution 2005-104
Page 2
Section 1. Acknowledgment with respect to First Lien on Property Tax Revenues. In
fulfillment of the requirements of Section 33681.15 of the California Health and Safety Code, the
City Council hereby acknowledges that, in order to secure repayment of the Loan by the
Authority to the Agency, a first lien is created by said Section 33681.15 on the property tax
revenues allocated to the City pursuant to Chapter 6 (commencing with Section 95) of Part 0.5 of
Division 1 of the Revenue and Taxation Code. This lien will arise by operation of said Section
33681.15 automatically upon the making of the Loan without the need for any action on the part
of any person. This lien will be valid, binding, perfected, and enforceable against this City
Council, its successors, creditors, purchasers, and all others asserting rights in those property tax
revenues, irrespective of whether those persons have notice of the lien, irrespective of the fact
that the property tax revenues subject to the lien may be commingled with other property, and
without the need for physical delivery, recordation, public notice, or any other act. This lien
shall be a first priority lien on such property tax revenues.
Section 2. Approval of Loan. The City Council hereby approves the Loan in the amount not
to exceed $855,000 to be made by the Authority to the Agency pursuant to the Loan Agreement,
as above described.
Section 3. Official Statement. The City Council hereby approves the information that
describes the City and the Agency contained in the form of the Official Statement relating to the
Bonds on file with the City Clerk. Distribution by the purchaser of the Bonds of the final
Official Statement containing such information is hereby approved.
Section 4. Official Actions. The Mayor, the City Manager, the Finance Director, the City
Attorney, the City Clerk and any 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 actions, and to execute and deliver all certificates and other documents, which they, or any of
them, may deem necessary or advisable in order to consummate the sale, issuance and delivery
of the Bonds by the Authority and the making of the Loan by the Authority to the Agency
pursuant to the Loan Agreement.
Section 5. Effective Date. This resolution shall take effect from and after the date of its
passage and adoption.
Presented by
Approved as to form by
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Ann Moore
City Attorney
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Resolution 2005-104
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PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 22nd day of March, 2005, by the following vote:
A YES: Councilmembers:
Castaneda, Davis, McCann, and Rindone
NAYS: Councilmembers:
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ABSENT: Councilmembers:
None
Padilla
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ATTEST:
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¥Susan Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2005-104 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 22nd day of March, 2005.
Executed this 22nd day of March, 2005.
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...çv Susan Bigelow, MMC, City Clerk
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