Loading...
HomeMy WebLinkAboutReso 2006-089 RESOLUTION NO. 2006-089 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 (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 I, 1988, and under the provisions of Articles 1 through 4 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (Act), and is authorized pursuant to Article 4 of the Act (Bond Law) to issue bonds, notes and other obligations; and WHEREAS, the Redevelopment Agency of the City of Chula Vista (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 I 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 (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 2006 Taxable Revenue Bonds, Series A (CRAlERAF Loan Program) in the aggregate principal amount of not to exceed $30,000,000 (Bonds); and WHEREAS, in order to make its ERAF Payment for fiscal year 2005/2006, the Agency desires to obtain a loan ITom the Authority ITom the proceeds of the Bonds in the amount of not to exceed $1,100,000 (Loan) pursuant to the terms and conditions set forth in the Loan Agreement, dated as of April I, 2006, by and between the Agency and the Authority (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 ofthe City to secure repayment of the Loan; and Resolution No. 2006-089 Page 2 WHEREAS, in order to make a loan to the Agency (and other redevelopment agencies) to provide funds to make the payment required by said Section 33681.12 to be paid with respect to fiscal year 2004/2005, the Authority issued its $27,020,000 principal amount of California Statewide Communities Development Authority 2005 Taxable Revenue Bonds, Series A (CRAlERAF Loan Program) (2005 Bonds); and WHEREAS, payment of the loan made to the Agency with the proceeds of the 2005 Bonds is secured by a first pledge and lien on the property taxes of the City on a parity with the first pledge and lien on such property taxes securing payment of the Loan, as further provided in said Section 33681.15; 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 of Chula Vista (City) that: Section I. 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 3368 I. I 5 on the property tax revenues allocated to the City pursuant to Chapter 6 (commencing with Section 95) of Part 0.5 of Division I 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 of not to exceed $1,100,000 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 descri~es the City and the Agency contained in the form of the Official Statement on file with the Secretary. 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. Resolution No. 2006-089 Page 3 Section 5. Effective Date. This Resolution shall take effect trom and after the date of its passage and adoption. Presented by Approved as to form by ~~~~"I'~ ~~<.) ~~ Ann oore City Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 21 st day of March 2006 by the following vote: AYES: Councilmembers: Chavez, McCann, and Padilla NAYS: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: ~ ATTEST: - ~ ~.Lu Ii ,~1. LOr--.-J 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. 2006-089 was duly passed, approved, and adopted by the City Council at a regular meeting ofthe Chula Vista City Council held on the 21st day of March 2006. Executed this 21st day of March 2006. ~ ~tI ,.~~ Susan Bigelow, MMC, CIty Clerk