HomeMy WebLinkAbout2017-10 CC Reso - Approving Expenditure of Excess Bond ProceedsCITY COUNCIL OF THE CITY OF UKIAH
RESOLUTION NO. 2017- 10
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING AN
AGREEMENT REGARDING EXPENDITURE OF EXCESS BOND PROCEEDS BETWEEN
THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF
UKIAH AND THE CITY, AS THE HOUSING SUCCESSOR TO THE FORMER
REDEVELOPMENT AGENCY
WHEREAS, pursuant to Assembly Bill 1X 26, enacted on June 28, 2011, Assembly Bill 1484,
enacted on June 27, 2012, and other subsequent legislation (collectively, the "Dissolution Law"),
the Redevelopment Agency of the City of Ukiah ("Redevelopment Agency") was dissolved on
February 1, 2012; and
WHEREAS, under the authority of the Dissolution Act, the City of Ukiah elected to retain the
housing assets and functions previously performed by the Redevelopment Agency, as the
housing successor pursuant to Health and Safety Code Section 34176 (the "Housing
Successor"); and
WHEREAS, pursuant to Health and Safety Code Section 34191.4(c), after a successor agency
has received a finding of completion from the state Department of Finance ("DOF"), a successor
agency, with the approval of its oversight board, may list enforceable obligations to expend
excess bond proceeds on its Recognized Obligation Payment Schedule ("ROPS"), so long as
such expenditures are consistent with the bond covenants; and
WHEREAS, the Successor Agency received a Finding of Completion from DOF on April 23,
2013; and
WHEREAS, the Successor Agency has excess bond proceeds from the Redevelopment
Agency's 2011 Series B Tax Allocation Housing Bonds ("Housing Bonds"); and
WHEREAS, the Successor Agency and City desire to have all the excess bond proceeds held
by the Successor Agency transferred to the City, as the Housing Successor, to be expended in
a manner consistent with the applicable bond covenants.
NOW, THEREFORE, the City Council of the City of Ukiah hereby finds and resolves as follows:
Section 1. The foregoing recitals are true and correct and incorporated herein.
Section 2. The Agreement Regarding Expenditure of Excess Bond Proceeds [2011
Housing Bonds], a copy of which is attached hereto as Exhibit A and incorporated herein by
reference, is hereby approved.
Section 3. Subject to the conditions set forth in Section 4, below, the City Manager is
hereby authorized and directed to execute the Agreement Regarding Expenditure of Excess
Bond Proceeds [2011 Housing Bonds] in substantially the form attached hereto as Exhibit A,
subject to any minor, technical and clarifying changes as may be approved by the City Attorney.
The City Manager, or his designee, is hereby further authorized and directed to take such
actions as are necessary and appropriate to implement said Agreement on behalf of the City.
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Section 4. The approvals and authorizations set forth in Sections 2 and 3 of this
Resolution are conditioned upon all of the following:
a. Approval of the Agreement Regarding Expenditure of Excess Bond Proceeds by the
Successor Agency;
b. Approval of the Agreement Regarding Expenditure of Excess Bond Proceeds by the
Oversight Board, and submittal of such action to DOF for review in accordance with Health and
Safety Code Section 34179(h); and
c. Approval by DOF of the Oversight Board's action to approve the Agreement
Regarding Expenditure of Excess Bond Proceeds, or if DOF does not request a review within
five business days, the Oversight Board's action becomes effective in accordance with said
Section 34179(h).
PASSED AND ADOPTED this 181 day of January, 2017 by the following vote:
AYES: Councilmembers Scalmanini, Mulheren, Doble, and Mayor Brown
NOES: None
ABSENT: Councilmember Crane
ABSTAIN: None
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Jim O. own, Mayor
&16�
Kristine Lawler, City Clerk
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Exhibit A
AGREEMENT REGARDING
EXPENDITURE OF EXCESS BOND PROCEEDS
[2011 Housing Bonds]
82818.00001\29469677.1 -3-
AGREEMENT REGARDING
EXPENDITURE OF EXCESS BOND PROCEEDS
[2011 Housing Bonds]
This Agreement Regarding Expenditure of Excess Bond Proceeds ("Agreement") is
entered into this 18'' day of January, 2017, by and between the Successor Agency to the
Redevelopment Agency of the City of Ukiah ("Successor Agency") and the City of Ukiah, a
California municipal corporation, in its capacity as the Housing Successor to the former
Redevelopment Agency of the City of Ukiah ("City"). The Successor Agency and the City are
hereinafter collectively referred to as the "Parties."
RECITALS
A. Pursuant to the Community Redevelopment Law (Health & Safety Code Section
33000 et al.) ("CRL"), the former Redevelopment Agency of the City of Ukiah
("Redevelopment Agency") had responsibility to implement the Redevelopment Plan for the
Ukiah Redevelopment Project (the "Redevelopment Project"), originally adopted by the City
Council of the City of Ukiah ("City Council").
B. Pursuant to an Indenture of Trust Agreement, dated March 1, 2011, executed by
and between the Redevelopment Agency and the Bank of New York Mellon Trust Company, as
Trustee, (the "Trust Agreement"), the Redevelopment Agency issued 2011 Tax Allocation
Housing Bonds, Series B (the "Housing Bonds").
C. Following dissolution of the Redevelopment Agency on February 1, 2012,
pursuant to Assembly Bill 1X 26, the City elected to retain the housing assets and functions
previously performed by the Redevelopment Agency, as the housing successor pursuant to
Health and Safety Code Section 34176 ("Housing Successor"). All funds transferred to the
Housing Successor are to be maintained in a separate Low and Moderate Income Housing Asset
Fund created by the Housing Successor.
D. Health and Safety Code Section 34191.4(c) provides that once the Successor
Agency has been issued a Finding of Completion by the California Department of Finance
("DOF"), the Successor Agency is authorized to use the bond proceeds from bonds issued after
January 1, 2011, in a manner consistent with the original bond covenants. Further, the Successor
Agency may designate the use of and commit indebtedness obligation proceeds that were derived
from indebtedness issued for redevelopment purposes after January 1, 2011, and that remain
available after the satisfaction of enforceable obligations that have been approved on a
Recognized Obligation Payment Schedule ("ROPS") and that are consistent with the
indebtedness obligation covenants (hereafter "Excess Bond Proceeds").
E. Health and Safety Code Section 34176(g) provides that the Housing Successor
may designate the use of and commit indebtedness obligation proceeds that remain after the
satisfaction of enforceable obligations that have been approved in a ROPS and that are consistent
with the indebtedness obligation covenants. That section also provides that one hundred percent
Agt to Expend Excess Bond Proceeds [2011 Housing Bonds]
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4
(100%) of the proceeds derived from indebtedness obligations that were issued for the
purposes of affordable housing prior to June 28, 2011, and that were backed by the Low and
Moderate Income Housing Fund, can be used and committed in accordance with the
indebtedness covenants and in a manner consistent with the purposes of the Low and Moderate
Income Housing Asset Fund.
F. The DOF issued a Finding of Completion to the Successor Agency on April 26,
2013.
G. Health and Safety Code Section 34191.4(c) further provides that the expenditure
of Excess Bond Proceeds must be listed separately on the applicable ROPS.
f1. The Parties desire to enter into this Agreement to use the Excess Bond Proceeds
for the purposes identified in and consistent with the covenants contained in the Trust Agreement
and related documents (the "Bond Covenants") and the requirements of the CRL, and to provide
for the Successor Agency to transfer the Excess Bond Proceeds to the City to be used for such
purposes.
I. The execution of this Agreement was approved in a public meeting of the City
Council and the Successor Agency on January 18, 2017.
J. This Agreement was approved by the Oversight Board for the Successor Agency
in a public meeting on January 18, 2017.
K. The Oversight Board's action to approve this Agreement was submitted to DOF
pursuant to Health and Safety Code Section 34179(h), and DOF approved this Agreement on
.2017.
NOW, THEREFORE, in consideration of the mutual covenants, conditions and
promises herein contained, the Parties hereby agree as follows:
1. Recitals. The Recitals above are true and correct and are incorporated herein by
reference.
2. Term. The term of this Agreement shall commence on the Effective Date, and
shall continue in effect until the date that all Excess Bond Proceeds are expended in accordance
with the requirements of this Agreement.
3. Excess Bond Proceeds. As of December 31, 2017, the Successor Agency had
$2,752,762.12 in Excess Bond Proceeds available from the Housing Bonds.
4. Use of Excess Bond Proceeds. The City agrees that it shall use the Excess Bond
Proceeds available from the Housing Bonds identified above solely for the purposes identified in
Recital H., above, or for other projects consistent with the 2011 Housing Bond Covenants and
the provisions of the CRL that apply to the expenditure of such Excess Bond Proceeds.
Agt to Expend Excess Bond Proceeds [2011 Housing Bonds]
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5. Transmittal of Excess Bond Proceeds. Upon the Effective Date, the Successor
Agency shall transfer the Excess Bond Proceeds (including any interest accrued thereon as of the
Effective Date) to the City, and the City shall deposit such funds into the Low and Moderate
Income Housing Asset Fund for the City's use in accordance with the terms, conditions and
purposes set forth in this Agreement.
6. Project Approvals; Environmental Review. This Agreement is not intended to
limit in any manner the discretion of the City in connection with the issuance of approvals and
entitlements for the projects described in this Agreement, nor to avoid legally required processes
attendant to project approval, including, without limitation, the undertaking and completion of
any required environmental review pursuant to the California Environmental Quality Act and the
National Environmental Protection Act, as applicable, and the review and approval of plans and
specifications.
7. Severability. If any term, provision, covenant, or condition set forth in this
Agreement is held by the final judgment of a court of competent jurisdiction to be invalid, void
or unenforceable, the remaining provisions, covenants, and conditions shall continue in full force
and effect to the extent that the basic intent of the Parties as expressed herein can be
accomplished. In addition, the Parties shall cooperate in good faith in an effort to amend or
modify this Agreement in a manner such that the purpose of any invalidated or voided provision,
covenant or condition can be accomplished to the maximum extent legally permissible.
8. No Third -Party Beneficiaries; Assignments. Nothing in this Agreement is
Uintended to create any third -party beneficiaries to this Agreement, and no person or entity other
than the Successor Agency and the City, and the permitted successors and assigns of either of
them, shall be authorized to enforce the provisions of this Agreement.
9. Further Assurances. Each Party agrees to execute, acknowledge and deliver all
additional documents and instruments, and to take such other actions as may be reasonably
necessary to carry out the intent of the transactions contemplated by this Agreement.
10. Governing This Agreement shall be governed by and construed in
accordance with the laws of the State of California.
11. Counterparts. This Agreement may be executed in counterparts, each of which
shall be deemed an original and all of which shall constitute but one and the same instrument.
12. Amendment. This Agreement may be modified or amended, in whole or in part,
only by an instrdment in writing, executed by the Parties.
13. Effective Date. This Agreement shall be effective when signed by both parties,
and approved by the Oversight Board and DOF.
[Signatures on following page]
Agt to Expend Excess Bond Proceeds [2011 Housing Bonds]
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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written
above.
CITY OF UKIAH, in its capacity as the
Housing Successor to the former
Redevelopment Agency of the City of Ukiah
By:
ge Sa iacomo, City Manager
Attest:
By:
Kristine Lawler, City Clerk
Approved as to Form:
By: J�i (2"/ /0'111'7 Ai
6widl City Airorney
SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE
CITY OF UKIAH
O. Brown, Chairperson
By: &' L*,&—
stine Lawler, Secretary
Approved as Form:
By:
avid Rapport, tefal Counsel
Agt to Expend Excess Bond Proceeds [2011 Housing Bonds]
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