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Home My WebLink AboutSA-RDA 063 Clarifying Provisions of Section 8 ITEM TO BE ADDED BY 415ths VOTE TO THE January 12 , 2017 SUCCESSOR AGENCY AGENDA Under VIII. RESOLUTIONS A. RESOLUTION NO. SA-RDA 063 - A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, CLARIFYING THE PROVISIONS OF SECTION 8 OF ITS RESOLUTION NO. SA-RDA 061 AND SECTION 8 OF ITS RESOLUTION NO. SA-RDA 062, WHICH RESOLUTIONS AUTHORIZED THE EXECUTION AND DELIVERY OF DOCUMENTS IN CONNECTION WITH THE SUCCESSOR AGENCY'S ISSUANCE OF TAX ALLOCATION REFUNDING BONDS. Rec: Waive further reading and adopt. Action: RESOLU7 NO. SA-RDA 063 RECEIVED CITY CLERK'S OFF ICf PALM DESERT CA SUCCESSOR AGENCY TO THE 2011 JAN 12 AM 8: 56PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: ADOPT RESOLUTION Na SA-RDA 063 CLARIFYING THE PROVISIONS OF SECTION 8 OF RESOLUTION NO. SA-061 AND SECTION 8 OF RESOLUTION NO. SA-062, WHICH RESOLUTIONS AUTHORIZED THE EXECUTION AND DELIVERY OF DOCUMENTS IN CONNECTION WITH THE SUCCESSOR AGENCY'S ISSUANCE OF TAX ALLOCATION REFUNDING BONDS SUBMITTED BY: Janet Moore, Finance Officer DATE: January 12, 2017 CONTENTS: Resolution No. SA-RDA 063 Recommendation By Minute Motion that the Successor Agency Board: (i) Adopt ResolutionsA-RDA 063 clarifying the provisions of Section 8 of Resolution No. SA-061 and Section 8 of Resolution No. SA-062, which authorized the execution and delivery of documents in connection with the Successor Agency's issuance of Tax Allocation Refunding Bonds Executive Summary The Successor Agency Board (the "Board") previously adopted Resolutions No. SA-059 and SA-060 approving the issuance of tax allocation refunding bonds. The Board also has previously adopted Resolutions No. SA-RDA-061 and SA-RDA-062 authorizing the execution and delivery of documents in connection with the Successor Agency's issuance of such refunding bonds. In that connection, Resolutions No. SA-061 and SA- 062 provide that in the event the Executive Director and the Finance Officer, in consultation with the Successor Agency's municipal advisor, determine that a portion of the Agency Loans to be refunded would be uneconomic, the Executive Director would be authorized to direct the continuation of the refunding transaction without the uneconomic portion. Adoption of Resolution No.SA-RDA063 will clarify that such determination of whether or not a portion is uneconomic is not limited by the reference in Section 8 to Health and Safety Code Section 34177.5(a) and the parameters set forth in the Resolutions. The clarification narrows a self-imposed restriction and provides more flexibility in determining whether or not it is in the Agency's best interest to refund certain portions of the Agency Loans. G\rda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\Debt Refunding\Palm Desert-1-12-17 Staff Report re 2017 Refunding.docx Staff Report(Successor Ag ') Approving Resolution No. SA-RDA 063 Page 2 of 3 Background Before its dissolution, the former Palm Desert Redevelopment Agency entered into multiple agreements with the Palm Desert Financing Authority and incurred loans to finance and refinance projects for each of the former Agency's four redevelopment project areas. To provide funds for the former Agency loans, the Authority issued various series of tax allocation bonds. The Successor Agency is now in the process of issuing refunding bonds to refund most of the former Agency loans. On October 13, 2016, the Board adopted Resolutions No. SA-059 and SA-060 approving the issuance of tax allocation refunding bonds. On December 8, 2016, the Board adopted Resolutions No. SA-061 and SA-062 authorizing the execution and delivery of documents in connection with the Successor Agency's issuance of such refunding bonds. Resolutions No. SA-061 and SA-062 provide that in the event the Executive Director and the Finance Officer, in consultation with the Successor Agency's municipal advisor, determine that a portion of the Agency loans to be refunded would be uneconomic, the Executive Director would be authorized to direct the continuation of the refunding transaction without the uneconomic portion. Adoption of Resolution No.SA-RDA 063 will clarify that such determination of whether or not a portion is uneconomic is not limited by the reference in Section 8 of the Resolutions to Health and Safety Code Section 34177.5(a) and the parameters set forth in Resolution Nos. SA-061 and SA-062. Fiscal Analysis Even though market conditions with respect to the refunding continue to change somewhat, the overall savings are still significant by generally accepted market standards. As before, the savings will become moneys available for enforceable obligations, as approved on the Recognized Obligations Payment Schedule ("ROPS") or, if not needed for ROPS-approved obligations, for disbursement to taxing entities through the semi- annual Redevelopment Property Tax Trust Fund ("RPTTF") distribution process. Submitted by: BY SA-RDA 0 daanet M. Moore, Finance Officer ON Q/- / .9 - /\G 17 VERIFIED BY f� ,1 S Approval: Original on file with City C errs Offices /AYES : K- ((v,AkVarde, We Ur, /kW7)/l� A8SENT:Tna-l/.n Lauri Aylaian, Executive Director G.\rda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\Debt Refunding\Palm Desert-1-12-17 Staff Report re 2017 Refunding.docx RESOLUTION NO. SA-RDA 063 A RESOLUTION OF THE BOARD OF DIRECTORS TO THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY CLARIFYING THE PROVISIONS OF SECTION 8 OF ITS RESOLUTION NO. SA-RDA-061 AND SECTION 8 OF ITS RESOLUTION NO. SA-RDA-062, WHICH RESOLUTIONS AUTHORIZED THE EXECUTION AND DELIVERY OF DOCUMENTS IN CONNECTION WITH THE SUCCESSOR AGENCY'S ISSUANCE OF TAX ALLOCATION REFUNDING BONDS RECITALS: A. The Board of Directors previously adopted its Resolutions No. SA-061 and SA-062 on December 8, 2016, authorizing the execution and delivery of documents in connection with the Successor Agency's issuance of tax allocation refunding bonds. B. The Board of Directors wishes to clarify the authorization set forth in Section 8 of both Resolutions to exclude from the refunding any portion of the Agency Loans (as defined in the respective Resolutions) that are determined to be uneconomic. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Recitals. The above recitals, and each of them, are true and correct. Section 2. Section 8 of Resolution No. SA-061 is hereby clarified to read as follows: "Section 8. Authorization to Proceed with Refunding in Part. In the event that the Executive Director and the Finance Officer, in consultation with the Successor Agency's municipal advisor, determine that a portion of the Agency Loans (the "Uneconomic Portion") cannot be refunded concurrently with the other portion because refunding the Uneconomic Portion would be uneconomic, or would not be in compliance with requirements of Health and Safety Code Section 34177.5(a) and the parameters set forth herein, the Executive Director is hereby authorized to direct the continuation of the refunding transaction without the Uneconomic Portion. The Authorized Officers are authorized to execute, on behalf and in the name of the Successor Agency, the Indenture and each of the documents authorized hereby, with the applicable modifications to exclude the Uneconomic Portion." -1- G:\rda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\Debt Refundingd'alm Desert- 2017 refunding-SA reso clarifying Reso Nos SA-61 and SA-62 1-12-17.docx RESOLUTION NO. SA-RDA 3 Section 3. Section 8 of Resolution No. SA-062 is hereby clarified to read as follows: "Section 8. Authorization to Proceed with Refunding in Part. In the event that the Executive Director and the Finance Officer, in consultation with the Successor Agency's municipal advisor, determine that a portion of the Agency Loans (the "Uneconomic Portion") cannot be refunded concurrently with the other portion because refunding the Uneconomic Portion would be uneconomic, or would not be in compliance with requirements of Health and Safety Code Section 34177.5(a) and the parameters set forth herein, the Executive Director is hereby authorized to direct the continuation of the refunding transaction without the Uneconomic Portion. The Authorized Officers are authorized to execute, on behalf and in the name of the Successor Agency, the Indenture and each of the documents authorized hereby, with the applicable modifications to exclude the Uneconomic Portion." Section 4. Other Acts. The members of this Board, the Chair, the Vice Chair, the Executive Director, the Finance Officer and all other officers of the Successor Agency, are hereby authorized, jointly and severally, to execute and deliver any and all necessary documents and instruments and to do all things that they may deem necessary or proper to effectuate the purposes of this Resolution. Any such previous actions taken by such officers are hereby ratified and confirmed. APPROVED and ADOPTED this 12th day of January, 2017. AYES: NOES: ABSENT: ABSTAIN: JAN C. HARNIK, CHAIR ATTEST: RACHELLE D. KLASSEN, SECRETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY -2- G:\rda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\Debt Refunding\Palm Desert- 2017 refunding-SA reso clarifying Reso Nos SA-6I and SA-62 1-12-17.docx