HomeMy WebLinkAbout7611 RESOLUTION NO. 7611
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS AUTHORIZING
THE INCURRING OF AN OBLIGATION, PAYABLE TO THE CALIFORNIA
INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK, FOR THE FINANCING
OF A CAPITAL IMPROVEMENT PROJECT AND APPROVING CERTAIN OTHER
MATTERS IN CONNECTION THEREWITH
WHEREAS, the California Infrastructure and Economic Development Bank ("IBank")
administers a financing program to assist local governments with the financing eligible projects
in accordance with Section 63000 et seq. of the California Government Code (the "Act"); and
WHEREAS, IBank created the Infrastructure State Revolving Fund Program ("ISRF
Program") pursuant to the provisions of the Act; and,
WHEREAS, IBank's Criteria, Priorities and Guidelines for the Selection of Projects for
Financing under the ISRF Program, dated February 23, 2016, and as may thereafter be amended
from time to time (the "Criteria"), establishes requirements for the financing of projects under
the ISRF Program; and
WHEREAS, the City of Redlands ("Borrower"), has applied to IBank for the financing of
the costs of improvements and construction of certain parts of the Pavement Accelerated Repair
Implementation Strategy (PARIS) ("Project") in an aggregate amount not to exceed $3,000,000;
and
WHEREAS, the Act requires the Borrower to make, by resolution of its governing body,
certain findings prior to a project being selected for financing by IBank; and
WHEREAS, the Borrower reasonably expects that a financing arrangement
("Obligation") in an amount not expected to exceed $3,000,000 will be entered into under and
memorialized by one or more financing agreements and related documents (collectively, the
"Financing Agreements") and that certain proceeds of such Obligation will be used to reimburse
the Borrower for Project expenditures incurred or paid prior to incurring the Obligation; and
WHEREAS, the Borrower acknowledges that IBank funds the ISRF Program, in part,
with the proceeds of tax exempt bonds and, as such, has certain compliance obligations that may
require it to have the Borrower enter into new financing agreements to replace the Financing
Agreements (the "Replacement Agreements") on terms and conditions substantially identical to
the original Financing Agreements.
NOW, THEREFORE, be it resolved by the City Council of the City of Redlands (the
"Council") as follows:
Section 1. The Council hereby approves, confirms, ratifies and affirms all actions of the
Borrower's representatives, employees and officers heretofore taken in connection with, or with
respect to, submitting an application for financing for the Project and the consideration and
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approval of the Obligation and the Financing Agreements; and in connection therewith finds and
certifies:
a. The Project facilitates effective and efficient use of existing and future public
resources so as to promote both economic development and conservation of
natural resources;
b. The Project develops and enhances public infrastructure in a manner that will
attract, create, and sustain long-term employment opportunities;
C. That the Project is consistent with the General Plan of the City of Redlands,
and any elements of the General Plan of the San Bernardino that are
applicable to the Borrower and the Project;
d. The proposed financing is appropriate for the Project;
e. The Project is consistent with IBank's Criteria for the ISRF Program, and
E It has considered (i) the impact of the Project on California's land resources
and the need to preserve such resources; (ii) whether the Project is
economically or socially desirable; and (iii) whether the project is consistent
with, and in furtherance of the State Environmental Goals and Policy Report
(as defined in the Criteria).
Section 2. The Borrower hereby declares its official intent to use certain proceeds of the
Obligation to reimburse itself for expenditures reimbursable with the proceeds of tax exempt
bonds or other tax exempt securities under the provisions of the Internal Revenue Code of 1986,
as amended, and those U.S. Treasury Regulations implementing such provisions (collectively,
"Federal Tax Law"). This declaration is made solely for purposes of establishing compliance
with applicable requirements of Federal Tax Law. This declaration does not bind the Borrower
to make any expenditure, incur any indebtedness, or proceed with the Project.
Section 3. The City Manager of the City of Redlands, and his or her designee, is hereby
authorized and directed to act on behalf of the City of Redlands in all matters pertaining to the
financing from IBank, and the execution of related financial documents, including but not
limited to, the authority to: (1) pledge the revenues of the Solid Waste Fund, for the repayment
of an obligation whose proceeds are used to finance a City street project, on a parity basis with
the City of Redland's obligations in connection with the Installment Sale Agreement, by and
between the Borrower and IBank, dated as of March 2, 2015, to the repayment of the Obligation;
(2) provide covenants relating to, among other things, maintaining the debt service coverage
ratio required by IBank, the rates and charges to be pledged, and as to any other security or
collateral securing the Obligation; and (3) take any other action necessary or desirable to enable
the Borrower to enter into the Financing Agreements and incur the Obligation.
Section 4. If the Obligation is approved by IBank, the City Manager of the City of
Redlands, and his or her designee, is authorized to negotiate, enter into and sign financing
documents and any amendments thereto, including, but not limited to the Financing Agreements
and the Replacement Agreements, with IBank for the purpose of financing the Obligation.
Section 5. This resolution shall become effective iim-mediately upon adoption.
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ADOPTED, SIGNED AND APPROVED this 15th day of March, 2016.
Paul W. Foster, Mayor
ATTEST:
Sain lrw' City Clerk
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1, Sam Irwin, City Clerk of the City of Redlands, hereby certify that the foregoirig resolution was
duly adopted by the City Council at a regular meeting thereof held orI the 15th day of March,
2016, by the following vote:
AYES: Councilmembers Harrison, Gilbreath, Baricti, James; Mayor Foster
NOES: None
ABSENT: None
ABSTAIN: None
A4,
Sam Irwin, City Clerk
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