2018/01/23 City Council Resolution 2018-013RESOLUTION NO. 2018-013
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROHNERT PARK APPROVING THE REFUNDING OF THE
ROHNERT PARK FINANCING AUTHORITY LEASE
REVENUE REFUNDING BONDS, SERIES 2003,
AUTHORIZING AN APPROPRIATION IN CONNECTION
THEREWITH, AND AUTHORIZING THE DELIVERY OF
CERTAIN DOCUMENTS AND THE UNDERTAKING OF
CERTAIN ACTIONS IN CONNECTION THEREWITH
WHEREAS, the Rohnert Park Financing Authority (the "Authority") issued its Lease
Revenue Refunding Bonds, Series 2003 (the "2003 Bonds") pursuant to a Trust Agreement dated as
of July 1, 2003 (the "Trust Agreement"), by and between the Authority and MUFG Union Bank,
N.A., formerly known as Union Bank of California, N.A., as trustee (the "Trustee"); and
WHEREAS, the payments of principal of and interest on the 2003 Bonds are secured by
(i) certain payments required to be made by the City of Rohnert Park, a municipal corporation (the
"City"), under that certain instrument entitled "Facilities Lease" dated as of July 1, 2003, by and
between Authority and the City (the "Facilities Lease"), and (ii) certain payments required to be
made by the Successor Agency to the Community Development Commission of the City of Rohnert
Park (the "Successor Agency") under that certain Second Amendment to Reimbursement Agreement,
dated as of July 1, 2003 (the "2003 Loan Agreement'), by and between the City and the Community
Development Commission of the City of Rohnert Park. Under the 2003 Loan Agreement, the
Community Development Commission of the City of Rohnert Park was obligated to pay ninety
percent (90%) of the amounts payable under the Facilities Lease (the "Successor Agency Portion"),
with the remaining ten percent (10%) of amounts payable under the Facilities Lease (the "City
Portion") payable by the City; and
WHEREAS, following the enactment of ABxl 26 (the "Dissolution Act') and in connection
with the implementation of the Dissolution Act, the Community Development Commission of the
City of Rohnert Park was dissolved and the Successor Agency became the successor thereto, thereby
becoming responsible for the payment of the Successor Agency Portion; and
WHEREAS, the Successor Agency has determined to issue its Tax Allocation Refunding
Bonds, Series 2018A and Tax Allocation Refunding Bonds, Series 2018B (Federally Taxable) (the
"2018 Bonds") for the purpose of prepaying and defeasing the amounts payable under the Facilities
Lease (which constitute the Successor Agency Portion), which (together with the City Portion to be
appropriated and disbursed as authorized by this Resolution) will cause the redemption and
defeasance of the 2003 Bonds and payment in full of the 2003 Bonds and any other amounts due
under the Trust Agreement; and
WHEREAS, in order to effect prepayment and defeasance of the amounts payable under the
Facilities Lease, which is necessary to effect the redemption and defeasance of the 2003 Bonds and
accomplish payment in full of the 2003 Bonds and any other amounts due under the Trust
Agreement, it is necessary that the City appropriate and disburse the City Portion to the Trustee; and
WHEREAS, the City Council approves the appropriation and disbursement of the City
Portion to the Trustee and such actions as are necessary and convenient to the redemption and
defeasance of the 2003 Bonds;
BE IT RESOLVED by the City Council of the City of Rohnert Park that it does hereby
resolve as follows:
Section 1. Recitals. The recitals set forth above are true and correct and are
incorporated into this Resolution by this reference.
Section 2. Approval of Prepayment of 2003 Loan Agreement, the Facilities Lease
and the 2003 Bonds and Redemption or Payoff of Bonds. The City Council approves the
refunding of the 2003 Bonds and appropriates and authorizes disbursement of the City Portion, in an
amount to be determined by the Finance Director/City Treasurer, to the Trustee in order to effectuate
the defeasance and redemption of the 2003 Bonds. City staff is hereby directed and authorized to
enter into any documents and undertake any actions required in order to effect the prepayment of the
2003 Loan Agreement and the Facilities Lease and the redemption or payoff of the 2003 Bonds
consistent with the terms hereof. To this end, each of the Mayor, the City Manager, the Finance
Director/City Treasurer and other appropriate officers of the City, acting alone, is authorized and
directed, jointly and severally, to do any and all things and to execute and deliver any and all
documents and contracts that they may deem necessary or advisable in order to accomplish the
purposes of this Resolution, including the execution and delivery of an escrow agreement and/or
redemption and defeasance instructions to the Trustee.
Section 3. Treatment of 1990 Loan Agreement. The City agrees that the payments
due to the City under Amended and Restated Loan Agreement No. 2, dated February 27, 1990, by
and between the City and the Successor Agency, as successor to the Community Development
Agency of the City of Rohnert Park, shall be paid from tax increment revenues on a subordinate basis
to the 2018 Bonds.
Section 4. Effective Date. This Resolution shall take effect immediately upon its
adoption.
DULY AND REGULARLY ADOPTED this 23rd day of January, 2018.
CITY OF ROHNERT PARK
Pam Stafford, May
TEST:
Jo nne Buergler, City Clerk
AIIANOTII: A e BFLFVRTE: A�e MACKENZIE: i _ C'ALLINAN: Aqe STAFFORD:
AYES: ( 15 ) NOES: ( 0) ABSENT: ( CD) ABSTAIN: ( C) )
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