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HomeMy WebLinkAboutResolution - FA 16-01STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF SAN JACINTO ) RESOLUTION NO. FA 16-01 RESOLUTION OF THE BOARD OF DIRECTORS OF THE SAN JACINTO FINANCING AUTHORITY, APPROVING THE FORM OF AN ESCROW AGREEMENT AND APPROVING OTHER RELATED DOCUMENTS AND ACTIONS WHEREAS, bonds have been issued for the City of San Jacinto Community Facilities District No. 2002-1, County of Riverside, State of California (the "District") as City of San Jacinto Community Facilities District No. 2002-1, 2002 Special Tax Bonds outstanding in the aggregate principal amount of $19,549,817.11 (the "Prior Special Tax Bonds"); and WHEREAS, the Authority issued its $17,841,416.76 2002 Local Agency Revenue Bonds, Series A (Tranches A through D) (the "Authority Bonds"); and WHEREAS, the City Council (the "City Council") of the City of San Jacinto (the "City") has been advised that it may be possible to issue bonds of the District for the purpose of refunding the outstanding Prior Special Tax Bonds, at interest rates that will result in a net present value savings of 3% or more from the interest rates on the currently outstanding Prior Special Tax Bonds and to thereby provide savings to the property owners in the District through reduced special taxes that will be levied on parcels of taxable property in the District to pay the principal of and interest on the refunding bonds (the "Refunding Bonds"); and WHEREAS, upon the issuance of the Refunding Bonds of the District and the deposit of the appropriate portion of the proceeds of the sale of such Refunding Bonds in the redemption fund, such Prior Special Tax Bonds and the Authority Bonds will be defeased and the property in the District will no longer be subject to the levy of special taxes to pay debt service on such outstanding Prior Special Tax Bonds, but will instead be subject to the levy of special taxes to pay debt service on the Refunding Bonds; and WHEREAS, there has also been made available to the Board of Directors a form of escrow agreement (the "Escrow Agreement") to be executed and delivered by the Authority and the City with respect to the defeasance and redemption of the Prior Special Tax Bonds and the Authority Bonds, whereby the escrow agent thereunder will receive a portion of the proceeds of the sale of the Refunding Bonds and certain funds related to the Prior Special Tax Bonds and the Authority Bonds that will be deposited in the redemption fund to provide for the defeasance and redemption of the Prior Special Tax Bonds and the Authority Bonds and will perform certain other duties; and WHEREAS, the Board of Directors has considered the form of the Escrow Agreement and has determined that it is in the best interest of the owners of property in and the residents of the District, that the Board of Directors authorize the execution and delivery of said agreements, subject to the conditions hereinafter contained; 24438.70023\24407560.2 1 NOW, THEREFORE, BE IT RESOLVED, determined and ordered by the Board of Directors of the San Jacinto Financing Authority, as follows: Section 1. Approval of Escrow Agreement. The form of the Escrow Agreement which provides for (i) the defeasance and redemption of the Prior Special Tax Bonds and the Authority Bonds, (ii) the creation and administration by the Escrow Agent of the Escrow Fund for the benefit of the owners of Prior Special Tax Bonds and the Authority Bonds, and (iii) the performance of other duties by the Escrow Agent, is approved in the form provided on file with the Secretary, and the Executive Director, the Finance Director or Treasurer are each individually authorized to execute and deliver, on behalf of the Authority, such Escrow Agreement with respect to the Prior Special Tax Bonds and the Authority Bonds. Section 2. Further Action. The Chairman, the Executive Director, the Finance Director and Treasurer are authorized to take any and all action with respect to the execution and delivery of the Escrow Agreement, in order for the authorization and direction provided in this resolution to be carried out. Section 3. Effect. This resolution shall take effect immediately upon its passage. PASSED, APPROVED, and ADOPTED this 2nd day of February, 2016 by the following vote: Ayes: Bartel, Ledezma, Miller, Ruiz, Kotyuk Nays: None Absent: None Abstain: None ATTEST: Pe gr terim Secretary San Jacinto Financing Authority Andrew F. Kotyuk, Chair 24438.70023124407560 2 2 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF SAN JACINTO ) I, Peggy J. Johns, Interim Secretary of the San Jacinto Financing Authority. DO HEREBY CERTIFY that the foregoing Resolution No. FA 16-01 was passed, approved, and adopted at a Special Meeting of the San Jacinto Financing Authority held on the 2nd day of February, 2016 Ayes: Bartel, Ledezma, Miller, Ruiz. Kotyuk Nays: None Absent: None Abstain: None WITNESS MY HAND AND OFFICIAL SEAL this 2nd day of February, 2016. nterim secretary ncing Authority 24438.70023124407560.2 3