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HomeMy WebLinkAboutCity Council - 2015-62 RESOLUTION NO. 2 015-6 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH TO APPLY FOR FINANCING TO FUND THE STREETLIGHT ACQUISITION AND RETROFIT PROJECT FROM THE CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK WHEREAS, the California Infrastructure and Economic Development Bank("lBank") administers financing programs to assist local governments with the financing of eligible projects in accordance with in Section 63000 et seq of the California Government Code (the "Act"); and lBank created the California Lending for Energy and Environmental Needs Center ("CLEEN Center") pursuant to the provisions of the Act; and, The IBank's Criteria, Priorities and Guidelines for the Selection of Projects for IBank Financing under the California Lending for Energy and Environmental Needs Center, approved on August 25, 2015, as amended from time to time (the "Criteria"), establishes requirements for the financing of projects pursuant to various programs under the CLEEN Center; and The City of Huntington Beach("Borrower"), is seeking financing for the costs of acquisition and LED retrofitting of certain of the Borrower's street lights ("Project") in an amount not to exceed $7,769,350, and The Act and the Criteria require the Borrower to make, by resolution of its governing body, certain findings prior to a Project being selected for financing by IBank; and The Borrower reasonably expects that a financing arrangement("Obligation") in an amount not expected to exceed $7,769,350 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 The Borrower acknowledges that IBank intends to fund its various programs under the CLEEN Center, in part, with the proceeds of tax exempt bonds and, as such, expects to have 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. 15-4948/127143 doc I Resolution No . 2015-62 NOW, THEREFORE,the City Council of the City of Huntington Beach does hereby resolve as follows, 1 The City Council hereby approves the actions of the Borrower's representatives heretofore taken with respect to submitting an application for financing for the Project, and in connection therewith finds and certifies that- 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 Huntington Beach, and any elements of the General Plan of Orange County that are applicable to the Borrower and the Project; d The proposed financing is appropriate for the Project; e. The Project is consistent with the Criteria; and f. 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, (iii) whether the project is consistent with, and in furtherance of the State Environmental Goals and Policy Report (as defined in the Criteria); and(iv) whether the Project is in furtherance of the GHG Reduction Goals (as defined in the Criteria). 2. Pursuant to its resolution No. 2015-56 dated October 5, 2015, the Borrower previously declared 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 was made solely for purposes of establishing compliance with applicable requirements of Federal Tax Law and its date is controlling for purposes of reimbursement under Federal Tax Law. Such declaration did not and does not bind the Borrower to make any expenditure, incur any indebtedness, or proceed with the Project. 15-4948/127143.doc 2 Resolution No . 2015-62 3 The City Manager and his or her designee is hereby authorized and directed to act on behalf of the City of Huntington Beach in all matters pertaining to its application for financing from the IBank, and the execution of related financial documents including, but not limited to, the authority pledge Borrower revenues to the repayment of the Obligation and to provide covenants relating to the Obligation and as to any other security or collateral securing the Obligation 4. If the Obligation is approved by the IBank, the City Manager and his or her designee is authorized to enter into and sign financing documents and any amendments thereto, including, but not limited to the Financing Agreements and the Replacement Agreements, with the IBank for the purpose of financing the Obligation. 5. Resolution No. 2015-56 is hereby repealed. 6. This resolution shall become effective immediately upon adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 19 t h day of October , 2015. yor REVIEW D APPROVED: APPROVED AS RM. Ci y anager City Attorney Nkv -15-O.-1 j INI TE AND PPR ED. Assistan anager 15-4948/127143 doc 3 Res. No. 2015-62 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L FLYNN the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven, that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a Regular meeting thereof held on October 19, 2015 by the following vote AYES: Posey, O'Connell, Katapodis, Hardy, Sullivan, Delgleize, Peterson NOES: None ABSENT: None ABSTAIN: None City rk and ex-officio erk of the City Council of the City of Huntington Beach, California i