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Home My WebLink AboutReso 2013-084 - RMU Main Terminal Renovations e . RESOLUTION NO. 2013-084 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING AN AGREEMENT FOR USE OF SHASTEC BOND FUNDS ON THE REDDING MUNICIPAL AIRPORT MAIN TERMINAL RENOVATION PROJECT WHEREAS, on February 1, 2012, the Redding Redevelopment Agency ("RRA") was dissolved pursuant to Health and Safety Code (HSC) Sections 34161 - 34166; and WHEREAS, pursuant to HSC Section 34173, by Resolution No. 2012-001, the City Council of the City of Redding elected to become the Successor Agency to the RRA ("Successor Agency"); and WHEREAS, HSC Section 341791.7, provides for the State Department of Finance ("DOF") to issue a Finding of Completion to successor agencies under certain conditions; and WHEREAS, on June 20, 2013, the DOF did issue a Finding of Completion to the Successor Agency; and ' WHEREAS, HSC Section 34191.4( c), provides, upon issuance of a Finding of Completion, that any remaining bond proceeds derived from bonds issued on or before December 31, 2010, shall be used for the purposes for which the bonds were sold; and WHEREAS, the Successor Agency has approximately $4 million in bond proceeds remaining from the 2006 SHASTEC Bond issued on August 2, 2006; and WHEREAS, the City of Redding has initiated a renovation of the Main Terminal Building at the Redding Municipal Airport; and WHEREAS, the Successor Agency desires to utilize $350,000 of the SHASTEC Bond proceeds for the City of Redding's Redding Municipal Airport Main Terminal Building Renovation Project (Project); and WHEREAS, the proposed Agreement for Use of SHASTEC Bond Proceeds between the Successor Agency and the City of Reddingprovides for the use ofthe bond proceeds on the Project. NOW, THEREFORE, IT IS RESOLVED that the City Council of the City of Redding hereby: 1. Approves the Agreement for Use of SHASTEC Bond Proceeds, attached hereto and made a part hereof. j) 1 ~ Q - W I a ~ e e I HEREBY CERTIFY that the foregoing resolution was introduced, read, and adopted at a regular meeting of the City Council of the City of Redding on the I ih day of September, 2013, by the following vote: AYES: NOES: ABSENT: ABSTAIN: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Cadd, Jones, McArthur, Sullivan, & Bosetti None None None 1tJt~~ RIC BOSETTI, Mayor ATTEST.;" , .;.- ,:- . , ~ '1" ~", 1 . \ " I! ."_ .. , \.... ., I" ,_ \. ~ '. ~~.":;,.".,,. , ~~10'~ ~\ ,1 .' PAMELA MIZE, q }~~rl<. to . ...~ __ . .' I~ I . -. + \,.'" -- ~.I' f\ . '. ",:'. l. ......... \-\.... ... APPROVED AS TO FORM: ~~ RICHARD A. DUVERNAY, Ci N :\Staff Reports\20 13 St~ff Reports\Resolutions\CityResolutionAgrSHASTEC BondProceedsAirport.doc e e AGREEMENT FOR USE OF 2006 SHASTEC BOND PROCEEDS This Agreement For Use of 2006 SHASTEC Bond Proceeds ("Agreement") is entered into effective as of , 2013, ("Effective Date") by and between the City of Redding acting as Successor Agency to the former Redding Redevelopment Agency ("Successor Agency") and the City of Redding, a municipal corpomtion ("City"). The Successor Agency and the City are hereinafter collectively referred to as the "Parties." This Agreement is for the purposes of providing $350,000 of Successor Agency bond proceeds remaining from the 2006 SHASTEC Bond to the City to assist with the City of Redding Municipal Airport Main Terminal Building Renovation Project (Project) and is entered into, on the basis of the following facts, understandings and intentions of the Parties: RECITALS A. On February I, 2012, the Redding Redevelopment Agency ("'RRA") was dissolved pursuant to Health and Safety Code (HSC) Sections 34161- 34166. B. Pursuant to HSC Section 34173, by Resolution No. 2012~OOI,the City Council of the City of Redding elected to become the Successor Agency to the RRA. . C. HSC Section 341791.7, provides for the State Department of Finance ("DOF') to issue a .. Finding of Completion to successor agencies under certain conditions. I ! .1 i I ./ D. On June 20, 2013, the DOF did issue a Finding of Completion to the Successor Agency. E. HSC Section 34191.4(c), provides, upon issuance of a Finding of Completion, that any remaining bond proceeds derived from bonds issued on or before December 31, 2010, shall be used for the purposes for which the bonds were sold. F. The Successor Agency has approximately $4 million in bond proceeds remaining from the 2006 SHASTEC Bond issued on August 2, 2006. i I I I I I . G. In 2011, the City of Redding initiated a renovation of the Main Terminal Building at the Redding Municipal Airport. H. The Successor Agency desires to utilize $350,000 of the SHASTEC Bond proceeds for the City of Redding's Redding Municipal Airport Main Terminal Building Renovation Project (project). I I I "; i I. The use of the SHASTEC Bond Proceeds for the Project is consistent with the purposes for which the bonds were sold, that is, it will benefit the SHASTEC Project Area anq. will assist in the elimination of blight - . . i i i :.I "I -.1 I I :1 ! " , :, " J " i e e J. The Parties desire to enter into this Agreement to set forth the mutual responsibilities and obligations of the Parties relative to use of the bond proceeds on the Project. NOW, THERFORE, for good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties agree as follows: 1. SUCCESSOR AGENCY RESPONSIBILITIES AND OBLIGATIONS 1.1 Subject to the tenus and conditions of this Agreement, the Successor Agency hereby agrees to pay to the City the sum of Three Hundred and Fifty Thousand and Noll 00 Dollars ($350,000) for use by the City on the Project. 1.2 The source of the Successor Agency funding to be provided to City shall be bond proceeds from the 2006 SHASTEC Bond issuance. 1.3 The Successor Agency agrees to include the Project expenditure on its Recognized Obligation Payment Schedule 13-14B (UROPSI3-14B") and to submit ROPS13-14B to both its Oversight Board ("OB") and the California State Department of Finance (''DOF'') for their respective consideration and approval, no later than October I, 2013. 1.4 The timing of the Successor Agency payment to the City shall be following approval of ROPS13-14B and the expenditure by both the OB and DOF, but in no instance sooner than January 1,2014. 2. CITY RESPONSIBILITIES AND OBLIGATIONS 2.1 City entered into a ~nstruction contract in September 2011, with Danco Builders Northwest for the Project. 2.2 City has determined that the use of Successor Agency bond resources on the Project will allow the Project to be completed in a timely fashion as designed. 2.3 City agrees to utilize the Successor Agency bond funding exclusively for the completion of the Project in accordance with the terms and conditions of this Agreement. 3. TERM 3.1 The term of this Agreement shall begin on the Effective Date and end eighteen (18) months from that date, or upon acceptance by the City of the Project as complete. whichever occurs first. , > . I 1 ! i ! I ., I I 1 \ I -.f ( i i '.j i 1 i. ! <oj . ! ! .; . ! I i ! e e IN WITNESS WHEREOF. this Agreement has been executed as of the date set forth in the opening paragraph of this Agreement ArrEST: Pamela Mize. City Clerk ATTEST: Pamela Mize, City Clerk N:\Agreemenrs\City and SA Agreement for use ofSHASTEC Bonds.docx CITY OF REDDING Rick Bosetti. Mayor APPROVED AS TO FORM: Richard A. Duvernay, City Attorney By: CITY OF REDDING ACTING AS SUCCESSOR AGENCY TO THE FORMER REDDING REDEVELOPMENT AGENCY Rick Bosetti, Chair APPROVED AS TO FORM: Richard A. Duvernay, City Attorney By: