R-10526ATTACHMENT A
City Council Meeting: September 14, 2010 Santa Monica, California
RESOLUTION NUMBER 10526 (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA APPROVING, AUTHORIZING, AND
DIRECTING EXECUTION OF A JOINT EXERCISE OF POWERS AGREEMENT
RELATING TO THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY AND
APPROVING THE ISSUANCE OF REVENUE BONDS BY THE CALIFORNIA
MUNICIPAL FINANCE AUTHORITY TO BENEFIT CROSSROADS SCHOOL
FOR THE ARTS AND SCIENCES
WHEREAS, pursuant to Chapter 5 of Division 7 of Title 1 of the California
Government Code (the "Act"), certain public agencies (the "Members") have
entered into a Joint Exercise of Powers Agreement Relating to the California
Municipal Finance Authority, effective as of January 1, 2004 {the "Agreement"), in
order to form the California Municipal Finance Authority (the "Authority"), for the
purpose of promoting economic, cultural and community development, and to
exercise any powers common to the Members, including the issuance of bonds,
notes or other evidences of indebtedness; and
WHEREAS, the City of Santa Monica, California (the "City"), has
determined that it is in the public interest and for the public benefit that the City
become a Member of the Authority in order to facilitate the promotion of
economic, cultural and community
development activities in the City, including the financing of projects therefor by the
Authority; and
WHEREAS, the Agreement has been filed with the City; and the members of the
Gity Gouncil, with the assistance of Gity staff, have reviewed the Agreement; and
WHEREAS, Crossroads School for the Arts and Sciences, a nonprofit public
benefit corparation organized and existing under the laws of the State of California {the
':Borrower"} .has requested that the Authority issue and sell revenue bonds in the
maximum principal amount of ~14,flflfl,000 {the "Bonds"} for the purpose of making a
loan to the Borrower. to enabke the Borrower to finance or refinance the costs of the
acquisition, construction and improvement of educational facilities {the "Project"}; and
WHEREAS, in order for the interest on the Bonds to be tax-exempt, Section
147{f} of the internal Revenue Code of 1986, as amended {the "Code"}; requires that an
`:applicable elected representative" of the governr-nental unit, having jurisdiction over the
area in which the Project to be financed with the proceeds of the Bonds is located, hold
a public hearing on the issuance of the Bonds and approve the issuance of the Bonds
following such hearing; and
WHEREAS, the Project is located within the City and the Authority has
determined that the City Council of the City is an "applicable elected representative" for
purposes of holding such hearing; and
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V416-€EREAS; the Authority has requested that the City Council approve the
issuance of the Bands by the Authority in order to satisfy the public approval
requirement of Section 147{f} of the Code and the requirements of Section 4 of the
Agreement; and
WHEF2EAS, notice o€ such public hearing has been duly given as required by the
Code, and the City Council has heretofore held such public hearing at which a!I
interested persons were given an opportunity to be heard on a!I matters relative to the
financing or refinancing of the F'rojeot and the Authority`s issuance o€ the Bonds
therefor: and
V~IHEREAS, it is in the publio interest and for the public benefit that the City
Council approve the issuance o€ the Bonds by the Authority for the aforesaid purposes.
NOUV, THEREFORE, THE CITY COUNCIL OF TFiE CITY OF SANTA MONlCA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The Agreement is hereby approved and the City lvlanager is hereby
authorized and .directed to execute said document; and the City CEerk or such Clerk's
designee is hereby authorized and directed to attest thereto.
SECTION 2. The City Counoil hereby approves the issuance o€ the Bonds by the
Authority. !t is the purpose and intent of the City Counci€ that this F2esolution constitute
approval of the issuance of the Bonds {i} by the "applicable elected representative" of
the governmental unit having jurisdiction over the area in which the Project is located in
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accordance with Section 147{f) of the Code, and {ii) by the City Council in accordance
with Section 4 of the Agreement.
SECTIt3hl 3. The issuance of the Bonds shall be subjeot to the approval of the
Authority of all financing documents relating thereto to which the Authority is a party.
The City shall have no responsibility car liab8ity whatsoever with respect to the Bonds.
SI=CTIQ~I 4. The adoption of this Resolution shall nat obligate the City or any
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SECTIflf~ 6, The City Clerk shall forward a certified copy of this Resolution and
an originally executed Agreement to the Authority in care of its counsel as follows:
Flarriet . Welch, Esq.
Squire, Sanders & ®empsey LI_!'
555 South Flower St., Suite 3900
Los Angeles, CA 9007-2300
SECTI(3f~ 7. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shalB be in full force and effect.
APPROVEt~ AS Tfl F{)RM:
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Ciiy ttor ey
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Adopted and approved this 14t" day of
0.
t ~IZ-
Bobby Striver, Mayor
I, Maria M. Stewart, City Clerk of the City of Santa Monica, do hereby certify that
the foregoing Resolution No. 10526 (CCS) was duly adopted at a meeting of the Santa
Monica City Council held on the 14th day of September, 2010, by the following vote:
Ayes: Councilmembers: Bloom, Davis, Holbrook, McKeown
Mayor Shriver, Mayor Pro Tem O'Connor
Noes: Councilmembers: None
Abstain: Councilmembers: None
Absent: Councilmembers: O'Day
ATTEST:
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Maria M. Stewart, ity Clerk