r-10553City Council Meeting: December 14, 2010 Santa Monica, California
RESOLUTION NUMBER 10553 (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA APPROVING THE ISSUANCE OF
REVENUE OBLIGATIONS BY THE CALIFORNIA MUNICIPAL FINANCE
AUTHORITY TO BENEFIT NEW ROADS SCHOOL,
NEW VISIONS FOUNDATION, AND/OR A RELATED ENTITY
WHEREAS, pursuant to Chapter 5 of Division. 7 of Title 1 of the California
Government Code (the "Act"), certain public agencies, including the .City of Santa
Monica (the "City") (collectively, 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 in order to exercise any powers common to the Members,
including the issuance of bonds, notes or other evidences of indebtedness; and
WHEREAS, .New Roads School, New Visions Foundation, and/or a related entity,
each a nonprofit public benefit corporation organized and existing under the laws of the
State of California (collectively, the "Borrower"), has requested that the Authority issue
and sell, from time to time pursuant to a plan of finance, revenue obligations in the
maximum principal amount of $14;000,000 (the "Obligations") for the purpose of making
a loan to the Borrower, to enable the Borrower to finance the costs of the acquisition,
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construction, improvement, furnishing and .equipping of educational facilities (the
"Project"); and
WHEREAS, in order for the interest on the Obligations 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 governmental unit, having jurisdiction over the
area in which the Project to be financed with the proceeds of the Obligations is located,
hold a public hearing on the issuance of the Obligations and approve the issuance of
the Obligations following such hearing; and
WHEREAS, the Project is located. within the City and the Authority has
determined that the City Council of the City (the "City Council") is an "applicable elected
representative" for purposes of holding such hearing; and
WHEREAS, the Authority has requested that the City Council approve the
issuance of the Obligations 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
WHEREAS, notice of such public hearing has been duly given as required by the
Code, and this City Council has heretofore held such public hearing at which all
interested persons were given an opportunity to be heard on all matters relative to the
financing of the Project and the Authority's issuance of the Obligations therefor; and
WHEREAS, it is in the public interest and for the public benefit that the City
Council approve the issuance of the Obligations by the Authority for the aforesaid
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purposes;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SANTA MONICA AS FOLLOWS:
SECTION 1. The City Council hereby approves the issuance of the Obligations
by the Authority. It is the purpose and intent of the City Council that this Resolution
constitute approval of the issuance. of the Obligations (i) by the "applicable elected
representative" of the governmental unit having jurisdiction over the area in which the
Project is located in accordance with Section 147(f) of the Code, and (ii) by the City
Council in accordance with Section 4 of the Agreement.
SECTION 2. The issuance of the Obligations shall be subject 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 or liability whatsoever with respect to the
Obligations.
SECTION 3. The adoption of this Resolution shall not obligate the City or any
department thereof to (i) provide any financing to acquire or construct the Project or any
refinancing of the Project; (ii) approve any application or request for or take any other
action in connection with any planning approval, permit or other action necessary for the
acquisition, rehabilitation or operation of the Project; (iii) make any contribution or
advance any funds whatsoever to the Authority; or (iv) take any further action with
respect to the Authority or its membership therein.
SECTION 4. The Mayor, the City Clerk and all other proper officers and officials
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of the City are hereby authorized and directed to execute and deliver any and all such
other agreements, documents and certificates, ahd to perform such other acts and
deeds, as may be necessary or convenient to effect the purposes of this Resolution and
the transactions herein authorized.
SECTION 5. The City Clerk shall forward a certified copy of this Resolution to
the Authority in care of its counsel as follows:
Harriet M. Welch, Esq.
Squire, Sanders & Dempsey LLP.
555 South Flower St., Suite 3100
Los Angeles, CA 90071-2300
SECTION 6. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
M H NES UTRIE
City Atto n y
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1c~
Adopted and approved this~t~' day of December, 2010.
Ri and Bloom, Mayor
I, Maria M. Stewart, City Clerk of the City of Santa Monica, do hereby certify that
the foregoing Resolution No. 10553 (CCS) was duly adopted at a meeting of the Santa
Monica Gity Council held on the 14th day of December, 2010, by the following vote:
Ayes: Councilmembers: Holbrook, McKeown, O'Connor O'Day,
Mayor Pro Tem Davis, Mayor Bloom
Noes: Councilmembers: None
Abstain: Councilmembers: None
Absent: Councilmembers: Shriver
ATTEST:
~...~
Maria M. Stewart, Gity Clerk