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HomeMy WebLinkAbout2009-10-27 - AGENDA REPORTS - CHILD AND FAMILY CENTER BONDS (2)PUBLIC HEARING DATE: SUBJECT: DEPARTMENT Agenda Item: CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval: Item to be presented by: October 27, 2009 13 ISSUANCE OF BONDS BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY FOR THE CHILD & FAMILY CENTER Administrative Services RECOMMENDED ACTION City Council conduct a public hearing and adopt a resolution approving the issuance of bonds by the California Statewide Communities Development Authority for the Child & Family Center. BACKGROUND; The Child & Family Center (the "Applicant") has submitted to the California Statewide Communities Development Authority ("CSCDA") an application (the "Application") for the refinancing of certain outpatient mental healthcare facilities (the "Project") through the issuance of tax-exempt obligations in an aggregate principal amount not to exceed $4,300,000. The Project will utilize the bonds to refinance the acquisition, construction, rehabilitation, and improvement of property, including real and personal property, to be used as, or as part of, a community mental health clinic at its facility located at 21545 Center Pointe Parkway to the City of Santa Clarita. CSCDA is a joint exercise of powers authority consisting of over 500 California cities, counties and special districts, including the City of Santa Clarita. CSCDA, pursuant to its Amended and Restated Joint Exercise of Powers Agreement, is authorized to assist in the financing of facilities for nonprofit organizations. In order to initiate such a financing, the member participant of California Statewide Communities Development Authority in which the proposed facilities will be located must 1) conduct a public hearing, and 2) approve the CSCDA's issuance of indebtedness. Therefore, although California Statewide Communities Development Authority will be the issuer of the Adopted.,, tax-exempt revenue obligations for the Applicant, the financing cannot proceed without the City of Santa Clarita's approval of the financing. ALTERNATIVE ACTIONS Other action as determined by Council. FISCAL IMPACT The Borrower is The Child & Family Center and shall be responsible for the payment of all present and future costs in connection with the issuance of the obligations. The payment of the principal and purchase price of and interest on the obligations shall be solely the responsibility of the Borrower. The obligations shall not constitute a debt or obligation of California Statewide Communities Development Authority or the City. ATTACHMENTS Resolution Approving the Issuance of Bonds by the California Communities Development Authority for The Child & Family Center FI CITY OF SANTA CLARITA NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that a public hearing will be conducted by the City Council (the "City Council") of the City of Santa Clarita (the "City") on October 27, 2009, at 6 o'clock p.m., or as soon thereafter as the matter may be heard, at the Santa Clarita City Hall, Council Chambers, 23920 Valencia Blvd., 1 st Floor, Santa Clarita, California, 91355, concerning the issuance by California Statewide Communities Development Authority (the "Issuer") of its tax-exempt obligations in an aggregate principal amount not expected to exceed $4,300,000 (the "Obligations"). Proceeds of the Obligations are to be made available to Child & Family Center, a nonprofit public benefit corporation described in Section 501(c)(3) of the Internal Revenue Code of 1986, or an affiliate (the "Borrower"), to prepay all of the outstanding principal amount of the Issuer's 501(c)(3) Land, Building and Equipment Program Notes (Child & Family Center Project), Series 2005-2A and Series 2005-213, the proceeds of which were used to finance and refinance the acquisition, construction, rehabilitation and improvement of real and personal property used as a part of the Borrower's community mental health clinic providing counseling, substance abuse services, treatment, education and therapy of emotional and behavioral problems for children and families, which is owned and used by the Borrower and located at 21545 Centre Pointe Parkway, Santa Clarita, California. Neither the faith and credit nor any taxing power of the City, the Authority, the State of California (the "State") or any other political corporation, subdivision or agency of the State is pledged to the payment of the principal of or premium, if any, or interest with respect to the Obligations, nor shall the County, the State or any other political corporation, subdivision or agency of the State be liable or obligated to pay the principal of or premium, if any, or interest on the Obligations. The public hearing is intended to comply with the public approval requirements of Section 147(f) of the Internal Revenue Code of 1986. Those wishing to comment on the Obligations or on the nature and location of the facilities to be refinanced may either appear in person at the time and place indicated above or submit written comments, which must be received prior to the public hearing at the address indicated above. Dated: October 9, 2009 Sharon L. Dawson, MMC City Clerk Publish Date: October 13, 2009 S\uta\pubk I Itanngs\09 Child family not - hnal dnt m RESOLUTION 09- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, APPROVING THE ISSUANCE OF TAX-EXEMPT OBLIGATIONS BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY FOR THE PURPOSE OF REFINANCING THE ACQUISITION, CONSTRUCTION, REHABILITATION, AND IMPROVEMENT OF PROPERTY, INCLUDING REAL AND PERSONAL PROPERTY, TO BE USED AS, OR AS PART OF, A COMMUNITY MENTAL HEALTH CLINIC AND CERTAIN OTHER MATTERS RELATED THERETO WHEREAS, pursuant to the Joint Powers Act, comprising of Article 1, Article 2 and Article 3 of Chapter 5 of Division 7 of Title 1 (commencing with Section 6500) of the Government Code of the State of California, a number of California cities and counties ("Program Participants"), including the City of Santa Clarita, California (the "City" or "Local Government Participant"), have entered into an Amended and Restated Joint Exercise of Powers Agreement dated as of June 1, 1988 (the "Joint Powers Agreement"), under which the California Statewide Communities Development Authority ("Issuer") was organized; and WHEREAS, the Issuer is authorized by the Joint Powers Agreement to issue bonds, notes or other evidences of indebtedness, or certificates of participation in leases or other financing agreements, in order to promote economic development; and WHEREAS, the Issuer is also authorized, by a resolution adopted March 21, 1991, to issue bonds, notes or other evidences of indebtedness, or certificates of participation in leases or other agreements to finance or refinance facilities owned and operated by organizations described in Section 501(c)(3) of the Internal Revenue Code of 1986 and which are determined by the Issuer to satisfy the criteria set forth in the resolution. In 1991, the California Superior Court entered a judgment validating the resolution (and therefore the Issuer's authority to act as an issuer in Section 501(c)(3) financings); and WHEREAS, Section 147(f) of the Internal Revenue Code of 1986 (the "Code") requires that the proposed "financing be approved by a governmental unit having jurisdiction over the area in which the project to be financed is located or is to be located. A financing will be treated as having been approved by a governmental unit if it is approved "by the applicable elected representative of such governmental unit after a public hearing following reasonable public notice" and WHEREAS, Child & Family Center (the "Borrower") has requested that the Issuer issue its notes, bonds or any other evidence of indebtedness (the "Obligations") in an aggregate principal amount not expected to exceed the Maximum Principal Amount of $4,300,000 for the purpose of providing funds to refinance the acquisition, construction, rehabilitation, and improvement of property, including real and personal property, to be used as, or as part of, a community mental health clinic (the "Project') and pay related costs; and WHEREAS, the Issuer has requested that the governing body of the Local Government Participant approve the issuance of the Obligations and the Project in order to satisfy the public approval requirement of Section 147(f) of Code, and the requirements of Section 9 of the Joint Powers Agreement; and WHEREAS, there has been published, at least 14 days prior to the date hereof (the "Public Hearing Date"), in a newspaper of general circulation within the City, a notice that a public hearing regarding the issuance of the Obligations and the Project will be held on the Public Hearing Date; and WHEREAS, the Local Government Participant held a public hearing on the Public Hearing Date providing a reasonable opportunity for persons to comment on the issuance of the Obligations and the Project; and - WHEREAS, it is intended that this resolution shall constitute the approval of the issuance of the Obligations and the Project required by Section 147(f) of the Code, Section 9 of the Joint Powers Agreement and Section 91530(f) of the Government Code of the State of California. NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as follows: SECTION 1. The above recitals are true and correct. SECTION 2. The City Council hereby approves the issuance of the Obligations and the Project for the purposes of Section 147(f) of the Code and Section 9 of the Joint Powers Agreement. SECTION 3. This resolution shall take effect immediately upon its adoption. SECTION 4. The City Clerk shall certify the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED this day of , 2009. ATTEST: CITY CLERK MAYOR STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Sharon L. Dawson, MMC, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the day of 2009, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF CITY COUNCIL RESOLUTION I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do hereby certify that this is a true and correct copy of the original Resolution 09- adopted by the City Council of the City of Santa Clarita, California on , 2009, which is now on file in my office. Witness my hand and seal of the City of Santa Clarita, California, this day of , 2009. Sharon L. Dawson, MMC City Clerk By Susan Caputo, CMC Deputy City Clerk