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HomeMy WebLinkAbout7/9/2008 - STAFF REPORTS - 1.D. @ppLMs 6 c ire City Council Staff Report DATE: July 9, 2008 PUBLIC HEARING SUBJECT: CONDUCTING A TEFRA (TAX EQUITY AND FISCAL RESPONSIBILITY ACT) HEARING FOR THE PROPOSED ISSUANCE OF TAX-EXEMPT MULTI-FAMILY HOUSING REVENUE BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY NOT TO EXCEED $13,000,000 AGGREGATE PRINCIPAL AMOUNT FOR THE BENEFIT OF THE COACHELLA VALLEY HOUSING COALIATION, A CALIFORNIA NON- PROFIT PUBLIC BENEFIT CORPORATION, FOR THE ACQUISITION, CONSTRUCTION AND DEVELOPMENT OF THE ROSA GARDENS APARTMENTS AT 3603 MC CARTHY ROAD IN THE DESERT-HIGHLAND GATEWAY ESTATES NEIGHBORHOOD; AND APPROVAL OF A JOINT POWERS AGREEMENT WITH THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY (CMFA) FROM: David H. Ready, City Manager BY: Department of Community & Economic Development SUMMARY These actions conduct the required TEFRA public hearing in conjunction with the proposed issuance by the California Municipal Finance Authority (the "CMFA"), a joint exercise of powers authority and public entity of the State of California, in an amount not to exceed $13,000,000 of tax-exempt multi-family housing revenue bonds (the 'Bonds"). The proceeds of the Bonds will be used for the purpose of making a loan to Coachella Valley Housing Coalition (the "CVHC"), a California non-profit public benefit corporation, or any limited partnership or limited liability company established by CVHC (the "Borrower")- The Borrower will finance the costs of the acquisition, construction and development of a 57-unit multi-family residential rental facility to be known as Rosa Gardens Apartments (the "Project') located on 4.45 acres at 3603 McCarthy Road in the Desert-Highland Gateway Estates Neighborhood. In addition, this action authorizes the City to execute a JPA Agreement with CMFA. RECOMMENDATION: 1) Open the Public Hearing under the requirements of TEFRA and the Internal Revenue Code of 1986, as amended (the "Code") for public testimony; 2) Approve Resolution No. , "AUTHORIZING THE ISSUANCE OF TAX- EXEMPT MULTI-FAMILY HOUSING REVENUE BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY NOT TO EXCEED $13,000,000 AGGREGATE PRINCIPAL AMOUNT FOR THE BENEFIT OF THE COACHELLA VALLEY HOUSING COALIATION, A CALIFORNIA NON-PROFIT PUBLIC BENEFIT CORPORATION, FOR THE ACQUISTION, CONSTRUCTION AND DEVELOPMENT OF THE ROSA GARDENS APARTMENTS AT 3603 MC CARTHY ROAD"; and ITEM N0. 2 City Council Staff Report July_, 2008—Page 2 of 2 Rosa Gardens Apartments' TEFRA Hearing 3) Authorize the Mayor, or designee thereof, to execute the Joint Exercise of Powers Agreement with California Municipal Finance Authority and all necessary documents in a form acceptable to the City Attorney. STAFF ANALYSIS: On February 20, 2008, the Community Redevelopment Agency of the City of Palm Springs approved an Owner Participation Agreement (OPA) with Coachella Valley Housing Coalition (CVHC) and the Desert Highland Associates, L.P., a California Limited Partnership, for the development of a 59-unit multi-family residential rental facility to be known as Rosa Gardens Apartments (the "Project") located on a 4.45 Acre at 3603 McCarthy Road in the Desert-Highland Gateway Estates Neighborhood. The project has recently been reduced to 57 units. The project will be a mix of one, two, three and four bedroom units and will include typical site amenities such as pool, community room, laundry, and tot lots. The project will also supply a variety of community services such as computer classes, after-school programs, ESL classes, health education, and music and arts programs. Common to all affordable housing developments, the financing structure will utilize a combination of Low Income Housing Tax Credits (LIHTC) through the California Tax Credit Allocation Committee (TCAC), tax-exempt bond financing authorized through the California Debt Limit Allocation Committee (CDLAC) and construction financing from the California Housing Finance Agency (CaIHFA). The project has already received commitments of State HOME Investment Partnership Program (HOME) and Multi Family Program (MFP) funding. FISCAL IMPACT: There is no fiscal impact to the City and issuance of the bonds does not obligate the City financially in any way, nor does it affect the City's bonding capacity for City-funded projects. The bonds would be repaid by CVHC through the rents received from the project_ b ak �94 JO N S. A M ND DALE E. CO K, JR. Dir ctor C mmun- & Econgmic Development Community Development Administrator THOMAS J. WILS DAVID H. READY Assistant City Manager— Development Services City Manager ATTACHMENT: 1. Resolution 2. CMFA Joint Exercise of Powers Agreement CaloClliousing/CVHC—RosaGardens_CC $taffReport—TEFRA Junoe 2 000002 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS AUTHORIZING THE ISSUANCE OF TAX-EXEMPT MULTI-FAMILY HOUSING REVENUE BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY NOT TO EXCEED $13,000,000 AGGREGATE PRINCIPAL AMOUNT FOR THE BENEFIT OF THE COACHELLA VALLEY HOUSING COALIATION, A CALIFORNIA NON-PROFIT PUBLIC BENEFIT CORPORATION, FOR THE ACQUISTION, CONSTRUCTION AND DEVELOPMENT OF THE ROSA GARDENS APARTMENTS AT 3603 MC CARTHY ROAD WHEREAS, the California Municipal Finance Authority (the "Authority") intends to issue tax-exempt obligations (the "Obligations") at the request of Coachella Valley Housing Coalition, a California nonprofit public benefit corporation, on behalf of and together with its successors or assigns or any limited partnership or limited liability company established by Coachella Valley Housing Coalition (the "Developer"), for the purpose, among other things, of making a loan to the Developer, the proceeds of which shall be used by the Developer to finance the acquisition, construction and development of a 57-unit multifamily housing rental facility to be known as Rosa Gardens Apartments and to be located at 3603 McCarthy Way in the City of Palm Springs, California (the "Project"); and WHEREAS, the City of Palm Springs (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 therefore by the Authority; and WHEREAS, there is now before the City Council of the City (the "City Council") the form of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the "Agreement"), among certain local agencies; and WHEREAS, the Agreement has been filed with the City, and the members of the City Council, with the assistance of its staff, have reviewed said document; and WHEREAS, the Obligations will be considered to be "qualified exempt facility bonds" under Section 142(a) of the Internal Revenue Code of 1986, as amended (the "Code"), and Section 147(f) of the Code requires that the "applicable elected representative" with respect to the City hold a public hearing on and approve the issuance of the Obligations; and WHEREAS, this City Council is the elected legislative body of the City; and WHEREAS, a notice of public hearing in a newspaper of general circulation in the City has been published, to the effect that a public hearing would be held by this City Council on the date hereof regarding the issuance of the Obligations by the Authority and the nature and location of the Project; and Da�Q�� Resolution No. Page 2 WHEREAS, on July 9, 2008 the City Council held said public hearing, at which time an opportunity was provided to present arguments both for and against the issuance of such Bonds and the nature and location of the Project, and WHEREAS, it is in the public interest and for the public benefit that the City approve the issuance and delivery of the Obligations for the purpose of financing the acquisition, construction and development of the Project; and WHEREAS, the City shall not have any liability for the repayment of the Obligations or any responsibility for the Project; THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council hereby finds and determines that the foregoing recitals are true and correct. SECTION 2. The City Council hereby approves the Agreement in substantially the form presented and subject to final approval of said agreement by the City Attorney and the City becoming a member of the Authority and hereby authorizes the Mayor to execute the Agreement to allow the City to become a member of the Authority. SECTION 3. The City Council hereby approves the issuance of the Bonds in an aggregate principal amount not to exceed $13,000,000 by the Authority. It is the purpose and intent of the City that this resolution constitute approval of the issuance of the Bonds (a) by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is to be located, in accordance with said Section 147(f) and (b) by the City in accordance with Section 4 of the Agreement. SECTION 4. The issuance of the Bonds 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 Bonds. SECTION 5. 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, construction 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 6. The Mayor, or designee thereof, the Clerk and all other proper officers and officials of the City are hereby authorized and directed to execute such other agreements, documents and certificates, and to perform such other acts and deeds, as may be necessary or000604 Resolution No. Page 3 convenient to effect the purposes of this Resolution and the transactions herein authorized. SECTION 7. The Clerk shall forward a certified copy of this Resolution and an originally executed Agreement to the Authority in care of its counsel: Harriet M. Welch, Esq. Squire, Sanders & Dempsey LLP 555 South Flower St., Suite 3100 Los Angeles, CA 90071-2300 SECTION 8. This resolution shall take effect upon its adoption. ADOPTED THIS day of July, 2008. David H. Ready, City Manager ATTEST: James Thompson, City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. _ is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California DaleC/Ho using/C V HC_RosaGe rde ns_CC_Reso_TE FRA.J un08 000OCr JOINT EXERCISE OF POWERS AGREEMENT RELATING TO THE CALIFORNIA MUNICIPAL FINANCI: AUTHORITY THIS AGREEMENT. dated as of January 1, 2004, among the parties executing this Agreement (all such parties, except those which have withdrawn as provided herein, are referred to as the "Members" and those parties initially executing this Agreement are referred to as the "Initial Members"): WITNESSETH WHEREAS, pursuant to Title I, Division 7, Chapter 5 of the California Government Code (in effect as of the date hereof and as the same may from time to time be amended or supplemented, the "Joint Exercise of Powers Act"), two or more public agencies may by agreement jointly exercise any power common to the contracting parties; and WHEREAS, each of the Members is a "public agency" as that term is defined in Section 6500 of the Joint Exercise of Powers Act; and WHEREAS, each of the Members is empowered by law to promote economic, cultural and community development, including, without limitation, the promotion of opportunities for the creation or retention of employment, the stimulation of economic activity, the increase of the tax base, and the promotion of opportunities for education, cultural improvement and public health, safety and general welfare; and WHEREAS, each of the Members may accomplish the purposes and objectives described in the preceding preamble by various means, including through making grants, loans or providing other financial assistance to governmental and nonprofit organizations; and WHEREAS, each Member is also empowered by law to acquire and dispose of real property for a public purpose; and WHEREAS, the Joint Exercise of Powers Act authorizes the Members to create a joint exercise of powers entity with the authority to exercise any powers common to the Members, as specified in this Agreement and to exercise the additional powers granted to it in the Joint Exercise of Powers Act and any other applicable provisions of the laws of the State of California,- and WHEREAS, a public entity established pursuant to the Joint Exercise of Powers Act is empowered to issue or execute bonds, notes, commercial paper or any other evidences of indebtedness, including leases or installment sale agreements or certificates of participation therein (herein "Bonds"), and to otherwise undertake financing programs under the Joint Exercise of Powers Act or other applicable provisions of the laws of the State of California to accomplish its public purposes; and WHEREAS, the Members have determined to specifically authorize a public entity authorized pursuant to the Joint Exercise of Powers Act to issue Bonds pursuant to the Joint Exercise of Powers Act or other applicable provisions of the laws of the State of California; and WHEREAS, it is the desire of the Members to use a public entity established pursuant to the Joint Exercise of Powers Act to undertake the financing and/or refinancing of projects of any nature, including, but not limited to, capital or working capital projects, insurance, liability or retirement programs or facilitating Members use of existing or new financial instruments and mechanisms; and WHEREAS, it is further the intention of the Members that the projects undertaken will result in significant public benefits to the inhabitants of the jurisdictions of the Members; and WHEREAS, by this Agreement, each Member desires to create and establish the "California Municipal Finance Authority" for the purposes set forth herein and to exercise the powers provided herein; NOW, THEREFORE, the Members, for and in consideration of the mutual promises and agreements herein contained, do agree as follows: Section 1. Purpose. This Agreement is made pursuant to the provisions of the Joint Exercise of Powers Act. The purpose of this Agreement is to establish a public entity for the joint exercise of powers common to the Members and for the exercise of additional powers given to a joint powers entity under the Joint Powers Act or any other applicable law, including, but not limited to, the issuance of Bonds for any purpose or activity permitted Linder the Joint Exercise of Powers Act or any other applicable law. Such purpose will be accomplished and said power exercised in the manner hereinafter set forth. Section 2. Term. This Agreement shall become effective in accordance with Section 17 as of the date hereof and shall continue in full force and effect until such time as it is terminated in writing by all the Members; provided, however, that this Agreement shall not terminate or be tenminated until all Bonds issued or caused to be issued by the Authority (defined below) shall no longer be outstanding under the terms of the indenture, trust agreement or other instrument pursuant to which such Bonds are issued. or unless a successor to the Authority assumes all of the Authority's debts, liabilities and obligastions. Section 3. Authority. A. CREATION AND POWERS OF AUTHORITY. Pursuant to the Joint Exercise of Powers Act, there is hereby created a public entity to be known as the "'Califomia Municipal Finance Authority" (the "Authority"), and said Authority shall be a public entity separate and apart from the Members. Its 000007 debts, liabilities and obligations do not constitute debts, liabilities or obligations of any Members. B. BOARD. The Authority shall be administered by the Board of Directors (the "Board," or the "Directors" and each a "Director") of the California Foundation for Stronger Communities, a nonprofit public benefit corporation organized under the laws of the State of California (the 'Toundation"), with each such Director serving in his or her individual capacity as a Director of the Board. The Board shall be the administering agency of this Agreement and, as such, shall be vested with the powers set forth herein, and shall administer this Agreement in accordance with the purposes and functions provided herein. The number of Directors, the appointment of Directors, alternates and successors, their respective terms of office, and all other provisions relating to the qualification and office of the Directors shall be as provided in the Articles and Bylaws of the Foundation, or by resolution of the Board adopted in accordance with the Bylaws of the Foundation. All references in this Agreement to any Director shall be deemed to refer to and include the applicable alternate Director, if any, when so acting in place of a regularly appointed Director. Directors may receive reasonable compensation for serving as such, and shall be entitled to reimbursement for any expenses actually incurred in connection with serving as a Director, if the Board shall determine that such expenses shall be reimbursed and there are unencumbered funds available for such purpose. The Foundation may be removed as administering agent hereunder and replaced at any time by amendment of this Agreement approved as provided in Section 16; provided that a successor administering agent of this Agreement has been appointed and accepted its duties and responsibilities under this Agreement. C. OFFICERS; DUTIES; OFFICIAL BONDS. The officers of the Authority shall be the Chair, Vice-Chair, Secretary and Treasurer (defined below). The Board, in its capacity as administering agent of this Agreement, shall elect a Chair, a Vice-Chair, and a Secretary of the Authority from among Directors to serve until such officer is re-elected or a successor to such office is elected by the Board. The Board shall appoint one or more of its officers or employees to serve as treasurer, auditor, and controller of the Authority (the "Treasurer") pursuant to Section 6505.6 of the Joint Exercise of Powers Act to serve until such officer is re-elected or a successor to such office is elected by the Board. Subject to the applicable provisions of any resolution, indenture, trust agreement or other instrument or proceeding authorizing or securing Bonds (each such resolution, indenture, trust agreement, instrument and proceeding being herein referred to as an "Indenture") providing for a trustee or other fiscal agent, and except as may otherwise be MOM specified by resolution of the Board, the 'Treasurer is designated as the depositary of the Authority to have custody of all money of the Authority, from whatever source derived and shall have the powers, duties and responsibilities specified in Sections 6505, 6505.5 and 6509.5 of the Joint Exercise of Powers Act. The Treasurer of the Authority is designated as the public officer or person who has charge of, handles, or has access to any property of the Authority, and such officer shall file an official bond with the Secretary of the Authority in the amount specified by resolution of the Board but in no event less than S1,000. The Board shall have the power to appoint such other officers and employees as it may deem necessary and to retain independent counsel, consultants and accountants. The Board shall have the power, by resolution, to the extent permitted by the Joint Exercise of Power Act or any other applicable law, to delegate any of its functions to one or more of the Directors or officers, employees or agents of the Authority and to cause any of said Directors, officers, employees or agents to take any actions and execute any documents or instruments for and in the name and on behalf of the Board or the Authority. D- MEUINGS OF THE BOARD. (1) Ralph M. Brown Act. All meetings of the Board, including, without limitation, regular, adjourned regular, special, and adjourned special meetings shall be called, noticed, held and conducted in accordance with the provisions of the Ralph M. Brown Act (commencing with Section 54950 of the Government Code of the State of California), or any successor legislation hereinafter enacted (the "Brown Act"). (2) Regular Meetings. The Board shall provide for its regular meetings; provided, however, it shall hold at least one regular meeting each year. The date, hour and place of the holding of the regular meetings shall be fixed by resolution of the Board. To the extent permitted by the Brown Act, such meetings may be held by telephone conference. (3) Special Meetings. Special meetings of the Board may be called in accordance with the provisions of Section 54956 of the Government Code of the State of California. To the extent permitted by the Brown Act, such meetings may be held by telephone conference. 000009 (4) Minutes. The Secretary of the Authority shall cause to be kept minutes of the regular, adjourned regular, special, and adjourned special meetings of the Board and shall, as soon as possible after each meeting, cause a copy of the minutes to be forwarded to each Director- (5) uorum. A majority of the Board shall constitute a quorum for the transaction of business. No action may be taken by the Board except upon the affirmative vote of a majority of the Directors constituting a quorum, except that less than a quorum may adjourn a meeting to another time and place. E. RULES AND REGULATIONS. The Authority may adopt, from time to time, by resolution of the Board such rules and regulations for the conduct of its meetings and affairs as may be required. Section 4. flowers. The Authority shall have the power, in its own name, to exercise the common powers of the Members and to exercise all additional powers given to a joint powers entity under any of the laws of the State of California. including, but not limited to, the Joint Exercise of Powers Act, for any purpose authorized under this Agreement. Such powers shall include the common powers specified in this Agreement and may be exercised in the manner and according to the method provided in this Agreement. The Authority is hereby authorized to do all acts necessary for the exercise of such power, including, but not limited to, any of all of the following: to make and enter into contracts; to employ agents and employees; to acquire, construct, provide for maintenance and operation of, or maintain and operate, any buildings, works or improvements; to acquire, hold or dispose of property wherever located; to incur debts, liabilities or obligations; to receive gifts. contributions and donations of property, funds, services, and other forms of assistance from person, firms, corporations and any governmental entity; to sue and be sued in its own name; to make grants, loans or provide other financial assistance to governmental and nonprofit organizations (e.g., the Members or the Foundation) to accomplish any of its purposes; and generally to do any and all things necessary or convenient to accomplish its purposes. Without limiting the generality of the foregoing, the Authority may issue or cause to be issued Bonds, and pledge any property or revenues as security to the extent pennitted under the Joint Exercise of Powers Act, or any other applicable provision of law; provided, however, the Authority shall not issue Bonds with respect to any project located in the jurisdiction of one or more Members unless the governing body of any such Member, or its duly authorized representative, shall approve, conditionally or unconditionally, the project, including the issuance of Bonds therefor. Such approval may be evidenced by resolution, certificate, order, report or such other means of written approval of such project as may be selected by the Member (or its authorized representative) whose approval is required. No such approval shall be required in 0006110 connection with Bonds that refund Bonds previously issued by the Authority and approved by the goveming board of a Member. The manner in which the Authority shall exercise its powers and perform its duties is and shall be subject to the restrictions upon the manner in which a California general law city could exercise such powers and perfomr such duties. The manner in which the Authority shall exercise its powers and perform its duties shall not be subject to any restrictions applicable to the manner in which any other public agency could exercise such powers or perform such duties, whether such agency is a party to this Agreement or not. Section 5. Fiscal Year. For the purposes of this Agreement, the term "Fiscal Year" shall mean the fiscal year as established from time to time by resolution of the Board, being, at the date of this Agreement, the period from July 1 to and including the following June 30, except for the first Fiscal Year which shall be the period from the date of this Agreement to Jane '30, 2004. Section G. Disposition of Assets. At the end of the term hereof or upon the earlier termination of this Agreement as set forth in Section 2, after payment of all expenses and liabilities of the Authority, all property of the Authority both real and personal shall automatically vest in the Members in the manner and amount determined by the Board in its sole discretion and shall thereafter remain the sole property of the Members; provided, however, that any surplus money on hand shall be returned in proportion to the contributions made by the Members. Section 7. Bonds. From time to time the Authority shall issue Bonds, in one or more series, for the purpose of exercising its powers and raising the funds necessary to carry out its purposes under this Agreement. The services of bond counsel, financing consultants and other consultants and advisors working on the projects and/or their financing shall be used by the Authority. The expenses of the Board shall be paid from the proceeds of the Bonds or any other unencumbered funds of the Authority available for such purpose. Section 8. Bonds Only Limited and Special Obligations of Authority. The Bonds, together with the interest and premium, if any; thereon, shall not be deemed to constitute a debt of any Member or pledge of the faith and credit of the Members or the Authority. The Bonds shall be only special obligations of the Authority, and the Authority shall under no circumstances be obligated to pay the Bonds except from revenues and other funds pledged therefor. Neither the Members nor the Authority shall be obligated to pay the principal of, premium, if any, or interest on the Bonds, or other costs incidental thereto, except from the revenues and funds pledged therefor, and neither the faith and credit nor the taxing power of the Members nor the faith and credit of the Authority shall be pledged to the payment of the 000011 principal of, premium, if any, or interest on the Bonds nor shall the Members or the Authority in any manner be obligated to make any appropriation for such payment. No covenant or agreement contained in any Bond or related document shall be deemed to be a covenant or agreement of any Director, or any officer, employee or agent of the Authority in his or her individual capacity and neither the Board of the Authority nor any Director or officer thereof executing the Bonds shall be liable personally on any Bond or be subject to any personal liability or accountability by reason of the issuance of any Bonds. Section 9. Accounts and Reports. All funds of the Authority shall be strictly accounted for. The Authority shall establish and maintain such funds and accounts as may be required by good accounting practice and by any provision of any Indenture (to the extent such duties are not assigned to a trustee of Bonds). The books and records of the Authority shall be open to inspection at all reasonable times by each Member. The Treasurer of the Authority shall cause an independent audit to be made of the books of accounts and financial records of the Authority by a certified public accountant or public accountant in compliance with the provisions of Section 6505 of the Joint Exercise of Powers Act. In each case the minimum requirements of the audit shall be those prescribed by the State Controller for special districts under Section 26909 of the Government Code of the State of California and shall conform to generally accepted auditing standards. When such an audit of accounts and records is made by a certified public accountant or public accountant, a report thereof shall be filed as a public record with each Member and also with the county auditor of each county in which a Member is located; provided, however, that to the extent permitted by law, the Authority may, instead of Citing such report with each Member and such county auditor, elect to post such report as a public record electronically on a website designated by the Authority. Such report if made shall be filed within 12 months of the end of the Fiscal Year or Years under examination. The Treasurer is hereby directed to report in writing on the first day of July, October, January, and April of each year to the Board and the Members which report shall describe the amount of money held by the Treasurer for the Authority, the amount of receipts since the last such report, and the amount paid out since the last such report (which may exclude amounts held by a trustee or other fiduciary in connection with any Bonds to the extent that such trustee or other fiduciary provided regular reports covering such amounts.) Any costs of the audit, including contracts with, or employment of, certified public accountants or public accountants in making an audit pursuant to this Section, shall be borne by the Authority and shall be a charge against any unencumbered funds of the Authority available for that purpose. In any Fiscal Year the Board may, by resolution adopted by unanimous vote, replace the annual special audit with an audit covering a two-year period. 000012 Section 10. Funds. Subject to the applicable provisions of any Indenture, which may provide for a trustee or other fiduciary to receive, have custody of and disburse Authority funds, the Treasurer of the Authority shall receive, have the custody of and disburse Authority funds pursuant to the accounting procedures developed under Sections 3.0 and 9, and shall make the disbursements required by this Agreement or otherwise necessary to carry out any of the provisions of purposes of this Agreement. Section 11. Notices. Notices and other communications hereunder to the Members shall be sufficient if delivered to the clerk of the governing body of each Member; provided, however, that to the extent permitted by law, the Authority may, provide notices and other communications and postings electronically (including, without limitation, through email or by posting to a website). Section 12. Additional Members/Withdrawal of Members. Qualifying public agencies may be added as parties to this Agreement and become Members upon: (1) the tiling by such public agency with the Authority of an executed counterpart of this Agreement, together with a copy of the resolution of the governing body of such public agency approving this Agreement and the execution and delivery hereof; and (2) adoption of a resolution of the Board approving the addition of such public agency as a Member. Upon satisfaction of such conditions, the Board shall file such executed counterpart of this Agreement as an amendment hereto, effective upon such filing. A Member may withdraw from this Agreement upon written notice to the Board; provided, however, that no such withdrawal shall result in the dissolution of the Authority so long as any Bonds remain outstanding. Any such withdrawal shall be effective only upon receipt of the notice of withdrawal by the Board which shall acknowledge receipt of such notice of withdrawal in writing and shall file such notice as an amendment to this Agreement effective upon such filing. Section 13. Indemnification. To the full extent permitted by law, the Board may authorize indemnification by the Authority of any person who is or was a Director or an officer, employee of other agent of the Authority, and who was or is a party or is threatened to be made a party to a proceeding by reason of the fact that such person is or was such a Director or an officer, employee or other agent of the Authority, against expenses, including attorneys fees,judgments, fines, settlements and other amounts actually and reasonably incurred in connection with such proceeding, if such person acted in good faith in a manner such person reasonably believed to be in the best interests of the Authority and, in the case of a criminal proceeding, had no reasonable cause to believe the conduct of such person was unlawful and. in the case of an action by or in the right of the Authority, acted with such care, including reasonable inquiry, as an ordinarily prudent person in a like position would use under similar circumstances. 000019 Section 14. Contributions and Advances. Contributions or advances of public funds and of the use of personnel, equipment or property may be made to the Authority by the Members for any of the purposes of this Agreement. Payment of public funds may be made to defray the cost of any such contribution or advance. Any such advance may be made subject to repayment, and in such case shall be repaid, in the manner agreed upon by the Authority and the Member malting such advance at the time of such advance. It is mutually understood and agreed to that no Member has any obligation to make advances or contributions to the Authority to provide for the costs and expenses of administration of the Authority, even though any Member may do so. The Members understand and agree that a portion of the funds of the Authority that otherwise may be allocated or distributed to the Members may instead be used to make grants, loans or provide other financial assistance to govemmental units and nonprofit organizations (c.g., the Foundation) to accomplish any of the governmental unit's or nonprofit organization's purposes. Section 15. Immunities. All of the privileges and immunities from liabilities, exemptions from laws, ordinances and rules, and other benefits which apply to the activity of officers, agents or employees of Members when performing their respective functions within the territorial limits of their respective public agencies, shall apply to the same degree and extent to the Directors, officers, employees, agents or other representatives of the Authority while engaged in the performance of any of their functions or duties tinder the provisions of this Agreement. Section 16. Amendments. Except as provided in Section 12 above, this Agreement shall not be amended, modified, or altered, unless the negative consent of each of the Members is obtained. To obtain the negative consent of each of the Members, the following negative consent procedure shall be followed: (a) the Authority shall provide each Member with a notice at least sixty (60) days prior to the date such proposed amendment is to become effective explaining the nature of such proposed amendment and this negative consent procedure; (b)the Authority shall provide each Member who did not respond a reminder notice with a notice at least thirty (30) days prior to the date such proposed amendment is to become effective; and (c) if no Member objects to the proposed amendment in writing within sixty (60) days after the initial notice, the proposed amendment shall become effective with respect to all Members. Section 17. Effectiveness. This Agreement shall become effective and be in full force and effect and a legal, valid and binding obligation of each of the Members on the date that the Board shall have received from two of the Initial Members an executed counterpart of this Agreement, together with a certified copy of a resolution of the governing body of each such Initial Member approving this Agreement and the execution and delivery hereof. 0000 4 Section 18. Partial Invalidity. If any one or more of the terms, provisions, promises, covenants or conditions of this Agreement shall to any extent be adjudged invalid, unenforceable, void or voidable for any reason whatsoever by a court of competent ,jurisdiction, each and all of the remaining terms, provisions, promises, covenants and conditions of this Agreement shall not be affected thereby, and shall be valid and enforceable to the fullest extent permitted by law. Section 19. Successors. This Agreement shall be binding upon and shall inure to the benefit of the successors of the parties hereto. Except to the extent expressly provided herein, no Member may assign any right or obligation hereunder without the consent of the other Members. Section 20. Miscellaneous. This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. The section headings herein are for convenience only and are not to be construed as modifying or governing the language in the section referred to. Wherever in this Agreement any consent or approval is required, the same shall not be unreasonably withheld. This Agreement shall be governed tinder the laws of the State of California_ This Agreement is the complete and exclusive statement of the agreement among the Members, which supercedes and merges all prior proposals, understandings, and other agreements, whether oral, written. or implied in conduct, between and among the Members relating to the subject matter of this Agreement. IN WITNESS WHEREOF, the City of Palm Springs has caused this Agreement to be executed and attested by its duly authorized representatives as of the_day of 2008. Member: CITY OF PALM SPRINGS By Name: Title: ATTEST: By Name: Title: U,GGa19 CITY OF PALM SPRINGS PUBLIC HEARING NOTIFICATION (S CITY CLERK'S DEPARTMENT James Thompson, City Clerk City Council Meeting Date: July 9, 2008 Subject: Issuance of Tax-Exempt Multi-Family Housing Revenue Bonds ROSA GARDENS APARTMENTS AFFIDAVIT OF PUBLICATION I, Kathie Hart, CMC, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice of Public Hearing was published in the Desert Sun on June 26, 2008. 1 declare under penalty of perjury that the foregoing is true and correct. Kathie Hart, CMC Chief Deputy City Clerk AFFIDAVIT OF POSTING I, Dolores Strickstein, Secretary, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice of Public Hearing was posted at City Hall, 3200 E. Tahquitz Canyon Drive, on the exterior legal notice posting board and in the Office of the City Clerk on June 24, 2008. 1 declare under penalty of perjury that �the l foregoing is true and correct. Dolores Strickstein Secretary 000017 iu�a610 PROOF OF PUBLICATION This is space for County Clerk's Filing Stalnp (2015.5.C.C.P) STATE OF CALIFORNIA County of Riverside NO.2219 I am II citizen of the United States and a resident of NOTICE C17Y COUNCILARING the County aforesaid,I am over the age of eighteen CITY OF PALM SPRINGS years,and not a party to or interested in the ISSUANCE OF TAX,EXEMPT MULTIFAMILY ahovC-CnliLlCd matter.I am the principal Clerk of a IROUSING REVENUE BONDS OSA GAP ENS APARTMENTS printer of the,DESERT SUN PUBLISHING NOTICE IS HEREBY GIVEN that the City Council COMPANY a newspaper of general circulation, of the City of Palm Springqs,California,will hold a public hoinng at its meeting of my 9 2008. The City Council printed and published in the city of Palm Springs, meetm begins at 6'o0 p.m,In the Cauncll Chamber at County of Riverside,and which newspaper has been SpnnA E 8al3amm. Tahgwlz Canyon way, Palm adjudged a newspaper of general circulation by the Tha purpose b this Caring rs to Municipal Finance Au- Superior Court of the County of Riverside,State of the issuance by me ceWOPnI revep Au- thority a lax)xxi Dart multi-1 I B revenue bonds of an California under the date of March 24,1988.Case e;umeted amount of Thirteen Million b Dollars to Number 191236•that the notice,of wbich the is13 aob,ona) mo proceeds of which will be u;Od m aSslet In the(lnenon of the atqulvtian,y neSid ennui annexed is a printed copy(set in type nor smaller rental al fvecllop_moon bnf knownaas in and Apalnl than non pariel,has been published in each regular mama((the`Prplecrl located on a 4¢5 Acro at e603 McCadhy Roed m t a De;vPl-Hlghlanri Gateway Ev and entire issue of said newspaper and not in any talcs Neighborhood. supplement thereof on the following dates,to wit: The ownor of the Project is exppected to no Coachella Valleyy HoualPq Coalition,a Calilornla non•pfollt public benelIt Corporation,or anyy limited ppartnership or limited June 26`e,2003 liability company eslabllsBad by C'1HC ------- REVIEW OF PROJECT INFORMATION: g Tha h s Mattter arrO avaff report and alabl plot publtle review at the City ........................... Hall butween the hours of 8,00 am. and 5:00 p m Monday through Friday. Memo Contact tho Office of All in the year 2008 the City Clerk at 760-323-8204 for a schedule so- polnimenl to review these documents. COMMENT ON THIS PROJECT Response to I certify(or declare)under penalty of perjury that the This notice can be made verbally at the Public Hearmq ¢ndi In writing before the hearm%written comments Foregoing is true and correct. can be made to the City Council by I_cllnr(for mad or nand all lo. - --- - Dated at Palm Springs,California this---I --day James Thompson,City Clark 3200 sC222 a)alm Sprig A96 of--------- July 200$ Any chellnpe of the prapa;pd project in court may be Ilm¢ed to Parsing only(nose jisues raised at the public hearing described in the notice, or In written carre- spondi delivered ro lho City Clerk at,or prior,TO the public i iqQ (Government Code Seaton 05009(b)(2)) - — —, An opportunity will be given at said hearing for all inter- [An ested persons to bo heard. questions Mg3rd' Jh case may ba directed to Dale Cook Commumly bevel• opmunl Administrator at Dale.CvOX0paimsprmgs- �� ca gov,or 750323 et9B(TDD 760.8649027. Si neceede ayude con total certa,podavor llama a Is l%'1 \ Ciudad be Palm 9prinp0s y puede hablOr con Nadine UC C°7 tU Ili ti `{("` lam) Fleger Loll 760323 B245 L:� �' (j James Thompson,City Clark Ott_ —3 VY I-- h Published:6126tO8 N NOTICE OF PUBLIC HEARING CITY COUNCIL CITY OF PALM SPRINGS ISSUANCE OF TAX-EXEMPT MULTI-FAMILY HOUSING REVENUE BONDS ROSA GARDENS APARTMENTS NOTICE IS HEREBY GIVEN that the City Council of the City of Palm Springs, California, will hold a public hearing at its meeting of July 9, 2008. The City Council meeting begins at 6:00 p.m., in the Council Chamber at City Hall, 3200 E. Tahquitz Canyon Way, Palm Springs, California. The purpose of this hearing is to consider approval of the issuance by the California Municipal Finance Authority of tax-exempt multi-family revenue bonds in an estimated amount of Thirteen Million Dollars ($13,000,000), the proceeds of which will be used to assist in the financing of the acquisition, construction and development of a 59-unit multi-family residential rental facility to be known as Rosa Gardens Apartments (the "Project") located on a 4.45 Acre at 3603 McCarthy Road in the Desert-Highland Gateway Estates Neighborhood. The owner of the Project is expected to be Coachella Valley Housing Coalition, a California non-profit public benefit corporation, or any limited partnership or limited liability company established by CVHC. REVIEW OF PROJECT INFORMATION: The staff report and other supporting documents regarding this matter are available for public review at the City Hall between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday. Please contact the Office of the City Clerk at 760- 323-8204 for a scheduled appointment to review these documents. COMMENT ON THIS PROJECT: Response to this notice can be made verbally at the Public Hearing and/or in writing before the hearing. Written comments can be made to the City Council by letter (for mail or hand delivery) to. James Thompson, City Clerk 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Any challenge of the proposed project in court may be limited to raising only those issues raised at the public hearing described in this notice, or in written correspondence delivered to the City Clerk at, or prior, to the public hearing. (Government Cade Section 65009(b)(2)). An opportunity will be given at said hearing for all interested persons to be heard. Questions regarding this case may be directed to Dale Cook, Community Development Administrator at Dale.Cook(c)palmsprings-ca.aov , or 760.323.8198/TDD 760.864.9527. Si necesita ayuda con esta carta, porfavor Ilame a la Ciudad de Palm Springsy_puede hablar con Nadine Fieger telefono 760.323.8245. ,dVmes Thompson, City Clerk i/// 00©0�8