RPVCCA_CC_SR_2012_11_07_02_Tax_Equity_And_Fiscal_Acting_TEFRA_HearingPUBLIC HEARING
Date:November 7,2012
Subject:Tax Equity and Fiscal Responsibility Act (TEFRA)Hearing
Subject Property:5801 Crestridge .,.
1.Declare the Hearing Open:Mayor Misetich
2.Report of Notice Given:City Clerk Morreale
3.Staff Report &Recommendation:City Attorney Lynch
4.Public Testimony:
Appellant:N/A
Applicant:Episcopal Communities &Services
5.Council Questions:
6.Rebuttal:
7.Declare Hearing Closed:Mayor Misetich
8.Council Deliberation:
9.Council Action:
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CITY OF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
Prepared By:
HONORABLE MAYOR AND CITY COUNCIL MEMBERS
CAROL W.LYNCH,CITY ATTORNEY
NOVEMBER 7,2012
TAX EQUITY AND FISCAL RESPONSIBILITY ACT
(TEFRA)HEARING
CAROLYN LEHR,CITY MANAGER &-
LOLLY ENRIQUEZ,ASSISTANT CITY ATTORNEY
RECOMMENDATION
Conduct the public hearing and adopt the attached Resolution.
BACKGROUND
Episcopal Communities &Services for Seniors,dba Episcopal Communities &Services,
a nonprofit public benefit corporation incorporated under the laws of the State of
California (the "Corporation"),has requested that the California Statewide Communities
Development Authority (the "CSCDA")issue bonds in one or more series in an
aggregate principal amount not to exceed $85,000,000 (the "Bonds"),the proceeds of
which will be used,to:(a)refinance indebtedness used to finance the cost of the
acquisition,construction and equipping of a continuing care retirement community in
Rancho Palos Verdes known as "The Canterbury,"located generally at 5801 Crestridge
Road,Rancho Palos Verdes,California 90275 (the "Facilities"),to be owned and
operated by the Corporation (the "Canterbury Project"),(b)fund a debt service reserve
fund,if deemed necessary or advisable by CSCDA or the Corporation,and (c)pay
certain costs of issuing the Bonds.
DISCUSSION
Federal tax law requires that the proposed financing or refinancing be approved by a
governmental entity having jurisdiction over the area in which the facility to be financed
is located.This requirement is satisfied if the governmental entity:(1)holds a duly
noticed public hearing,and (2)at the conclusion of the public hearing,adopts the
TEFRA Resolution approving the financing to be undertaken.The public hearing is
knows as a TEFRA hearing because the requirement for such a hearing was originally
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TEFRA Hearing
November 7,2012
Page 2 of 2
placed in the Internal Revenue Code by the Tax,Equity and Financial Responsibility Act
(TEFRA).
Pursuant to (Section 147(f)of the Internal Revenue Code of 1986)(the "Code"),the
issuance of the Bonds by CSCDA must be approved by the City of Rancho Palos
Verdes (the "City")because the Canterbury Project is located within the territorial limits
of the City.The City Council of the City (the "Council")is the elected legislative body of
the City and is one of the applicable elected representatives required to approve the
issuance of the Bonds under Section 147(f)of the Code.
CSCDA has requested that the Council approve the issuance of the Bonds by CSCDA
for the purposes of refinancing the Canterbury Project in order to satisfy the public
approval requirement of Section 147(f)of the Code and the requirements of Section 9 of
the Amended and Restated Joint Exercise of Power Agreerqer'1t,dated as of June 1,
1988 (the "Agreement"),among CSCDA and certain local agencies,including the City.
FISCAL IMPACT
There will be no fiscal impact to the City arising from this action.
ATTACHMENT
•Resolution
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RESOLUTION NO.2012-_
A RESOLUTION OF THE COUNCIL OF THE CITY OF RANCHO PALOS VERDES
APPROVING THE ISSUANCE OF THE CALIFORNIA STATEWIDE COMMUNITIES
DEVELOPMENT AUTHORITY REVENUE REFUNDING BONDS,SERIES 2012 (EPISCOPAL
COMMUNITIES &SERVICES)IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED
$85,000,000 FOR THE PURPOSE OF REFINANCING THE ACQUISITION,CONSTRUCTION
AND EQUIPPING OF CONTINUING CARE RETIREMENT COMMUNITIES FOR EPISCOPAL
COMMUNITIES &SERVICES AND OTHER MATTERS RELATING THERETO
WHEREAS,Episcopal Communities &Services for Seniors,dba Episcopal Communities &
Services,a nonprofit public benefit corporation incorporated under the laws of the State of
California (the "Corporation"),has requested that the California Statewide Communities
Development Authority (the "Authority")issue bonds in one or more series in an aggregate
principal amount not to exceed $85,000,000 (the "Bonds"),the proceeds of which will be used to
(a)refinance indebtedness used to finance the cost of the acquisition,construction and equipping
of a continuing care retirement community in Rancho Palos Verdes known as "The Canterbury,"
located generally at 5801 Crestridge Road,Rancho Palos Verdes,California 90275 (the
"Facilities"),to be owned and operated by the Corporation (the "Project"),(b)fund a debt service
reserve fund,if deemed necessary or advisable by the Authority or the Corporation,and (c)pay
certain costs of issuing the Bonds;and 'iJ'
WHEREAS,pursuant to Section 147(f)of the Internal Revenue Code of 1986 (the "Code"),
the issuance of the Bonds by the Authority must be approved by the City of Rancho Palos Verdes
(the "City")because the Project is located within the territorial limits of the City;and
WHEREAS,the Council of the City (the "Council")is the elected legislative body of the City
and is one of the applicable elected representatives required to approve the issuance of the Bonds
under Section 147(f)of the Code;and .
WHEREAS,the Authority has requested that the Council approve the issuance of the
Bonds by the Authority for the purposes of refinancing the Project in order to satisfy the public
approval requirement of Section 147(f)of the Code and the requirements of Section 9 of the
Amended and Restated Joint Exercise of Power Agreement,dated as of June 1,1988 (the
"Agreement")among the Authority and certain local agencies,including the City;and
WHEREAS,there has been published,at least 14 days before the date hereof,in a
newspaper of general circulation within the City,a notice that a public hearing regarding the Bonds
would be held on the date hereof;and
WHEREAS,pursuant to Section 147(f)of the Code,the Council,following notice duly given,
has held a public hearing regarding the issuance of the Bonds,in which interested persons were
provided an opportunity to present arguments both for and against the issuance of the Bonds;and
WHEREAS,the Council now desires to approve the issuance of the Bonds by the Authority,
and the approval is intended to constitute the approval required by Section 147(f)of the Code and
Section 9 of the Agreement;
NOW,THEREFORE,BE IT RESOLVED,by the Council of the City of Rancho Palos
Verdes as follows:
Section 1.The Council accepts the above recitals as true and correct.
Section 2.The Council hereby approves the issuance of the Bonds by the Authority for the
purposes of refinancing the Project.It is the purpose and intent of the Council that this Resolution
constitute approval of the issuance of the Bonds by the Authority,for the purposes of (a)Section
147(f)of the Code by the applicable elected representative of the governmental unit having
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jurisdiction over the area in which the Facilities are located,in accordance with said Section 147(f)
and (b)Section 9 of the Agreement.
Section 3.The officers of the City are hereby authorized and directed,jointly and severally,
to do any and all things and to execute and deliver any and all documents that they deem
necessary or advisable to carry out,give effect to and comply with the terms and intent of this
resolution and the financing transaction approved hereby.
Section 4.The City Clerk of the City shall forward a certified copy of this Resolution and a
copy of the affidavit of publication of the hearing notice to:
S.Louise Rankin
Jones Day
555 California Street,26th Floor
San Francisco,California 94104-1500
Section 5.This Resolution shall take effect immediately upon its adoption.
PA~SED,APPROVED AND ADOPTED,this i h day of November,2012.
Mayor
ATTEST:
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )ss.
CITY OF RANCHO PALOS VERDES )
I,Carla Morreale,City Clerk of the City of Rancho Palos Verdes,certify that the foregoing
resolution was adopted by the Council of the City of Rancho Palos Verdes at a regular meeting
held on the _th day of ,2012.
AYES:
NAYS:
ABSENT:
ABSTAIN:
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
BY:-----------City Attorney
1505662vl
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