HomeMy WebLinkAbout19 JPA CA COM DEV AUTH 05-01-00AGENDA
DATE:
MAY 1, 2000
NO. 19
05-01-00
! n t e r- C o m
TO:
FROM:
SUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
REDEVELOPMENT AGENCY STAFF
THE JOINT EXERCISE OF POWERS AGREEMENT RELATING TO THE
CALIFORNIA COMMUNITIES DEVELOPMENT AUTHORITY
ISUMMARY: Agency apprOVal is requested of a Joint Exercise of Powers Agreement Relating to the ]
California Statewide CommUnitieS Development AUthority
RECOMMENDATION
It is recommended the City Council 1.) adopt Resolution 00-31 approving the Joint Exercise of Powers
Agreement Relating to the California Statewide Communities Authority.; and 2.) authorize the City
Manager to execute the subject Joint Exercise of Power Agreement.
FISCAL IMPACT
This action will have no fiscal impact on the City or Redevelopment Agency. This Agreement would
provide that developers would be responsible for all discretionary filing fees and plan check and permit
fees.
DISCUSSION
The City Council on October 7, 1996 (Resolution 96-104) approved the adoption of a multifamily
housing finance program in cooperation with the County of Orange and a Cooperation Agreement
between the County of Orange and the City of Tustin for the purpose of financing the acquisition,
construction or rehabilitation of multifamily rental housing in the City. The County of Orange, as a
member of the Southern California Home Financing Authority (the "SCHFA") is a participant in a
multifamily financing program ("the Program"), pursuant to Chapter 7 of Part 5 of Division 31 of the
Health and Safety Code of the State of California (the "Joint Exercise of Powers Act"). The Cooperation
Agreement provided that the County would cooperate with the City, through the SCHFA, in the exercise
of its powers under state law for the purposes of the Program. The City of Tustin has participated with
the County, through the SCHFA, in financing the acquisition and rehabilitation of three apartment
projects, which included Hampton Square, Orange Gardens and Flanders Pointe.
The City is being approached by an increasing number of developers seeking to acquire and rehabilitate
multifamily rental apartments using private activity bonds for multifamily housing issued under
California Statewide Communities Development Authority. Pursuant to the Joint Exercise of Powers Act,
two or more pubic agencies may by agreement jointly exercise any power common to the contracting
parties including the undertaking of financing programs, as Program Participants, through the issuance of
bonds, notes, or other evidences of indebtedness. California Statewide Communities Development
Authority (the "California Statewide Communities") was created in 1987 as a public entity pursuant to the
Joint Exercise of Powers Act to be separate and apart from program participants and serve as a conduit for
William A. Huston ·
Joint Exercise of Powers Agreement
May 1, 2000
Page 2
the issuance of industrial development and other bonds including private activity bonds for multifamily
rental housing acquisition and development or rehabilitation. California Statewide Communities may
issue bonds for the purpose of exercising its powers and raising the funds necessary to carry out the
purposes under the agreement with a program participant. The bonds, together with the interest and
premium do not constitute a debt of a pro,am participant or a pledge of the faith and credit of a program
participant. California Statewide Communities is jointly sponsored by the League of California Cities
and California State Association of Counties. Currently over 235 cities, counties and special districts are
members. California Statewide Communities has issued over $4.9 billion in tax-exempt financing and
has recently been ranked the 17th largest municipal issuer in the U.S.
Qualifying public agencies may be added as parties to Joint Exercise of Powers Agreement Relating to
California Statewide Communities Development Authority and become program participants upon the
filing of an executed counterpart of the Agreement, together with a certified copy of the resolution of the
governing body of the public agency approving the Agreement and adoption of a resolution of the
Authority Commission approving the addition of such public agency as a program participant. The City
and Redevelopment Agency would still retain discretion over the issuance by California Statewide
Communities of tax-exempt bonds within the Tustin corporate jurisdiction.
The Amended and Restated Joint Exercise of Powers Agreement Relating to the California Statewide
Communities Development Authority has been reviewed by the City Attorney and is attached for the
Agency's action. Staff will be available at the Agency meeting to answer any questions the Agency may
have.
Christine Shingleton //~/
Assistant City Manager
Ja~es Draughon
senior Project Manager
JD:kd~BondFinancing~JPAStatlMemo.doc
RESOLUTION NO. 00-31
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A RESOL[rrlON OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, APPROVING, AUTHORIZING AND DIRECTING
EXaCtION OF AN AMENDED AND RESTATED JOINT
EXERCISE OF PO'WERS AGREEMENT RELATING TO THE
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT
ALrrHORITY
WHEREAS, the City of Tustin, California (the "City"), has expressed an
interest in participating in the economic development financing programs (the
"Programs") in conjunction with the parties to that certain Amended and Restated Joint
Exercise of Powers Agreement Relating to the California Statewide Communities
Development Authority, dated as of June 1, 1988 (the "Agreement"); and
and
WHEREAS, there is now before this City Council the form of the Agreement;
WHEREAS, the City proposes to participate in the Programs and desires that
certain projects to be located within the City be financed pursuant to the Programs and it
is in the public interest and for the public benefit that the City do so; and
WItEREAS, the Agreement has been filed with the City, and the members of
the City Council of the City, with the assistance of its staff, have reviewed said
document;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY' OF TUSTIN AS FOLLOWS:
Section 1. The Agreement is hereby approved and the Mayor or the City
Manager or designee thereof is hereby authorized and directed to execute said document,
with such changes, insertions and omissions as may be approved by said Mayor or City
Manager, and the City Clerk or such Clerk's designee is hereby authorized and directed
to affix the City's seal to said document and to attest thereto.
Section 2. The Mayor, the City Manager, the City 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 or convenient to effect the purposes of this Resolution and
the transactions herein authorized.
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Resolution No. 00-31
Page 2
Section 3. The City Clerk of the City shall forward a certified copy of this
Resolution and an originally executed Agreement to:
Angie Session
Orrick, Herrington & Sutcliffe LLP
400 Capital Mall, Suite 3000
Sacramento, California 95814
Section 4. This Resolution shall take effect immediately upon its passage.
PASSED AND ADOPTED at a regular meeting of the Tustin City Council held
on the 1st day of May 2000.
JEFFERY M. THOMAS, Mayor
PAMELA STOKER
City Clerk
STATE OF CALIFOR3NIA)
COUNTY OF ORANGE )
CITY OF TUSTIN )
SS
I, Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of
Tustin, California, do hereby certify that the whole number of the members of the City
Council of the City of Tustin is five; that the above and foregoing Resolution No. 00-31
was duly passed and adopted at a regular meeting of the Tustin City Council, held on the
1st day of May 2000, by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
PAMELA STOKER
CITY CLERK
29 JD:kdhMultifamily Bond FinancingUPA Resolution.doc
AMENDED.AND RESTATED
JOINT EXERCISE OF POWERS AGREEMENT
RELATING T° THE CALIFORNIA STATEWIDE COMMUNITIES
DEVELOPMENT AUTHORITY ~
THIS AGREEmeNT, dated as of 'June 1, 1988, by and
among the parties executing this Agreement (all such parties,
except those which have withdrawn in accordance with Section
13 hereof, being herein referred to as the 'Program
Participants"):
WITNESSETH
WHER--_AS, pursuant to Title 1, Division 7, Chatter.5
of the Government Code of the StaTe of California (the 'Joint
Ezercise of Powers Act"), two or more public agencies may ~y
agreement jointly exercis~ any ~ower common to_the contr~c~in~
~a~ies, and
WHER=_AS, each of the Program Participants is a
public agency as that t~rm is defined in Section ~500 ~= he
G~vernmen= Code of the State o~ California, and
WHEREAS, each of the Program Particima.~= _s
empowered to promote economic development, including, without
limitation, the promotion of opportunities for the creation or
retention of employment, the stimulation of economic activity,
and the increase of the tax base, within its boundaries;
WHEREAS, a public entity established pursuan~ t~
the joint Exercise of Powers Act is empowered to issue
industrial development bonds pu=suant to the California
industrial Development Financing Act (Title 10 (commencing
with Section 91500 of the Government Code of the State of
California)) (the "Act") and t'o otherwise undertake ~inancing
programs under the Joint Exercise of Powers Act or other
applicable provisions of law to promote economic development
through the issuance of bonds, notes, or other evidences of
indebtedness, or certificates of participation in leases or
other agreements' (all such instruments being herein
collectively referred to as "Bonds"); and
WHEREAS, in order to promote economic development
within the State of California, the County Supervisors
Association of California ("~SAC'), together with the
California Manufacturers Association, has established the
Bonds for Industry program (the "Program').
WHEREAS, in f~rtherance of the Program, certain
California counties (collectively, the 'Initial Participants')
have entered into that certain Joint Exercise of Powers
Agreement dated as of November 18, 1987 (the '~nitial '
Agreement'), pursuant to which the California Counties
Industrial Development Authority has been established as a
separate entity under the Joint Exercise of Powers Act for the
purposes and with the powers specified in the Initial
Agreement; and
WHEREAS, the League of California Cities ('LCC')
has determined to join as a sponsor of the Program and to
actively participate in the administration of the Authority;
and
o.
WHEREAS, the Initial Participants have determine~
to specifically authorize the Authority to issue Bonds
pursuant to Article 2 of the Joint Exercise of Powers Act
('Article 2") and Article 4 of the Joint Exercise of Powers
Act ("Article 4"), as well as may be authorize~ Dy the Act
other applicable law; and
WM~REAS, the Initial Participants desire to rename
the California Counties Industrial Development. Authority to
better reflect the additional sponsorship of the Program;.and
WHEREAS, each of the Initial Participants has
determined that it is in the public interest of the citizens
within its boundaries, and to the benefit of such initial
Participant and the area and persons served by such Initial
Participant, to amend and restate in its entirety the Initial
Agreement in order to implement the provisions set forth
above; and
WHEREAS, it is the desire of the Program
Participants to use a public entity established pursuant to
the Joint Exercise of Powers Act to undertake projects within
their respective jurisdictions that may be financed with Bonds
issued pursuant to the Act, Article 2, Article 4, or other
applicable provisions of law; and
WHEREAS, the projects undertaken will result in
significant public benefits, including those public benefits
set forth in Section 91502.1 of the Act, an increased level of
economic activity, or an increased tax base, and will.
therefore serve and be of benef!t to the inhabitants of the
jurisdictions of the Program Participants;
NOW, THEREFORE, the Program Participants, for and
in consideration of the mutual promises and agreements herein
contained, do agree to restate and amend the Initial Agreement
in its entirety to provide as follows:
Section 1. Purpose.
This Agreement is made pursuant to the provisions of
the Joint Exercise of Powers Act, relating to the joint
exercise of powers common to public agencies, in this case
being the Program Participants. The Program Participants each
Possess the powers referred to in the recitals hereof. The
purpose of this Agreement is to establish an agency for, and
with the purpose of, issuing Bonds to finance projects within
the territorial limits of the Program Participants pursuant to
the Act, Article 2, Article 4, or other appliable provisions
of law; provided, however that nothing in this A~reement shall
be construed as a limitatian on the rights of the Program
Participants to pursue economic development outside of this
Agreement, including the rights to issue Bonds through
industrial development authorities under the Act, or a3 ·
otherwise permitted by law.
Within the various jurisdictions of the Program
Participants such purpose will be accomplished and said powers.
exercised in the manner hereinafter set forth.
Sect i on 2. Term.
This Agreement shall become effective as of the Sate
hereof and shall continue in full force and effect for a
period of forty (40) years from the date hereof, or untii such
time as it is terminated in writing by all the Program
Participants; provided, however, that this Agreement shall not
terminate or be terminated until the date on which all Bonds
or other indebtedness issued or caused to be issued by the
Authority shall have been retired, or full provision shall
have been made'for their.retirement, including interest until
their retirement date.
Section 3. Authority.
A. CREJ%TION AND POWERS OF AUTHORITY.
(1) Pursuant to the Joint Exercise 'of Powers Act, there
is hereby created a public entity to be known as the
"California Statewide Communities Development Authority' (the
"Authority'), and said Authority shall be a public entity
separate and apart from the Program Participants. Its debts,
liabilities and obligations do not constitute debts,
liabilities or obligations of any party to this Agreement.
B. COMMISSION.
The Authority shall be administered by a Commission
(the "Commission") which shall consis~ of seven members, each
serving in his or her individual capacity as a member of the
Cor~.ission. The Commission shall be the administering agency
of this Agreement, and, as such, shall be vested with the
powers set forth herein, and shall execute and administer ~his
Agreement in accordance with the purposes and functions
provided herein.
Four members of the Commission shall be appointed by
the governing body of CSAC and three members of the Co~mission
shall be appointed by the governing body of LCC. Initial
members of the Commission shall serve a term ending June 1,
1991. Successors to such members shall be selected in the
manner in which the respective initial member was selected and
shall serve a term of three years. Any appointment to fill an
unexpired term, however, shall be for such unexpired term.
The term of office specified above shall be applicable'%nless
the term of office of the respective member is te~ .{ te
.m. na d as
hereinafter provided, and provided that the term of any member
shall not expire until a successor thereto has been' appointed
as provided herein.
Each of CSAC and LCC may appoint an a
of the Commission for each member of the Commission which it
appoints. Such alternate member may act as a member c~ , _
Commission in place of and during the absence or ~sabili~y
such regularly appointed member. All references <n this
Agreement to any member of the Commission shall be '~
a__m_~ to
refer to and include the applicable alternate member when so
acting in place-of a regularly appointed member.
Each member or alternate member of the Commission
may be removed and replaced at any time by the governing body
by which such member was appointed. Any individual, including
any'member cf the governing body or staff of CSAC or LCC,
shall be eligible to serve as a member or alternate member of
the Commission.
Members and alternate members of the Commission
shall not receive any compensation for serving as such'but
shall be entitled to reimbursement for any expenses actually
incurred in connection with serving as a member or alternate
member, if the Commission shall determihe that such expenses
shall be reimbursed and there are unencumbered funds available
for such purpose.
C. OFFICERS; DUTIES; OFFICIAL BONDS.
The Commission shall elect a Chair, a" Vice-Chair,
and a Secretary of the Authority from amon~ its members to
serve for such term as shall be determined by the Commission.
The Commission 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 for such term as
shall be determined by the Commission.
.
Subject to the applicable provisions of any
resolution, indenture or other instrument or proceeding
authorizing or securing Bonds (each such resolution,
indenture, instrument and proceeding being herein referred to
as an "Indenture") providing for a trustee or o~her fiscal
agent, the Treasurer is designated as ~he depositary of the
Authority to have custody of all money of the Authority, from
whatever source derived.
The Treasurer of the Authority shall have the
powers, duties and responsibilities specified in ..
Section 6505.5 of the Joint Exercise of Powers Act.
The Treasurer of the Authority is designated ~s 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
Commission but in no event less than $1,000. If and to the
=~_~ permitted by law, any such officer may ==~isfy this
requirement by filing an official bond in at least said amount
obtained in connection with another public office.
The Commission 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 Commission shall have the power, by resolution,
to the extent permitted by the Joint Exercise of Powers Ac% or
any other applicable law, to delegate any of its functions to
one or more of the members of the Commission or officers er
agents of the Authority and to cause any of said members,
officers or agents to take any actions and execute .any
documents or instruments for and in the name and on behalf of
the Co~v~nission or the Authority.
D. MEETINGS OF THE COMMISSION.
(1) Regular Meetinas.
The Commission 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 Commission and a copy of such resolution shall be filed
with each party hereto.
(2) Specis! Meetinas.
Special meetings of the Commission may be called in
accordance with the provisions of Section 54956 of the
Government Code of the State~ of California.
(3) Ralph M. Brown Act.
All meetings'of the Commission, including, without
limitation, regular, adjourned regular, special, ~nd 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).
(4) Minutes.
The Secretary of the Authority shall cause to be
kept minutes of the regular, adjourned regular, special,
adjourned special meetings of the Commission and shall, as
soon as possible after each meeting, cause a copy .of the
minu~es to be forwarded to each member of the Commission.
( 5 ) Quo rum.
A majority of the members pf the Co~missicn which
includes at least one member appointed by the governing bofy
of each of CSAC and LCC shall constitute a quorum for the
transaction of business. No action may be taken by the
Commission except upon the affirmative vote of a majority of
the members of the Commission which incudes at least one
member appointed by the governing body of each of CSAC and
LCC, 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 Commission such rules and regulations for
the conduct of its meetings and affairs as may be required.
Section 4. Powers.
The Authority shall have any and all powers relating
to economic development authorized by law to each of the
parties hereto and separately to the public entity herein
created, including, without limitation, the promotion of
opportunities for the creation and retentioD of employment,
the stimulation of economic activity, and the increase of the
tax base, within the jurisdictions, of such parties.~ 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. All such powers common
to the parties are specified as powers of the Authority· The
Authority is hereby authorized to do all acts necessary for
the exercise of such powers, including, but not limited
any or 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 i~provements; 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 persons, firms, corporations
and any governmental entity; to sue and be sued in its own
name; and generally to do any and all things necessary or
convenient to the promotion of economic development, inc!u~ing
without limitation the promotion of opportunities for'the
creation or retention of employment, the stimulation of
economic activity, and the increase of the tax bzse, all as
herein contemplated. Without limiting the generality of the
foregoing, the Authority may issue or cause to be issued
bonded and other.~ndebtedness, and pledge any proD~tYo__ cr
revenues as security to the extent permitted under the Jcint
Exercise of Powers Act,~ including Article 2 and Article 4, the
Act or any other applicable provision of law.
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 county
could exercise such powers and perform such duties until a
California general law city shall become a Program
Participant, at which time it shall be subject to the
restrictions upon the manner in which a California general law
city could exercise such powers and perform 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 the Authority, 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 June 30, 1988. ,~
Section 6. Disposition of Assets.
At the end of the term hereof or upon the earlier
termination of this Agreement as set forth in ~ection 2 -
hereof, after payment of all expenses and liabilities of the
Authority, all property of the Authority both real and
personal shall automatically vest in the Program Participants
and shall thereafter remain the sole property of the Program
Participants; provided, however, that any surplus money on
hand shall be returned in proportion tO the contributions made
by the Program Participants.
sec t i on 7. Bonds.
The Authority shall issue Bonds for the purpose of
exercising i~s powers and raising the funds necessary to carry
out its purposes under this Agreement. Said Bonds may, at The
discretion of Authority, be issued in series.
~'=,n_ serv_ices of bond counsel, financing consulta-ts
and other consultants and advisors working on the projects
and/or their financing shall be used by the Authority. The
~.= a~viscrs,
fees and e~n_nses of such counsel, consultants,
the expenses of CSAC, LCC, and the Conmmission £hal! be ~5i~
from the proceeds of the Bonds or any other unencumbered ~un~s
of the Authori=y avai!abl= =
_ ~or such purpose.
Section 9. Local ADmroval.
A copy of the application for financing of a project
shall be filed by the Authority with the Program Participant
in whose jurisdiction the project is to be located. The
Authority shall not issue Bonds with respect to any project
unless the governing body of the Program Participant in whose
jurisdiction the project is to be located, or its duly
authorized designee, shall approve, conditionally or
unconditionally, the project, including the issuance of Bonds
therefor. Action to approve or disapprove a project shall be
taken within 45 days of the filing with the Program
Participant. Certification of approval or disapproval shall
be made by the clerk of the governing body of the Program
Participant, or by such other officer as may be designated by
the applicable Program Participant, to the Authority..
Section 8. Bonds Only, Limited and Special
Obli_~ations of Authority.
The Bonds, together with the interest and premium,
if any, thereon, shall not be deemed to constitute a debt of
any Program Participant, CSAC, or LCC or pledge of the faith
and credit of the' Program Participants, CSAC, LCC, 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 ~onds or the respective project costs
except from revenues and other funds pledged therefor.
Neither the Program Participants, CSAC, LCC, nor the AuthDrity
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
Program Participants nor the faith and credit of CSAC, LCC, er
the Authority shall be pledged to the payment of the principal
of, premium, if any,. or interest on the Bonds nor shall the
Program Participants, CSAC, LCC, or the Authority in any
manner be obligated to make any appropriation for such payment.
No covenant or agreement contained in any Bond or
Indenture shall be deemed to be a covenant or agreeme~% of any
member of the Commission, or any officer, agent or employee c
the Authority in .his individual capacity and neither the
Commission of the Authority nor any officer thereof executin: .
the Bonds shall be liable personally on any Bond or be ~ubject
~o any personal liability or accountability by reason
issuance of any Bonds.
Section 10. 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 ~ccounting
practice and by any provision of any indenture (to the eKtent
such duties are not assigned to a trustee of Bon~s). Tke
books and records of the Authority shall be open to inspection
at all reasonable times by each Program Participant.
The Treasurer of the Authority shall cause an
independent audit to be made of the books of accounts and
financial records of the Agency 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 public records
with each Program ParticipaDt and also with the county auditor
of each county in which a Program Participant is l~Cated.
Such report shall be filed within 12 months of the end of the
Fiscal Year or Years under examination.
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 Commission may, by resolution
adopted by unanimous vote, replace the annual Special audit ..
with an audit covering a two-year period.
The Treasurer of the Authority, within 120 days
after the close of each Fiscal Year, shall give a complete
written report of all financial activities for such Fiscal
Year to each of the Program Participants to the eztent such
activities are not covered by the reports of the trustees for
the Bonds. The trustee appointed under each Indenture'ghall
establish suitable funds, furnish financial reports and
provide suitable accounting procedures to carry out the
provisions of said Indenture. Said trustee may be given such
duties in said Indenture as may be desirable to c~rry out this
Agreement.
Section 11. Funds.
Subject to the applicable provisions of a~ch
Indenture, which may provide for a trustee to receive, have
custody of and disburse Authority funds, the Treasurer of the
Authority shall receive, have the custody of and disburs~
Authority funds pursuant to the accounting procedures
developed under Section 10 hereof, and shall make the
disbursements required by this Agreement or otherwise
necessary to carry out any of the provisions or purposes of
this Agreement.
Section 12. Notices.
Notices and other communications hereunder to the
Program Participants shall be sufficient if delivered to the
clerk of the 9overning body of each Program Participant.
Section 13. Withdrawal and Addition of Parties.
A Program Participant may withdraw from this
Agreement upon written notice to the Commission; provided,
however, that no such withdrawal shall result in the
dissolution of the Authority so long as any Bonds remain
outstanding under an Indenture. Any such withdrawal shall be
effective only upon receipt of the notice of withdrawal by the
Commission 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.
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Qualifying public agencies may be added as parties
to this Agreement and become Propram Participants upon' (i)
the filing by such public agency of.an executed counterpart of
this Agreement, together with a certified copy of the
resolution of the governing body of such public agency
approving this Agreement and the execution and delivery
hereof; an~ (ii) adoption of a resolution of the Commission
approving the addition of such public agency as a Program
Participant. Upon satisfaction of such conditions, the
Commission shall file such executed counterpart of this'
Agreement as an amendment hereto, effective upon such filing.
Sec t i on 1 g,. I ndemn i f i ca t i on.
To the full extent permitted by law, the Commission
may authorize indemnification by the Authority cf any-person
who is or was a member or alternate member of the Commission,
or an officer, employee or 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 member or alternate member of the Commission, or an
officer, employee or other agent of the Authority, against
expenses, judgments, fines, settlements and other amounts
actually and reasonably incurred in connection with such
proceeding, if such person acted in good faith an~ in a manner
such person r~asonably believed to.be in the best interasts of
the Authority and, in the case of a criminal proceeding, had
'no reasonable cause to believe the conduct of such person wzs
unlawful and, in the c~se 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.
Sect ion 15. 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 parties hereto for any of .the purposes of
this Agreement. Payment of public funds may be made to defrsy
the 'cost of any such contribution. 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 party
making such advance at the time of .such advance.
Section 16. Immunities.
All of the priviIeges and immunities from
liabilities, exemptions from laws, ordinances and rules., all
pension, relief, disability, workers' compensation, and other
benefits which apply to the activity of officers, agents, or
employees of Program Participants when performing their
11
respective functions within the territorial limits of their
respective public agencies, shall apply to them to the same
degree and extent while engaged as members of the Commission
or otherwise as an officer, agent or other representative of
the Authority or while engaged in the performance of any of
their functions or duties extraterritoria!ly under the
provisions of this Agreement.
Se c t i on 17. Amendment s.
Except as provided in Section 13 above, this
Agreement shall not be amended, modified, or altered except
a written instrument duly executed by each of the Program
Participants.
Section 18. =ffectiveness.
This Agreement shall become effective and be in fu~
force and effect and a legal, valid and binding obligation c=.
each of the Program Participants at 9:00 a.m., California
time, on the date that the Commission shall have received f-om
each of the Initial Participants an executed counterpart of
this Agreement, together with a certified copy of a resoluti;n
of the governing body of each such Initial Participan;
approving this Agreement and the execution and delivery he-~,~
Section 19. 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 20. Successors.
This Ag=eement 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 party may
assign any right or obligation hereunder without the consent
of the other parties.
Section 21. Miscellaneous.
This Agreement may be executed in several
counterparts, each of which shall be an origihal 'and all of
which shall constitute but one and the same 'instrument.
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The section headings herein are for convenience °nlY
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 is made in the State ~f California,
under the Constitution and laws of such state and is to be so
construed.
This Agreement is the complete and e=c!usive
statement of the agreement among the parties hereto,.which
supercedes and merges all prior proposals, understandings, and
other agreements, including, without limitation, the initial
Agreement, whether oral, written, or implied in conduct,
between and among the parties relating to the subject matter
of this Agreement.
IN WITNESS WHEREOF, the parties h~reto have cause~
this Agreement to be emecuted and attested bT their proper
officers thereunto duly authori:ed, and their official seals
to be hereto affi=ed, as of the day and year first ahoy%
written.
Program Participant:
[S~_AL]
Al'rEST:
Name:
Title:
Name:
Title:
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