REPORT TO THE CITY COUNCIL December 14, 2017 FROM: MICHAEL LIMA, Finance Director/City Controller Finance Department BY: PHILLIP HARDCASTLE, Principal Accountant - Debt Administration Finance Department SUBJECT ..Title ***RESOLUTION - Approving the Joint Exercise of Powers Agreement Relating to the California Public Finance Authority. (Subject to Mayor's veto) ..Body RECOMMENDATION Staff recommends that the Council adopt the attach Resolution authorizing the Mayor, on behalf of the City, to enter into the Joint Exercise of Powers Agreement relating to the California Public Finance Authority (CalPFA). EXECUTIVE SUMMARY CalPFA has approached the City of Fresno (City) with a request to hold a TEFRA Hearing relating to the issuance of tax-exempt bonds for the purpose of constructing multi-family housing within the City of Fresno. Pursuant to CalPFA's Joint Exercise of Powers Agreement, a condition precedent to CalPFA's issuing bonds in the City of Fresno is that the City must join CalPFA as a Non-Charter or Additional Member via a City Council approved resolution. There is no cost associated with CalPFA membership and the City will not be financially liable for the bonds issued by CalPFA by reason of its membership. BACKGROUND CalPFA, a political subdivision of the State of California, was created on May 12, 2015, by two original members, Kings County and the Housing Authority of Kings County, to assist local governments, non-profit organizations and businesses with the issuance of taxable and tax-exempt financing to promote economic, cultural, and community development opportunities that create temporary and permanent jobs, affordable housing, community infrastructure and improve the overall quality of life in local communities. The Board of Directors of CalPFA is comprised of elected officials of the Board of Supervisors of Kings County, California. Qualifying public agencies may be added as parties to the Agreement and become Non-Charter Members ("Additional Members") by filing a resolution of the governing body for the public agency requesting to be added as an Additional Member and adoption of a resolution by the Board of Directors of CalPFA approving the addition of such public agency as an Additional Member. In accordance with Section 12 of the Agreement, 26 additional public agencies have joined CalPFA as Non-Charter Members to date. For CalPFA to have jurisdiction to issue bonds for any future project within a local agency's jurisdiction, it is necessary for the local agency to become a member of CalPFA. Pursuant to CalPFA's Joint Exercise of Powers Agreement, CalPFA is a public entity, separate and apart from its Members. The debts, liabilities and obligations of CalPFA do not constitute debts, liabilities or obligations of its Members. Under the Joint Exercise of Powers Agreement, any Member may withdraw from the agreement upon written notice to the CalPFA Board of Directors. CalPFA shares a portion of its annual fees with the local agency in which bonds are issued to defray administrative costs associated with TEFRA hearings and related matters. There are no costs associated with CalPFA membership and the City will not be financially liable by reason of its membership in CalPFA. In addition, participation by the City in the CalPFA will not constitute any type of indebtedness by the City. ENVIRONMENTAL FINDINGS This item is not a project of the City of Fresno and as such, the California Environmental Quality Act requirements are not applicable. LOCAL PREFERENCE Local preference was not considered because this resolution does not include a bid or award of a construction or service contract. FISCAL IMPACT Joining the CalPFA will have no impact on the General Fund as there is no cost to join. Attachment: Resolution Approving the Joint Exercise of Powers Agreement Relating to the CalPFA CalPFA Agreement