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9 Adopt Resolution 2019-24 BOLD Financing Truckee Railyard
AgendaItem#9TRUCKEEDONNERPublicUtilityDistrictACTIONTo:BoardofDirectorsFrom:ReginaWiseDate:October02,2019Subject:ConsiderationofResolution2019-24AuthorizingExecutionandDeliveryofJointCommunityFacilitiesAgreementinConnectionwiththeBondOpportunitiesforLandDevelopmentProgramfortheTruckeeRailyardProject_____1.WHYTHISMATTERISBEFORETHEBOARDThisitemisbeforetheBoardtoconsiderauthorizingResolution2019-24(Attachment1),approvingtheDistrict’sparticipationinaJointCommunityFacilitiesAgreementinconnectionwiththeBondOpportunitiesforLandDevelopment(BOLD)programfortheTruckeeRailyardProject.2.HISTORYTheTruckeeRailyardProjectislocatedattheeastendofdowntownTruckee.TheprojectinvolvestheconstructionofresidentialandcommercialdevelopmentonlandformerlyownedbyUnionPacificRailroad(UPRR)byTruckeeDevelopmentAssociates(TDA).StaffbroughttheWaterUtilityDevelopmentagreementbeforetheBoardonJuly20,2016andstaffbroughttheElectricUtilityDevelopmentagreementforPhase1beforetheBoardonJanuary19,2017.3.NEWINFORMATIONTruckeeDevelopmentAssociatesappliedwiththeTownofTruckeeforapprovalofLocalPublicInfrastructureFinancingpertheTown’snewLocalGoalsandPoliciesrelatedtoinfrastructurefinancingthatwasapprovedinNovember13,2018andwasawardedApril23,2019andincluded$4.5MoffinancingtobeincludedfortheDistrict’sinfrastructurerelatedtoElectricandWaterservice.InorderforTDAtobeabletofinancetheinfrastructureasplannedtheDistrictwouldneedtoenterintoaJointCommunitiesFacilitiesAgreement(JCFA)(ExhibitAtotheDraftResolutioninAttachment1)inconnectionwiththeBondOpportunitiesforLandDevelopment(BOLD)Program.TheactionbeingbroughttotheBoardinthisitemistoconsiderenteringintoaJCFAinconnectionwiththeBOLDprogram.IftheBoarddecidestoapprovetheresolution,thenextstepswouldincludeTruckeeDevelopmentAssociates,LLCcompletingtheBOLDprogram’sapplicationwhichwouldthenleadtotheprocessofCFDformation includingrateandmethodofapportionmentcalculationsandfurtherbondingprocesses.TheCFDcanbeformedwellaheadofanyanticipatedfinancing.TheresolutiondoesnotcommittheDistricttoactuallyformingtheCFDorprovidingtherequestedfinancing,ratheritallowsfortheprocesstocontinueandincludetheDistrict’sinfrastructure.InthisprocesstheDistrictwillhaveadditionalopportunitiestodofurtheranalysiswhentheCFDisformedand/orwhenfinancingiscontemplatedandbringthattotheBoardforfinalapproval.4.FISCALIMPACTThereisnoimmediatefiscalimpactassociatedwiththisactionitem.ThisresolutionwouldprovidetheTruckeeRailyardProjecttoincludetheDistrict’sinfrastructureforElectricandWaterServiceinthierapplicationforBOLDfinancing.5.RECOMMENDATIONAdoptresolution2019-24,AuthorizingExecutionandDeliveryofJointCommunityFacilitiesAGreementinConnectionwiththeBondOpportunitiesforLandDevelopment(BOLD)ProgramfortheTruckeeRailyardProject./ZReginaWiseMichaelD.HolleyFinance&AccountingManagerGeneralManager Attachment1hRUCKEEDON..NER_PubIicUtilityDistrictResolutionNo.2019-24RESOLUTIONAUTHORIZINGEXECUTIONANDDELIVERYOFJOINTCOMMUNITYFACILITIESAGREEMENTINCONNECTIONWITHTHEBONDOPPORTUNITIESFORLANDDEVELOPMENT(BOLD)PROGRAMFORTHETRUCKEERAILYARDSPROJECTWHEREAS,theCaliforniaMunicipalFinanceAuthority(the“CMFA”)isajointexerciseofpowersauthority,themembersofwhichincludenumerouscities,countiesandotherlocalagenciesintheStateofCalifornia(the“State”);andWHEREAS,CMFAhasconducted,orintendstoconduct,proceedingsundertheMello-RoosCommunityFacilitiesActof1982(CaliforniaGovernmentCodesection53311etseq.)(the“Act”)toformacommunityfacilitiesdistrict(the“CFD”)tofinancecertainpublicfacilitiesauthorizedtobefinancedundertheAct(the“CFDImprovements”)aspartofitsBondOpportunitiesforLandDevelopment(“BOLD”)programforadevelopmentprojectbeingundertakenbyTruckeeDevelopmentAssociates,LLCintheTownofTruckeeknownasthe“Railyards”project(the“Project”);WHEREAS,theCFDImprovementswillbedescribedintheresolutionofformationfortheCFD,includingtheCFDImprovementstobeacquiredbytheTruckeeDonnerPublicUtilityDistrict(the“Agency”);WHEREAS,CMFAintendstoutilizetheproceedsofsaleofspecialtaxbondsoftheCFDtofinancesomeoralloftheCFDImprovementstobeacquiredbytheAgency;WHEREAS,underSection53316.2oftheAct,theCMFAmayformaCFDto,amongotherthings,financeCFDImprovementstobeacquiredbytheAgency,providedCMFAandtheAgencyenterintoajointcommunityfacilitiesagreement;andWHEREAS,theAgencyiswillingtocooperatewithCMFAinaccomplishingthefinancingoftheCFDImprovementseligibletobefinancedbytheActfortheProject,andtoconferuponCMFAfullpowertoprovidefinancingforsuchitemsintheeventthatproceedsofspecialtaxesand/orbondsintheCFDbecomeavailableandareutilizedforsuchpurpose.NOW,THEREFORE,BEITRESOLVEDbytheBoardofDirectorsoftheTruckeeDonnerPublicUtilityDistrictasfollows:Section1.TheBoardherebyapprovestheexecutionanddeliveryofajointcommunityfacilitiesagreementwithCMFAwithrespecttotheCFDImprovementstobeacquiredbytheAgencyinconnectionwiththeProject,suchagreementtobesubstantiallyintheformpresentedtotheBoardandattachedheretoasExhibitA(the“JCFA”),withsuchchangesastheGeneralManagerorhisorherdesignee(each,an“AuthorizedOfficer”)maydeemappropriateornecessary,theexecutionanddeliveryoftheJCFAbeingconclusiveevidenceoftheapprovalofsuchchanges.1 Attachment1EachAuthorizedOfficerisauthorizedanddirectedtoexecuteanddelivertheJCFAonbehalfoftheAgency.Section2.ThisResolutionshalltakeeffectimmediatelyuponitsadoption.TheClerkoftheBoardisherebyauthorizedanddirectedtotransmitacertifiedcopyofthisresolutionandthefinal,executedJCFAtotheSecretaryoftheCMFA.PASSEDANDADOPTEDbytheBoardofDirectorsoftheTruckeeDonnerPublicUtilityDistrictatameetingheldwithinsaidDistrictonOctober2,2019bythefollowingrollcallvote:AYES:NOES:ABSENT:TRUCKEEDONNERPUBLICUTILITYDISTRICTByBobEllis,PresidentATTEST:ShannaD.Kuhlemier,CMC,DistrictClerk2 ExhibitACMFABOLDPROGRAMJointCommunityFacilitiesAgreementbyandbetweenCMFAandTruckeeDonnerPublicUtilityDistrict(RelatedtotheTruckeeRailyardsProject)ThisJointCommunityFacilitiesAgreement(this“Agreement”),datedasof________2019,byandbetweentheCaliforniaMunicipalFinanceAuthority,ajointexerciseofpowersauthoritydulyorganizedandexistingundertheConstitutionandlawsofthestateofCalifornia(the“CMFA”),andtheTruckeeDonnerPublicUtilityDistrict,aspecialdistrictdulyorganizedandexistingundertheConstitutionandlawsofthestateofCalifornia(the“Agency,”andtogetherwithCMFA,the“Parties”).WITNESSETH:WHEREAS,CMFAhasconducted,orintendstoconduct,proceedingsundertheMelloRoosCommunityFacilitiesActof1982(CaliforniaGovernmentCodesection53311etseq.)(the“Act”)toformacommunityfacilitiesdistrict(a“CFD”)tofinancecertainpublicfacilitiesauthorizedtobefinancedundertheAct(the“CFDImprovements”)aspartofitsBondOpportunitiesforLandDevelopment(“BOLD”)programforadevelopmentprojectbeingundertakenbyTruckeeDevelopmentAssociates,LLCintheTownofTruckeeknownasthe“Railyards”project(the“Project”);WHEREAS,theCFDImprovementswillbedescribedintheresolutionofformationfortheCFD,includingtheCFDImprovementstobeacquiredbytheAgencyandsetforthonExhibitAhereto(the“AgencyImprovements”);WHEREAS,CMFAintendstoutilizetheproceedsofsaleofspecialtaxbondsoftheCFD(the“Bonds”)tofinancesomeoralloftheAgencyImprovements;WHEREAS,underSection53316.2oftheAct,CMFAmayformaCFDto,amongotherthings,financetheAgencyImprovements,providedthatCMFAandtheAgencyenterintoajointcommunityfacilitiesagreementsuchasthisAgreement;WHEREAS,AgencyiswillingtocooperatewithCMFAinaccomplishingthefinancingoftheAgencyImprovementseligibletobefinancedbytheActfortheProject,andtoconferupontheCMFAfullpowertoprovidefinancingfortheAgencyImprovementsintheeventthatproceedsofspecialtaxesand/orbondsintheCFDbecomeavailableandareutilizedforsuchpurpose;WHEREAS,thisAgreementismadeundertheauthorityofSection53316.2oftheAct;andWHEREAS,inconsiderationforthemutualundertakingsofthePartiesstatedherein,thePartiesagreeasfollows: AGREEMENT:1.AdministrationofCFDandIssuanceofBondsbyCMFA.CMFAshalladministertheCFD,includingemployingandpayingallconsultants,annuallylevyingthespecialtaxandpayingandadministeringtheBonds,andcomplyingwithallstateandfederalrequirementsappertainingtotheproceedingsestablishingtheCFDandissuingandusingtheproceedsoftheBonds,includingtherequirementsoftheUnitedStatesInternalRevenueCodeof1986,asamended(the“Code”).AgencyshallhavenoobligationorresponsibilitywhatsoeverwithrespecttotheissuanceandsaleofBondswithrespecttotheCFD(oranyimprovementarealocatedtherein)orthepaymentoftheprincipalthereofandinterestthereon,orthelevyofthespecialtaxesprovidedforinthisAgreementtoprovideforthepaymentofsuchprincipalandinterest.Further,AgencywillnotparticipateinnorbeconsideredaparticipantintheMello-Roosproceedings(otherthanasaPartytothisAgreement)norwillit,foranypurpose,beorbeconsideredtobeanissueroftheBonds.ThePartiesacknowledgethatAgencyhasnoobligationtodefendthisAgreementortheCFDinthefaceofanychallengetoanyaspectoftheuseofCFDproceeds.2.AgreementtoHoldSpecialTaxesandBondProceeds.CMFAshallholdorcausetobeheldwithinaseparatefund,accountorsubaccount(the“AgencySubaccount”)specialtaxesorBondproceedsavailableforpaymentofAgencyImprovements,segregatedfromallotherfunds,andexceptforinvestmentpurposes,shallnotbecommingledwithanyotherfunds.InvestmentearningsonamountsintheAgencySubaccountshallberetainedintheAgencySubaccountforthebenefitoftheAgency,excepttotheextentaportionofsuchearningsarerequiredtopayrebateoryieldreductionpaymentstotheU.S.TreasurypursuanttotheCode.AmountsondepositintheAgencySubaccountshallbedisbursedonlyinaccordancewithSection3ofthisAgreement.CMFAshalldisburse,orcausetobedisbursed,moneysondepositintheAgencySubaccountonlyasprovidedherein.3.DisbursementsAgencySubaccount.MoneysondepositintheAgencySubaccountshallbedisbursedbyCMFApursuanttowrittenrequisitionsoftheAgency,insubstantiallytheformattachedheretoasExhibitBandexecutedbytheGeneralManagerorhisorherdesignee(each,an“AuthorizedOfficer”).CMFAanditsdesignees,includinganytrusteeorfiscalagentholdingfundsinanAgencySubaccount,mayconclusivelyrelyonsuchrequisitionsforpurposesofmakingsuchdisbursements.AlldisbursementsfromtheAgencySubaccounttotheAgencyshallbemadebywiretransferofimmediatelyavailablefundsorbycheckpayabletotheAgency’sbankaccountnumberatabanklocatedwithintheUnitedStatesonfilewithCMFAaspartoftheBOLDprogram,unlessanothermethodofpaymentisrequestedinwritingbytheAgency.4.PurchaseofAgencyImprovements.TotheextentAgencyisacquiringAgencyImprovementsusingBondproceedsorspecialtaxesgeneratedbytheCFD,theAgencyshallworkwiththedeveloper(s)oftheProjecttoputinplaceallnecessaryagreements,certificatesorotherdocumentsdeterminedbytheAgencytoberequiredfortheAgencytoacquiresuchAgencyImprovements.NeitherCMFAnoranyofitsagentsshallberesponsibleforinspectionorreviewofanysuchdocumentsrelatingtofinancedAgencyImprovements,unlesssetforthinaseparatewrittenagreementbetweenCMFAandtheAgencyprovidingforthesame.5.Amendments.ThisAgreementmaybeamendedbyawritingsignedbytheParties,includingtoupdateExhibitAtoreflectadditionalordifferentAgencyImprovementstobefinancedbytheCFDfortheAgencyImprovements.2 6.TermofthisAgreement.ThisAgreementshallbeinfullforceandeffectfromthisdatetoandincludingitsterminationbymutualwrittenagreementofthepartieshereto.CMFAagreestoterminatethisagreementuponrequestoftheAgencyupondeliverytoCMFAofanopinionBondCounseltotheeffectthattheterminationofthisAgreementwillnotadverselyaffecttheexclusionfromgrossincomeofinterestontheBondsforfederalincometaxpurposes.ThisagreementwillautomaticallyexpirewhentheBondsarefullypaidofforareredeemed,orwhentheCFDImprovementsarecompleted,whicheverislater.7.Counterparts.ThisAgreementmaybeexecutedincounterparts,eachofwhichshallbedeemedanoriginal.8.Severability.ShouldanytermorprovisionofthisAgreementbedeterminedtobeillegalorinconflictwithanylawoftheStateofCalifornia,thevalidityoftheremainingportionsorprovisionsshallnotbeaffectedthereby,andeachtermorprovisionofthisAgreementshallbevalidandbeenforcedaswrittentothefullextentpermittedbylaw.9.NoThirdPartyBeneficiaries.ThisAgreementshallinuresolelytothebenefitofthePartiesheretoandshallcreatenorightsinanyotherpersonorentity.10.Assignment.ThisAgreementmaynotbeassignedtoanotherpartywithoutthewrittenconsentofallPartieshereto.11.GoverningLaw.Thevalidity,interpretationandperformanceofthisAgreementshallbegovernedbythelawsoftheStateofCaliforniaapplicabletocontractsmadeandperlormedinCalifornia,withoutapplicationofconflictoflawprinciples.INWITNESSWHEREOFthePartieshavecausedthisAgreementtobeexecutedbytheirauthorizedrepresentativesasoftheeffectivedatestatedabove.CMFA:AGENCY:CALIFORNIAMUNICIPALTRUCKEEDONNERPUBLICUTILITYFINANCEAUTHORITYDISTRICTBy:AuthorizedSignatoryBy:Name:Title:3 EXHIBITADESCRIPTIONOFAGENCYIMPROVEMENTSRELATEDTOTHEPROJECTA-i EXHIBITBDISBURSEMENTREQUESTFORMTo:CaliforniaMunicipalFinanceAuthority2111PalomarAirportRoad,Suite320Carlsbad,California92011Email:____________________Re:BOLDProgram-RequestforDisbursementofBondProceedsTheundersigned,adulyauthorizedofficeroftheTruckeeDonnerPublicUtilityDistrict(the“Agency”)herebyrequestsadisbursementfromtheAgencySubaccountssetforthbelow,andcertifiesthattheamountsofdevelopmentimpactfeesand/orcapitalimprovementslistedbelowhavebeenorwillbespentbytheAgencyasofthedateindicatedbeloworwithin5daysthereafter:Subaccount(s)Amount(s)[example,CMFACFDNo.2018-1,SpecialTaxBondsSeries2019]$Total:Wir in g I ns tru c t ion s:_________ _______ _______ ___ ____Theundersignedherebyadditionallycertifiesasfollows:1.Thesefundshavebeenorwillbeusedtoacquireand/orconstructcapitalimprovements,andthisdisbursementisnotbeingmadeforthepurposeofreinvestment.2.Noneoftheexpendituresforwhichpaymentisrequestedhavebeenreimbursedpreviouslyfromothersourcesoffunds.3.IfthetotalamountaboveisgreaterthanthefundsheldbyCMFAonbehalfofB-i theAgencyintheSubaccount(s)identifiedabove,CMFAisauthorizedtoamendtheamountrequestedtobeequaltotheamountofsuchfunds.4.Totheextentthedisbursementisbeingmadepriortothedatetheabove-referencedbondshavebeenissued,thisdisbursementformservesasthedeclarationofofficialintentoftheAgency,pursuanttoTreasuryRegulations1.150-2,toreimburseitselfwithrespecttoexpendituresmadefromtheSubaccount(s)referencedaboveintheamountrequested.5.Theamountsbeingdisbursedpursuanttothisrequestarebeingusedtofinanceorrefinancecertainpublicinfrastructureandfacilities(the“Improvements”).Agencywillown,andfortheentireusefullifeofsuchImprovementsreasonablyexpectstoown,allofsuchImprovements.TheImprovementsconsistofthefollowing:[Describetheimprovements]6.TotheextentanyofsuchImprovementsaresoldtoanentitythatisnotastateorlocalgovernmentagency,AgencywillseektheadviceandapprovalofbondcounseltoCMFAfortheBOLDprogrampriortoanysuchsale.AgencywillnotallowanyofsuchImprovementstobeused(forexample,byleaseorothercontract)inthetradeorbusinessofanynongovernmentalpersons(otherthanintheirrolesasmembersofthegeneralpublic).AllofsuchImprovementswillbeusedintheperformanceofessentialgovernmentalfunctionsofAgencyoranotherstateorlocalgovernmentagency.TheaverageexpectedusefullifeofsuchImprovementsisatleast30years.TherepresentationsandcovenantscontainedinthisparagraphareintendedtosupporttheconclusionthattheinterestpaidonthebondsissuedtofinancetheImprovementsisexcludedfromgrossincomeforfederalincometaxpurposesunderSection103oftheInternalRevenueCodeof1986(the“Code”).Dated:_______________________Signature:_________ ___________ _ ___PrintName:________________ _ _ _____B-2