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<br />o <br /> <br />ORRICK. HERRINGTON & SUTCLIFFE LLP <br />THE ORRICK BUILDING <br />405 HOWARD STREET <br />SAN FRANCISCO. CA 94105.2669 <br /> <br />tel 4~5-773.5700 <br />fax 4~5-773-5759 <br /> <br />WWW.ORRICK.COM <br /> <br />ORRICK <br /> <br />ATTACHMENT D <br /> <br />November 2, 2005 <br /> <br />Justin Cooper <br />415.773.5908 <br />JcooperCi>orrfck.com <br /> <br />Mr. Dave lremonger <br />Treas~ Manager <br />Go/ of Pleasant:on <br />P.O. Box 520 <br />Pleasanton,~94566 <br /> <br />Re: Califomia Statewide O:>nununities Develop.rnent: Authority <br /> <br />Ladies and Gende.rnen: <br /> <br />The Califomia Stat:ewide O:>nununities Development: Authority ("CSCDA") is a joint: exen:ise of <br />po~1'S aut:horitycreat:ed under the CalifomiaJoint: Po~1'S Act: (Califomia Govenunent: Code <br />Section 6500 and follov.>ing) (t:he "Act:"). Pursuant: t:o t:he Act: and an Amended and Rest:ated Joint: <br />Po~1'S Agreement: an10ng a number of cities, counties and special dist:ricu within the St:are of <br />Califomia (the" Agreement:"), CSCDA is authorized t:o issue revenue bonds and certificates of <br />participation for t:he benefit: of conduit: borro~rs. . <br /> <br />CSCDA issues bonds on behalf of t:he CSCDA member (the "Program Participant:") in whose <br />jurisdiction the project: is to be locat:ed, in this case, t:he Gty of Pleasant:on (the <CGt:y"). Pursuant t:o <br />Section 9 of the Agreement, CSCDA JnaY not issue bonds or ot:her fonns of indebt:edness unless the <br />goveming body of t:he Program Participant approves t:heir issuance. Furthermore, Section 147(f) or <br />the Intemal Revenue Code of 1986 requires that the proposed financing be approved by a <br />govemmental unit having jurisdiction over the area in w-hich the facility to be financed is located. A <br />financing vvill be treated as having been approved by a govemmentaI unit if "the applicable elected <br />representative" of such governmental unit (in this case, the Board of Supervisors) approves such <br />issue after a public hearing following reasonable public notice of such hearing. Thereafter, pursuant <br />t:o applicable state la"W, t:he bonds are issued as limited obligations of CSCDA, nQ1 of the Gty. <br />payable solely out of the revenues and receipts derived from the applicable project or the loans Jnade <br />by CSCDA to t:he respect:ive borro~r with t:he proceeds of the bonds. <br /> <br />Specifically, Section 8 of the Agreement: provides that "[t]he Bonds, toget:her wit:h the interest and <br />premium, if any, t:hereon, shall nocbe deenled to constit:ute a debt of any Program Participant:...or <br />pledge of t:he fait:h and credit of t:he Program Participants... Neit:her the Program Participants <br />nor... shall be obligated to pay the principal of, prenlllUD, if any. or interest on t:he Bonds, or other <br />costs incidental thereto... " (emphasis added) The Agreement also expressly provides that CSCDA <br /> <br />DOCSSF1:848913.1 <br />