Joint Meeting Council/BFPD
09/1/26 06:00 PM
City Manager Department
Rochelle Clayton
Resolution
Doc ID: 6563
COUNCIL RESOLUTION
AGENDA MATTER:
PUBLIC HEARING AND TEFRA APPROVAL OF TAX-EXEMPT BOND FINANCING FOR THE
BENEFIT OF QKA HEALTH CORPORATION D/B/A HEALTHSIDE PARTNERS AND MEMBERSHIP IN
THE CALIFORNIA PUBLIC FINANCE AUTHORITY
EXECUTIVE SUMMARY:
Upon request from QKA Health Corporation d/b/a Healthside Partners (the “Borrower”) and the California Public Finance Authority (the “Authority”), the staff of the City of Barstow (the “City”) is recommending approval of a Resolution (see Attachment 1) authorizing the City to:
1. Join the Authority by approving the “Joint Exercise of Powers Agreement Relating to the California Public Finance Authority” (see Attachment 2 (the “Joint Powers Agreement”)); and
2. Approve the issuance of the Bonds financing the Project (as such terms are defined in the notice of public hearing attached to the resolution (the “TEFRA Notice”)) after a public hearing following reasonable public notice, solely for purposes of Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”).
DISCUSSION:
Background information regarding the Authority
The Authority is a political subdivision of the state of California and was created on May 12, 2015 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 the Authority is comprised of elected officials. To date, over sixty public agencies have become members of the Authority.
The Authority shares a portion of its annual fees with each local agency that conducts a public hearing.
Each public agency who conducts a TEFRA hearing shall receive at a minimum of 10% of the Authority’s annual administrative fee collected for the term of the respective bonds issued by the Authority.
The Joint Exercise of Powers Agreement explicitly provides that the Authority is a public entity, separate and apart from the Member executing the agreement, and the debts, liabilities and obligations of the Authority do not constitute debts, liabilities or obligations of the Member executing the agreement. The Joint Exercise of Powers Agreement also expressly provides that any Member may withdraw from the agreement upon written notice to the Board of Directors of the Authority.
There are no costs associated with membership in the Authority and the City will in no way become exposed to any financial liability by reason of its membership in the Authority. In addition, participation by the City in the Authority will not impact the City’s appropriations limits and will not constitute any type of indebtedness by the City.
Joint Meeting Council/BFPD
09/1/26 06:00 PM
City Manager Department
Rochelle Clayton
Resolution
Doc ID: 6563
COUNCIL RESOLUTION
Background information regarding TEFRA:
The Borrower is a 501(c)(3) organization. Section 147(f) of the Code requires that tax-exempt bonds issued for the benefit of 501(c)(3) organizations be approved by the applicable elected representative of the governmental unit having jurisdiction over the area in which the facility to be financed or refinanced with the proceeds of the bonds is located.
The Project is located in the City, and the City Council is the elected governing body of the City.
Under Section 147(f) of the Code, the City Council must approve the issuance of the Bonds financing the Project after a public hearing following reasonable public notice. This is referred to as a “TEFRA hearing” and a “TEFRA approval.”
The TEFRA hearing is scheduled to be held immediately prior to the City Council’s consideration of the resolution. Federal tax law provides that notice of the public hearing is presumed reasonable if published no fewer than 7 days before the hearing and the TEFRA Notice was published on August 23, 2026 in the Victorville Daily Press.
FISCAL IMPACT:
Joining the Authority will have no impact on the City’s General Fund as there is no cost to join. The City’s General Fund will receive a gift of funds annually once the Authority issues bonds to finance the Project within the City. The TEFRA hearing and TEFRA approval are a procedural matter of federal tax law. In no event shall the City be liable for the Bonds and the Bonds will not constitute a debt of the City.
RECOMMENDED ACTION:
That the City Council:
1. Hold the TEFRA hearing; and
2. Adopt Resolution XXX-2026 authorizing the Mayor on behalf of the City, to enter into the Joint Powers Agreement and providing the TEFRA approval; and
3. Waive the full reading.