May 17, 2022
TEFRA Hearing for
Vanguard University
2 Background
• The California Enterprise Development Authority (CEDA) is a Joint Powers Authority (JPA) created in 2006 by the California Association of Local Economic Development to address gaps in economic
development financing
• The City joined the JPA in September 2019
• TEFRA: Tax Equity and Fiscal Responsibility Act requires a public hearing before issuance of tax-exempt revenue obligations by CEDA • In 2019, the City Council conducted a TEFRA hearing and adopted a resolution approving issuance of tax-exempt obligations by CEDA to finance the Vanguard University Campus Master Plan
3 Vanguard University Master Plan
• Master Plan approved by City Council on February 19, 2019 • 20-year campus master plan
• 12 individual projects proposed as part of the master plan. They include new facilities, remodeling of existing buildings, and campus beautification projects
4 Previous Financing
• On April 30, 2020, the JPA issued two tax-exempt obligations for Vanguard University in the amount of $42,000,000 to finance portions of Projects B and L of the Master Plan
Project B: Student Center / Wrought
Student Center (now complete)
Project L: Campus Beautification
(under construction)
5 Proposed Financing
• Two additional tax-exempt obligations are proposed in an amount not- to-exceed $30,000,000 are proposed to finance Projects A and I of the approved Master Plan
• They include the replacement of the existing gymnasium with new athletic program facilities, a campus events center, and upgrading the courtyard and offices and laboratories
Project A: Gym/ Events Center, Free
Center for Leadership & Service
Project I: Improvements to Athletics
facilities
6 TEFRA Hearing
• For bond issuance, a noticed
hearing must be conducted
by an elected body who is
also a member of the JPA
• The JPA and Vanguard
University have requested the
City hold the TEFRA hearing
and approve the issuance of
the tax-exempt obligations by
the JPA for the benefit of
Vanguard University in
accordance with Section
147(f) of the Internal Revenue
Code
7 TEFRA Hearing
• The tax-exempt obligations
would be issued by the JPA
for the benefit of Vanguard
University
• Vanguard University is a
Section 501(c)(3) not-for-
profit organization
• There is no fiscal impact to
the City
Staff Recommendation
• Conduct a public hearing to receive comments
relating to the issuance of $30,000,000 in
revenue obligations by CEDA for Vanguard
University
• Adopt a resolution approving the issuance of
the obligations in order to finance
implementation of the Vanguard University
campus Master Plan
May 17, 2022
TEFRA Hearing for
Vanguard University
Costa Mesa City Council
M a y 17 , 2 0 2 2
•Top Tier Best University in the West, US News & World Report •Educating our Region
•Each year, VU:
–Generates an economic impact of $474 million in CA
•$76 million occurs in Costa Mesa
–Supports 1,600 jobs in CA
•800 jobs within Costa Mesa
Local Impact
CATALYTIC
CONVERTER
ORDINANCE
May 17, 2022
Lieutenant Bryan Wadkins
CMPD staff recommends adoption of a
new ordinance to establish regulations
prohibiting unlawful possession of
catalytic converters in the City
WHAT IS A CATALYTIC CONVERTER?
• A part of a vehicle’s exhaust system that
reduces harmful emissions
• They contain semi-precious metals, like
rhodium, palladium and platinum
CATALYTIC CONVERTER THEFT
• One of the fastest growing crimes in California
• Criminals steal catalytic converters to recycle
them for their precious metals, profiting $200-
$1,200 per unit
• Criminal steal a catalytic converter in a matter
of seconds using common tools like a
reciprocating saw
• Catalytic converters are not serialized - unless
you catch a theft in progress, they are nearly
impossible to match to victim vehicles
COSTA MESA CRIME STATS
2019 2020 2021
Catalytic converter thefts in Costa
Mesa increased 1,223% in two years
0 50
100
150
200
250
300
350
26 115
318
2022
January-April
106
ENFORCEMENT EFFORTS
CMPD uses multiple strategies to prevent
catalytic converter theft and apprehend thieves
•Directed enforcement operations
•Undercover Surveillance
•Use of bait cars and drones
•Public education campaigns on social media
•Etching events at a local automotive business.
ENFORCEMENT CHALLENGES
•No serialization makes it nearly impossible to trace
stolen catalytic converters to their owners
•Current state law requires a victim be identified, before an arrest and charges filed for theft or possession of
stolen property
•Currently, there are no City, State or Federal laws that hold offenders accountable for possession of
unlawfully obtained catalytic converters without
identifying the associated victim
PROPOSED ORDINANCE
•Would make it unlawful for any person to
possess any catalytic converter that is not
attached to a vehicle, unless the person has
valid documentation or other proof to verify that
the person is in lawful possession of the
catalytic converter
•The ordinance would also make it unlawful for
any person to knowingly falsify or cause to be
falsified any information in any documentation
or other proof intended to show lawful
possession of a catalytic converter
PROPOSED ORDINANCE
•Documentation or other proof means written
documents that clearly identify the vehicle from
which the catalytic converter originated, which
may include bills of sale, photographs, emails,
registrations and etchings
•Violations of this ordinance are deemed
misdemeanors
PROPOSED ORDINANCE
•Other cities in Orange County include Irvine,
Huntington Beach and Mission Viejo have
adopted similar ordinances
•Adoption of this ordinance will provide Costa
Mesa Police with clearly established legal
authority to assist in protecting the public and
deterring this criminal activity
END
OF
PRESENTATION