A G E N D A
SPECIAL MEETING: GLENDALE CITY COUNCIL
COUNCIL CHAMBERS
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Glendale, CA 91206
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SEPTEMBER 12, 2023
ROLL CALL
-
3:00 PM
-
Report of the City Clerk of the City Council, re: Posting of Agenda. The Agenda for the Tuesday, September 12, 2023 Special Public Meeting of the City Council was posted on September 7, 2023, on the Bulletin Board Outside City Hall.
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A
SPECIAL PUBLIC MEETING
of the City Council is hereby called to meet at
3:00
PM
on
Tuesday, September 12, 2023
, in the Council Chamber, 613 E. Broadway, 2nd Floor
,
Glendale, CA 91206 to consider the following item(s) of business, to wit;
1. Community Development, re: Use of City Days at the Alex Theatre: Horizon Armenian TV
a. Motion to approve use of one of twelve annual City Days at the Alex Theatre for “Im Zoolal Hayastan” Armenian Independence Day Concert presented by Horizon Armenian TV on September 21, 2023 and to cover the costs associated with labor and additional equipment rentals at the Theatre for the day
b. Motion to approve use of one of twelve annual City days at the Alex Theatre for Project LA Concert presented by Horizon Armenian TV on December 15, 2023 and to cover the costs associated with labor and additional equipment rentals at the Theatre for the day
2. Community Development, re: Tax Equity and Fiscal Responsibility Act Public Hearing for California Municipal Finance Authority Proposed Issuance of Approximately $12 Million in Tax Exempt Revenue Bonds in Support of Facilities Owned and Operated by Ararat Home of Los Angeles, Inc.
a. Resolution Approving the Issuance of Approximately $12 Million in Tax Exempt Revenue Bond Obligations in Support of Ararat Home of Los Angeles, Inc. and Certain Other Matters Relating Thereto by the California Municipal Finance Authority
ADJOURNMENT
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1 CITY OF GLENDALE, CALIFORNIA
REPORT TO THE SPECIAL CITY COUNCIL
AGENDA ITEM
Report: Use of City Days at the Alex Theatre: Horizon Armenian TV
1. Council motion to approve use of one of twelve annual City Days at the Alex Theatre for “Im Zoolal Hayastan” Armenian Independence Day Concert presented by Horizon Armenian TV on September 21, 2023 and to cover the costs associated with labor and additional equipment rentals at the Theatre for the day.
2. Council motion to approve use of one of twelve annual City days at the Alex Theatre for Project LA Concert presented by Horizon Armenian TV on December 15, 2023 and to cover the costs associated with labor and additional equipment rentals at the Theatre for the day.
COUNCIL ACTION
Item Type: Action Item
Approved for September 12, 2023 calendar
EXECUTIVE SUMMARY
Horizon Armenian TV has requested the City’s sponsorship for two dates in 2023 to present culturally relevant shows at the Alex Theatre. The City’s sponsorship would come by way of the utilization of two of the twelve annual City days to host the event, plus the cost of labor and additional equipment rentals for the day. The City has already utilized two of its allotted twelve dates for the February 26, 2023 Artsakh Fundraiser and April 24, 2023 Armenian Genocide Commemoration.
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4 COUNCIL PRIORITIES
This report is outside of the four stated Council priorities.
RECOMMENDATION
Provide direction for utilization of two dates at the Alex Theatre and associated costs.
BACKGROUND
As part of the Management Agreement, SAS agreed to provide the City with 12 annual days of Theatre use, free of facility rental charge, with the City covering any labor, box office services, and equipment rental necessary to operate the venue. These costs are approximately $15,000 per event, depending on the size of the event and additional equipment rentals.
The September 21 event, Im Zoolal Hayastan, will celebrate Armenian Independence Day with singers Arpi and Sevak Amroyan and the Vartan Gevorkyan Dance Academy.
The December 15 event, Project LA, is a musical project founded by composer Levon Arevshatyan. Popular among the youth, Project LA has been modernizing classic poetry through music since 2018. Arevshatyan composes songs based on classical poems by world-renowned American, Armenian, and English authors. The event is unique in that it will feature the works of poets in both English and Armenian, including poems by Shakespeare, Edgar Allen Poe, Emily Dickinson, William Henley, Lord Byron, Vahan Teryan, Yeghishe Charents, Hamo Sahyan, and Paruyr Sevak. The songs composed by Arevshatyan will be performed by Armenian rock singer and songwriter Gor Sujyan, who represented Armenia in the 2013 Eurovision Song Contest with his band the “Dorians.” The concert will also feature a number of notable local and international vocalists and musicians who will perform alongside Sujyan.
ANALYSIS
This event is in line with the City’s and community’s interests and is an appropriate utilization of the City’s twelve rental dates at the Theatre.
STAKEHOLDERS/OUTREACH
Marketing of these events will take place on TicketMicket, the Alex Theatre website, and Horizon TV. Both events are already on sale and being marketed.
FISCAL IMPACT
The staffing and additional equipment rental costs associated with use of the Theatre is approximated at $15,000 for each of the dates requested. The Community Development Department budget can absorb this cost and therefore no new appropriation is being requested at this time. The funding is outlined below:
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4 Existing Appropriation
Amount Account String Funding Source
$30,000 GL: 43110-1010-CDD-0020-P0000
PL: CDD00951AN
General Fund
ENVIRONMENTAL REVIEW (CEQA/NEPA)
This item is considered a ministerial activity and therefore, not subjected to CEQA/NEPA review.
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ALTERNATIVES
Alternative 1. Approve utilization of one or two of twelve of the City days at the Alex Theatre, and funding expenditure, allowing the City to be a sponsor of the event.
Alternative 2. Do not approve utilization of one or two of twelve of the City days at the Alex Theatre or the funding expenditures. As these events are already on sale, they will still take place without the City sponsorship.
Alternative 3. Consider another alternative not proposed by staff.
ADMINISTRATIVE ACTION
Prepared by:
Tamar Sadd, Deputy Director of Community Development
Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
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MOTION
Moved by Council Member _________________________________, seconded by Council Member _____________________________, that the City Council hereby approves use of one of twelve annual City Days at the Alex Theatre for “Im Zoolal Hayastan” Armenian Independence Day Concert presented by Horizon Armenian TV on September 21, 2023 and to cover the costs associated with labor and additional equipment rentals at the Theatre for the day.
Votes as follows:
Ayes:
Noes:
Absent:
Abstain:
City Clerk
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MOTION
Moved by Council Member _________________________________, seconded by Council Member _____________________________, that the City Council hereby approves use of one of twelve annual City days at the Alex Theatre for Project LA Concert presented by Horizon Armenian TV on December 15, 2023 and to cover the costs associated with labor and additional equipment rentals at the Theatre for the day.
Votes as follows:
Ayes:
Noes:
Absent:
Abstain:
City Clerk
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2 CITY OF GLENDALE, CALIFORNIA
REPORT TO THE SPECIAL MEETING: GLENDALE CITY COUNCIL
AGENDA ITEM
Report: Tax Equity and Fiscal Responsibility Act Public Hearing for California Municipal Finance Authority Proposed Issuance of Approximately $12 Million in Tax Exempt Revenue Bonds in Support of Facilities Owned and Operated by Ararat Home of Los Angeles, Inc. (1) Resolution of the City Council of the City of Glendale Approving the Issuance of Approximately $12 Million in Tax Exempt Revenue Bond Obligations in Support of Ararat Home of Los Angeles, Inc. and Certain Other Matters Relating Thereto by the California Municipal Finance Authority.
COUNCIL ACTION
Item Type: Public Hearing
Approved for September 12, 2023 calendar
EXECUTIVE SUMMARY
Ararat Home of Los Angeles, Inc. (Ararat Home) has applied for the issuance of approximately $12 million in revenue bonds by California Municipal Finance Authority (CMFA) in order to finance the: (i) acquisition of and/or construction, improvement, furnishing and equipping of various housing projects which are all owned and operated by the Ararat Home in an aggregate principal amount not to exceed $7,500,000 for the assisted living facility at Ararat Gardens (the “Glendale Project”); (ii) the acquisition of and/or construction, improvement, furnishing and equipping of capital projects at the Borrower’s assisted living facility known as Ararat Assisted Living Facility, located generally at and in the vicinity of 15105 Mission Hills Road, Mission Hills, California, in an aggregate principal amount not to exceed $3,000,000; and (iii) the acquisition of and/or construction, improvement, furnishing and equipping of capital projects at the borrower’s assisted living facility known as 15155 Mission Hills Road, Mission Hills, California, in an aggregate principal amount not to exceed $2,000,000 (collectively, the “Projects”), which are all owned and operated by the Ararat Home.
Ararat Home’s Glendale Project is located at 1230 E. Windsor Road. The site is a market rate continuing care retirement facility first opened in 1937 and is not subject to any affordability covenants or restrictions by the City of Glendale or any other agency. 8 of 16
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1 In order to issue revenue bonds that will be utilized within Glendale city limits, the City Council of the City of Glendale (City Council) has been requested to conduct a TEFRA hearing on behalf of Ararat Home and CMFA. Section 147 (f) of the Internal Revenue Code of 1986 requires that the local elected public body conduct a public hearing related to the proposed issuance of revenue bonds and that the public be provided an opportunity to present arguments both for and against the issuance of these bonds by CMFA.
COUNCIL PRIORITIES
Not Applicable.
RECOMMENDATION
The Community Development Department recommends that the City Council conduct a TEFRA hearing and approve the issuance of up to approximately $12 million in Tax Exempt Revenue Bonds in order to finance the acquisition of and/or construction, improvement, furnishing and equipping of the Projects, owned and operated by Ararat Home.
BACKGROUND
Ararat Home was founded in 1949 and operates life plan communities on three campuses in Mission Hills, Glendale, and Eagle Rock, CA. Its main campus in Mission Hills also includes facilities that serve as a cultural center for the Armenian community.
Currently, Ararat Home’s campuses are comprised of 73 residential care units, 153 assisted living units and 324 skilled nursing beds.
ANALYSIS
Ararat Home has applied for the issuance of approximately $12 million in revenue bonds by CMFA in order to finance the acquisition of and/or construction, improvement, furnishing and equipping of various housing projects which are all owned and operated by the Ararat Home.
In order to issue revenue bonds which will be utilized within Glendale, the City of Glendale has been requested to conduct a TEFRA hearing on behalf of the Borrower and CMFA. Section 147 (f) of the Internal Revenue Code of 1986 requires that the local elected public body conduct a public hearing related to the proposed issuance of revenue bonds and that the public be provided an opportunity to present arguments both for and against the issuance of these bonds by CMFA. The City Council has previously conducted TEFRA hearings for city and other privately sponsored projects such as Glendale Adventist Medical Center, Maple Park, Casa de la Paloma, and Park Paseo. In the case of the Glendale Project, the City Council conducted a TEFRA hearing in June 2019 for the then property owner for the issuance of up to $12M in tax exempt bonds. As part of the sale of the Glendale Property to Ararat Home in March 2023, those bonds have been retired.
CMFA was created on January 1, 2004 to promote economic, cultural and community development, through the financing of economic development and charitable activities throughout California. To date, over 350 municipalities, including the City of Glendale, 9 of 16
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1 have become members of the CMFA. The CMFA is a public entity, separate and apart from each member. The debts, liabilities, and obligations of the CMFA do not constitute debts, liabilities or obligations of the members.
The bonds to be issued by the CMFA for the proposed project will be the sole responsibility of the Borrower, and the City will have no financial, legal, moral obligation, liability or responsibility for the proposed project or the repayment of the bonds for the financing of the proposed project. All financing documents with respect to the issuance of the bonds will contain clear disclaimers that the bonds are not obligations of the City or the State of California but are to be paid for solely from funds provided by the borrower.
The City became a member of the CMFA in August 2012 and the City will in no way become exposed to any financial liability by reason of its membership in CMFA. In addition, participation by the City in CMFA will not impact the City’s appropriations limits and will not constitute any type of indebtedness by the City. Outside of holding the TEFRA hearing and adopting the required resolution, no other participation or activity of the City or the City Council with respect to the issuance of the bonds will be required.
There is no fiscal impact to the City of Glendale associated with this TEFRA hearing or with the issuance of tax-exempt revenue bonds by the CMFA. The bonds proposed to be issued will be the indebtedness of the Borrower, and the City will not be asked to approve or execute any of the documents relating to the financing. The bond proceeds will benefit the Borrower and will allow for the acquisition, refinancing and rehabilitation expenditures for the Projects.
Project Development Team
Underwriter: Ziegler
Bond Counsel: Orrick, Herrington & Sutcliffe, LLP
Issuer Counsel: Jones Hall, APLC
Borrower Counsel: Hanson Bridgett LLP
STAKEHOLDERS/OUTREACH
Pursuant to Section 147(f) of the Internal Revenue Code of 1986, a Notice of Public Hearing was published in the Los Angeles Times at least 7 days in advance of the hearing offering the date and time of the TEFRA hearing and describing the manner in which interested members of the public can voice their support or opposition to the bond issuance.
FISCAL IMPACT
There is no fiscal impact to the City of Glendale associated with this TEFRA hearing or with the issuance of tax-exempt revenue bonds by the CMFA. The bonds proposed to be issued will be the indebtedness of the Borrower, and the City will not be asked to approve or execute any of the documents relating to the financing. 10 of 16
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1 Through its conduit issuance activities, the CMFA shares a portion of the bond issuance fees it receives with its member communities. With respect to the City of Glendale, it is expected that 25% of the issuance fee will be shared with Glendale and the City of Los Angels. Up to approximately $4,000 will be granted by CMFA to the City. Such grant may be used for any lawful purpose of the City. This revenue will be received by the City after bond issuance and will be designated for affordable housing.
Existing Appropriation
Amount Account String Funding Source
Requesting Appropriation
Amount From (Account
String)
To (Account String) Funding Source
ENVIRONMENTAL REVIEW (CEQA/NEPA)
This item is exempt from CEQA. It is an existing, developed project and there is no reasonable likelihood that the actions taken with respect to this item will result in any significant impacts to the environment.
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ALTERNATIVES
Alternative 1: City Council may adopt a resolution approving the issuance of approximately $12 Million Tax Exempt Revenue Bond Obligations in support of Ararat Home of Los Angeles, Inc.
Alternative 2: The Council may decline adopting a resolution approving the issuance of approximately $12 Million Tax Exempt Revenue Bond Obligations in support of Ararat Home of Los Angeles, Inc.
ADMINISTRATIVE ACTION
Prepared by:
Peter Zovak, Assistant Director of Community Development Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
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1 None.
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1 4124-0754-5160.3
RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE,
CALIFORNIA APPROVING THE ISSUANCE OF BONDS PURSUANT
TO A PLAN OF FINANCE BY THE CALIFORNIA MUNICIPAL FINANCE
AUTHORITY IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO
EXCEED $12,000,000, FOR THE PURPOSE OF FINANCING OR
REFINANCING COSTS OF ACQUISITION AND CONSTRUCTION OF
FACILITIES FOR ARARAT HOME OF LOS ANGELES, INC. AND
CERTAIN OTHER MATTERS RELATING THERETO
WHEREAS, Ararat Home of Los Angeles, Inc. (the “Borrower”), a California nonprofit public benefit corporation, has requested that the California Municipal Finance Authority (the “Issuer”) provide for the issuance of one or more series of revenue bonds from time to time pursuant to a plan of finance in an aggregate principal amount not to exceed $12,000,000 (the “Bonds”); and
WHEREAS, the proceeds of the Bonds will be used, among other things, to finance all or a portion of the costs of, or reimbursing prior expenditures related to, (i) the acquisition of and/or construction, improvement, furnishing and equipping of capital projects at the Borrower’s continuing care retirement community known as Ararat Gardens, located generally at and in the vicinity of 1230 E. Windsor Road, Glendale, California, in an aggregate principal amount not to exceed $7,500,000 (the “Glendale Project”); and (ii) the acquisition of and/or construction, improvement, furnishing and equipping of capital projects at the Borrower’s assisted living facility known as Ararat Assisted Living Facility, located generally at and in the vicinity of 15105 Mission Hills Road, Mission Hills, California, in an aggregate principal amount not to exceed $3,000,000 and 15155 Mission Hills Road, Mission Hills, California, in an aggregate principal amount not to exceed $2,000,000 (together, the “Mission Hills Project” and, collectively, the “Projects”), which are all owned and operated by the Borrower; and WHEREAS, the Glendale Project is located within the City of Glendale (the “City”); and WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), the issuance of the Bonds by the Issuer must be approved by the City because the Glendale Project is located within the territorial limits of the City; and WHEREAS, the City Council of the City (the “City Council”) is the elected legislative body of the City and is one of the “applicable elected representatives” required to approve the issuance of the Bonds under Section 147(f) of the Code; and WHEREAS, the Issuer has requested that the City Council approve the issuance of the Bonds by the Issuer in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”), among certain local agencies, including the City; and WHEREAS, the Issuer is also requesting that the City Council approve the issuance of any refunding bonds hereafter issued by the Issuer for the purpose of refinancing 13 of 16
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the Bonds which financed and/or refinanced the Project (the “Refunding Bonds”), but only in such cases where federal tax laws would not require additional consideration or approval by the City Council; and
WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Issuer; and WHEREAS, the City Council understands that its actions in holding this public hearing and in approving this Resolution do not obligate the City in any manner for payment of the principal, interest, fees or any other costs associated with the issuance of the Bonds or Refunding Bonds, and said City Council expressly conditions its approval of this Resolution on that understanding; and
WHEREAS, it is intended that this Resolution shall comply with the public approval requirements of Section 147(f) of the Code and Section 4 of the Agreement; provided, however, that this Resolution is neither intended to nor shall it constitute an approval by the City Council of the Project for any other purpose, including, but not limited to, compliance with the California Environmental Quality Act (California Public Resources Code, Section 21100, et seq.) (“CEQA”);
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Glendale, as follows:
Section 1. The City Council hereby approves the issuance by the Issuer of the Bonds and the Refunding Bonds for the purposes of financing and/or refinancing the Glendale Project. It is the purpose and intent of the City Council that this Resolution shall constitute approval of (a) the issuance of the Bonds by the Issuer for the purposes of Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Glendale Project is located, and (b) the issuance of the Bonds and Refunding Bonds for the purposes of Section 4 of the Agreement.
Section 2. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and execute and deliver any and all documents, certificates and other instruments which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this Resolution and the financing transaction approved hereby. Any actions heretofore taken by such officers are hereby ratified and approved.
Section 3. The City Council expressly conditions its approval of this Resolution on its understanding that the City shall have no obligation whatsoever to pay any principal, interest, fees or any other costs associated with the Issuer’s issuance of the Bonds or Refunding Bonds for the financing and/or refinancing of the Project.
Section 4. The Bonds shall be a limited obligation of the Issuer, payable solely from certain revenues duly pledged therefor and generally representing amounts paid by the Borrower. The Bonds shall not constitute a debt or obligation of the City. 14 of 16
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Section 5. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or take any action with respect to the Projects; (ii) approve any application or request for or take any other action in connection with any planning, approval, permit or other action necessary for the Projects; (iii) make any contribution or advance any funds whatsoever to the Issuer; or (iv) take any further action with respect to the Issuer or its membership therein.
Section 6. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this Resolution and the financing transaction approved hereby.
Section 7. The City Clerk shall forward a certified copy of this Resolution to the Issuer in care of its bond counsel:
Patricia Eichar
Orrick, Herrington & Sutcliffe
LLP 400 Capitol Mall, Suite
3000
Sacramento CA 95814
Section 8. This Resolution shall take effect from and after the date of its passage and adoption.
PASSED AND ADOPTED at a special meeting of the Council of the City of Glendale held on this day of , 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
STATE OF CALIFORNIA )
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) SS
COUNTY OF LOS ANGELES )
I, Suzie Abajian, Ph.D., City Clerk of the City of Glendale, certify that the foregoing Resolution No. was adopted by the Council of the City of Glendale, California, at a special meeting held on the day of , 2023, by the following vote:
Ayes:
Noes:
Absent:
Abstain:
___________________
City Clerk
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