The CSCDA is a joint exercise of powers authority consisting of numerous California cities, counties and special districts, including the City of Santa Monica. The CSCDA, pursuant to its Amended and Restated Joint Exercise of Powers Agreement, is authorized to assist in the financing of facilities for non-profit public benefit corporations like HI-AYH. In order to initiate such financing, the member of CSCDA in which the facilities are located must conduct a public hearing and approve CSCDA=s issuance of tax exempt indebtedness.

HI-AYH is proposing that CSCDA issue on its behalf up to $3.5 million of tax-exempt Certificates of Participation to refinance existing indebtedness on facilities located in the City of Santa Monica. Attachment 1 includes HI-AYH=s application filed with the CSCDA detailing its history and the facilities to be refinanced. Attachment 2 provides specific information relating to the project=s benefits to the public. Included in this attachment is information regarding the economic benefits of the project, the use of community volunteers, the use of the Rapp Saloon for community programs, length of stay of hostellers, the cost of lodging and the status of parking for hostel guests.

Approving the issuance of Certificates of Participation by the CSCDA for this project by adopting the attached resolution has no City financial or budgetary impact. Previous opinions from CSCDA=s bond council and the City=s financial advisor indicate that the City of Santa Monica does not have any financial liability for the tax exempt Certificates of Participation, nor would any possible subsequent difficulties concerning payment of annual debt service on the Certificates of Participation by HI-AYH adversely impact the City=s credit rating.