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Home My WebLink About7/5/2001 - STAFF REPORTS (2) Date: July 5, 2001 To: Redevelopment Agency/City Council From: Director of Finance & Treasurer Subject: Extension of Term of Palm Springs Financing Authority RECOMMENDATION: It is recommended that the Agency approve an amendment to the Joint Powers Agreement which created the Palm Springs Financing Authority, eliminating the expiration date of the agreement, 2/1/2020, and allowing the agreement to remain in place until terminated by supplemental agreement of the Agency and the City. SUMMARY: The CRA resolution (and concurring City resolution) eliminates the specific expiration date of the Financing Authority, and allows the Authority an indefinite term. This will conform the agreement to existing and future bond issue covenants. BACKGROUND: The Palm Springs Financing Authority (PSFA) was created as a financing vehicle on February 1, 1991 via a Joint Exercise of Powers Agreement between the Community Redevelopment Agency (CRA) and the City of Palm Springs (City). The Mayor and four Councilmembers sit as the Board on all three entities. The PSFA allows the CRA and/or City to issue debt more efficiently and at less cost then if the debt was a direct obligation of the City or CRA. The original agreement set an expiration date of February 1, 2020. This situation was discovered on June 22, 2001 by the Financial Advisor in her review of the bond documents of the recently approved financings. Existing bond covenants require that the term of the PSFA exceed the term of the bonds. The proposed action would solve the problem for existing as well as future issues. Should it become necessary or desirable to terminate the JPA agreement in the future, this can be accomplished quickly by a supplemental agreement of the Agency and City. The attached resolution and amendment were prepared by Bond Counsel from the City Attorney's office. Submitted by: Approved: ` CP,;;57��.�.J�;��r'� ! 4rL'n4�•�jE/:..� -�_��y�.�m��^-� - Thomas M. Kanarr David H. Ready Director of Finance &Treasurer City Manager Attachments: Resolution Amendment 40 A AMENDMENT TO JOINT EXERCISE OF POWERS AGREEMENT THIS AMENDMENT TO JOINT EXERCISE OF POWERS AGREEMENT ("Agreement') dated as of June 1, 2001, by and between the CITY OF PALM SPRINGS, a municipal corporation duly organized and existing under the laws of the State of California ("City'), and the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a public body, corporate and politic, duly organized and existing under the laws of the State of California ("Agency"); WITNESSETH: WHEREAS, the City and the Agency entered into a Joint Exercise of Powers Agreement (the "1991 Agreement'), dated as of February 1, 1991, pursuant to Article 1 and 2 of Chapter 5 of Division 7 of Title 1 of the Government Code of California; and WHEREAS, Section 4 of the Agreement created the City of Palm Springs Financing Authority (the "Authority'); and WHEREAS, Section 3 of the Agreement provides that the Agreement shall become effective as of the date thereof and shall continue in full force and effect until February 1, 2020, unless extended or earlier terminated by a supplemental agreement of the Agency and the City; and WHEREAS, the City Council and the Agency have each found and determined that it is within their respective authority and is a public purpose that they each approve the extension of the Agreement for the purpose of avoiding a conflict with the term of any debt instruments that the Authority has issued or may issue; NOW, THEREFORE, the City and the Agency, for and in consideration of the mutual promises and agreements herein contained, and for other valuable consideration, the sufficiency and receipt of which is hereby acknowledged, do agree as follows: SECTION 1. Section 3, entitled `Term" of the 1991 Agreement is hereby amended in its entirety to read as follows: "SECTION 3. TERM This Agreement shall become effective as of the date hereof and shall continue in full force and effect until terminated by a supplemental agreement of the Agency and the City." SECTION 2. This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. IRV 912709 v 1 C�14 `lb Z IN WITNESS WHEREOF, the City and the Agency have each caused this Agreement to be executed by their duly authorized officers all as of the date first above written. CITY OF PALM SPRINGS Mayor ATTEST: City Clerk COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS Chairman ATTEST: Assistant Secretary IRV#12709 v1 em .83 RESOLUTION NO. 1137 A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS AMENDING THAT CERTAIN JOINT EXERCISE OF POWERS AGREEMENT BY AND BETWEEN THE CITY OF PALM SPRINGS AND THE REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, DATED AS OF FEBRUARY 1, 1991, FOR THE PURPOSE OF EXTENDING THE TERM OF THE AGREEMENT WHEREAS, the City of Palm Springs (the "City') and the Community Redevelopment Agency of the City of Palm Springs (the "Agency") entered into a Joint Exercise of Powers Agreement (the "Agreement'), dated as of February 1, 1991, pursuant to Article 1 and 2 of Chapter 5 of Division 7 of Title 1 of the Government Code of California; and WHEREAS, Section 4 of the Agreement created the City of Palm Springs Financing Authority (the "Authority"); and WHEREAS, Section 3 of the Agreement provides that the Agreement shall become effective as of the date thereof and shall continue in full force and effect until February 1, 2020, unless extended or earlier terminated by a supplemental agreement of the Agency and the City; and WHEREAS, the Agency hereby finds and determines that it is within the authority of the Agency and is a public purpose that the Agency approve the extension of the Agreement for the purpose of avoiding a conflict with the term of any debt instruments that the Authority has issued or may issue; NOW, THEREFORE, BE IT RESOLVED, by the Community Redevelopment Agency of the City of Palm Springs, as follows: SECTION 1. The above recitals are true and correct. SECTION 2. That the Amendment to the Agreement, in substantially the form submitted to the Agency at this meeting, is hereby approved and the Chairperson is hereby authorized and directed to execute and deliver the Amendment to the Agreement. IRV#12705 v1 e#fA Resohrtion No. _ Page 2 SECTION 3. This resolution shall take effect and be enforceable immediately upon its adoption. ADOPTED THIS_day of July 2001. AYES: NOES: ABSENT: ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS By: Assistant Secretary Chairman REVIEWED & APPROVED IRV#12705 v1 GRi4 S-