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HomeMy WebLinkAbout7/2/2014 - STAFF REPORTS - 2.K. A`M SA4 iy u w °C4 City Council/Successor A.pency/Housing Authority OFORN�P Staff Report DATE: July 2, 2014 Consent Calendar SUBJECT: AMENDMENT TO MODIFY THE PARTIES TO THE CITY OF PALM SPRINGS FINANCING AUTHORITY'S JOINT POWERS AGREEMENT FROM: David H. Ready, City Manager/Executive Director BY: Suzanne Harrell, City Financial Advisor SUMMARY The City of Palm Springs Financing Authority was formed in 1991, pursuant to a Joint Exercise of Powers Agreement (JPA Agreement) between the City and the Community Redevelopment Agency of the City of Palm Springs (RDA). The RDA was succeeded by the Successor Agency to the Palm Springs Community Redevelopment Agency (Successor Agency) as a party to the JPA Agreement. The Financing Authority was created to assist the City with its various financings. Due to the dissolution of redevelopment, the Successor Agency must be dissolved within 12 months following payment in full of all debt of the Successor Agency. In order to use the Financing Authority to assist the City in its future financings and continue its useful life, the JPA Agreement needs to be amended to add an additional party to replace the Successor Agency, in this case, the Housing Authority of the City of Palm Springs. If approved, the resolutions would remove the Successor Agency as a party to the JPA Agreement and add the Housing Authority of the City of Palm Springs. RECOMMENDATION: As the City Council: Adopt Resolution No. _ "RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS APPROVING AMENDMENT TO JOINT EXERCISE OF POWERS AGREEMENT ESTABLISHING THE CITY OF PALM SPRINGS FINANCING AUTHORITY FOR THE PURPOSE OF ADDING THE HOUSING AUTHORITY OF THE CITY OF PALM SPRINGS AS AN ADDITIONAL MEMBER OF THE AUTHORITY" ITEM NO. City Council/Successor Agency/Housing Authority July 2, 2014 Page 2 —Amendment to Joint Powers Agreement As the Successor Agency Board: Adopt Resolution No. "RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS ACTING AS THE SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY APPROVING AMENDMENT TO JOINT EXERCISE OF POWERS AGREEMENT ESTABLISHING THE CITY OF PALM SPRINGS FINANCING AUTHORITY FOR THE PURPOSE OF ADDING THE HOUSING AUTHORITY OF THE CITY OF PALM SPRINGS AS AN ADDITIONAL MEMBER OF THE AUTHORITY" As the Housing Authority Board: Adopt Resolution No. "RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF PALM SPRINGS APPROVING AMENDMENT TO JOINT EXERCISE OF POWERS AGREEMENT ESTABLISHING THE CITY OF PALM SPRINGS FINANCING AUTHORITY FOR THE PURPOSE OF ADDING THE HOUSING AUTHORITY OF THE CITY OF PALM SPRINGS AS AN ADDITIONAL MEMBER OF THE AUTHORITY" STAFF ANALYSIS: The City of Palm Springs Financing Authority was formed in 1991, pursuant to a Joint Exercise of Powers Agreement (JPA Agreement) between the City and the Community Redevelopment Agency of the City of Palm Springs (RDA). The RDA was succeeded by the Successor Agency to the Palm Springs Community Redevelopment Agency (Successor Agency) as a party to the JPA Agreement. The Financing Authority assists the City in its various financings. Most recently, the Financing Authority issued the Lease Revenue Bonds for the Downtown Revitalization Project, and will issue Lease Revenue Refunding Bonds for the upcoming refinancing of the convention center bonds. Due to the dissolution of redevelopment, the Successor Agency must be dissolved within 12 months following payment in full of all debt of the Successor Agency. The final bond payments are scheduled in September 2034, and the Successor Agency expects to be dissolved by September 2035. In order to use the Financing Authority to assist the City in its future financings and continue its useful life, the JPA Agreement needs to be amended to add an additional party to replace the Successor Agency, in this case, the Housing Authority of the City of Palm Springs. The Oversight Board will be required to approve the Successor Agency's action to be removed as a party to the JPA Agreement. The State Department of Finance will then have a chance to review that Oversight Board approval. Staff does not expect any concerns by the Department of Finance to this ministerial action. City Council/Successor Agency/Housing Authority July 2, 2014 Page 3—Amendment to Joint Powers Agreement have a chance to review that Oversight Board approval. Staff does not expect any concerns by the Department of Finance to this ministerial action. If approved, the resolutions would authorize the execution of the Second Amendment to Joint Exercise of Powers Agreement, which will remove the Successor Agency as a party to the JPA Agreement and add the Housing Authority of the City of Palm Springs. FISCAL IMPACT: None. Suz a Harrell Geoffrey ieh City Financial Advisor Director of Finance David H. Ready Dougl s C. Holland City Manager City Attorney Attachments: Resolutions Amendment to Joint Exercise of Powers Agreement 3 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS APPROVING AMENDMENT TO JOINT EXERCISE OF POWERS AGREEMENT ESTABLISHING THE CITY OF PALM SPRINGS FINANCING AUTHORITY FOR THE PURPOSE OF ADDING THE HOUSING AUTHORITY OF THE CITY OF PALM SPRINGS AS AN ADDITIONAL MEMBER OF THE AUTHORITY CITY OF PALM SPRINGS WHEREAS, the City of Palm Springs (the "City") and the Community Redevelopment Agency of the City of Palm Springs (the "Former Agency") entered into a Joint Exercise of Powers Agreement dated as of February 1, 1991 (the "Joint Powers Agreement') forming the City of Palm Springs Financing Authority (the "Authority') as a separate public agency under the laws of the State of California; and WHEREAS, the Former Agency has been dissolved under the provisions of Assembly Bill X1 26, which became effective on June 29, 2011 (the "Dissolution Act'), and under the Dissolution Act all of the authority, rights, powers, duties and obligations of the Agency have been vested in the City Council of the City of Palm Springs, as successor agency to the Former Agency (the "Successor Agency'); and WHEREAS, in order to ensure the continuing existence of the Authority, the City and the Successor Agency have proposed to add the Housing Authority of the City of Palm Springs (the "Housing Authority") as an additional member of the Authority and to remove the Successor Agency as a member of the Authority; NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the City Council of the City of Palm Springs as follows: Section 1. Amendment of Joint Exercise of Powers Agreement. The City Council hereby approves the amendment of the Joint Powers Agreement pursuant to that certain Second Amendment to Joint Powers Agreement among the City, the Successor Agency and the Housing Authority in the form on file with the City Clerk. The City Manager is hereby authorized and directed to execute, and the City Clerk is hereby authorized and directed to attest, the Second Amendment to Joint Powers Agreement in the name and on behalf of the City. Section 2. Effective Date. This resolution shall take effect immediately upon its passage and adoption. 4 The foregoing resolution was adopted at a regular meeting of the City Council of the City of Palm Springs held on July 2, 2014, by the following vote, to-wit: AYES: NOES: ABSENT: ABSTAIN: Mayor City of Palm Springs ATTEST: City Clerk City of Palm Springs -2- 5 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS ACTING AS THE SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY APPROVING AMENDMENT TO JOINT EXERCISE OF POWERS AGREEMENT ESTABLISHING THE CITY OF PALM SPRINGS FINANCING AUTHORITY FOR THE PURPOSE OF ADDING THE HOUSING AUTHORITY OF THE CITY OF PALM SPRINGS AS AN ADDITIONAL MEMBER OF THE AUTHORITY SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY WHEREAS, the City of Palm Springs (the "City") and the Community Redevelopment Agency of the City of Palm Springs (the "Former Agency") entered into a Joint Exercise of Powers Agreement dated as of February 1, 1991 (the "Joint Powers Agreement") forming the City of Palm Springs Financing Authority (the "Authority") as a separate public agency under the laws of the State of California; and WHEREAS, the Former Agency has been dissolved under the provisions of Assembly Bill X1 26, which became effective on June 29, 2011 (the "Dissolution Act"), and under the Dissolution Act all of the authority, rights, powers, duties and obligations of the Agency have been vested in the City Council of the City of Palm Springs, as successor agency to the Former Agency(the "Successor Agency"); and WHEREAS, in order to ensure the continuing existence of the Authority, the City and the Successor Agency have proposed to add the Housing Authority of the City of Palm Springs (the "Housing Authority') as an additional member of the Authority and to remove the Successor Agency as a member of the Authority; NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the Successor Agency to the City of Palm Springs Community Redevelopment Agency as follows: Section 1. Amendment of Joint Exercise of Powers Agreement. The Successor Agency hereby approves the amendment of the Joint Powers Agreement pursuant to that certain Second Amendment to Joint Powers Agreement among the City, the Successor Agency and the Housing Authority in the form on file with the City Clerk. The Palm Springs City Manager as the chief administrative officer of the Successor Agency is hereby authorized and directed to execute, and the City Clerk as the secretary of the Successor Agency is hereby authorized and directed to attest, the Second Amendment to Joint Powers Agreement in the name and on behalf of the Successor Agency. Section 2. Oversight Board Approval. The Successor Agency hereby requests that the Oversight Board approve the execution and delivery of the Second Amendment by the Successor Agency, as above described. s Section 3. Filing of this Resolution. The Secretary of the Successor Agency is hereby authorized and directed to file a certified copy of this Resolution with the Oversight Board, together with the form of the Second Amendment, and, as provided in Section 341800) of the California Health and Safety Code, with the Riverside County Administrative Officer, the Riverside County Auditor-Controller and the California Department of Finance. Section 4. Effective Date. This resolution shall take effect immediately upon its passage and adoption. The foregoing resolution was adopted at a regular meeting of the City Council of the City of Palm Springs held on July 2, 2014, by the following vote, to-wit: AYES: NOES: ABSENT: ABSTAIN: Palm Springs City Manager as Chief Administrative Officer Successor Agency to the City of Palm Springs Community Redevelopment Agency ATTEST: Palm Springs City Clerk as Secretary Successor Agency to the City of Palm Springs Community Redevelopment Agency -2- 7 RESOLUTION NO. RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF PALM SPRINGS APPROVING AMENDMENT TO JOINT EXERCISE OF POWERS AGREEMENT ESTABLISHING THE CITY OF PALM SPRINGS FINANCING AUTHORITY FOR THE PURPOSE OF ADDING THE HOUSING AUTHORITY OF THE CITY OF PALM SPRINGS AS AN ADDITIONAL MEMBER OF THE AUTHORITY HOUSING AUTHORITY OF THE CITY OF PALM SPRINGS WHEREAS, the City of Palm Springs (the "City") and the Community Redevelopment Agency of the City of Palm Springs (the "Former Agency") entered into a Joint Exercise of Powers Agreement dated as of February 1, 1991 (the "Joint Powers Agreement') forming the City of Palm Springs Financing Authority (the "Authority") as a separate public agency under the laws of the State of California; and WHEREAS, the Former Agency has been dissolved under the provisions of Assembly Bill X1 26, which became effective on June 29, 2011 (the "Dissolution Act'), and under the Dissolution Act all of the authority, rights, powers, duties and obligations of the Agency have been vested in the City Council of the City of Palm Springs, as successor agency to the Former Agency(the "Successor Agency"); and WHEREAS, in order to ensure the continuing existence of the Authority, the City and the Successor Agency have proposed to add the Housing Authority of the City of Palm Springs (the "Housing Authority") as an additional member of the Authority and to remove the Successor Agency as a member of the Authority; NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the Housing Authority of the City of Palm Springs as follows: Section 1. Amendment of Joint Exercise of Powers Agreement. The Housing Authority hereby approves the amendment of the Joint Powers Agreement pursuant to that certain Second Amendment to Joint Powers Agreement among the City, the Successor Agency and the Housing Authority in the form on file with the Assistant Secretary. The Executive Director is hereby authorized and directed to execute, and the Secretary is hereby authorized and directed to attest, the Second Amendment to Joint Powers Agreement in the name and on behalf of the Housing Authority. Section 2. Effective Date. This resolution shall take effect immediately upon its passage and adoption. 8 The foregoing resolution was adopted at a regular meeting of the City Council of the City of Palm Springs held on July 2, 2014, by the following vote, to-wit: AYES: NOES: ABSENT: ABSTAIN: Executive Director Housing Authority of the City of Palm Springs ATTEST: Secretary Housing Authority of the City of Palm Springs -2- 9 SECOND AMENDMENT TO JOINT EXERCISE OF POWERS AGREEMENT CITY OF PALM SPRINGS FINANCING AUTHORITY This SECOND AMENDMENT TO JOINT EXERCISE OF POWERS AGREEMENT (this "Second Amendment') is dated as of July 1, 2014, among the CITY OF PALM SPRINGS, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the State of California (the "City'), the SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY, a public entity duly organized and existing under the laws of the State of California (the "Successor Agency"), and the HOUSING AUTHORITY OF THE CITY OF PALM SPRINGS, a public entity duly organized and existing under the laws of the State of California (the "Housing Authority"); BACKGROUND : 1. The City and the Community Redevelopment Agency of the City of Palm Springs (the "Former Agency") entered into a Joint Exercise of Powers Agreement dated as of February 1, 1991 (the "Joint Powers Agreement') forming the City of Palm Springs Financing Authority (the "Authority") as a separate public agency under the laws of the State of California. 2 The Joint Powers Agreement was amended by the Amendment to Joint Exercise Agreement, dated as of July 5, 2001. 3. The Former Agency has been dissolved under the provisions of Assembly Bill X1 26, which became effective on June 29, 2011 (the "Dissolution Act'), and under the Dissolution Act all of the authority, rights, powers, duties and obligations of the Former Agency have been vested in the City Council of the City of Palm Springs, as the Successor Agency. 4. The Housing Authority was activated by the City Council of the City as a public entity duly organized and existing under the laws of the State of California and its officers and staff were designated pursuant to Resolution No. 1, adopted by the Housing Authority on July 3, 1985. 5. In order to ensure the continuing existence of the Authority, the City and the Successor Agency have proposed to add the Housing Authority of the City of Palm Springs (the "Housing Authority") as an additional member. AGREEMENT: In consideration of the premises and the material covenants contained herein, the City, the Successor Agency and the Housing Authority hereby agree as follows: Section 1. Amendment to Add Housing Authority as Additional Member. The Joint Powers Agreement is hereby amended by adding the Housing Authority as an additional party thereto. By its execution of this Second Amendment, the Housing Authority shall become a member of the Authority for all purposes thereof, and shall be ' 0 i deemed to be a signatory to the Joint Powers Agreement. All references in the Joint Powers Agreement jointly to the City and the Agency shall be deemed to include the Housing Authority. Section 2. Technical Amendments. (a) Section 1 of the Joint Powers Agreement is hereby amended to add the following definition: Housing Authority The term "Housing Authority " means the Housing Authority of the City of Palm Springs. (b) Section 17 of the Joint Powers Agreement is hereby amended to add the following sentence to the end of the Section: "Whenever in this Agreement an approval of the Housing Authority is required, it shall be given by resolution duly adopted by the Commissioners of the Housing Authority." (c) Section 18 of the Joint Powers Agreement is hereby amended to read to add the following sentence to the end of the Section: "Notices to the Housing Authority hereunder shall be sufficient if delivered to Secretary of the Housing Authority" Section 3. Effect of Amendment. The Joint Powers Agreement shall remain in effect, and the Authority shall continue its existence as a joint exercise of powers agency under the laws of the State of California, at all times following the execution and delivery of this Second Amendment, notwithstanding the dissolution of the Former Agency and any subsequent dissolution of the Successor Agency. Section 4. Effective Date. This Second Amendment shall take effect immediately upon the execution and delivery hereof by the City, the Successor Agency and the Housing Authority. Section 5. Execution in Counterparts. This Second Amendment 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. 2 11 Section 6. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. CITY OF PALM SPRINGS By: David H. Ready, City Manager ATTEST: By: James Thompson, City Clerk APPROVED AS TO FORM: By: Douglas Holland, City Attorney SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY By: Palm Springs City Manager as Chief Administrative Officer Successor Agency to the City of Palm Springs Community Redevelopment Agency ATTEST: By: Palm Springs City Clerk as Secretary Successor Agency to the City of Palm Springs Community Redevelopment Agency APPROVED AS TO FORM: By: General Counsel 3 12 HOUSING AUTHORITY OF THE CITY OF PALM SPRINGS By: Executive Director ATTEST: By: Secretary APPROVED AS TO FORM: By: General Counsel 4 13