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HomeMy WebLinkAboutAmendment to Joint Exercise of Powers Agreement Huntington B AGENDA REPORT Oversight Board of the Huntington Beach Successor Agency to the Redevelopment Agency MEETING DATE: June 17, 2014 SUBJECT/ACTION: Amendment to Joint Exercise of Powers Agreement Huntington Beach Public Financing Authority - Resolution No. 2014-03 RECOMMENDED ACTION: Motion to: A) Adopt Resolution 2014-r; , "A Resolution of the Oversight Board to the Successor Agency to the Redevelopment Agency of the City of Huntington Beach Authorizing the Successor Agency to Execute and Deliver a Second Amendment to Joint Exercise of Powers Agreement Relating to the Huntington Beach Public Financing Authority;" and, B) Authorize the Executive Director for the Successor Agency on behalf of the Oversight Board to execute any agreements and take any actions necessary in furtherance of the amendment. BACKGROUND/DISCUSSION: The Huntington Beach Public Financing Authority (PFA) is a joint exercise of powers entity formed in 1988 by the City of Huntington Beach (City) and the former Redevelopment Agency of the City of Huntington Beach (Redevelopment Agency) for the purpose of assisting the City and the Redevelopment Agency in financing public capital improvements and working capital requirements. On February 1, 2012, the Redevelopment Agency was dissolved pursuant to State legislation (ABX1 26). Under ABX1 26, the City Council elected for the City to become the Successor Agency (Successor Agency) to the Redevelopment Agency. ABX1 26 also specified that certain agreements between cities and their redevelopment agencies, including joint exercise of powers agreements, were not invalidated by the dissolution of the redevelopment agencies. As a result of this, the PFA remained a viable legal entity with the Successor Agency becoming a member of the PFA in place of the Redevelopment Agency. On June 27, 2012, subsequent State legislation affecting redevelopment agencies was signed by the Governor (AB 1484). Under AB 1484, successor agencies are required to terminate within one year of paying off or retiring the debts of its redevelopment agency. The Redevelopment Agency issued bonds in 1999 and 2002 and therefore, the Successor Agency will terminate no later than Fiscal Year 2025. It is not clear what impact the termination of the Successor Agency would have on the PFA; however, as constituted, it may not be possible for the PFA to issue bonds which will mature after the dissolution of the Successor Agency. This would impair the ability of the PFA to serve one of its principal functions, namely issuing long term bonds on behalf of the City if needed. Due to this circumstance, it is recommended that the JPA Agreement be amended in order to substitute the Huntington Beach Housing Authority (Housing Authority) for the Successor Agency as a member of the PFA. This will remove any question as to the PFA's legal viability after the termination of the Successor Agency. The Joint Exercise of Powers Act (Act) requires that a joint exercise of powers entity must be composed of two or more public agencies. The Housing Authority is a public agency within the meaning of the Act and it may enter into the amended JPA Agreement as a member of the PFA. The amended JPA Agreement would allow the PFA to exercise those powers common to the City and the Housing Authority and those additional statutory powers granted to joint exercise of powers entities by the Act. , As the amended JPA Agreement would involve the removal of the Successor Agency and the addition of the Housing Authority as a member, approvals must be obtained by the City Council, the Board of the Successor Agency, the Board of the Housing Authority, and the Oversight Board of the Successor Agency. ATTACHMENTS: 1. Second Amendment to Joint Exercise of Powers Agreement 2. Resolution 2014- 03 , "A Resolution of the Oversight Board to the Successor Agency to the Redevelopment Agency of the City of Huntington Beach Authorizing the Successor Agency to Execute and Deliver a Second Amendment to Joint Exercise of Powers Agreement Relating to the Huntington Beach Public Financing Authority" [ AC " MLNT # I SECOND AMENDMENT TO JOINT EXERCISE OF POWERS AGREEMENT by and among CITY OF HUNTINGTON BEACH - an SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH and HUNTINGTON BEACH HOUSING AUTHORITY Dated as of 2014 relating to the HUNTINGTON BEACH PUBLIC FINANCING AUTHORITY I 14-4245/110387 SECOND AMENDMENT TO JOINT EXERCISE OF POWERS AGREEMENT THIS SECOND AMENDMENT TO JOINT EXERCISE OF POWERS AGREEMENT (this "Second Amendment") is made and entered into as of , 2014, by and among the CITY OF HUNTINGTON BEACH (the "City"), the SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH (the "Agency"), and the HUNTINGTON BEACH HOUSING AUTHORITY (the "Housing Authority"). WITNESSETH : WHEREAS, pursuant to the Community Redevelopment Law (Part 1 of Division 24 of the Health and Safety Code of the State of California and referred to herein as the "Law"), the City Council of the City created the former Redevelopment Agency of the City of Huntington Beach (the "Former RDA"); and WHEREAS, the Former RDA was a redevelopment agency, a public body, corporate and politic duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the Law; and WHEREAS, the City agreed to serve as the successor agency (referred to herein as the Agency) to the Former RDA commencing upon the dissolution of the Former RDA on February 1, 2012 pursuant to Assembly Bill X126 ("AB 26"); and WHEREAS, pursuant to Articles 1, 2 and 4 of Chapter 5 of Division 7 of Title 1 of the California Government Code, commencing with Section 6500 thereof(the "Act"), two or more public agencies may by agreement jointly exercise any power common to the contracting parties; and WHEREAS, pursuant to the Act and the Joint Exercise of Powers Agreement, dated as of March 7, 1988, as amended by the First Amendment to Joint Exercise of Powers Agreement, dated as of May 16, 1988 (collectively, the "First Amended Joint Powers Agreement"), each by and between the City and the Former RDA (collectively, the "Original Members"), the Original Members created and established the Huntington Beach Public Financing Authority (the "Authority") for the purposes set forth in the First Amended Joint Powers Agreement and to exercise the powers described in the First Amended Joint Powers Agreement, which each of the Original Members determined would provide significant public benefits; and WHEREAS, the City, the Agency and the Housing Authority now desire to enter into this Second Amendment in order to substitute the Housing Authority for the Agency as a member of the Authority (each, a "Member" and collectively, the "Members") and to make certain other amendments to the First Amended Joint Powers Agreement; NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained herein, the parties hereto agree as follows: 14-4245/110387 Section 1.1. Substituted Member. The First Amended Joint Powers Agreement is hereby amended to substitute the Housing Authority for the Agency as a Member of the Authority such that the term"Agency" is replaced with the term"Housing Authority"every place it appears in the First Amended Joint Powers Agreement. The Housing Authority is hereby afforded the rights, benefits and protections of the Agency (as such term is used in the First Amended Joint Powers Agreement)provided for under the First Amended Joint Powers Agreement as amended by this Second Amendment and hereby undertakes the obligations of the Agency(as such term is used in the First Amended Joint Powers Agreement) under the First Amended Joint Powers Agreement as amended by this Second Amendment. (In no manner does the Housing Authority assume any other obligation of the Agency under any other agreement, bond, note, resolution, ordinance, agreement or other instrument to which the Agency is a party or is otherwise subject.) The Agency is hereby relieved of the obligations of the Agency(as such term is used in the First Amended Joint Powers Agreement) provided for under the First Amended Joint Powers Agreement as amended by this Second Amendment. Section 1.2. Amendment to Section 8.01. Section 8 of the First Amended Joint Powers Agreement, entitled"Notices", is hereby amended to read in full as follows: Section 8.01. Notices. Notices hereunder shall be in writing and shall be sufficient if delivered to: City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 Attention: City Manager Huntington Beach Housing Authority 2000 Main Street Huntington Beach, California 92648 Attention: Executive Director Section 1.3. Effect of Second Amendment. This Second Amendment and all of the terms and provisions herein contained shall form part of the First Amended Joint Powers Agreement as fully and with the same effect as if all such terms and provisions are set forth in the First Amended Joint Powers Agreement from and after the effective date of this Second Amendment. The First Amended Joint Powers Agreement is hereby ratified and confirmed and shall continue in full force and effect in accordance with the terms and provisions thereof, as heretofore amended and supplemented, and as amended and supplemented hereby. If there shall be any conflict between the terms of this Second Amendment and the terms of the First Amended Joint Powers Agreement(as in effect on the day prior to the effective date of this Second Amendment),the terms of this Second Amendment shall prevail. Within 3 0 days after the effective date of this.Second Amendment, the Authority will cause a notice of this Second Amendment to be prepared and filed with the office of the Secretary of State of the State of California in the manner set forth in Section 6503.5 of the Act. 14-4245/110387 3 Section 1.4. Counterparts. This Second Amendment may be executed in counterparts, each of which shall be deemed an original. Section 1.5. Effective Date. Upon the execution and delivery hereof by the parties hereto,this Second Amendment shall be effective as of the day and year first hereinabove written. Signatures on following page 144245/110387 4 IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment as of the day and year first hereinabove written. CITY OF HUNTINGTON BEACH By: Tr Mayor ATTEST: City Clerk SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF TINGTON BEACH By: 4 Z E ecutive Director, acting for Successor Agency to the Redevelopment Agency of the ATTEST: City of Huntington Beach irncyof a g for S c ssor Athe Redev o ent Age City of tington Beach HUNTINGTON BEACH HOUSING AUTHORITY By: Chairperson ATTEST: APPROVED AS TO FORAM Secretary JENNIFER MCORATH,CkAHMN I3y Mike V1gGoft Deputy CiJAMMY 14-4245/110387 5 ATTAC HMEfVT 2 Oversight Board Resolution RESOLUTION NO. 2014-03 A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITE' OF HUNTINGTON BEACH AUTHORIZING THE SUCCESSOR AGENCY TO EXECUTE AND DELIVER A SECOND AMENDMENT TO JOINT -EXERCISE OF POWERS AGREEMENT RELATING TO THE HUNTINGTON BEACH PUBLIC FINANCING AUTHORITY WHEREAS,pursuant to the Community Redevelopment Law(Part 1 of Division 24 of the Health and Safety Code of the State of California and referred to herein as the"Law"), the City Council of the City of Huntington Beach(the "City") created the former Redevelopment Agency of the City of Huntington Beach(the "Former RDA"); and The Former RDA was a redevelopment agency, a public body, corporate and politic duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the Law; and The City agreed to serve as the successor agency (referred to herein as the Agency)to the Former RDA commencing upon the dissolution of the Former RDA on February 1, 2012 pursuant to Assembly Bill X126 ("AB 26"); and Pursuant to Articles 1, 2 and 4 of Chapter 5 of Division 7 of Title 1 of the California Government Code, commencing with Section 6500 thereof(the "Act"), two or more public agencies may by agreement jointly exercise any power common to the contracting parties; and The Oversight Board (the "Oversight Board") to the Successor Agency to the Redevelopment Agency of the City of Huntington Beach(the "Agency") is informed that, pursuant to the Act and the Joint Exercise of Powers Agreement, dated as of March 7, 1998, as amended by the First Amendment to Joint Exercise of Powers Agreement, dated as of May 16, 1988 (collectively, the "First Amended Joint Powers Agreement"), each by and between the City and the Former RDA(collectively, the "Original Members"), the Original Members created and established the Huntington Beach Public Financing Authority (the "Authority") for the purposes set forth in the First Amended Joint Powers Agreement and to exercise the powers described in the First Amended Joint Powers Agreement, which each of the Original Members determined would provide significant public benefits; and The Oversight Board is informed that the City, the Agency and the Huntington Beach Housing Authority (the "Housing Authority") now desire to amend the First Amended Joint Powers Agreement pursuant to the Second Amendment to Joint Exercise of Powers Agreement (such Second Amendment to Joint Exercise of Powers Agreement, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the "Second Amendment") in order to substitute the Housing 14-4245/1103 85.doc Oversight Board Reso. No. 2014-03 Authority for the Agency as a member of the Authority (each, a"Member") and to make certain other amendments to the First Amended Joint Powers Agreement; and The Oversight Board finds in accordance with Section 34181(d)that the early termination of the Agency as a Member of the Authority and the substitution of the Housing Authority is in the best interests of the taxing entity recipients of property tax revenues; and The Oversight Board finds and determines that no taxing entity recipient of property tax revenues could be affected financially by the actions taken in this Resolution; and There has been prepared and submitted to this meeting a form of the Second Amendment; and The Agency has approved all matters relating to the execution and delivery of the Second Amendment; and The Oversight Board now desires to approve all matters relating to the execution and delivery of the Second Amendment, NOW, THEREFORE, the Oversight Board to the Successor Agency to the Redevelopment Agency of the City of Huntington Beach does hereby resolve, determine and order as follows: SECTION 1. The recitals set forth above are true and correct and are incorporated into this Resolution by this reference. SECTION 2. The Second Amendment, in substantially the form presented at this meeting with such changes therein as the officer of the Agency executing the same may require or approve, is hereby approved. Upon approval of this Resolution by the California Department of Finance, the Oversight Board authorizes and directs the City Manager of the City to negotiate, execute, deliver and/or acknowledge the Second Amendment and any other documents necessary to comply with the authority granted by this Resolution. SECTION 3. The Oversight Board hereby authorizes and directs the Secretary of the Oversight Board to electronically deliver a copy of this Resolution to the California Department of Finance in accordance with California Health and Safety Code Section 34179(h). SECTION 4. The City Manager of the City acting for the Agency's Oversight Board is hereby authorized to take whatever actions may be necessary to carry out the purposes of this Resolution. SECTION 5. The City Clerk of the City acting for the Agency's Oversight Board shall certify to the passage of this Resolution and enter it into the book of original resolutions and take any other actions and/or perform any other duties required by law. 14-4245/110385.doc Oversight Board Reso. No. 2014-03 SECTION 6. Pursuant to California Health and Safety Code Section 34179(h), all actions taken by the Oversight Board may be reviewed by the California Department of Finance (the"Department of Finance") and, therefore, this Resolution shall be effective five (5) business days after notice to the Department of Finance unless the Department of Finance requests a review of the actions taken in this Resolution, in which case this Resolution will be effective upon approval (including as may be deemed approved under the Law) by the Department of Finance. SECTION 7. This Resolution shall take effect upon approval of the California Department of Finance in accordance with California Health and Safety Code Section 34179(h). PASSED AND ADOPTED by the Oversight Board to the Successor Agency to the Redevelopment Agency of the City of Huntington Beach at a special meeting thereof held on the �-Z—day of , 2014. Chairman REVIEV ED AND APPROVED: E ecutivebirector APPROVED AS TO FORM: V� ency dounkl 14-4245/110385.doc Oversight Board Res. No. 2014-03 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF HUNTINGTON BEACH ) I, JOAN FLYNN, Secretary of the Huntington Beach Oversight Board of the Successor Agency of the Former City of Huntington Beach Redevelopment Agency, Huntington Beach, California DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Huntington Beach Oversight Board of the Successor Agency of the Former City of Huntington Beach Huntington Beach Redevelopment Agency at a meeting held on June 17, 2014 and that it was so adopted by the following vote: AYES: Board Members: Harper, Carchio, L. Dunn, Bone, Delgado, Fritzal NOES: Board Members: None ABSENT: Board Members: , A. Dunn ABSTAIN: Board Members: None Secrets of the Huntington Beach Oversig t Board of the Successor Agency of the Former City of Huntington Beach Redevelopment Agency Huntington Beach, California Section I.I. Substituted Member. The First Amended Joint Powers Agreement is hereby amended to substitute the Housing Authority for the Agency as a Member of the Authority such that the term"Agency"is replaced with the term."Housing Authority"every plac it appears in the First Amended Joint Powers Agreement. The Housing Authority is hereby affor ed the rights, benefits and protections of the Agency(as such term is used in the First Amend d Joint Powers Agreement)provided for under the First Amended Joint Powers Agreement as/amended by this Second Amendment and hereby undertakes the obligations of the Agency(as/such term is used in the First Amended Joint Powers Agreement)under the First Amended Joint/Powers Agreement as amended by this Second Amendment. (In no manner does the Housing Authority assume any other obligation of the Agency under any other agreement,bond,note, resolution, ordinance, agreement or other instrument to which the Agency is a party or is oth��jj/ ise subject.) The Agency is hereby relieved of the obligations of the Agency(as such term is usod in the First Amended Joint Powers Agreement)provided for under the First Amended Joint t s Agreement as amended by this Second Amendment. Section 1.2. Amendment to Section 8.01. Section 8 o tefFirst Amended Joint Powers Agreement,entitled"Notices",is hereby amended to read in 1ollows: Section 9.01. Notices. Notices hereunder all be in writing and shall be sufficient if delivered to: City of Huntington Beach 2000 Main Street Huntington Beach, Californi 92 448 Attention: City Manager Huntington Beach Housing Authority 2000 Main Street Huntington Beach, salifo ' 2648 Attention: Execut�v Officer Section 1.3. Effect of Secon Amendment. This Second Amendment and all of the terms and provisions herein contained shadform part of the First Amended.Joint Powers Agreement as fully and with the same effect as if/all such terms and provisions are set forth in the First Amended Joint Powers Agreement from a after the effective date of this Second Amendment. The First Amended Joint Powers Agree nt is hereby ratified and confirmed and shall continue in full force and effect in accordance with e terms and provisions thereof,as heretofore amended and supplemented,and as amen d and supplemented hereby. If there shall be any conflict between the terms of this Second endment and the terms of the First Amended Joint Powers Agreement (as in effect on the day p A or to the effective date of this Second Amendment),the terms of this Second Amendment shall prevail. Within 30 day after the effective date of this Second Amendment,the Authority will cause a notice of this Seco d Amendment to be prepared and filed with the office of the Secretary of State of the State of California in the manner set forth in Section 6503.5 of the Act. i 14-4245/110387 3 Esparza, Patty From: Loadsman, Mary Sent: Tuesday, June 17, 2014 4:17 PM To: Esparza, Patty Subject: Four Reso's for HBPFA Second Amendment Attachments: Second Amendment Draft for Changes 3.pdf Hi Patty: Sunny just came out of the Over Sight Board Meeting to complete the last of the four resolutions for the Housing, Successor, Council and Over Sight Board approval that include the same Second Amendment for each of the resolutions. It was noted at the meeting that page 3 of the second amendment was incorrect for noticing. It should reach Attention: Executive Director instead of Executive Officer. Is there any way we can replace Page 3 of the Second Amendment for all four resolutions? Three from Council last night and the 1 from the Oversight Board Meeting today. /tfa� Loac�arar� Administrative Assistant/Finance City of Huntington Beach Tel: 714 536-5630/Fax:714 374-1571 mloadsman cDsurfcity-hb.orq 1 Esparza, Patty From: Esparza, Patty Sent: Thursday, June 19, 2014 1:59 PM To: Fritzal, Kellee Subject: RE: verification of transmittal Sorry, I meant the DOF From Fritza, Kellee Sent: Thursday, June 19, 2014 1:52 PM To: Esparza, Patty Subject: Re: verification of transmittal I only sent to DOF Sent from my BlackBerry 10 smartphone on the Verizon Wireless 4G LTE network. From:-Espar--za—Patty Sent: Thursday, June 19, 2014 1:47 PM To: Fritzal, Kellee Subject: verification of transmittal Hi Kellee—could you please send me a copy of the confirmation of the Oversight Board transmittal to the Secretary of State for the file? Thanks, Patty Esparza, C AIC Senior Deputy City Clerk City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 (714) 536-5260 1