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HomeMy WebLinkAboutHousing Authority Resolution No. 04 approving execution of a Dept. ID FN 14-008 Page 1 of 2 Meeting Date:6/16/2014 CITY OF HUNTINGTON BEACH REQUEST FOR. HOUSING AUTHORITY ACTION MEETING DATE: 6/16/2014 SUBMITTED TO: Honorable Chairperson and Housing Authority Commissioners SUBMITTED BY: Fred A. Wilson, Executive Director PREPARED BY: Lori Ann Farrell, Director of Finance SUBJECT: Adopt Housing Authority Resolution No. 04 approving execution of a Second Amendment to the Joint Exercise of Powers Agreement to include the Housing Authority as a member of the Huntington Beach Public Financing Authority Statement of Issue: Housing Authority Board approval is requested to amend the Joint Exercise of Powers Agreement of the Huntington Beach Public Financing Authority to include the Housing Authority as a member of the Public Financing Authority. Financial Impact: There is no fiscal impact to the City's FY 2013/14 Adopted Budget associated with this amendment. This action relates solely to the ability of the Public Financing Authority to exercise its powers in financing capital improvements beyond the termination date of the Successor Agency. Housing Authority Recommended Action: A) Adopt Housing Authority Resolution No. 04, "A Resolution of the Governing Board of the Huntington Beach Housing Authority Approving the Execution and Delivery of a Second Amendment to Joint Exercise of Powers Agreement and Other Matters Related Thereto Relating to the Huntington Beach Public Financing Authority;" and, B) Authorize the Executive Director to execute any agreements and take any actions necessary in furtherance of the amendment. Alternative Action(s): Do not approve the recommended action and direct staff accordingly. Analysis: 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 HB -377- Item 18. - I Dept. ID FN 14-008 Page 2 of 2 Meeting Date:6/16/2014 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. Environmental Status: Not Applicable. Strategic Plan Goal: Improve Long-Term Financial Sustainability Enhance Economic Development Improve the City's Infrastructure Attachment(s): 1. Second Amendment to Joint Exercise of Powers Agreement 2. Housing Authority Resolution No. 04, "A Resolution of the Governing Board of the Huntington Beach Housing Authority Approving the Execution and Delivery of a Second Amendment to Joint Exercise of Powers Agreement and Other Matters Related Thereto Relating to the Huntington Beach Public Financing Authority" Item 18. - 2 xB -378- SECOND AMENDMENT TO JOINT EXERCISE OF POWERS AGREEMENT by and among CITY OF HUNTINGTON BEACH - and SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH and HUNTINGTON BEACH HOUSING AUTHORITY Dated as of .Tte.,.�E /6 , 2014 relating to the HUNTINGTON BEACH PUBLIC FINANCING AUTHORITY 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 SUCCES OR 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 XI 26 ("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 30 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 14-4245/110387 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: _ Mayor ATTEST: ity Cler SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF T GTON BEACH By: xecutive Director, acting for Successor Agency to the Redevelopment Agency of the ATTEST: City of Huntington Beach jA lerk, acting or Succency to the Redevelop tcy of the City of Huntington Beach HUNTINGTON BEACH HOUSING AUTHORITY By: Chairperso ATTEST: APPROVED AS TO FORM Secretary JENNIFER mcGRATH.Gq/ Deputy CitkAftomeY 14-4245/110387 5 Housing Authority RESOLUTION NO. 0_ A RESOLUTION OF THE GOVERNING BOARD OF THE HUNTINGTON BEACH HOUSING AUTHORITY APPROVING THE EXECUTION AND DELIVERY OF A SECOND AMENDMENT TO JOINT EXERCISE OF POWERS AGREEMENT AND OTHER MATTERS RELATED THERETO 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 "Fonner 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 Successor Agency to the Redevelopment Agency of the City of Huntington Beach (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 Authority for the Agency as a member (each, a "Member" and collectively, the "Members") of the Authority and to make certain other amendments to the First Amended Joint Powers Agreement; and 14-4245/109863 1 Housing Authority Resolution No. 04 WHEREAS, there has been prepared and submitted to this meeting a form of the Second Amendment; and WHEREAS, the Governing Board of the Housing Authority desires to authorize participation of the Housing Authority as a Member under the First Amended Joint Powers Agreement as amended by the Second Amendment and authorize the execution and delivery of the Second Amendment and the performance of such acts by or on behalf of the Housing Authority as may be necessary or desirable to effect the execution and delivery of such document; NOW, THEREFORE, THE GOVERNING BOARD OF THE HUNTINGTON BEACH HOUSING AUTHORITY, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Participation of the Housing Authority as a Member, under the First Amended Joint Powers Agreement and as amended by and as further provided in the Second Amendment, is hereby approved. Section 2. The Second Amendment, in substantially the form submitted to this meeting and made a part hereof as though set forth in full herein,'be and the same is hereby approved. The Chairperson of the Governing Board, and such other member of the Governing Board as the President may designate, the Executive Officer of the Housing Authority, and such other officer or employee of the Housing Authority as the Executive Officer may designate (the "Authorized Officers") are, and each of them is, hereby authorized and directed, for and in the name of the Housing Authority, to execute and deliver the Second Amendment in the form presented to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Second Amendment by such Authorized Officer. Section 3. The officers and employees of the Housing Authority are, and each of them is, hereby authorized and directed, for and in the name of the Housing Authority, to do any and all things and to execute and deliver any and all documents which they or any of them deem necessary or advisable in order to consummate the transactions contemplated by this Resolution and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution. Section 4. All actions heretofore taken by the officers and employees of the Housing Authority in connection with or related to any of the agreements or documents referred to herein, are hereby approved, confirmed and ratified. 14-4245/109863 2 Housing Authority Resolution No. 04 Section 5. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED by the Governing Board of the Huntington Beach Housing Authority at a regular meeting thereof held on the 16 th day of June 2014. ChairpersorP REVIEWED AND APPROVED: INITIATED AND APPROVED: E4ut , e irector puty Executive Director APPROVED AS TO FORM: A thority At&orney 14-4245/109863 3 Housing Authority Res. No. 04 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF HUNTINGTON BEACH ) I, JOAN FLYNN, Housing Authority Clerk of the Huntington Beach Housing Authority DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Huntington Beach Housing Authority at a Special meeting of said Housing Authority held on June 16, 2014 and that it was so adopted by the following vote: AYES: Katapodis, Hardy, Harper, Boardman, Sullivan, Carchio NOES: None ABSENT: Shaw ABSTAIN: None '10 JIAL� Clerk the Huntington BeMh Housing Authority City of 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 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 oft e First Amended Joint Powers Agreement, entitled"Notices", is hereby amended to read in full as follows: Section 9.01. 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 Hosi g Authority 2000 Main Street Huntington Beach;Calif 2648 Attention: Exeecutiv fficer 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 accordanc 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`30 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 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. Administrative Assistant Finance City of Huntington Beach Tel: 714 536-5630/Fax:714 374-1571 mloadsman()surtcity-Worg I i I 1