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HomeMy WebLinkAboutReso 2013-110RESOLUTION NO. 2013-110 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AND AUTHORIZING EXECUTION OF A JOINT EXERCISE OF POWERS AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA CREATING THE CHULA VISTA MUNICIPAL FINANCING AUTHORITY WHEREAS, the Marks-Roos Local Bond Pooling Act of 1985, Article 4 (commencing with Section 6584), Chapter 5, Division 7, Title 1 of the California Government Code (the "Bond Law") authorizes agencies created pursuant to Article 1 (commencing with Section 6500), Chapter 5, Division 7, Title 1 of the California Government Code (the "Act") to assist in the financing, including refinancing, of public capital improvements to be owned by the public agencies which are parties to the agreements creating such agencies; and WHEREAS, in enacting the Bond Law, the Legislature of the State of California declared, in Section 6584.5 of the California Government Code, that (a) there is a critical need within the State of California to expand, upgrade and otherwise improve the public capital facilities of local government necessazy to support the rehabilitation and construction of residential and economic development; and (b) that it is the intent of the Legislature to assist in the reduction of local borrowing costs, help accelerate the construction, repair and maintenance of public capital improvements, and promote greater use of existing and new financial instruments and mechanisms such as bond pooling by local agencies; and WHEREAS, Section 6586 of the California Government Code provides that it is the intent of the Legislature that the Bond Law will be used, among other purposes, to assist local agencies in financing public capital improvements or projects whenever there are significant public benefits which may include demonstrable savings in effective interest rate, bond preparation, bond underwriting, or bond issuance costs; and WHEREAS, acting pursuant to the Bond Law, the City of Chula Vista (the "City") and the Redevelopment Agency of the City of Chula Vista (the "Agency") entered into that certain Joint Exercise of Powers Agreement, dated as of April 4, 1995 (the "1995 JPA"), to form an agency under Article 1 of the Act known as the Chula Vista Public Financing Authority (the "Public Financing Authority") for the purpose of providing an entity that can assist in providing financing for the purposes authorized under the Act; and WHEREAS, the Public Financing Authority has assisted in the financing or refinancing of public capital improvements owned by the City; and Resolution No. 2013-110 Page No. 2 WHEREAS, recently, however, the dissolution of the Agency pursuant to ABX1 26 ("AB 26"), the assignment of the Agency's obligations and responsibilities under the 1995 JPA to the Successor Agency pursuant to AB 26 and the limitation on the Successor Agency's rights, duties and performance obligations under the 1995 JPA by the constraints imposed on successor agencies by AB 26 and the provisions of AB 1484 requiring the termination of the existence of the Successor Agency within one year of the date that all of the debt of the Agency has been retired or paid off raise substantive questions and issues regarding the ongoing legal viability of the Public Financing Authority and its continuing ability to carry out its purposes under the 1995 JPA; and WHEREAS, the City finds it prudent, in light of such uncertainties regazding the Public Financing Authority, to establish a new joint exercise of powers authority for the purpose of providing an entity that can assist in providing financing for the purposes authorized under the Act and requests that the Housing Authority of the City of Chula Vista (the "Housing Authority") be a party to the joint exercise of powers agreement to establish such authority; and WHEREAS, there has been presented to the City Council an agreement entitled "Joint Exercise of Powers Agreement Creating Chula Vista Municipal Financing Authority" (the "2013 JPA") to be entered into by and between the City and the Housing Authority which would be entered into pursuant to the Act and would create the Chula Vista Municipal Financing Authority (the "Municipal Financing Authority") to provide for the financing for the purposes authorized under the Act; and WHEREAS, the City Council has determined that it is in the best interests of the communities which are served by the City and the Housing Authority that the Municipal Financing Authority be formed pursuant to the Act for the purposes of financing, including the refinancing, of needed public capital improvements and reducing local borrowing costs for financing or refinancing such improvements as authorized in the Act, and that the creation of the Municipal Financing Authority will be consistent and in furtherance of the intent and purposes of the Bond Law; and WHEREAS, the City has further determined that the participation of the Municipal Financing Authority in the financing and refinancing of such public capital improvements will result in significant public benefits through savings in effective interest rate, bond preparation, bond underwriting and bond issuance costs. NOW, THEREFORE, BE IT RESOLVED AND DETERMINED: SECTION 1. Findin¢s. The City Council finds (i) that the preceding recitals aze true and correct and that it is in the best interests of the City and the Housing Authority and the communities which they serve that the Municipal Financing Authority be created for the purpose of assisting the City and the Housing Authority with the financing of needed public capital improvements and in order to reduce local borrowing costs for financing such improvements, (ii) that the participation by the Municipal Financing Authority in the financing of such public capital improvements will result in significant public benefits in that such participation will result in savings in effective interest rate, bond preparation, bond underwriting and bond issuance costs, and (iii) that the 2013 JPA should be approved by the City Council and executed and delivered on behalf of the City. Resolution No. 2013-110 Page No. 3 SECTION 2. Auproval. The 2013 JPA is approved in the form submitted to the City Council at the meeting at which this resolution is adopted and the Mayor and the City Clerk are authorized and directed to execute and deliver the 2013 JPA on behalf of the City. SECTION 3. Filine Notice and Further Action. Upon the execution of the 2013 JPA by City and the Housing Authority, the City Clerk shall cause to be filed with the office of the Secretary of State of the State of California a notice of the 2013 JPA as required by Section 6503.5 of the California Government Code. The City Manager, the Director of Finance and the City Clerk are further authorized to take any other action that may be necessary to effectuate the creation of the Chula Vista Municipal Financing Authority as recommended by the City Attorney. SECTION 3. Effective Date. This Resolution shall take effect immediately upon its passage and adoption. Presented by Approved as to form by ~~ Mari Kachadoorian en . Googins Director of Finance/Treasurer Ci rney Resolution No. 2013-110 Page No. 4 , PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 11th day of June 2013 by the following vote: AYES: Councilmembers: Aguilaz, Bensoussan, Ramirez, Salas and Cox NAYS: Councilmembers: None ABSENT: Councilmembers: None Cheryl Cox l ay r ATTEST: Donna R. Norris, MC, City Clerk STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2013-110 was duly passed, approved, and adopted by the City Council at a regulaz meeting of the Chula Vista City Council held on the 1 Ith day of June 2013. Executed this I lth day of June 2013. Donna R. Norris, CMC, City Clerk