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HomeMy WebLinkAbout09-02-2014 B1 Parking Authority Creation5 Council, Memorandum September 2, 2014 TO: FROM: VIA: SUBJECT City Council Wayne Padilla, Finance & I.T. Director Katie Lichtig, City Manager COUNCIL MEETING; wad �,1t ITEM NO.: 1 5 RE IEC VED SEP 0 2 2014 CITY. L C Agenda item B -1 Formation of Parking Authority and B -3 Parking Authority Approval of Joint Exercise of Powers Agreement This item is on this evening's business item agenda for approval, however staff discovered this afternoon that in December 1982 the City Council approved the formation of a Parking Authority. Therefore this agenda item, which is one of three items on tonight's agenda related to the upcoming financing of the LOVR overpass expansion project, can be removed from the agenda. I have provided as an attachment, a copy of the 1982 resolution for your review. Bond Counsel has indicated that the resolution of the Parking Authority approving the Joint Exercise of Powers agreement, which is part of Agenda item B -3, should be amended to establish the Mayor as the Chairperson of the Parking Authority and provide that either one of us may sign the Joint Exercise of Powers Agreement if the City Council concurs this evening. An amended resolution will be provided to the Council at the meeting. File path RESOLUTION NO. 4999 (1982 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO DECLARING THE NEED FOR A PARKING AUTHORITY IN THE CITY OF SAN LUIS OBISPO, CALIFORNIA. BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The Council of the City of San Luis Obispo, California, hereby determines, finds and declares, in pursuance of the Parking Law of 1949, as amended, that: (a) There is a shortage of parking facilities in the City of San Luis Obispo, California; (b) There is need for a parking authority to function in the City of San Luis Obispo, California. SECTION 2. In accordance with Section 32661.1 of the Streets and Highways Code of the State of California, the City Council of the City of San Luis Obispo does herewith declare itself to be the parking authority, and all the rights, powers, duties, privileges and immunities vested by the Parking Law of 1949 in the members of the authority shall be vested in the City Council as the parking authority. SECTION_ 3. This resolution is adopted pursuant to the provisions of Sections 32651 and 32661.1 of the Streets and Highways Code of the State of California, and shall be effective immediately. On motion of Councilman Settle , seconded by Councilman Griffin a and on the following roll call vote: AYES: Councilmembers Settle, Griffin, Dovey, Dunin and Mayor Billig NOES: None ABSENT: None the foregoing Resolution was passed and adopted this 7th day of December 1982. ATTEST: C . SILL IG s c P ;C CITY ul R 4999 M Resolution No. 4999 (] 2 Series) APPROVED: r -� City Administrativ Officer City Attorney F nan ec j- 'C ty E sneer f' I, PAMELA VOGES, City Clerk of the City of San Luis Obispo, hereby certify that the above and foregoing to be a full, true and correct copy of a resolution duly and regularly introduced, passed and adopted by the City Council of the said City at a regular meeting thereof, held on the 7th day of December, 1982, by the votes shown above. WITNESS my hand and seal of said City this /� day of 1982. ' Cit Clerk ; Pame s Attachment 1 RESOLUTION NO. Adopted by the Parking Authority of the City of San Luis Obispo [_], 2014 APPROVING A JOINT EXERCISE OF POWERS AGREEMENT CREATING THE SAN LUIS OBISPO PUBLIC FINANCING AUTHORITY, AND AUTHORIZING CERTAIN OTHER RELATED ACTIONS WHEREAS, the Joint Exercise of Powers Act (Government Code section 6500 and following) (the "Act ") authorizes two or more public agencies to enter into an agreement to jointly exercise any power common to them. The Act also authorizes the public agencies to provide in the agreement for the creation of a separate joint-powers authority that has the power to exercise any powers common to the agencies as specified in the agreement and to exercise the additional powers granted to the joint - powers authority by the Act or other applicable law. WHEREAS, The Parking Authority and the City of San Luis Obispo are public agencies under the Act, and they desire to create a joint - powers authority, to be known as the San Luis Obispo Public Financing Authority (the "Financing Authority "), for the purposes of assisting any member agency of the Financing Authority (each a "Member ") with the following: acquiring, constructing, improving, rehabilitating, or financing capital improvements or other assets; financing working capital and addressing other cash flow needs; refinancing any outstanding obligations; and making loans to or otherwise assisting with financings for entities (public or private) that are not Members but are either controlled by a Member or determined by a Member to be of benefit to the Member. WHEREAS, the Parking Authority desires to enter into a joint - powers agreement that is substantially in the form on file with the Clerk of the City of San Luis Obispo (the "Clerk"), a copy of which is attached to this resolution (the "Agreement "), for the purposes set forth in the Agreement and described above and to exercise the powers provided in the Agreement and under the Act and other applicable law. NOW, THEREFORE, THE PARKING AUTHORITY OF THE CITY OF SAN LUIS OBISPO DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The Parking Authority finds that the statements in pafagmphs A, B, and G af the Baekgr -oU d afe tr- tie.above recitals are true and correct. Section 2. The proposed form of the Agreement on file with the Clerk is hereby approved. The Chairperson of the Par-king A tithefityMayor, acting as the Chairperson of the Parking Authority or the C pair i el)ircctoi of 1" inatice mid Information Technology (each an "Authorized Officer "), is hereby authorized and directed, on the Parking Authority's behalf, to sign and deliver the Agreement, which must be substantially in the form on file with the Clerk, with such changes as the signing Authorized Officer may require or approve with the OHSUSA:758757860.1 concurrence of legal counsel to the Parking Authority, such approval to be conclusively evidenced by the execution and delivery of the Agreement. Section 3. The Clerk or the Clerk's designee is hereby authorized to attest the signature of the Authorized Officer who signs the Agreement. Section 4. Each Authorized Officer acting alone is hereby authorized and directed to do any and all things and to sign and deliver any documents he or she may deem necessary or desirable to implement the Agreement and otherwise carry out, give effect to, and comply with this resolution; and all such actions previously taken by an Authorized Officer are hereby ratified. Section S. This resolution takes effect when adopted. PASSED, APPROVED AND ADOPTED JAN HOWELL MARX Chairperson ATTEST: ANTHONY J MEJIA, MMC Clerk APPROVED AS TO FORM: J. Christine Dietrick City Attorney OHSUSA:758757860.1 2 City of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number FROM: Wayne Padilla, Finance Director SUBJECT: ADOPT A RESOLUTION ACTIVATING A LOCAL PARKING AUTHORITY FOR THE SOLE PURPOSE OF ALLOWING THE FORMATION OF A JOINT POWERS AUTHORITY (JPA) RECOMMENDATION Adopt a resolution activating a local parking authority. DISCUSSION This item is part of a group of three items related to the formation of a joint powers authority in advance of the request to approve lease revenue financing for the expansion of the Los Osos Valley Road Interchange project. Given the nature of this item, it must be considered in advance of the other two items that will be on this evening’s agenda. Background The City of San Luis Obispo utilizes various forms of debt to construct infrastructure facilities and to acquire equipment. The forms of financing used in the past have included capital leases, revenue bonds and lease revenue bonds. When a lease revenue bond transaction is created, a city-owned property is identified as the subject of the lease (this is not the structure being completed with the bond proceeds) in order to provide security for the debt transaction. The city enters into a lease arrangement with a third party entity that has approved the debt issuance in order to lease to them and then lease back from that entity, the property that is serving as the collateral for the debt. The payments made by the City under this arrangement fund the debt payments for the bonds that have been issued under an assignment agreement created by the third party that provides that the payments are being made for the benefit of the bondholders. In the past, the City has utilized the Capital Improvement Board as the third party entity with whom it enters into these lease arrangements. Upon the advice of the City’s new bond counsel, Orrick Herrington, staff is recommending that the City Council should create a Public Financing Authority in order to have that entity serve as the third party to the upcoming lease revenue financing for the Los Osos Valley Road interchange construction project. The Public Financing Authority will be created under the joint exercise of powers law (Government Code Section 6501 and following) and in order to create the Authority, the City must enter into a contract with another public entity. For that reason, it is recommended that the City activate its Public Parking Authority, which is created pursuant to Streets & Highways Code Section 32500 and following, so that the City and the Parking Authority may enter into the Joint Exercise of Powers Agreement (“JPA Agreement”) to create the Public Financing Authority. The Parking Authority will not take any action other than entering into the JPA Agreement. Once created, the Public 09/02/14 B1 B1 - 1 ADOPT RESOLUTION CREATING A LOCAL PARKING AUTHORITY Page 2 Financing Authority will issue bonds as required for various city projects, including the Los Osos Valley Road Interchange project. The reason for this recommendation stems from the fact that typically the third party authorizing the debt issuance: o Has been created under the authority of the state legislature (as opposed to the city charter) o Is not subject to the debt limit set by the California Constitution o Has flexibility to handle a wide variety of bond transactions for the City By contrast the Capital Improvement Board was created by the City Council under its charter authority. Bond Counsel has advised that the recommendation to create the Public Financing Authority is not an indication which implies that prior bond transactions are somehow impaired or invalid. With each change in the City’s consultants and advisors, there is an opportunity to look with fresh eyes at that which has previously remained unchanged for some time. Staff agrees that the creation of the Public Financing Authority is a reasonable action that will enable the bond counsel to provide the required legal opinions for future debt transactions in an environment that they are most familiar and comfortable with. The Public Financing Authority structure is very commonly used by California cities for various financing needs and is well understood by the public finance marketplace. At this time, there are no planned uses for the Parking Authority outside of serving as a member of the Public Financing Authority pursuant to the JPA Agreement. By adopting the resolution provided, the City Council will be naming the Mayor as the Chairperson of the Parking Authority and the Councilmembers as members of the Parking Authority which is identical to the function the Council serves in relation to the Capital Improvement Board. FISCAL IMPACT There is no fiscal impact from this action. NEXT STEPS If this item is approved, the Parking Authority and the City Council will consider a separate item to approve the JPA agreement referred to in this report. ALTERNATIVE Do not approve the resolution creating the Parking Authority. This option is not recommended since bond counsel feels that their ability to provide the required legal opinions necessary for future debt transactions could be impaired. ATTACHMENTS 1. Resolution B1 - 2 OHSUSA:758757840.2 RESOLUTION NO. __________ SAN LUIS OBISPO CITY COUNCIL RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO DECLARING THAT THERE IS NEED FOR THE PARKING AUTHORITY OF THE CITY OF SAN LUIS OBISPO TO FUNCTION IN THE CITY, APPOINTING MEMBERS OF THE PARKING AUTHORITY, SELECTING A CHAIRPERSON OF THE PARKING AUTHORITY AND AUTHORIZING THE TAKING OF ALL OTHER ACTIONS NECESSARY IN CONNECTION THEREWITH The City of San Luis Obispo (the “City”) is a municipal corporation and charter city organized and existing under and by virtue of the laws of the State of California and a public body corporate and politic known as the Parking Authority of the City of San Luis Obispo (the “Parking Authority”) has been established in the City pursuant to Part 2 of Division 18 of the Streets and Highways Code of the State of California, being Sections 32500 et seq. (the “Parking Law”); and The City has determined that there is need for the Parking Authority to function in the City and the City therefore desires to activate the Parking Authority; and The City has further determined that it is in the interests of the City and the Parking Authority for the Mayor of the City (the “Mayor”) to be the chairperson (the “Chairperson”) of the Parking Authority and for the members of the City Council of the City (the “City Council”) to be the members of the Parking Authority (collectively, the “Members”), for the Members to serve the Parking Authority in such capacities for as long as they remain members of the City Council, and for all of the rights, powers, duties, privileges, and immunities vested by the Parking Law in the members of the Parking Authority to be vested in the Mayor and the members of the City Council as the Parking Authority, all pursuant to Section 32661.1 of the Parking Law; now, therefore, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN LUIS OBISPO, AS FOLLOWS: Section 1. Findings. The foregoing recitals are true and correct and this Council hereby so finds and determines. Section 2. Need For Parking Authority. The City Council hereby finds and determines that there is need for the Parking Authority to function in the City. Section 3. Members of Parking Authority. The City Council hereby declares the City Council to be the Parking Authority, and all rights, powers, duties, privileges, and immunities vested in the Members by the Parking Law are vested in the City Council as the Parking Authority. Pursuant to Section 32658 of the Parking Law, the Mayor hereby designates himself as the Chairperson. Section 4. Other Actions. The City Manager, City Attorney, Chief Financial Officer, City Clerk and other appropriate officers of the City, each acting alone, are authorized to take such other actions as are appropriate to carry out the intent of this Resolution. Section 5. Effectiveness. This Resolution shall take effect immediately upon its adoption. B1 - 3 OHSUSA:758757840.2 PASSED, APPROVED AND ADOPTED ____________________. JAN HOWELL MARX Mayor of the City of San Luis Obispo ATTEST: ANTHONY J MEJIA City Clerk of the City of San Luis Obispo B1 - 4