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Item 1 - A Resolution of the Board of Directors of the Poway Public Financing Authority Repealing Resolution No. F-92-01, and Setting the Time of the Regular Meetings0 Poway Public Financing Authority BOARD AGENDA REPORT APPROVED APPROVED AS AMENDED ❑ (SEE MINUTES) DENIED ❑ REMOVED ❑ CONTINUED Resolution No. DATE: August 7, 2012 TO: Honorable Chairperson and Board of Directors FROM: Penny Riley, Executive Directo INITIATED BY: Morgan L. Foley, GeneraF Counsel, SUBJECT: A Resolution of the Board of Directors of the Poway Public Financing Authority Repealing Resolution No. F-92-01, and Setting the Time of Regular Meetings Summary: In 1991, the City of Poway and the Poway Redevelopment Agency created the Poway Public Financing Authority, a joint exercise of powers authority (the "Authority"), for the purpose of issuing bonds for financing and refinancing capital improvements in the City. Legislation in 2009 amended the law for joint exercise of powers authorities to require that the issuance of bonds or accepting the benefits of bonds or the proceeds of bonds can only occur at a regular'meeting of such an authority held pursuant to the Ralph M. Brown Act. The original resolution establishing the Authority provides that regular meetings for the Authority are established to occur once a year. Subsequently, the Board adopted Resolution No. F-92-01, which waived the requirement for an annual meeting and provided that meetings would be held as and when determined necessary by the Board. These meetings would not be "regular" meetings of the Board; on the contrary, each would be a "special" meeting. In order for the Authority to assist the City in issuing bonds from time to time, under the joint exercise of powers law, it is necessary to adopt a resolution to establish regular meetings of the Authority coinciding with the regular meetings of the City Council. This provides flexibility in allowing the Authority Board to consider conducting business as necessary without the added step of calling a special meeting. It also prevents delays in the approval of bonds or certificates of participation by having regular meetings twice a month, as opposed to once a year. Recommended Action: Staff recommends that the Poway Public Financing Authority Board of Directors adopt the attached resolution to repeal Resolution No. F-92-01 and establish regular meetings of the Authority to coincide with regular meetings of the City Council: Background: The Poway Public Financing Authority was created in 1991 as a joint exercise of powers authority to provide a means of issuing bonds and other forms of indebtedness to finance capital improvement projects in the City of Poway. The Authority's members are the City of Poway and (by virtue of the dissolution of the Poway Redevelopment Agency) the Successor Agency to the Poway Redevelopment Agency. 1 of 5 August 7, 2012 Item # .I_ Resolution of the Poway Public Financing Authority Setting Time of Kegular Meetings August 7, 2012 Page 2 • The Authority has been used by both the City and the Redevelopment Agency to provide a vehicle for issuing bonds and certificates of participation; most recently in 2003, when the City issued its Certificates of Participation to finance the City Hall and Council Chambers improvements, and when the Poway Redevelopment Agency issued its 2003 Tax Allocation Bonds. Historically, in order to approve the issuance of bonds or certificates of participation the Authority would call a special meeting to adopt the appropriate resolution and take the necessary action. In 2009 the State Legislature enacted Senate Bill No. 99 adding Government Code section 6592.1, requiring that any actions approving the issuance of bonds or certificates of participation must be taken at a regular meeting of the Authority. Findings: The City is proposing to issue refunding certificates of participation later this year in order to take advantage of the favorable market conditions to refinance its 2003 Certificates of Participation (City Office Building Project), which were issued to finance the construction of City Hall and the Council Chambers. In order to comply with Government Code section 6592.1 the Authority Board of Directors must repeal Resolution No. F-92-01 and adopt the attached resolution to change the annual regular meeting to a schedule of regular meetings that coincide with the Poway City Council regular meetings. This will mean that the Authority Board of Directors will be scheduled to meet jointly with the City Council, the Successor Agency to the Poway Redevelopment Agency, and the Poway Housing Authority, twice each month (unless a meeting is canceled). Repealing Resolution No. F-92-01, and adopting a regular meeting schedule by resolution will provide greater flexibility to the Authority after the enactment of SB 99. The attached resolution would establish periodic regular meetings of the Authority commencing August 21, 2012. The attached resolution would also provide that in the event an agenda for a regular meeting of the Authority is not timely posted in accordance with the Ralph M. Brown Act, that meeting is canceled without any further action of the Board of Directors or any officer of the Authority. Fiscal Impact: None. Environmental Review: Pursuant to Title 14 of the California Code of Regulations, Section 15061(b)(3), this action is exempt from the requirements of the California Environmental Quality Act (CEQA) in that it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Public Notification: Other than the posting of the agenda, no notice of this action is required for this special meeting. Attachment: A Resolution of the Board of Directors of the Poway Public Financing Authority Repealing Resolution No. F-92-01 Pertaining to Setting the Time for Regular Meetings and Establishing a Schedule for Regular Meetings 2 of 5 August 7, 2012 Item # 1 RESOLUTION NO. F-12- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE POWAY PUBLIC FINANCING AUTHORITY REPEALING RESOLUTION NO. F-92-01 PERTAINING TO SETTING THE TIME FOR REGULAR MEETINGS AND ESTABLISHING A SCHEDULE FOR REGULAR MEETINGS WHEREAS, the Poway Public Financing Authority (the "Authority") is a joint exercise of powers authority duly organized and existing under and pursuant to Articles 1 through 4 (commencing with section 6500), Chapter 5, Division 7, Title 1 of the California Government Code (the "Act") and that certain Joint Exercise of Powers Agreement, dated as of October 8, 1991 (the "Agreement"), by and between the City of Poway (the "City") and the Poway Redevelopment Agency (the "Former Redevelopment Agency"), and subsequent to the February 1, 2012 statutory dissolution of the Former Redevelopment Agency and assignment by Assembly Bill 1 X 26, enacted as Chapter 5 of Statutes of 2011, of the Former Redevelopment Agency's interests in and obligations under the Agreement to the Successor Agency to the Poway Redevelopment Agency (the "Successor Agency"), all for the purpose of assisting the City and the Successor Agency in financing and refinancing capital improvement projects; and WHEREAS, in order to provide such assistance the Authority issues its bonds, certificates of participation, or other evidences of indebtedness from time to time or, pursuant to Government Code section 6589, purchases bonds, certificates of participation or other evidences of indebtedness on a negotiated basis from the City or the Successor Agency from time to time; and WHEREAS, in 2009 the California Legislature amended the Act by adding section 6592.1, which provides that a resolution authorizing bonds or any issuance of bonds, or accepting the benefit of any bonds or the proceeds of bonds, shall be adopted by a joint exercise of powers authority only during a regular meeting held pursuant to the Ralph M. Brown Act; and WHEREAS, Section 2.04(a) of the Agreement provides that regular meetings of the Board of Directors of the Authority (the "Authority Board") shall be held at such time as the Authority Board may fix by resolution from time to time; and WHEREAS, Section 2 of Resolution No. F-92-01 of the Authority Board provides that the Authority Board's annual regular meeting is waived, and that all meetings of the Board shall be held only as and when the Board determines is necessary; and WHEREAS, without conducting an annual regular meeting, or any schedule of regular meetings of the Board, all meetings conducted are special meetings; and 3 of 5 Attachment A August 7, 2012 Item # I Resolution No. F-12-_ Page 2 WHEREAS, in order to provide more flexibility to the Authority in providing assistance to the City and the Successor Agency in the financing and refinancing of public capital improvements, the Authority Board wishes to establish periodic regular meetings, whichcoincide with regular meetings of the City Council of the City. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Poway Public Financing Authority as follows: Section 1. Poway Public Financing Authority Resolution No. F-92-01 is hereby repealed. Section 2. The Board of Directors hereby establishes its regular meetings as follows: Regular Meetings. Each regular meeting of the Board of Directors of the Authority shall be held at the time and place of each regular meeting of the City Council of the City. Section 3. The first regular meeting to be held pursuant to Section 2 of this resolution shall be held on August 21, 2012. Section 4. In the event an agenda for a regular meeting of the Authority is not posted timely in accordance with the provisions of Section 54954.2 of the California Government Code, such regular meeting is canceled without any further action of the Authority Board or any officer of the Authority. PASSED, ADOPTED AND APPROVED by the Board of Directors of the Poway Financing Authority at a special meeting this 7`h day of August, 2012. Don Higginson, Chairperson ATTEST: Linda A. Troyan, MMC, Secretary 4 of 5 August 7, 2012 Item # I Resolution No. F-12-_ Page 3 STATE OF CALIFORNIA ) )SS COUNTY OF SAN DIEGO ) I, Linda A. Troyan, MMC, Secretary of the Poway Public Financing Authority, do hereby certify under penalty of perjury that the foregoing Resolution No. F-12-_was duly adopted by the Board of Directors at a special meeting of said Board of Directors held on the 7th day of August, 2012, and that it was so adopted by the following vote: AYES: NOES: ABSENT: DISQUALIFIED: Linda A. Troyan, MMC, Secretary Poway Public Financing Authority 5 of 5 August 7, 2012 Item # • • RESOLUTION NO. F-12-01 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE POWAY PUBLIC FINANCING AUTHORITY REPEALING RESOLUTION NO. F-92-01 PERTAINING TO SETTING THE TIME FOR REGULAR MEETINGS AND ESTABLISHING A SCHEDULE FOR REGULAR MEETINGS WHEREAS, the Poway Public Financing Authority (the "Authority") is a joint exercise of powers authority duly organized and existing under and pursuant to Articles 1 through 4 (commencing with section 6500), Chapter 5, Division 7, Title 1 of the California Government Code (the "Act") and that certain Joint Exercise of Powers Agreement, dated as of October 8, 1991 (the "Agreement"), by and between the City of Poway (the "City") and the Poway Redevelopment Agency (the "Former Redevelopment Agency"), and subsequent to the February 1, 2012 statutory dissolution of the Former Redevelopment Agency and assignment by Assembly Bill 1 X 26, enacted as Chapter 5 of Statutes of 2011. of the Former Redevelopment Agency's interests in and obligations under the Agreement to the Successor Agency to the Poway Redevelopment Agency (the "Successor Agency"). all for the purpose of assisting the City and the Successor Agency in financing and refinancing capital improvement projects: and WHEREAS, in order to provide such assistance the Authority issues its bonds. certificates of participation, or other evidences of indebtedness from time to time or, pursuant to Government Code section 6589, purchases bonds, certificates of participation or other evidences of indebtedness on a negotiated basis from the City or the Successor Agency from time to time: and WHEREAS, in 2009 the California Legislature amended the Act by adding section 6592.1, which provides that a resolution authorizing bonds or any issuance of bonds, or accepting the benefit of any bonds or the proceeds of bonds, shall be adopted by a joint exercise of powers authority only during a regular meeting held pursuant to the Ralph M. Brown Act; and WHEREAS, Section 2.04(a) of the Agreement provides that regular meetings of the Board of Directors of the Authority (the "Authority Board") shall be held at such time as the Authority Board may fix by resolution from time to time; and WHEREAS, Section 2 of Resolution No. F-92-01 of the Authority Board provides that the Authority Board's annual regular meeting is waived, and that all meetings of the Board shall be held only as and when the Board determines is necessary; and WHEREAS, without conducting an annual regular meeting, or any schedule of regular meetings of the Board, all meetings conducted are special meetings; and • • Resolution No. F-12-01 Page 3 STATE OF CALIFORNIA ) SS COUNTY OF SAN DIEGO ) I, Linda A. Troyan, MMC, Secretary of the Poway Public Financing Authority, do hereby certify under penalty of perjury that the foregoing Resolution No. F-12-01 was duly adopted by the Board of Directors at a special meeting of said Board of Directors held on the 7th day of August, 2012, and that it was so adopted by the following vote: AYES: BOYACK, MULLIN, GROSCH, CUNNINGHAM, HIGGINSON NOES: NONE ABSENT NONE DISQUALIFIED NONE A. Troyan, MMC,-ecretary Poway Public Financing Authority