SR 05-09-2017 3A
Public Financing Authority
Report
City Council Meeting : May 9, 2017
Agenda Item: 3.A
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To: Public Financing Authority
From: Gigi Decavalles -Hughes, Director , Finance Department
Subject: Resolution of the Santa Monica Public Financing Authority Establishing
Regular Meeting Dates
Recommended Action
Staff recommends that the Santa Monica Pub lic Financing Authority:
1. Adopt the attached Authority Resolution to establish the regular meetings of the
Authorit y to be the same dates on which City Council meets; and
2. Authorize the officers of the Authority to take all actions necessary to implement
th e purpose of the Resolution.
Executive Summary
Effective January 1, 2010, Section 6592.1 was added to the California Government
Code requiring that “A resolution authorizing bonds or any issuance of bonds or
accepting the benefit of any bonds or the proce eds of bonds shall be adopted by an
authority only during a regular meeting he ld pursuant to Section 54954.”
On May 10, 2011 , the Board of Directors (the Board) of the Santa Monica Public
Financing Authority (the Authority) established a regular meeting t o be held on the
fourth Tuesday of every May on the same date and time as a regular meeting of the City
Council of the City. On October 11, 2011 , the Board established a second regularly
scheduled meeting to be held on the fourth Tuesday of October. Staf f recommends
changing the meeting date s to be the same dates on which the City Council meets.
This meeting schedule revision will allow the Authority to authorize bond issuance at a
regularly scheduled meeting and thus meet the requirements of Section 659 2.1 of the
California Government Code. However, i f an agenda for any regular meeting of the
Board is not posted at least 72 hours before the meeting, the meeting will be deemed
cancelled.
Background
On July 25, 1995 , as authorized by Resolution No. 8923(CCS), the Santa Monica Public
Financing Authority was organized pursuant to applicable provisions of the California
Government Code Section 6500 et seq., and a Joint Exercise of Powers Agreement,
dated July 25, 1995, by and between the City and the Redevel opment Agency of the
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City of Santa Monica. The purpose of the Authority is to provide financing for its
members or other local public agencies in connection with the acquisition, construction
and improvement of public capital improvements, working capital requirements , or
liability or other insurance needs of its m embers or other local agencies.
The Redevelopment Dissolution Law (at Health & Safety Section 34178 (b)(3))
specifically provides that joint powers agreements in which the former Redevelopment
Ag ency is a member of the joint powers authority (JPA) remain valid and bind the
successor agency, subject to the constraints on the successor agency under the
Redevelopment Dissolution Law, which effectively means that the JPA cannot use its
authority to us e tax increment as a means of financing and that action by the Successor
Agency to the Redevelopment Agency, such as its approval of an amendment to the
joint powers agreement, is subject to the terms of Redevelopment Dissolution Law. The
current recommen ded actions, however, are not constrained by the Redevelopment
Dissolution Law. Therefore, no action is required by the Successor Agency as a
condition to the recommended actions.
Discussion
Effective January 1, 2010, Section 6592.1 was added to the Cali fornia Government
Code requiring 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 an
authority only during a regular meeting held pursuant to Section 54954.” S ection 3.04
of the current Joint Exercise of Powers Agreement provides that “if the Board decides to
hold regular meetings, such regular meetings shall be held at such time as the Board of
Directors may fix by resolution from time to time.” The attached R esolution sets the
date and time of the Authority’s regular meeting to be the same dates on which the City
Council meets. If an agenda for any regular meeting of the Board is not posted at least
72 hours before the meeting, the meeting will be deemed canc elled. This change will
eliminate the need for the Board to continue to adopt resolutions to adjust meeting
dates to meet each specific bond financing schedule.
Financial Impacts and Budget Actions
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This Resolution establishes the regular meeting dates of the Santa Monica Public
Financing Authority and has no budget/ financial impact.
Prepared By: David Carr, Assistant City Treasurer
Approved
Forwarded to Council
Attachments:
A. Financing Authority Resolution
B. May 10, 2011 Staff Report
C. October 11, 2011 Staff Report
D. July 25, 1995 City Council Agenda
REFERENCE:
Resolution NO. 12 (PFA)