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HomeMy WebLinkAbout06 RESOLUTION OF THE CITY COUNCIL AND HOUSING AUTHORITY BOARD AUTHORIZING THE EXECUTION OF A JOINT POWERS AGMTDocusign Envelope ID: 783D7024-27D3-4446-8EF6-DAE31 E21 DA51 MEETING DATE TO: FROM: SUBJECT: SUMMARY: Agenda Item AGENDA REPORT Reviewed: City Manager Finance Director APRIL 1, 2025 ALDO E. SCHINDLER, CITY MANAGER JENNIFER KING, FINANCE DIRECTOR/CITY TREASURER RESOLUTION OF CITY COUNCIL AND RESOLUTION OF HOUSING AUTHORITY BOARD EACH AUTHORIZING THE EXECUTION AND DELIVERY OF A JOINT EXERCISE OF POWERS AGREEMENT BETWEEN THE CITY AND HOUSING AUTHORITY The Tustin Public Financing Authority is a joint exercise of powers entity formed in 1995 between the City of Tustin and the now dissolved Tustin Redevelopment Agency and can no longer be used by the City for financing transactions. Staff is requesting the City Council and Housing Authority Board's approvals to execute a Joint Exercise of Powers Agreement between the City and Housing Authority, thereby forming a new financing authority to facilitate future financing transactions. RECOMMENDATIONS: 1. The City Council adopts the City Council Resolution No. 25-16 authorizing the City's execution and delivery of a Joint Exercise of Powers Agreement by and between the City and Housing Authority (Attachment 1). 2. The Housing Authority adopts the Housing Authority Resolution No. 25-02 authorizing the Housing Authority's execution and delivery of a Joint Exercise of Powers Agreement by and between the City and Housing Authority (Attachment 2). FISCAL IMPACT: None at this time. Authorizing the execution and delivery of a Joint Exercise of Powers Agreement allows for the formation of a new financing authority by the City and the Housing Authority, but does not allow the financing authority to undertake financing without further review and action by the City Council. The recommendations correlate to the strategic plan by implementing Goal E. Organizational Excellence and Customer Services. Specifically, the new financing authority Docusign Envelope ID: 783D7024-27D3-4446-8EF6-DAE31 E21 DA51 City Council Agenda Report Authorization of a Joint Exercise of Powers Agreement April 1, 2025 Page 2 is an essential tool in the proposed refinancing of the Community Facilities Districts 06-1 and 2014-1 bonds, which brings savings to property owners in our community. BACKGROUND AND DISCUSSION: Chapter 5 of Division 7 of Title 1 of the Government Code ("JPA Act") authorizes the City of Tustin ("City") and the Tustin Housing Authority ("Housing Authority") to create a joint exercise of powers entity ("JPA") with the authority to exercise powers common to both public entities and certain additional powers, including the issuance of bonds. In addition, a JPA may purchase bonds issued by, make loans to, and enter into lease -leaseback arrangements with the City or the Housing Authority for financing or provide interim financing or financing for the acquisition, construction, installation and improvement of public facilities and other capital improvements, working capital, liability and insurance and other needs or other capital projects whenever there are significant public benefits, as determined by the City or the Housing Authority. The JPA Act further authorizes and empowers a JPA to sell bonds so issued or purchased to public or private purchasers at public or negotiated sale. Under the JPA Act, a JPA may be formed by the City and Housing Authority for these purposes under a written agreement entered into between the parties ("JPA Agreement"), which is Attachment 3 to this report. The City Council and the Housing Authority Resolutions submitted herewith as Attachments 1 and 2 to this report will authorize the City and Housing Authority to create a new JPA and to execute and deliver the JPA Agreement. The resolutions and the formation of the JPA are necessary for the proposed issuance of bonds to refinance the outstanding City of Tustin Community Facilities District (CFD) No. 2014-1 (Tustin Legacy/Standard Pacific) Special Tax Bonds, Series 2015A; City of Tustin Community Facilities District (CFD) No. 06-1 (Tustin Legacy/Columbus Villages) Special Tax Refunding Bonds, Series 2015A; and City of Tustin Community Facilities District (CFD) No. 06-1 (Tustin Legacy/Columbus Villages) Special Tax Bonds, Series 2015B. If the City Council and Housing Authority adopt their respective Resolutions, then the new JPA will be formed and thereafter the JPA will be the issuer of the Tustin Financing Authority 2025 Special Tax Revenue Refunding Bonds. As mentioned earlier, the existing Tustin Public Financing Authority cannot be used for the proposed CFD bond refinancing as a member of the Tustin Public Financing Authority, the former Tustin Redevelopment Agency, no longer exists. The City's Finance staff, and bond counsel Stradling Yocca Carlson & Rauth LLP, have prepared the proposed JPA Agreement between the City and the Housing Authority for consideration and approval by the City Council and Housing Authority. The JPA Agreement meets all the requirements of the JPA Act with respect to the formation of a JPA by agreement of the City and the Housing Authority. As set forth in the proposed JPA Docusign Envelope ID: 783D7024-27D3-4446-8EF6-DAE31 E21 DA51 City Council Agenda Report Authorization of a Joint Exercise of Powers Agreement April 1, 2025 Page 3 Agreement, the JPA to be formed will be known as the Tustin Financing Authority ("Financing Authority"). The formation of the Financing Authority by execution and delivery of the JPA Agreement will offer greater flexibility in undertaking certain current and future financings, because under State Law and the JPA Agreement any debt issued by the Financing Authority will not constitute an obligation of the City, the Housing Authority, or their representatives, but will be an obligation of the new JPA. The City will retain management and control of the Financing Authority contemplated by the JPA Agreement, as the Financing Authority would be governed by a Board of Directors ("Board") consisting of all members of the City Council, with Board terms coinciding with the respective members' City Council terms. Further, the proposed Financing Authority will be managed by certain City officials named in the JPA Agreement, including the Mayor as Financing Authority Chair, the Mayor Pro Tern as Vice Chair, the City Manager as Executive Director, and the Finance Director of the City as Treasurer. As noted, authorization of the JPA Agreement is a timely and a necessary part of the Tustin Financing Authority 2025 Special Tax Revenue Refunding Bonds. The JPA Agreement meets the requirements of the JPA Act for the purposes of forming and operation of the new Financing Authority. Therefore, it is recommended that the City Council and Housing Authority, respectively, adopt the attached Resolutions that each authorizes the execution and delivery of the JPA Agreement. E'I Signed by: �n 6Vj 4D86AFAFFF77473... Jennifer King Finance Director/City Treasurer Attachments: 1. City Council Resolution No. 25-16 2. Housing Authority Resolution No. 25-02 3. Proposed Joint Exercise of Powers Agreement Docusign Envelope ID: 783D7024-27D3-4446-8EF6-DAE31 E21 DA51 RESOLUTION NO. 25-16 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AUTHORIZING THE EXECUTION AND DELIVERY OF A JOINT EXERCISE OF POWERS AGREEMENT BY AND BETWEEN THE CITY OF TUSTIN AND THE TUSTIN HOUSING AUTHORITY WHEREAS, the City of Tustin (the "City"), is a municipal corporation and general law city of the State of California (the "State"); and WHEREAS, the Tustin Housing Authority (the "Housing Authority") is a housing authority established and existing pursuant to the Housing Authorities Law, California Health and Safety Code Section 34200 et. seq., and all successor statutes and implementing regulations thereto; and WHEREAS, the City, acting pursuant to Article I (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the "JPA Act") may enter into a joint exercise of powers agreement with one or more other public agencies pursuant to which such contracting parties may jointly exercise any power common to them and, pursuant to Government Code Section 6588, exercise certain additional powers; and WHEREAS, the City and the Housing Authority desire to form, create and establish a joint powers authority, with the legal name "Tustin Financing Authority (the "Authority"), pursuant to the JPA Act; and WHEREAS, there has been presented at this meeting a proposed form of Joint Exercise of Powers Agreement, dated as of March 1, 2025 (the "Joint Powers Agreement") by and between the City and the Housing Authority, which Joint Powers Agreement creates and establishes the Authority; and WHEREAS, under State law and the Joint Powers Agreement, the Authority will be a public entity separate and apart from the parties to the Joint Powers Agreement, and the debts, liabilities and obligations of the Authority will not be the debts, liabilities or obligations of the City, the Housing Authority or any representative of the City or the Housing Authority serving on the governing body of the Authority. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF TUSTIN, THAT: Section 1. Findings. The City Council hereby finds and determines that all of the recitals herein and the statements, findings and determinations set forth in the preamble of the Joint Powers Agreement are true and correct. Resolution 25-16 Page 1 of 3 Docusign Envelope ID: 783D7024-27D3-4446-8EF6-DAE31 E21 DA51 Section 2. Joint Powers Agreement. The proposed form of the Joint Powers Agreement, a copy of which has been provided to the City Council, is hereby approved. The Mayor, the City Manager and the Finance Director (collectively, the "Authorized City Representatives") are each hereby authorized and directed, severally, for and on behalf of the City, to execute and deliver the Joint Powers Agreement substantially in the form provided to the City Council, with such changes as may be recommended by the City Attorney or Stradling Yocca Carlson & Rauth, a Professional Corporation, as bond counsel, therein, deletions therefrom and additions thereto as such Authorized City Representative shall approve, such approval to be conclusively evidenced by the execution and delivery thereof. Section 3. Other Acts. Each of the Authorized City Representatives is hereby authorized and directed to execute and deliver any and all documents and instruments and to do and cause to be done any and all acts and things necessary or proper for carrying out the transactions contemplated by the Joint Powers Agreement and this Resolution. All prior actions of such officers or staff of the City with respect thereto are hereby ratified, confirmed, and approved. Section 4. Effective Date. This Resolution shall take effect from and after its adoption. APPROVED and ADOPTED by the City Council of the City of Tustin at a regular meeting on the 1st day of April 2025. AUSTIN LUMBARD, Mayor ATTEST: ERICA N. YASUDA, City Clerk APPROVED AS TO FORM: DocuSigned by: 7� Z,179 DAVtDF37KENDIG, City Attorney Resolution 25-16 Page 2 of 3 Docusign Envelope ID: 783D7024-27D3-4446-8EF6-DAE31 E21 DA51 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Erica N. Yasuda, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 25-16 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 1st day of April, 2025, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: COUNCILMEMBER RECUSED: ERICA N. YASUDA, City Clerk Resolution 25-16 Page 3 of 3 Docusign Envelope ID: 783D7024-27D3-4446-8EF6-DAE31 E21 DA51 TUSTIN HOUSING AUTHORITY RESOLUTION NO. 25-02 A RESOLUTION OF THE TUSTIN HOUSING AUTHORITY OF THE CITY OF TUSTIN AUTHORIZING THE EXECUTION AND DELIVERY OF A JOINT EXERCISE OF POWERS AGREEMENT BY AND BETWEEN THE CITY OF TUSTIN AND THE TUSTIN HOUSING AUTHORITY WHEREAS, the Tustin Housing Authority (the "Housing Authority") is a housing authority established and existing pursuant to the Housing Authorities Law, California Health and Safety Code Section 34200 et seq., and all successor statutes and implementing regulations thereto; and WHEREAS, the Housing Authority, acting pursuant to Article I (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California ("JPA Act") may enter into a joint exercise of powers agreement with one or more other public agencies pursuant to which such contracting parties may jointly exercise any power common to them and, pursuant to Government Code Section 6588, exercise certain additional powers; and WHEREAS, the City of Tustin (the "City") is a municipal corporation and general law city of the State of California (the "State"); and WHEREAS, the City and the Housing Authority desire to form, create and establish a joint powers authority, with the legal name of "Tustin Financing Authority" (the "Authority"), pursuant to the JPA Act; and WHEREAS, there has been presented at this meeting a proposed form of Joint Exercise of Powers Agreement, dated as of March 1, 2025 ("Joint Powers Agreement"), by and between the City and the Housing Authority, which Joint Powers Agreement creates and establishes the Authority; and WHEREAS, under State law and the Joint Powers Agreement, the Authority will be a public entity separate and apart from the parties to the Joint Powers Agreement, and the debts, liabilities and obligations of the Authority will not be the debts, liabilities or obligations of the City, the Housing Authority or any representative of the City or the Housing Authority serving on the governing body of the Authority. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE TUSTIN HOUSING AUTHORITY: Section 1. Findings. The Board of Directors of the Tustin Housing Authority (the "Board") hereby finds and determines that all of the recitals herein and the statements, findings and determinations set forth in the preamble of the Joint Powers Agreement are true and correct. Tustin Housing Authority Resolution 25-02 Page 1 of 3 Docusign Envelope ID: 783D7024-27D3-4446-8EF6-DAE31 E21 DA51 Section 2. Joint Powers Agreement. The proposed form of the Joint Powers Agreement, a copy of which has been provided to the Board, is hereby approved, and [the Chair, Vice Chair, Executive Director, or Treasurer (collectively, the "Authorized Housing Authority Representatives") are each hereby authorized and directed, severally, for and on behalf of the Housing Authority, to execute and deliver the Joint Powers Agreement substantially in the form provided to the Board, with such changes as may be recommended by the Housing Authority General Counsel or Stradling Yocca Carlson & Rauth, a Professional Corporation, as bond counsel, therein, deletions therefrom and additions thereto as such Authorized Housing Authority Representative shall approve, such approval to be conclusively evidenced by the execution and delivery thereof. Section 3. Other Acts. Each of the Authorized Housing Authority Representatives is hereby authorized and directed to execute and deliver any and all documents and instruments and to do and cause to be done any and all acts and things necessary or proper for carrying out the transactions contemplated by the Joint Powers Agreement and this Resolution. All prior actions of such officers or staff of the Housing Authority (or City staff) with respect thereto are hereby ratified, confirmed and approved. Section 4. Effective Date. This Resolution shall take effect from and after its adoption. APPROVED and ADOPTED by the Board of Directors of the Tustin Housing Authority at a regular meeting on the 1st day of April, 2025. ATTEST: ERICA N. YASUDA, Secretary APPROVED AS TO FORM: DocuSigned by: 7� Z,179 DAVtDF37KENDIG, City Attorney AUSTIN LUMBARD, Chairman Tustin Housing Authority Resolution 25-02 Page 2 of 3 Docusign Envelope ID: 783D7024-27D3-4446-8EF6-DAE31 E21 DA51 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Erica N. Yasuda, Secretary of the Tustin Housing Authority of the City of Tustin, California, do hereby certify that the whole number of the Commissioners of the Tustin Housing Authority is five; that the above and foregoing Resolution No. 25-02 was duly passed and adopted at a regular meeting of the Tustin Housing Authority, held on the 1st day of April, 2025, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: COUNCILMEMBER RECUSED: ERICA N. YASUDA, City Clerk Tustin Housing Authority Resolution 25-02 Page 3 of 3