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HomeMy WebLinkAbout2016-04-26 - AGENDA REPORTS - DECLARATION PARKING AUTHORITY (2)0 Agenda Item: 7 CITY OF SANTA CLARITA Q) AGENDA REPORT CONSENT CALENDAR 7, CITY MANAGER APPROVAL: 1 DATE: April 26, 2016 SUBJECT: DECLARATION OF NEED FOR PARKING AUTHORITY DEPARTMENT: Administrative Services PRESENTER: Darren Hernandez RECOMMENDED ACTION City Council adopt a Resolution declaring a need for a parking authority to function in the City, declaring that the City Council shall be the Parking Authority, and designating an Interim Chairman of the Parking Authority. BACKGROUND On July 9, 1991, the City of Santa Clarita (City) and the Santa Clarita Redevelopment Agency (Agency), entered into a Joint Exercise of Powers Agreement, (JPA Agreement) creating the Santa Clarita Public Financing Authority (Authority), pursuant to Articles 1 through 4 (commencing with Section 6500) of Chapter 5, Division 7, Title 1, of the Government Code of the State of California (Act) for the purpose of, among other things, issuing its bonds to be used to provide financing and refinancing for any purposes that are authorized by law. On June 28, 2011, the California Legislature adopted ABxl 26 (ABxl 26) to, inter alia, dissolve existing redevelopment agencies, including the Agency. The California Supreme Court substantially upheld the provisions of ABxl 26 on December 29, 2011, resulting in the dissolution of the Agency on February 1, 2012. The City opted to act as the Successor Agency (Successor Agency) during the wind -down period. Many joint powers authorities (JPAs) in California with successor agencies as parties have been proactive in substituting the successor agencies with other viable members so as to eliminate any challenges to the JPAs and to make sure the JPAs have more than one member prior to the extinguishment of the successor agencies. The City has identified certain outstanding debt obligations (Prior Obligations) that it desires to prepay to achieve financial benefits for the City and its residents. To this end, the City intends to seek the assistance of the Authority in connection with the prepayment of the Prior Obligations through the issuance of revenue bonds (Bonds). Page 1 PacketPg. 61 In light of the potential challenges to JPAs, it is advisable to substitute as a member of the Authority a parking authority formed by the City (Parking Authority) for the Successor Agency. The California Parking Law of 1949, Streets and Highways Code Section 32500, et seq. (Law) authorizes the formation and activation of a parking authority in every city and county. The Law empowers a parking authority to carry out a broad range of activities, such as transferring, leasing, managing, or improving property, issuing bonds, and receiving and expending revenues. A benefit of the Parking Authority is that it may hold parking structure assets, thereby shifting liability from the City to the Parking Authority for parking structures and operations. It is anticipated that the Parking Authority would hold the Old Town Newhall parking structure and up to three Vista Canyon Development parking structures as assets. Under the Law, the formation of a parking authority involves the City Council consideration and adoption of a resolution stating there is a need for a parking authority in the City. Once formed, the Parking Authority would be a distinct legal entity from the City (similar to a redevelopment agency prior to dissolution) with a separate governing board. The City Council would serve as the governing board for the Parking Authority. The Mayor would serve as Chair and the Mayor Pro Tem would serve as Vice Chair. To meet the objectives of the City with regards to the refunding of the Prior Obligations and to facilitate the issuance of the Bonds by the Authority, the JPA Agreement will be amended to add the Parking Authority as a member and remove the Successor Agency as a member. On May 10, 2016, the Parking Authority can hold its initial meeting. The City Council, Parking Authority, and Successor Agency can then adopt the Amendment to the JPA Agreement. ALTERNATIVE ACTION The City Council may choose not to activate the Parking Authority and/or substitute out the Successor Agency for the Parking Authority as a member of the Santa Clarita Public Financing Authority. Other action as determined by the City Council. FISCAL IMPACT None. ATTACHMENTS Resolution 0 Page 2 Packet Pg. 62 7.a RESOLUTION NO. 16- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, DECLARING A NEED FOR A PARKING AUTHORITY TO FUNCTION IN THE CITY, DECLARING THE CITY COUNCIL SHALL BE THE PARKING AUTHORITY, AND DESIGNATING AN INTERIM CHAIRMAN OF THE PARKING AUTHORITY WHEREAS, the Parking Law of 1949 is codified in California Streets & Highways Code Sections 32500, et seq. (Law); and WHEREAS, Section 32651 of the Law provides that in every city, including the City of Santa Clarita (City), there is a public body corporate and politic known as the parking authority of the city (Parking Authority); and WHEREAS, Section 32651 of the Law additionally provides that the Parking Authority shall not transact business or exercise its power unless the City Council, as the governing body of the City, declares by Resolution that there is a need for a Parking Authority to function in the City; and WHEREAS, Section 32661.1 of the Law provides that the City Council may declare by Resolution that the members of the City Council shall be the members of the Parking Authority; and WHEREAS, Section 32658 of the Law provides that the Mayor of the City shall o designate an interim chairman of the Parking Authority from among the members of the Parking U) Authority, and thereafter the Parking Authority shall select the successor chairman from among its members. r- 0 Y NOW, THEREFORE, the City Council of the City of Santa Clarita, California does o hereby resolve as follows: w a Y SECTION 1. Findings. The City Council finds and declares that there is a need for a w Parking Authority to function in the City, and the Parking Authority hereby is established and permitted to transact any business and exercise any power conferred thereon by the provisions of R the Law. SECTION 2. Citv Councilmembers to Serve as Members of the Parkine Authoritv. Pursuant to Section 32661.1 of the Law, the City Council finds that the appointment of the members of the City Council as the members of the Parking Authority will serve the public interest and promote the public safety and welfare in an effective manner and, therefore, the members of the City Council are hereby declared to be members of the Parking Authority and all the rights, powers, duties, privileges, and immunities that are vested by the Law in such a Parking Authority shall be vested in such members, except as otherwise provided by the Law. Packet Pg. 63 SECTION 3. Designation of Interim Chair and Vice -Chair. The Mayor of the City shall serve as the interim Chairman of the Parking Authority, until a permanent Chair is selected. The Mayor Pro -Tem shall serve as the interim Vice -Chair. PASSED, APPROVED, AND ADOPTED this day of April, 2016. MAYOR ATTEST: CITY CLERK DATE: 7.a STATE OF CALIFORNIA 1 L3 COUNTY OF LOS ANGELES ) ss. U) CITY OF SANTA CLARITA 1 c I, Kevin Tonoian, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a o regular meeting thereof, held on the day of April, 2016, by the following vote: Y AYES: COUNCILMEMBERS: v R NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK Packet Pg. 64