TITLE
Recommendation to adopt resolution authorizing the formation of a Joint Powers Authority with the Housing Authority of Long Beach; and authorize City Manager to execute the Joint Exercise of Powers Agreement, and related matters. (Citywide)
DISCUSSION
On June 24, 1997, the City, along with the former Redevelopment Agency of the City of Long Beach (RDA), formed the Long Beach Bond Finance Authority (LBBFA), a Joint Exercise of Powers Authority, to facilitate City financings involving certificates of participation and lease revenue bonds. Due to the dissolution of the RDA, the City proposes to form a new Joint Powers Authority (JPA) to preserve the City’s financing flexibility.
The proposed JPA, which is pending approval by the Housing Authority of Long Beach on December 8, 2015, will be created and governed pursuant to a Joint Exercise of Powers Agreement between the City and the Housing Authority of the City of Long Beach (Housing Authority), and is to be known as the Finance Authority of Long Beach (Authority). The Authority will be a public entity separate and apart from the City and the Housing Authority.
The Joint Exercise of Powers Act (Act), under the California Government Code, authorizes public agencies to establish joint powers agencies separate from the forming public agencies, exercise the common powers of the parties establishing such agencies, and exercise additional powers created under the Act. There is no delegation of authority. The Act and the proposed Joint Exercise of Powers Agreement, each provide that the debts, liabilities and obligations of the newly formed Authority will not be debts, liabilities or obligations of the City or Housing Authority.
This matter was reviewed by Deputy City Attorney Richard Anthony on November 11, 2015 and by Budget Management Officer Victoria Bell on November 20, 2015.
TIMING CONSIDERATIONS
City Council action is requested on December 8, 2015, to facilitate the City’s financing capabilities.
FISCAL IMPACT
This proposed Finance Authority of Long Beach does not create any financial obligation on the part of the City. The debts, liabilities and obligations of the Finance Authority of Long Beach will not be debts, liabilities or obligations of the City. There is no fiscal or local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AUTHORIZING FORMATION OF A JOINT POWERS AUTHORITY WITH THE HOUSING AUTHORITY OF THE CITY OF LONG BEACH, AND APPROVING THE EXECUTION OF THE JOINT EXERCISE OF POWERS AGREEMENT AND CERTAIN MATTERS RELATED THERETO
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER