Report to Mayor and City Council
Tuesday, April 07, 2020
Discussion
SUBJECT:
Title
CONSIDER APPOINTMENT OF THE PUBLIC FINANCING AUTHORITY MEMBERS FOR THE CARSON ENHANCED INFRASTRUCTURE FINANCING DISTRICT (EIFD) (CITY COUNCIL)
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I. SUMMARY
On December 3, 2019, the City adopted Resolution No. 19-192 (“Resolution of Intent”) declaring intention to establish the Carson Enhanced Infrastructure Financing District (EIFD) to finance the construction and/or acquisition and maintenance of capital improvements. The Resolution of Intent (Exhibit No. 1) also establishes the “Public Financing Authority (PFA) for the Carson EIFD” to serve as the governing board of the Carson EIFD. Tonight’s action is to appoint members of the PFA in accordance with the requirements of Section 8 of the Resolution of Intention:
1) PFA Memberships shall be comprised initially of three members of the City Council and two member of the public to be appointed by the City Council. The two members of the public appointed by the Council are intended to be any individual who lives or works within the boundary of the EIFD.
2) Members of the City Council and members of the public composing the PFA shall be determined and approved by a majority vote of the City Council.
3) Members shall serve at the pleasure of the City Council and shall serve until their successor assumes office.
4) Should another taxing entity agree to participate in the Carson EIFD, the PFA membership shall then be comprised of two members of the City Council, one member of the other taxing entity, a public member selected by the Council, and a member of the public selected by the participating taxing entity. Members shall serve at the pleasure of their respective appointing legislative bodies and shall serve until their successor assumes office. At the time of appointment of the three Councilmembers, the City Council shall designate a member who will offer his/her seat to a County Supervisor, should the County agree to partner with the City in EIFD. Likewise, the Council would need to designate at the time of appointment the one public member who would offer their seat to the other taxing entity.
PFA members would be responsible for every action taken by the Carson EIFD, which includes issuance of bonds and other matters relating to public infrastructure financing for the Carson EIFD. At a future meeting, staff will be presenting a resolution to the City Council to formalize the establishment of the PFA and the appointments.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1) Appoint three members of the City Council as the governing board members of the Public Financing Authority for the Carson EIFD (one of which will offer his or her seat on the board to a County Supervisor, should the County agree to partner with the City in EIFD); and
2) Appoint two members of the public to as members of the Public Financing Authority for the Carson EIFD (one of which will offer his or her seat on the board to a public member appointed by the County Board of Supervisors, should the County agree to partner with the City in EIFD).
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate.
IV. BACKGROUND
Under EIFD law, the PFA is the governing board of the Carson EIFD. The County has not taken a position in partnering with the City as a contributing taxing entity. If they do agree to partner, they will need to take the formal steps required by law to join the EIFD. Therefore, initially and pursuant to EIFD law, the PFA’s membership would include three member of the City Council, and two public members whose appointments are to be approved by City Council.
The adopted Resolution of Intent also provides for a slightly different composition of the PFA governing board, should the County or another taxing entity take formal action to participate in the Carson EIFD. In that case the PFA’s membership would be the two members of the City Council, one member from of the other taxing entity, and one public member selected by the City Council and one member of the public selected by the participating taxing entity.
The adopted Resolution of Intention intended to form the Carson EIFD under pre-Assembly Bill 116 (Pre-AB 116) law. For several reasons, and as an alternative to the current Resolution of Intention, staff may bring forth another Resolution of Intention to form the Carson EIFD under the new AB 116 law for City Council approval later this year. Research is still being done to determine whether this would be beneficial. If the City does proceed with this new AB 116 Resolution of Intention, staff would recommend the same appointed PFA members from tonight’s action for the new Public Financing Authority (PFA) for the Carson EIFD.
V. FISCAL IMPACT
There is no immediate fiscal impact as a result of this action.
VI. EXHIBITS
1. Resolution No. 19-192 (pgs. 4-11)
Prepared by: James Nguyen, Project Manager