19900619 Richards Watson & Gershon memo re Joint Exercise of Powers Agreement between the City and the Redevelopment Agency RICHARDS,, WATSON & GERSHON
MEMORANDUM
TO: Mayor and Members of the City Council
FROM: Ariel Pierre Calonne, City Attorney
DATE: June 19 , 1990 Agenda
SUBJECT: Joint Exercise of Powers Agreement Between the City and
the Redevelopment Agency
Under the Joint Powers Act, two or more public agencies
may enter into an agreement to exercise jointly any power common
to the public agencies. Both the City and the Redevelopment
Agency qualify as such public agencies under the Joint Powers
Act. The City and Agency may enter into a joint exercise of
powers agreement and create a separate public entity such as the
Rancho Palos Verdes Improvement Authority. The City Council
would sit as the governing board of the Authority.
The Authority is authorized under the agreement to
maintain landslide abatement improvements in the City. The
ability to maintain improvements is consistent with declarations
by the State Legislature under Article 4 of the Joint Powers Act
which was added to the Act in 1985 to provide a separate mech-
anism to finance public projects. The agreement provides that
not less than ten percent of the -moneys received by either the
Authority, the Agency or the City in connection with the Reim-
bursement and Settlement Agreement must be used for maintenance
of the landslide abatement improvements. The Authority is also
authorized under the agreement to construct landslide abatement
improvements. This does not, of course, require the Authority
to construct those improvements, but if at any time in the future
a determination is made by the Agency to the effect that it would
be desirable for the Authority to do so, the authorization would
already be in place.
Since 1985, many cities throughout the State have
created similar joint powers authorities for other purposes
related to financing public projects. We have recited in the
agreement many of the other provisions of Article 4 of the Act
related to the issuance and sale of bonds by the Authority. We
have -done so not because we anticipate that the Authority will
be issuing bonds in connection with the Reimbursement and Settle-
ment Agreement, but only because it may provide flexibility to
APC:apc (.7! 3
0860240
•
RICFIAHDS, WATSON & GERSHON 10 •
MEMORANDUM
Ariel Pierre Calonne, City Attorney
June 14 , 1990
Page 2
the City and Agency in the future in the event that a determin-
ation is made to make use of the powers of the Authorityfor
other purposes.
cc: Mr. Paul Bussey
City Manager
William L. Strausz, Esq.
Robin D. Harris, Esq. •
APC: apc
0860240