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Home My WebLink About11 Res SA-RDA 083 Dissolve RCPDFASTAFF REPORT SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MEETING DATE: February 25, 2021 SUBMITTED BY: Veronica Tapia, Senior Management Analyst REQUEST: ADOPT RESOLUTION NO. SA-RDA 083 APPROVING THE EXECUTION OF A TERMINATION AGREEMENT TO DISSOLVE THE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY (“RCPDFA”) AND TAKING RELATED ACTIONS _______________________________________________________________________ Recommendation That the Successor Agency Board waive further reading and adopt Resolution No. SA-RDA 083, approving the execution of a Termination Agreement to Dissolve the Riverside County Palm Desert Financing Authority (“RCPDFA”), and taking related actions. Strategic Plan There is no direct correlation to the strategic plan. Executive Summary Approval of this item will dissolve the RCPDFA, a Joint Powers Authority (JPA) between the former Palm Desert Redevelopment Agency and the County of Riverside and furthers the wind-down of the Former Agency’s affairs. Background Analysis The former Palm Desert Redevelopment Agency (“Former Agency”) was formed, existed and exercised its powers pursuant to the Community Redevelopment law (California Health and Safety Code section 33000 et seq.). Pursuant to Assembly Bill No. 1X 26 (as modified, including by Assembly Bill No. 1484 enacted on June 27, 2012, and Senate Bill No. 107 enacted September 22, 2015), which added or amended Parts 1.8 and 1.85 to Division 24 of the Health and Safety Code (“Dissolution Act”), the Former Agency was dissolved on February 1, 2012 and the Successor Agency to the Palm Desert Redevelopment Agency (“Successor Agency”) was vested with all authority, rights, powers, duties and obligations of the Former Agency. February 25, 2021 - Staff Report RESOLUTION TO DISSOLVE THE RCPDFA Page 2 of 2 In 2003, the County of Riverside (the ,County,,) and the Former Agency entered into a Joint Exercise of Powers Agreement to form the Riverside County Palm Desert Financing Authority. The RCPDFA issued bonds in 2003 and 2008. Such bonds have been fully paid and are no longer outstanding. The County and the Successor Agency desire to enter into an agreement (the ,Termination Agreement") to dissolve the RCPDFA. Pursuant to the California Environmental Quality Act (CEQA), based upon a review of the evidence and information presented on the matter as it relates to the approval of the Termination Agreement, the Countywide Oversight Board has determined that such approval is categorically exempt from CEQA pursuant to Section 15061(b)(3) of the State CEQA Guidelines because there is no possibility that the activities in question will have a significant impact on the environment and the amendment is merely the adoption of annual budget; it will not require any construction activities and will not lead to any direct or reasonably foreseeable indirect physical environmental impacts. Staff recommends adoption of Resolution No. SA -RDA 083 Approving the Execution of a Termination Agreement to Dissolve the Riverside County Palm Desert Financing Authority and Taking Related Actions. Fiscal Analysis The dissolution of the RCPDFA and the termination of the related joint powers agreement furthers the wind -down of the Former Agency's affairs and allows potential savings of expenses that the Successor Agency may incur in connection with the continuation of the RCPDFA. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A - RWG y^*V&t" yryoou pawrt", ? 00o Andy -Tirestine Robert Hargraeves Janet M. Moore Janet M. Moore Andy Firestine City Attorney Director of Finance Director of Finance Assistant City Manager Randy Bynder Interim Executive Director: 9i'6rnd3l$ynde*' pwffed BY SA -RDA ON ATTACHMENTS: Resolution No. SA -RDA 083 VERIFIED BY: lJt Termination Agreement Original on file with City Jerk's Office 1llo�S � l�r►e. -o W:\Sta@ Reports � Shared 2\Staff Reports 0225-2021\4 -City Clerk - 02-25-2021\11 Dissolve RCPDFA\01 SR to Dissolve the RCPDFA JPA 2.25.21 Im.doex W:\Staff Reports - Shared 2\Staff Reports 02-25-2021\4 -City Clerk - 02-25-2021\11 Dissolve RCPDFA\02 RCPDFA Dissolution - SARDA resolution.docx RESOLUTION NO. SA-RDA 083 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY APPROVING A TERMINATION AGREEMENT TO DISSOLVE THE RIVERSIDE COUNTY PALM DESERT FINANCING AUTHORITY AND TAKING CERTAIN RELATED ACTIONS RECITALS: A. Pursuant to AB X1 26 (enacted in June 2011), and the California Supreme Court’s decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Cal. 4th 231 (2011), all redevelopment agencies in the State of California, including the former Palm Desert Redevelopment Agency (the “Former Agency”), dissolved as of February 1, 2012, and the Successor Agency of Palm Desert Redevelopment Agency (the “Successor Agency”) was established as the successor entity to the Former Agency, tasked with the wind-down of the Former Agency’s affairs. B. The Riverside County Palm Desert Financing Authority (the “RCPDFA”) is a joint powers agency formed and existing pursuant to the Joint Exercise of Powers Act, set forth in California Government Code Section 6500 et seq. (the “Act”), and a Joint Exercise of Powers Agreement, dated as of January 1, 2002 (the “Original Agreement”), as amended by an Amendment No. 1 to Joint Exercise of Powers Agreement, dated as of October 1, 2002 (together with the Original Agreement, the “Joint Powers Agreement”), each by and between the County of Riverside (the “County”) and the Former Agency. C. The RCPDFA was formed to assist with the financing of public improvements and working capital for public benefit, consistent with Article 4 of the Act. D. The RCPDFA issued two series of bonds: (i) Lease Revenue Bonds (County Facilities Project), 2003 Series A (the “2003 Bonds”), and (ii) Lease Revenue Bonds (County Facilities Project, 2008 Series A (the “2008 Bonds”). E. Both the 2003 Bonds and the 2008 Bonds have been fully paid and are no longer outstanding. F. Pursuant to the Act, the Joint Powers Agreement will continue until rescinded or terminated. G. The Joint Powers Agreement provides that it may be terminated at any time that no bonds, notes, certificates of participation or other obligations (collectively, “Bonds”) are outstanding. RESOLUTION NO. SA-RDA 083 W:\Staff Reports - Shared 2\Staff Reports 02-25-2021\4 -City Clerk - 02-25-2021\11 Dissolve RCPDFA\02 RCPDFA Dissolution - SARDA resolution.docx2 H. At this time, there are no Bonds outstanding and the RCPDFA has no outstanding unpaid costs, expenses and charges, and has no assets. I. There has been prepared the form of an agreement (the “Termination Agreement”), in the form attached as Exhibit A, to terminate the Joint Powers Agreement and dissolve the RCPDFA. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. The above recitals are true and correct and are a substantive part of this Resolution. Section 2. The Termination Agreement, in the form attached as Exhibit A, is hereby approved. The dissolution of the RCPDFA pursuant to the Termination Agreement is approved. Each of the Chair of this Board, the Vice Chair of this Board and the Executive Director of the Successor Agency (each, an “Authorized Officer”), acting individually, is hereby authorized to execute and deliver, for and in the name of the Successor Agency, the Termination Agreement, with changes therein as the Authorized Officer may approve (such approval to be conclusively evidenced by the execution and delivery thereof). Section 3. This Board hereby requests the Countywide Oversight Board of the County of Riverside (the “Oversight Board”) to approve the execution and delivery of the Termination Agreement. The Successor Agency Board Secretary is hereby directed to transmit this Resolution to the Oversight Board for consideration at the earliest possible date. Section 4. The Chair, Vice Chair, Executive Director and all other officers of the Successor Agency are hereby authorized, jointly and severally, to execute and deliver such instruments and do such other things (including, but not limited to, the completion of any filings with the Secretary of State, as applicable) which they may deem necessary or advisable in order to effectuate the purposes of this Resolution and the Termination Agreement, and such actions previously taken by such officers are hereby ratified and confirmed. RESOLUTION NO. SA-RDA 083 W:\Staff Reports - Shared 2\Staff Reports 02-25-2021\4 -City Clerk - 02-25-2021\11 Dissolve RCPDFA\02 RCPDFA Dissolution - SARDA resolution.docx3 PASSED, APPROVED AND ADOPTED this 25th day of February, 2021. AYES: NOES: ABSENT: ABSTAIN: _________________________________ KATHELEEN KELLY, CHAIR ATTEST: ___________________________________ GRACE L. ROCHA, ACTING SECRETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY [This page has intentionally been left blank.] W:\Staff Reports - Shared 2\Staff Reports 02-25-2021\4 -City Clerk - 02-25-2021\11 Dissolve RCPDFA\02 RCPDFA Dissolution - SARDA resolution.docx EXHIBIT A TERMINATION AGREEMENT to dissolve Riverside County Palm Desert Financing Authority (substantial final form) see attached [This page has intentionally been left blank.] 1 12395-0001\2477128v1.doc TERMINATION AGREEMENT This Termination Agreement, dated as of ____________, 202_ (this “Agreement”), is entered into by and between the County of Riverside, a political subdivision of the State of California (the “County”), and the Successor Agency to the Palm Desert Redevelopment Agency (the “Successor Agency”), as the successor entity to Palm Desert Redevelopment Agency (the “Former Agency”). The County and the Successor Agency are, together, referred to in this Agreement as the “Parties” and, individually, as a “Party.” RECITALS A. The Riverside County Palm Desert Financing Authority (the “RCPDFA”) is a joint powers agency formed and existing pursuant to the Joint Exercise of Powers Act, set forth in California Government Code Section 6500 et seq. (the “Act”), and a Joint Exercise of Powers Agreement, dated as of January 1, 2002 (the “Original Agreement”), as amended by an Amendment No. 1 to Joint Exercise of Powers Agreement, dated as of October 1, 2002 (together with the Original Agreement, the “Joint Powers Agreement”), each by and between the County and the Former Agency. B. As stated in Section 2 of the Original Agreement, the RCPDFA was formed to assist with the financing of public improvements and working capital for public benefit, consistent with Article 4 of the Act. C. The RCPDFA issued two series of bonds: (i) Lease Revenue Bonds (County Facilities Project), 2003 Series A (the “2003 Bonds”), and (ii) Lease Revenue Bonds (County Facilities Project, 2008 Series A (the “2008 Bonds”). D. Both the 2003 Bonds and the 2008 Bonds have been fully paid and are no longer outstanding. E. Pursuant to the Act, the Joint Powers Agreement will continue until rescinded or terminated. F. Section 23 of the Joint Powers Agreement provides that it may be terminated at any time that no bonds, notes, certificates of participation or other obligations (collectively, “Bonds”) are outstanding and, upon such termination, all of the RCPDFA’s assets shall, after payment of all unpaid costs, expenses and charges incurred under the Joint Powers Agreement, be distributed among the Parties in accordance with the respective contributions of each Party. G. There are no Bonds outstanding and the RCPDFA has no outstanding unpaid costs, expenses and charges, and has no assets. H. Pursuant to AB X1 26 (enacted in June 2011), and the California Supreme Court’s decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Cal. 4th 231 (2011), all redevelopment agencies in the State of California, including the Former Agency, dissolved as of February 1, 2012, and the Successor Agency was established as the 2 12395-0001\2477128v1.doc successor entity to the Former Agency, tasked with the wind-down of the Former Agency’s affairs. I. The Parties desire to terminate the Joint Powers Agreement. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND CONDITIONS CONTAINED HEREIN, AND OTHER VALUABLE CONSIDERATION, THE ADEQUACY OF WHICH ARE HEREBY ACKNOWLEDGED, THE PARTIES AGREE AS FOLLOWS: 1. The Parties hereby agree that the Joint Powers Agreement shall terminate, all obligations of each Party, if any, under the Joint Powers Agreement shall cease, and all rights and powers of the RCPDFA under the Joint Powers Agreement shall cease, as of the date of this Agreement. By virtue of such termination, the RCPDFA is hereby dissolved as of the date hereof. 2. The Parties agree that there are no assets of the RCPDFA to be divided between them. 3. This Agreement shall be governed by, interpreted under, construed and enforced, in accordance with the laws of the State of California. 4. This Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original; and all such counterparts shall together constitute but one and the same. [Signatures Follow. Remainder of Page Intentionally Left Blank] 3 12395-0001\2477128v1.doc IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized officers. COUNTY OF RIVERSIDE By: Print Name: Title: SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY By: Print Name: Randy Bynder Title: Interim City Manager ATTEST: Kecia Harper Clerk of the Board By: ATTEST: Grace L. Rocha Acting Secretary By: APPROVED AS TO FORM: County Counsel By: APPROVED AS TO FORM: Counsel By: