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Home My WebLink About08B Res SA-RDA 002 - Creating a RDA Obligation Retirement FundSUCCESSOR TO THE PALM DESERT REDEVELOPMENT AGENCY REQUEST: SUBMITTED BY: DATE: CONTENTS: Recommendation STAFF REPORT SA -RDA 002 ADOPT RESOLUTION NO. CREATING THE REDEVELOPMENT OBLIGATION RETIREMENT FUND Paul S. Gibson, Director of Finance February 9, 2012 Resolution No. SA -RDA 002 SA -RDA 002 That the Successor Agency Board adopt Resolution No. creating the Redevelopment Obligation Retirement Fund. Executive Summary Creation of the Redevelopment Obligation Retirement Fund will allow the Successor Agency to the Palm Desert Redevelopment Agency, to receive funds from the County Auditor -Controller to pay enforceable obligations of the former redevelopment agency. Discussion This agenda item addresses an outcome of the California Supreme Court's decision in California Redevelopment Association, et al. v. Matosantos, et al. (Case No. S194861), the litigation challenging AB X1 26 ("AB 26) and AB X1 27 ("AB 27"). AB 26 and AB 27, which were signed by the Governor of California on June, 29, 2011, added Parts 1.8 and 1.85 to the Community Redevelopment Law. The Supreme Court largely upheld AB 26 (which provides for the windup and dissolution of redevelopment agencies), invalidated AB 27 (which provided for an alternative voluntary redevelopment program), and held that AB 26 may be severed from AB 27 and enforced independently. The Supreme Court generally revised the effective dates and deadlines for performance of obligations in Part 1.85 (the dissolution provisions) arising before May 1, 2012 to take effect four months later. As a result of the Supreme Court's decision, on February 1, 2012, all redevelopment agencies were dissolved and cities do not have the option of making remittance payments to enable the continued operation of redevelopment agencies. The City is the successor agency for the Palm Desert Redevelopment Agency (the "Successor Agency") and the board of the Successor Agency (the "Board") consists of the members of the City Council. 81000-0172\ 1420205 v 1. do c Staff Report Adopt Resolution Nd.A-RDA c9�2 attng the RDA obligation retirement fund February 9, 2012 Page 2 of 2 Pursuant to Health and Safety Code Section 34170.5, each successor agency to a former redevelopment agency shall create within its treasury a Redevelopment Obligation Retirement Fund to be administered by the successor agency. Fiscal Impact Creation of the Redevelopment Obligation Retirement Fund will allow the Successor Agency to the Palm Desert Redevelopment Agency, to receive funds from the County Auditor -Controller to pay enforceable obligations of the former redevelopment agency. Environmental Impact There will be no new environmental impact associated with adoption of the attached Resolution. Submitted by: Paul S. Gibson, Director of Finance PSG:JMM:p1 Approval: n McCarthy, Assi Jolhh M. Wohlmuth, Executive Director ON a( (veyor to-,y t� RDA 5-0 i)tR,. 2 ,2 VERIFIED BY !2D Li of cpnal on fi!e vii h Caty Clerk's Office 81000-0172\ 1420205v 1.doc G:\rda\Patty LeonUMM\staff report\Successor Agency Resolution Creating Redevelopment Obligation Retirement Fund.doc RESOLUTION NO. SA -RDA 002 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY CREATING A REDEVELOPMENT OBLIGATION RETIREMENT FUND PURSUANT TO HEALTH AND SAFETY CODE SECTION 34170.5 AND TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH RECITALS: A. AB X1 26 and AB X1 27 were signed by the Governor of California on June 29, 2011, making certain changes to the Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the California Health and Safety Code) (the "Redevelopment Law"), including adding Part 1.8 (commencing with Section 34161)("Part 1.8") and Part 1.85 (commencing with Section 34170) ("Part 1.85"). B. The California Redevelopment Association and League of California Cities filed a lawsuit in the Supreme Court of California (California Redevelopment Association, et al. v. Matosantos, et al. (Case No. S194861)) alleging that AB X1 26 and AB X1 27 are unconstitutional. On December 29, 2011, the Supreme Court issued its opinion in the Matosantos case, largely upholding AB X1 26, invalidating AB X1 27, and holding that AB X1 26 may be severed from AB X1 27 and enforced independently. C. The Supreme Court generally revised the effective dates and deadlines for performance of obligations in Part 1.85 arising before May 1, 2012, to take effect four months later. D. As a result of the Supreme Court's decision, the Palm Desert Redevelopment Agency (the "Redevelopment Agency"), a redevelopment agency in the City of Palm Desert (the "City"), created pursuant to the Redevelopment Law, was dissolved pursuant to Part 1.85 on February 1, 2012. E. By its Resolution No. 2011-76, adopted on August 25, 2011, the City Council of the City made an election to serve as the successor agency for the Redevelopment Agency under Part 1.85 (the "Successor Agency"). F. By its Resolution No. , adopted on February 9' 2012, the City Council, acting as the governing board for the Successor Agency, established rules and regulations applicable to the governance and operation of the Successor Agency, and pursuant to such resolution provided that the Successor Agency will be governed by a Board of Directors (the "Board") consisting of the members of the City Council of the City. G. Health and Safety Code Section 34170.5 provides that each successor agency shall create within its treasury a Redevelopment Obligation Retirement Fund to be administered by the successor agency. R1000-0172\142018Rv1 doe RESOLUTION NO. SA —RDA 002 H. Accordingly, the Board desires to adopt this Resolution creating a Redevelopment Obligation Retirement Fund within the treasury of the Successor Agency. 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. This Resolution is adopted pursuant to Health and Safety Code Section 34170.5. Section 3. The Executive Director and the Finance Officer are hereby authorized and directed to create within the treasury of the Successor Agency a Redevelopment Obligation Retirement Fund to be administered by the Successor Agency. Section 4. The Secretary is hereby authorized and directed to file a certified copy of this Resolution with the County Auditor -Controller. Section 5. The officers and staff of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable to effectuate this Resolution, and any such actions previously taken by such officers are hereby ratified and confirmed. PASSED, APROVED, AND ADOPTED this 9th day of February, 2012, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: Rachelle D. Klassen, Secretary Robert A. Spiegel, Chairman -2- 81000-0172\1420188v1.doc n•,rrl.Pattv 1 rnn. TMMketaffrrnnrr,RFCCIT 11T1f1NC,Cnrrracnr Avrnry RrcnL1tinn re f'rratino Rr,irvrtnn.nrnt (lhhnattnn Rrntvmrnt Fnnri dnr