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Home My WebLink About08A Res SA-RDA 005 - Investment of Monies in the LAIFCITY OF PALM DESERT OFFICE OF THE CITY TREASURER STAFF REPORT REQUEST: RESOLUTION SA-RDAoo�_ A RESOLUTION OF THE RDA SUCCESSOR AGENCY -- PALM DESERT AUTHORIZING THE INVESTMENT OF MONIES IN THE LOCAL AGENCY INVESTMENT FUND (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL, THE RDA SUCCESSOR AGENCY - PALM DESERT, AND THE HOUSING AUTHORITY). SUBMITTED BY DATE: CONTENTS Recommendation Paul S. Gibson, C.C.M.T., City Treasurer March 8, 2012 Resolution No. sa-xDAooS By Resolution Backqround Waive further reading, and adopt Resolution No. sA-RDA o05 At its February 28, 2012 meeting, the Audit, Finance, and Invesfinent Committee reviewed the proposed resolution, and voted unanimously to recommend that the City Council adopt it. In compliance with the provisions of ABx1 26 (the "Dissolution Act"), State Treasurer Lockyer, on January 26, 2012, announced that any redevelopment agency LAIF accounts left open on January 31, 2012 would have their funds frozen. Accordingly, on January 27, 2012, the Palm Desert Redevelopment Agency closed all of its LAIF accounts, and withdrew all of its funds. LAIF was quite cooperative in processing the withdrawals in a timely manner. State Treasurer Lockyer invited local agencies to re-invest their former redevelopment agency funds with LAIF after February 1, 2012, provided that the local agencies have established new LAIF accounts in the name of an RDA successor agency. Staff Report RDA S.A. LAIF Resolution March 8, 2012 Page 2 of 2 �� p5� Staff proposes opening a new LAIF account for RDA Successor Agency — Palm Desert. Even if the Successor Agency elects not to invest in LAIF at the present time, it would be operationally advantageous to have a LAIF account open. Under existing state regulations, an open LAIF account does not have to be funded. Fiscal Analvsis Under prevailing market conditions, a LAIF account would significantly increase interest income for RDA Successor Agency -- Palm Desert. Submitted By: ��- ��t� �� Paul S. Gibson, C. , C� y Treasurer Approval: G�c�`SZ��a��1 �d �, �� -� �� `1CQ.r� ) �� 'E:,`�i�l�_:� %�'.!��.�/�? i�r ��r�al c�� _��: ,r�;:� r t.�3,� ,;�rk's C�#�i��; n M. VVohlmuth, City Manager RESOLUTION NO. SA-RDA 005 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AUTHORIZING THE INVESTMENT OF MONIES IN THE LOCAL AGENCY INVESTMENT FUND OF THE STATE OF CALIFORNIA 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 Healtt� 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 to the Redevelopment Agency under Part 1.85 (the "Successor Agency"). F. By its Resolution No. 2011-76, adopted on August 25, 2011, 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. RESOLUTION N0. SA-RDA 005 G. Pursuant to Chapter 730 of the statutes of 1976, Section 16429.1 was added to the California Government Code to create the Local Agency Investment Fund ("LAIF") in the State Treasury for the deposit of monies of local agencies for investment by the State Treasurer. H. The Redevelopment Agency from time to time invested its money in LAIF in accordance with the provisions of Section 16429.1 of the California Government Code. I. Pursuant to Part 1.85, all assets and properties of the Redevelopment Agency are transferred to the control of the Successor Agency as of February 1, 2012. J. In response to a request of the State Treasurer's Office, the Board wishes to adopt this resolution authorizing the investment of Successor Agency monies in LAIF and authorizing certain officers of the Successor Agency to order the deposit or withdrawal of monies in LAIF on behalf 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 recitats are true and correct and are a substantive part of this Resolution. Section 2. The Board hereby finds that it is in the best interest of the Successor Agency to deposit and withdraw monies in LAIF from time to time in accordance with the provisions of Section 16429.1 of the California Government Code for the purpose of investment as stated therein. Section 3. The deposit and withdrawal of the Successor Agency's monies in LAIF in accordance with the provisions of Section 16429.1 of the California Government Code from time to time for the purpose of investment as stated therein, and verification by the State Treasurer's Office of all banking information provided in that regard, are hereby authorized. Section 4. The [Executive Director], the [Treasurer], the [Deputy Treasurer], and the [Assistant Finance Director] of the Successor Agency, whose signature specimens are set forth in Exhibit "A" to this Resolution, or their successors in such offices, are hereby authorized to order the deposit or withdrawal of monies in LAIF on behalf of the Successor Agency for any account of the Successor Agency (including accounts maintained by the Redevelopment Agency which are now accounts of the Successor Agency). Section 5. The officers of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things, to execute and deliver any additional instruments which they may deem necessary or advisable in order to -2- RESOLUTION N0. SA-RDA 005 effectuate the purposes of this Resolution and any such actions previously taken by such officers are hereby ratified and confirmed. Section 6. The Secretary of the Successor Agency is hereby authorized and directed to submit a certified copy of this Resolution and such forms as may be required to the Office of the State Treasurer to effectuate the purposes of this Resolution. PASSED AND ADOPTED this 8th day of March, 2012. ROBERT A. SPIEGEL, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA -3- RESOLUTION N0. SA-RDA 005 EXHIBIT "A" Name Office Signature John M. Wohlmuth [Executive Director] of Successor Agency to the Palm Desert Redevelopment Agency Paul S. Gibson [Treasurer] of Successor Agency to the Palm Desert Redevelopment Agency Thomas W. Jeffrey [Deputy Treasurer] of Successor Agency to the Palm Desert Redevelopment Agency Jose Luis Espinoza [Assistant Finance Director] of Successor Agency to the Palm Desert Redevelopment Agency Exhibit A