CC Resolution 2014-009RESOLUTION NO. 2014 — 009
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA QUINTA EXTENDING THE TERM OF THE JOINT
EXERCISE OF POWERS AGREEMENT FOR THE LA
QUINTA FINANCING AUTHORITY
WHEREAS, the La Quinta Financing Authority ( "Financing Authority ") was
formed on November 3, 1988, pursuant to a Joint Exercise of Powers Agreement
( "Agreement ") between the City of La Quinta ( "City ") and the former La Quinta
Redevelopment Agency ( "RDA "); and
WHEREAS, the Financing Authority was formed pursuant to the Joint
Exercise of Powers Act, Government Code section 6500 et seq. (the "Act "),
which, among other provisions, authorizes local agencies, such as the City and
former RDA, to form a joint exercise of powers authority, such as the Financing
Authority, for the purposes of issuing bonds; and
WHEREAS, the Act, in Government Code section 6573, provides in pertinent
part that, so long as any bonds are outstanding and unpaid, the joint powers
agreement shall be irrevocable; and
WHEREAS, as part of the 2011 -12 State budget bill, the California
Legislature enacted, and the Governor signed, Assembly Bill 26 from the 2011 -12
First Extraordinary Session ( "ABx1 26 "), which required each redevelopment
agency to be dissolved, and Assembly Bill 27 from the 2011 -12 First Extraordinary
Session ( "ABx1 27 "), which allowed redevelopment agencies to remain in
existence if certain remittance payments were made; and
WHEREAS, an action challenging the constitutionality of ABx1 26 and ABx1
27 was filed in the California Supreme Court; and
WHEREAS, on December 29, 2011, the California Supreme Court upheld
ABx1 26 and struck down ABx1 27 as unconstitutional; and
WHEREAS, pursuant to Health and Safety Code section 34173(a), enacted
by ABx1 26, successor agencies by operation of law were designated as the
successor entities /successors -in- interest to the former redevelopment agencies; and
WHEREAS, on January 2, 2012, the City Council adopted City Council
Resolution No. 2012 -002, affirmatively electing to be the "successor agency" to
the RDA; and
Resolution No. 2014 -009
Extension of Joint Exercise of Powers Agreement
Adopted: March 18, 2014
Page 2
WHEREAS, on June 27, 2012, the California Legislature enacted, and the
Governor signed, Assembly Bill 1484 from the 2011 -12 Regular Session ( "AB
1484 "), which, among other provisions, amended Health and Safety Code section
34173 by adding subdivision (g), which clarified that a successor agency is a
separate public entity from the public agency that provides for its governance and
the two entities shall not merge; and
WHEREAS, AB 1484 also amended Health and Safety Code section 34187
by adding subdivision (b), which provides in pertinent part that, when all of the
debt of a redevelopment agency has been retired or paid off, the successor agency
must dispose of all remaining assets and terminate its existence within one year of
the final debt payment; and
WHEREAS, AB 1484 also added Health and Safety Code section 34177.5,
which provides, among other provisions, that a successor agency has the authority,
rights, and powers of redevelopment agencies for the purpose of issuing bonds or
incurring other indebtedness for specified purposes, including but not limited to
refunding existing bonds or other indebtedness of the former redevelopment
agency; and
WHEREAS, Section 3 of the Agreement provides, "This Agreement shall
become effective as of the date hereof and shall continue in full force and effect
until January 1, 2014, unless extended or earlier terminated by a supplemental
agreement [of] the Agency and the City "; and
WHEREAS, to clarify that the Agreement complies with, and will continue to
comply with, the requirements of the Act (including Government Code section
6573), that the Agreement continues to be in full force and effect in furtherance of
the authority, rights, and powers set forth in Health and Safety Code section
34177.5, and that the Agreement remains in full force and effect in furtherance of
any other applicable laws, the City and the Successor Agency to the La Quinta
Redevelopment Agency ( "Successor Agency ") confirm the extension of the term of
the Agreement; and
WHEREAS,'all other legal prerequisites to the adoption of this Resolution
have occurred.
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of La
Quinta, as follows:
SECTION 1. Recitals. The Recitals set forth above are true and correct and
incorporated herein by reference.
Resolution No. 2014 -009
Extension of Joint Exercise of Powers Agreement
Adopted: March 18, 2014
Page 3
SECTION 2. Extension of Term to the Joint Exercise of Powers Agreement. The
City hereby extends the term of the Agreement as set forth in the Extension of
Joint Exercise of Powers Agreement, a copy of which is attached to this Resolution
and is on file with the Office of the City Clerk.
SECTION 3. Severability. If any provision of this Resolution or the application
thereof to any person or circumstance is held invalid, such invalidity shall not affect
other provisions or applications of this Resolution which can be given effect
without the invalid provision or application, and to this end the provisions of this
Resolution are severable. The City hereby declares that it would have adopted this
Resolution irrespective of the invalidity of any particular portion thereof.
SECTION 4. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City
Council of the City of La Quinta held this 18th day of March, 2014, by the
following vote:
AYES: Council Members Evans, Franklin, Henderson, Osborne, Mayor Adolph
NOES: None
ABSENT: None
ABSTAIN: None
DON ADC
City of La
ATTEST:
SUSAN MAYSELS, Wy Clerk
City of La Quinta, California
(CITY SEAL)
Resolution No. 2014 -009
Extension of Joint Exercise of Powers Agreement
Adopted: March 18, 2014
Page 4
Attorney
EXHIBIT A
EXTENSION OF JOINT EXERCISE OF POWERS AGREEMENT
This Extension of Joint Exercise of Powers Agreement ( "Extension ") is entered
into this 18th day of March, 2014, by and between the City of La Quinta, a California
charter city ( "City'), and the Successor Agency to the La Quinta Redevelopment
Agency, a public agency, corporate and politic, and successor -in- interest to the former
La Quinta Redevelopment Agency pursuant to Health and Safety Code section 34173
( "Successor Agency ").
WITNESSETH:
WHEREAS, the La Quinta Financing Authority ( "Financing Authority ") was
formed on November 3, 1988, pursuant to that certain Joint Exercise of Powers
Agreement of the same date ( "Agreement ") between the City and the former La Quinta
Redevelopment Agency ( "RDA "); and
WHEREAS, the Financing Authority was formed pursuant to the Joint Exercise.of
Powers Act, Government Code section 6500 et seq. (the "Act "), which, among other
provisions, authorized the City and former RDA to form the Financing Authority for the
purposes of issuing bonds; and
WHEREAS, the Act, in Government Code section 6573, provides in pertinent
part that, so long as any bonds issued by the Financing Authority are outstanding and
unpaid, the Agreement shall be irrevocable; and
WHEREAS, as part of the 2011 -12 State budget bill, the California Legislature
enacted, and the Governor signed, Assembly Bill 26 from the 2011 -12 First
Extraordinary Session ( "ABxi 26 "), which required each redevelopment agency to be
dissolved, and Assembly Bill 27 from the 2011 -12 First Extraordinary Session ( "ABx1
27 "), which allowed redevelopment agencies to remain in existence if certain remittance
payments were made; and
WHEREAS, an action challenging the constitutionality of ABx1 26 and ABx1 27
was filed in the California Supreme Court; and
WHEREAS, on December 29, 2011, the California Supreme Court upheld ABx1
26 and struck down ABx1 27 as unconstitutional; and
WHEREAS, pursuant to Health and Safety Code section 34173(a), enacted by
ABx1 26, the Successor Agency by operation of law was designated as the successor
entity /successor -in- interest to the former RDA upon the RDA's dissolution; and
WHEREAS, on January 2, 2012, the City Council adopted City Council
Resolution No. 2012 -002, affirmatively electing to be the "successor agency" to the
RDA; and
2671/015610 -0002 _
6750867 2 a03/10/14
WHEREAS, on June 27, 2012, the California Legislature enacted, and the
Governor signed, Assembly Bill 1484 from the 2011 -12 Regular Session ( "AB 1484 "),
which, among other provisions, amended Health and Safety. Code section 34173 by
adding subdivision (g), which clarified that a successor agency is a separate public
entity from the public agency that provides for its governance and the two entities shall
not merge; and
WHEREAS, AB 1484 also amended Health and Safety Code section 34187 by
adding subdivision (b), which provides in pertinent part that, when all of the debt of a
redevelopment agency has been retired or paid off, the successor agency must dispose
of all remaining assets and terminate its existence within one year of the final debt
payment; and
WHEREAS, AB 1484 also added Health .and Safety Code section 34177.5,
which provides, among other 'provisions; that a successor agency has the authority,
rights, and powers of redevelopment agencies for the purpose of issuing bonds or
incurring other indebtedness for specified purposes, including but not limited to
refunding existing bonds or other indebtedness of the former redevelopment agency;
and
WHEREAS, Section 3 of the Agreement provides, "This Agreement shall become
effective as of the date hereof and shall continue in full force and effect until January 1,
2014, unless extended or earlier terminated by a supplemental agreement [of] the
Agency and the City "; and
WHEREAS, to clarify that the Agreement complies with, and will continue to
comply with, the requirements of the Act (including Government Code section 6573),
that the Agreement continues to be in full force and effect in furtherance of the authority,
rights, and powers set forth in Health and Safety Code section 34177.5, and that the
Agreement remains in full force and effect in furtherance of any other applicable laws,
the City and Successor Agency mutually agree to extend and confirm the extension of
the term of the Agreement, as more particularly set forth herein.
NOW THEREFORE, based upon the foregoing Recitals, which are incorporated
herein by this reference, the City and Successor Agency.agree as follows:
SECTION 1. The Term of the Agreement set forth in Section 3 of the Agreement is
hereby extended and confirmed to be extended so that the Agreement shall continue in
full force and effect until one day after the date that the Successor Agency is terminated
by operation of law pursuant to Health and Safety Code Section 34187(b), as may be
amended and /or pursuant to such successor statute or regulation, unless the
Agreement is earlier terminated by a supplemental agreement of the Successor Agency
and the City.
SECTION 2. All other provisions of the Agreement shall remain and continue in full
force and effect, subject to the terms of this Extension.
2671/015610 -0002
67508672 a03 /10/14 -2-
IN WITNESS THEREOF, the parties hereto have caused this Extension of Joint
Exercise of Powers Agreement to be executed by and through their respective officers
duly authorized on the date first written above.
CITY: SUCCESSOR AGENCY:
DON AD PH, 4yor
City of La Quinta
ATTEST:
SUSAN MAYSELS, City Jerk
(CITY SEAL)
APPROVED AS
(AGENCY SEAL)
T� FO M:
7ffqWN, My Attorney
26711015610 -0002
6750667.2 a03 /10 /I4 _3
By:
fla 4-1.-
15-0—N-ADOLPIA, ChaiWerson
Successor Agency to the La Quinta
Redevelopment Agency
ATTEST
SUSAN MAYSELS, Age y Secretary
lunsel