RPVCCA_SA_SR_2012_02_21_D_Local_Agency_Investment_Fund_AuthorizationCITY OF
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
Staff Coordinator:
HONORABLE CHAIR AND MEMBERS OF THE BOARD OF
DIRECTORS OF THE SUCCESSOR AGENCY TO THE RANCHO
PALOS VERDES REDEVELOPMENT AGENCY
CAROL LYNCH,SUCCESSOR AGENCY ATTORNEY
ROBIN HARRIS,DEPUTY SUCCESSOiENCY ATTORNEY
DENNIS McLEAN,FINANCE OFFICER
FEBRUARY 21,2012
LOCAL AGENCY INVESTMENT FUND AUTH_OpjZA.TION
CAROLYN LEHR,EXECUTIVE DIRECTOR C1.X--
Kathryn Downs,Deputy Director of Finance &Information
Technology
RECOMMENDATION
Staff recommends that the Board of Directors of the Successor Agency to the Rancho
Palos Verdes Redevelopment Agency adopt Resolution No.2012-,authorizing the
investment of Successor Agency moneys in the Local Agency Investment Fund.
EXECUTIVE SUMMARY
The attached resolution designates the Executive Director and the Finance Officer of the
Successor Agency to administer the former Redevelopment Agency's Local Agency
Investment Fund (LAIF)account,which currently has a balance of$1 ,840.The adoption of
this resolution is necessary for the Successor Agency to have continued access to the
Agency LAIF account.
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
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LOCAL AGENCY INVESTMENT FUND AUTHORIZATION
February 21 ,2012
Page 2 of 2
(which provided for an alternative voluntary redevelopment program),and held that AS 26
may be severed from AS 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.
I
As a result of the Supreme Court's decision,the Rancho Palos Verdes Redevelopment
Agency (the "Redevelopment Agency")is dissolved as of February 1,2012.The City is the
successor agency (the "Successor Agency")to the Redevelopment Agency.All assets and
properties of the Redevelopment Agency were transferred to the control of the Successor
Agency on February 1,2012.
From time to time the Redevelopment Agency maintained moneys in the Local Agency
Investment Fund ("LAIF")in the State Treasury.Any LAIF account maintained by the
Redevelopment Agency (the "Agency LAI F Account")is now an account of the Successor
Agency.
The State Treasurer's Office,in a letter dated January 25,2012,indicated that the State
Treasurer's Office will be unable to process any transaction with respect to the Agency
LAIF Account until the Successor Agency has taken action to authorize the investment of
Successor Agency moneys in LAIF and to designate authorized representatives of the
Successor Agency to make deposits in and withdrawals from the Agency LAI F Account on
behalf of the Successor Agency.
The Executive Director and Finance Officer of the former Redevelopment Agency were the
City officials authorized to make transactions on the Agency LAIF account.Adoption of
this resolution authorizes the same individuals to conduct transactions on this LAIF
account.
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RESOLUTION NO.2012-
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
SUCCESSOR AGENCY TO THE RANCHO PALOS VERDES
REDEVELOPMENT AGENCY AUTHORIZING THE INVES1MENT OF
MONEYS 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 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 Rancho Palos Verdes
Redevelopment Agency (the "Redevelopment Agency"),a redevelopment agency in the
City of Rancho Palos Verdes (the "City"),created pursuant to the Redevelopment Law,
was dissolved pursuant to Part 1.85 on February 1,2012.
E.By its Resolution No.2011-66,adopted on September 6,2011,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.2012-__,adopted on February 21,2011,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.
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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
(uLAIF")in the State Treasury for the deposit of moneys of local agencies for investment
by the State Treasurer.
I
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 tliis resolution authorizing the investment of Successor Agency moneys in LAIF
and authorizing certain officers of the Successor Agency to order the deposit or
withdrawal of moneys in LAIF on behalf of the Successor Agency.
NOW,THEREFORE,THE BOARD OF DIRECTORS OF THE SUCCESSOR
AGENCY TO THE RANCHO PALOS VERDES 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 Board hereby finds that it is in the best interest of the
Successor Agency to deposit and withdraw moneys 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 and the Finance Officer 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
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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 9s may be required
to the Office of the State Treasurer to effectuate the purposes of this Resolution.
PASSED AND ADOPTED this 21 st day of February,2012.
Chair
ATTEST:
Secretary
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