REPORT TO SUNNYVALE INDUSTRIAL DEVELOPMENT AUTHORITY
SUBJECT
Title
Adopt Resolution of the Sunnyvale Industrial Development Authority Providing for Certain Organizational Matters and Adopt Resolution of the Sunnyvale Industrial Development Authority Approving, Authorizing, and Directing the Execution of an Amended and Restated Joint Exercise of Powers Agreement Creating the Sunnyvale Financing Authority
Report
BACKGROUND
In anticipation of the dissolution of the Successor Agency to the Redevelopment Agency of the City of Sunnyvale (“Successor Agency”), which is expected to occur in 2026 after it has satisfied all of its enforceable obligations, the City Council of the City of Sunnyvale authorized the creation of a new Industrial Development Authority on August 26, 2025 (RTC No. 25-0828). This entity is necessary to serve as the second member of the Sunnyvale Financing Authority (“Financing Authority”), which is a Joint Powers Authority that requires at least two legal entities to operate. The Sunnyvale Industrial Development Authority must establish its rules of business and take action on the Joint Exercise of Powers Agreement.
ENVIRONMENTAL REVIEW
The action being considered is exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to Title 14 of the California Code of Regulations, Section 15378(b)(4) because it involves the creation of a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment.
DISCUSSION
Resolution Providing for Organizational Matters
The California Industrial Development Financing Act (commencing with Section 91500 of the California Government Code) (“Act”) authorizes the City of Sunnyvale to activate an industrial development authority by ordinance if it finds that there is a need within the City for such an authority.
On September 9, 2025, the City Council adopted Ordinance No. 3245-25 (RTC No. 25-0914) activating the Sunnyvale Industrial Development Authority (“Industrial Development Authority”). Pursuant to the Ordinance, the City Council acts as the governing board of the Industrial Development Authority and is designated the Board of Directors of the Industrial Development Authority.
Staff recommends that the Board of Directors adopt a resolution to elect and designate officers of the Industrial Development Authority and establish meeting dates for the Board of Directors.
Resolution Approving Joint Exercise of Powers Agreement
On September 9, 2025, the City Council and the Successor Agency adopted separate resolutions to amend and restate the Joint Exercise of Powers Agreement related to the Sunnyvale Financing Authority (RTC No. 25-0830).
The Sunnyvale Financing Authority was formed in 1992 through a Joint Exercise of Powers Agreement between the City and the former Redevelopment Agency (which is now the Successor Agency). A Joint Powers Authority requires at least two members. The City is currently in discussions with Santa Clara County on a plan to resolve the Successor Agency's enforceable obligations and ultimately dissolve the Successor Agency in 2026.
This October 21, 2025, City Council agenda includes an item requesting the City Council to approve solid waste revenue financing for improvements to the SMaRT Station. As part of this effort, it is essential to amend the Joint Exercise of Powers Agreement, which would add the Industrial Development Authority to the Sunnyvale Financing Authority. Now that the Industrial Development Authority has been formed, it must take action to replace the Successor Agency as the second member of the Financing Authority.
Staff has prepared an Amended and Restated Joint Exercise of Powers Agreement Creating the Sunnyvale Financing Authority, pursuant to which the Industrial Development Authority would replace the Successor Agency as the second member of the Financing Authority. Staff recommends that the Board of Directors of the Industrial Development Authority adopt the proposed resolution approving, authorizing, and directing the execution of the Amended and Restated Joint Exercise of Powers Agreement.
FISCAL IMPACT
There is no fiscal impact from the recommended actions.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
ALTERNATIVES
1. Adopt Resolution of the Sunnyvale Industrial Development Authority Providing for Certain Organizational Matters.
2. Adopt Resolution of the Sunnyvale Industrial Development Authority Approving, Authorizing and Directing the Execution of an Amended and Restated Joint Exercise of Powers Agreement Creating the Sunnyvale Financing Authority.
3. Other direction as provided by the Industrial Development Authority.
STAFF RECOMMENDATION
Recommendation
Alternatives 1 and 2:
1. Adopt Resolution of the Sunnyvale Industrial Development Authority Providing for Certain Organizational Matters; and
2. Adopt Resolution of the Sunnyvale Industrial Development Authority Approving, Authorizing and Directing the Execution of an Amended and Restated Joint Exercise of Powers Agreement Creating the Sunnyvale Financing Authority.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
_X_ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Prepared by: Dennis Jaw, Assistant Director of Finance
Reviewed by: Matt Paulin, Director of Finance
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Resolution of the Sunnyvale Industrial Development Authority Providing for Certain Organizational Matters
2. Resolution of the Sunnyvale Industrial Development Authority Approving, Authorizing and Directing the Execution of an Amended and Restated Joint Exercise of Powers Agreement Creating the Sunnyvale Financing Authority
3. Amended and Restated Joint Exercise of Powers Agreement Creating the Sunnyvale Financing Authority (redline version)
4. Amended and Restated Joint Exercise of Powers Agreement Creating the Sunnyvale Financing Authority (clean version)