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Title:
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Adopt a Resolution of the City Council of the City of Sunnyvale and a Resolution of the Successor Agency to the Redevelopment Agency of the City of Sunnyvale Approving, Authorizing, and Directing Execution of an Amended and Restated Joint Exercise of Powers Agreement Relating to the Sunnyvale Financing Authority
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REPORT TO COUNCIL AND TO THE SUCCESSOR AGENCY
SUBJECT
Title
Adopt a Resolution of the City Council of the City of Sunnyvale and a Resolution of the Successor Agency to the Redevelopment Agency of the City of Sunnyvale Approving, Authorizing, and Directing Execution of an Amended and Restated Joint Exercise of Powers Agreement Relating to the Sunnyvale Financing Authority
Report
BACKGROUND
In anticipation of the dissolution of the Successor Agency to the Redevelopment Agency of the City of Sunnyvale, which is expected to occur in 2026 after it has satisfied all of its enforceable obligations, the City Council has authorized the creation of a new Industrial Development Authority. This entity is necessary to serve as the second member of the Sunnyvale Financing Authority, which is a Joint Powers Authority that requires at least two legal entities to operate.
The Joint Exercise of Powers Agreement underlying the Sunnyvale Financing Authority needs to be amended to remove the Successor Agency and add the newly established Industrial Development Authority. Staff recommends that the City Council and the Successor Agency adopt separate resolutions to amend and restate the Joint Exercise of Powers Agreement related to the Sunnyvale Financing Authority.
ENVIRONMENTAL REVIEW
The action being considered is exempt from review under the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines 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
The City wishes to ensure that it has access to the full range of public financing options when needed. Recognizing this need, the Council authorized the creation of an Industrial Development Authority on August 26, 2025 (RTC 25-0828). Establishing the Industrial Development Authority would provide the City with the services of an authority that can promote and enhance economic development, increasing opportunities for employment in accordance with the California Industrial Development Financing Act (Gov. Code, ? 91500 et seq.).
In addition, activating the Industrial Development Authority would establish a local agency governed by the City Council that can act as a member of the Financing Authority. The 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 the meantime, staff is preparing to bring to the City Council for approval a solid waste revenue financing for improvements to the SMaRT Facility, and it will be important as part of that effort to amend the Joint Exercise of Powers Agreement under which the Sunnyvale Industrial Development Authority would be added to the Financing Authority.
FISCAL IMPACT
There is no fiscal impact from the recommended action.
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. City Council: Adopt a Resolution of the City Council of the City of Sunnyvale Approving, Authorizing, and Directing Execution of an Amended and Restated Joint Exercise of Powers Agreement Relating to the Sunnyvale Financing Authority.
2. Successor Agency: Adopt a Resolution of the City Council Acting as the Successor Agency to the Redevelopment Agency of the City of Sunnyvale Approving, Authorizing, and Directing Execution of an Amended and Restated Joint Exercise of Powers Agreement Relating to the Sunnyvale Financing Authority.
3. City Council: Other direction as provided by Council.
4. Successor Agency: Other direction as provided by the Successor Agency.
STAFF RECOMMENDATION
Recommendation
Alternatives 1 and 2:
1. City Council: Adopt a Resolution of the City Council of the City of Sunnyvale Approving, Authorizing, and Directing Execution of an Amended and Restated Joint Exercise of Powers Agreement Relating to the Sunnyvale Financing Authority
2. Successor Agency: Adopt a Resolution of the City Council Acting as the Successor Agency to the Redevelopment Agency of the City of Sunnyvale Approving, Authorizing, and Directing Execution of an Amended and Restated Joint Exercise of Powers Agreement Relating to 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.
Staff
Prepared by: Matt Paulin, Director of Finance
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. City Council Resolution
2. Successor Agency Resolution
3. Amended and Restated Joint Exercise of Powers Agreement-Redlined Version
4. Amended and Restated Joint Exercise of Powers Agreement-Clean Version