HomeMy WebLinkAbout09-224 - Resolutions RESOLUTION NO. 09-224
A RESOLUTION OF THE CITY OF RANCHO CUCAMONGA
AUTHORIZING THE RESCISSION AND TERMINATION OF THE
JOINT POWERS AGREEMENT MADE ON NOVEMBER 1, 1996
CREATING THE CALIFORNIA CITIES HOME OWNERSHIP
AUTHORITY
The City Council of the City of Rancho Cucamonga does hereby find, resolve, and order as
follows:
Section 1. On November 1, 1996, the City Rancho Cucamonga entered into a Joint
Powers Agreement with the Cities of Artesia, Bell Gardens, Covina, Compton, Cudahy,
Hawaiian Gardens, Huntington Park, Maywood, Monrovia, Pasadena, Santa Clarita, and
Upland, and the County of San Bernardino (collectively the "member entities"), creating the
California Cities Home Ownership Authority ("CCHOK) to assist qualified families and
individuals to achieve home ownership in the jurisdiction of the member entities throughout
Southern California.
Section 2. In 1998 and then in 2001, CCHOA issued bonds (respectively, the
"CCHOA-1 Bonds" and the "CCHOA-11 Bonds") and used the bond proceeds to finance two
lease-to-purchase programs (respectively, the "CCHOA-1 Program" and the "CCHOA-ll
Program").
Section 3. In conjunction with these two lease-to-purchase programs, CCHOA
formed two non-profit corporations: the California Cities Economic Assistance Corporation (the
"CCHOA-I Corporation") and the California Cities Home Ownership Corporation (the "CCHOA-11
Corporation").
Section 4. Along with the final maturity of CCHOA-I bonds in 2003 and of the
CCHOA-ll bonds in 2006, the lease-purchasing activities of both of the CCHOA Programs have
come to an end.
Section 5. The CCHOA-I Corporation was dissolved in October 2008.
Section 6. The CCHOA-II Corporation is in the process of being dissolved, which
process will be completed prior to December 31, 2009 or as soon thereafter as all required
steps and actions for dissolution have occurred.
Section 7. With the conclusion of the activities of both CCHOA Programs and the
dissolution of the CCHOA-I and II Corporations, it is no longer necessary to maintain the
existence of CCHOA.
Section 8. Pursuant to subsection 1 of section 7 of the Joint Powers Agreement,
CCHOA shall continue to exercise the powers conferred upon it by the Joint Powers Agreement
until June 30, 2046, or until all of the member entities mutually rescind the Joint Powers
Agreement.
Section 9. Pursuant to Resolution No. CCHOA 2009-2, the Board of Directors of
CCHOA have determined that it is in the best interest of CCHOA to wind up its business and
affairs in the manner provided by law, rescind and terminate the Joint Powers Agreement, and
terminate CCHOA's existence.
Section 10. The City Council desires to rescind and terminate the Joint Powers
Agreement, and terminate CCHOA's existence.
Section 11. A mutual rescission of the Joint Powers Agreement will operate to
terminate CCHOA's existence and extinguish the contract between the member entities.
Pursuant to Civil Code section 1689(a), the Joint Powers Agreement may be rescinded if all the
member entities, as parties to the Joint Powers Agreement, consent.
Section 12. The City Council hereby approves the Agreement of Mutual Rescission,
attached hereto as Exhibit A, rescinding the Joint Powers Agreement executed on November 1,
1996 and terminating the existence of CCHOA.
Section 13. The City Council directs the Agreement of Mutual Rescission, attached as
Exhibit A, to be executed by the Mayor.
Section 14. The City Clerk shall send an executed duplicate original of the Agreement
of Mutual Rescission to the CCHOA's legal counsel for CCHOA's files.
Please see the following page
for formal adoption,certification and signatures
Resolution No. 09-224 — Page 2 of 8
PASSED, APPROVED, AND ADOPTED this 2nd day of December 2009.
AYES: Gutierrez, Kurth, Michael, Williams
NOES: None
ABSENT: • Spagnolo
ABSTAINED: None
Donald J. Kurt , M. ., Mayor
ATTEST:
Ja ice C. Rey nol s, City Clerk
I, JANICE C. REYNOLDS, CITY CLERK of the City of Rancho Cucamonga,
California, do hereby certify that the foregoing Resolution was duly passed, approved and
adopted by the City Council of the City of Rancho Cucamonga, California, at a Regular Meeting
of said City Council held on the 2nd day of December 2009.
Executed this 3`d day of December 2009, at Rancho Cucamonga, California.
J nice C. Reynolds, City Clerk
Resolution No. 09-224 —Page 3 of 8
AGREEMENT OF MUTUAL RESCISSION
OF THE JOINT POWERS AGREEMENT CREATING
THE CALIFORNIA CITIES HOME OWNERSHIP AUTHORITY
This Agreement of Mutual Rescission of a Joint Powers Agreement creating the
California Cities Home Ownership Authority ("CCHOA"), dated for convenience as December
31, 2009, is made and entered into by and between the public entities organized and existing
under the laws of the State of California, hereinafter collectively referred to as "Parties," and
individually as "Party," which are signatories to this Agreement.
RECITALS
a. On November 1, 1996, the Parties entered into a Joint Powers Agreement creating
CCHOA, a copy of which is attached to this Agreement as Exhibit A.
b. In 1998 and then in 2001, CCHOA issued bonds (respectively, the "CCHOA-I
Bonds" and the "CCHOA-II Bonds") and used the bond proceeds to finance two lease-to-
purchase programs (respectively, the "CCHOA-1 Program" and the "CCHOA-11 Program"). In
conjunction with these two programs, CCHOA formed two non-profit corporations: the
California Cities Economic Assistance Corporation (the "CCHOA-I Corporation") and the
California Cities Home Ownership Corporation (the "CCHOA-11 Corporation").
C. Along with the final maturity of CCHOA-I Bonds in 2003 and of the CCHOA-11
Bonds in 2006, the lease-purchasing activities of both CCHOA Programs have come to an end.
d. At the direction of the CCHOA's Board of Directors, the remaining assets of the
CCHOA-1 Corporation were divided equally among the 14 members of CCHOA and, during the
summer of 2008, distributed in the form of a check in the amount of$19,962.67 to each member.
The CCHOA I Corporation was dissolved in October 2008.
e. At the direction of the member representatives of CCHOA, acting as the Board of
Directors of the CCHOA-II Corporation, and a "Closing Agreement as to Final Determination of
Tax Liability and Specific Matters" executed by CCHOA and the Internal Revenue Service, the
remaining assets of the CCHOA-11 Corporation will be distributed to the members of CCHOA
after all expenses have been paid in amounts as specified by the Board of CCHOA II
Corporation. The member representatives of CCHOA, acting as the Board of Directors of the
CCHOA-II Corporation, adopted Resolution CCHOC 2009-1 electing to wind-up and dissolve
the CCHOA-II Corporation.
f No assets of CCHOA will remain upon the distribution of the CCHOA-II
Corporation's remaining assets and the dissolution of the CCHOA-11 Corporation.
g. Pursuant to subsection 1 of section 7 of the Joint Powers Agreement, CCHOA
shall continue to exercise the powers conferred upon it by the Joint Powers Agreement until June
30, 2046, or until all of the Parties mutually rescind the Joint Powers Agreement.
h. The Parties to the Joint Powers Agreement and to this Agreement of mutual
rescission desire to rescind the Joint Powers Agreement.
Resolution No. 09-224 —Page 4 of 8
IN CONSIDERATION of the promises and acts contained here, the Parties agree with
each other as follows:
1. Rescission. The Joint Powers Agreement made on November 1, 1996, is hereby
rescinded on the last to occur of the following three dates, hereinafter referred to
as the "Rescission Date": (1) December 31, 2009, (2) the date the last member of
CCHOA approves, executes, and returns this Agreement to CCHOA, or (3) the
date staff distributes the remaining assets of the CCHOA-II Corporation to the
members of CCHOA and all documents for the dissolution of the CCHOA-II
Corporation are executed by its officers. Upon the Rescission Date, neither Party
shall have any further rights or duties under that Joint Powers Agreement.
2. Restoration. Upon distribution of all remaining assets of the CCHOA-I and
CCHOA-1I Corporations among the members of CCHOA, the Parties
acknowledge and agree that no CCHOA assets remain for restoration to the
Parties upon rescission of the Joint Powers Agreement.
3. This Agreement is intended to comply with Civil Code section 1689.
4. Counterpart Signature Pages. For convenience the Parties may execute and
acknowledge this Agreement in counterparts and when the separate signature
pages are attached hereto, shall constitute one and the same complete Agreement.
By the signatures of their authorized officers, the Parties enter into this Agreement.
City of Artesia
City Clerk Mayor
Approved as to form:
City Attorney
City of Bell Gardens
City Clerk Mayor
Approved as to form:
City Attorney
Resolution No. 09-224— Page 5 of 8
[signatures continued]
City of Covina
City Clerk Mayor
Approved as to form:
City Attorney
City of Compton
City Clerk Mayor
Approved as to form:
City Attorney
City of Cudahy
City Clerk Mayor
Approved as to form:
City Attorney
City of Hawaiian Gardens
City Clerk Mayor
Approved as to form:
City Attorney
Resolution No. 09-224—Page 6 of 8
[signatures continued]
City of Huntington Park
City Clerk Mayor
Approved as to form:
City Attorney
City of Maywood
City Clerk Mayor
Approved as to form:
City Attorney
City of Monrovia
City Clerk Mayor
Approved as to form:
City Attorney
City of Pasadena
City Clerk Mayor
Approved as to form:
City Attorney
Resolution No. 09-224 —Page 7 of 8
[signatures continued]
City of Rancho Cucamonga
City Clerk Mayor
San Bernardino County
County Clerk Board Chairman
Approved as to form:
County Counsel
City of Santa Clarita
City Clerk Mayor
Approved as to form:
City Attorney
City of Upland
City Clerk Mayor
Approved as to form:
City Attorney
Resolution No. 09-224— Page 8 of 8