ADJOURNMENT:
Chairman Garcia adjourned the Successor Agency to the Dissolved Redevelopment Agency meeting at 6:46 p.m. in memory of Steve “Steve-O” Rodriguez, former Public Works employee. There being no objection it was so ordered.
AYES: Camacho, Lara, Lutz, Sanchez, Garcia
NOES: None
________________________________
John R. Garcia, Chairman
ATTEST:
_______________________________
Cynthia Ayala, Agency Secretary
I hereby certify that the foregoing is a true and correct report of the proceedings of the Successor Agency to the Pico Rivera Dissolved Redevelopment Agency regular meeting dated April 8, 2025 and approved by the Successor Agency to the Pico Rivera Dissolved Redevelopment Agency on April 22, 2025.
________________________________
Cynthia Ayala, Agency Secretary
To: Chair and Successor Agency Board Members
From: Executive Director
Meeting Date: April 22, 2025
Subject: APPROVE AND DIRECT THE EARLY DEFEASANCE OF THE
SUCCESSOR AGENCY TO THE PICO RIVERA REDEVELOPMENT
AGENCY 2021 TAX ALLOCATION REFUNDING BONDS
Recommendation:
1. Approve a resolution of the Successor Agency Board authorizing and directing the defeasance of the Successor Agency to the Pico Rivera Redevelopment Agency 2021 Tax Allocation Refunding Bonds.
Fiscal Impact:
Should the Successor Agency Board approve the resolution, the Successor Agency would use property tax revenues received on or about June 1, 2025, from the Redevelopment Property Tax Trust Fund to make a deposit with the Trustee for the Successor Agency’s 2021 Tax Allocation Refunding Bonds (2021 Bonds), which would be sufficient, in combination with moneys on deposit with the Trustee for the 2021 Bonds, to pay the final principal and interest payment coming due on December 1, 2025. The Successor Agency proposes to make this deposit with the Trustee on or before July 10, 2025, in order to defease the 2021 Bonds and discharge the Successor Agency’s obligations under the Indenture of Trust dated December 1, 2021 (Indenture), by and between the Successor Agency and U.S. Bank Trust Company, National Association (Trustee), pursuant to which the 2021 Bonds were issued. Any final payment of Trustee fees must also be made at that time to fully discharge the Successor Agency’s obligations under the Indenture.
Sufficient funding will be budgeted in the FY 2025-26 budget, within the Successor Agency Fund (Fund 851). No additional appropriations are needed at this time.
Background:
On December 16, 2021, the Successor Agency to the Pico Rivera Redevelopment Agency (Successor Agency) issued the 2021 Bonds pursuant to the Indenture to refinance the outstanding Pico Rivera Redevelopment Agency Predevelopment Project Area No. 1, 2001 Tax Allocation Refunding Bonds in full, for debt service savings. The Successor Agency now has only two (2) outstanding enforceable obligations: the 2021 Bonds and a 22 SUCCESSOR AGENCY AGENDA REPORT – MEETING OF APRIL 22, 2025
APPROVE AND DIRECT THE EARLY DEFEASANCE OF THE SUCCESSOR AGENCY TO THE PICO RIVERA REDEVELOPMENT AGENCY 2021 TAX ALLOCATION
REFUNDING BONDS
loan from the former Pico Rivera Redevelopment Agency’s low-and moderate-income housing fund, which was incurred to make payments to the county Supplemental Educational Revenue Augmentation Fund (SERAF) required by Health and Safety Code Section 33690 (SERAF Loan). Once these two (2) enforceable obligations are discharged, the Successor Agency is required by the Redevelopment Dissolution Law to dissolve.
The Successor Agency will receive the final amounts needed to pay the 2021 Bonds in full on or about June 1, 2025, and proposes to deposit such moneys with the Trustee for the 2021 Bonds, in order to defease the 2021 Bonds and discharge the Indenture in July 2025, approximately four (4) months earlier than the final maturity date of the 2021 Bonds.
Discussion:
The final payment on the 2021 Bonds will be due on December 1, 2025. The Successor Agency expects to receive the final distribution from the Redevelopment Property Tax Trust Fund (RPTTF) needed to make the final debt service payment on the 2021 Bonds on or about June 1, 2025. Instead of holding the moneys received from the RPTTF for five (5) months, the Successor Agency proposes to deposit moneys received from the RPTTF distribution in an amount needed to pay the final payment on the 2021 Bonds in July, 2025, with irrevocable instructions to the Trustee to apply such amounts, along with any remaining amounts on deposit with the Trustee in the funds and accounts maintained under the Indenture, to pay the final payment of principal and interest on the 2021 Bonds when due on December 1, 2025. By making such deposit and delivering such irrevocable instructions, and by making any final payment to the Trustee for its fees and costs payable under the Indenture, the Successor Agency can discharge the Indenture in full such that it will no longer constitute an enforceable obligation of the Successor Agency.
Once the 2021 Bonds are defeased, the Indenture is discharged, and if the City determines to discharge the SERAF Loan obligation, then the Successor Agency will have no further enforceable obligations and may be dissolved under the Redevelopment Dissolution Laws.
The City of Pico Rivera (City) is projected to receive approximately $800,000 more in annual property tax revenue following the Successor Agency’s dissolution; an amount that increases to $1,865,000 in annual revenues after considering that the Sales Tax Pledge will also expire. Importantly, other area taxing entities – many with a much larger share of property tax revenues – would enjoy similar increases in property tax revenues once the Successor Agency is dissolved.
Given these factors, staff recommends that the Successor Agency take the steps necessary to defease the 2021 Bonds in early July 2025, prior to the final maturity date of December 1, 2025, and thereby allow the Successor Agency to proceed with the process for requesting dissolution starting in July 2025 or shortly thereafter. The increased annual SUCCESSOR AGENCY AGENDA REPORT – MEETING OF APRIL 22, 2025
APPROVE AND DIRECT THE EARLY DEFEASANCE OF THE SUCCESSOR AGENCY TO THE PICO RIVERA REDEVELOPMENT AGENCY 2021 TAX ALLOCATION
REFUNDING BONDS
tax revenues to the General Fund indirectly resulting from this action would be available to fund various programs benefiting City residents, including affordable housing, and would achieve a primary objective of the Redevelopment Dissolution Law – to expeditiously wind down the affairs of the Former Redevelopment Agency for the benefit of area taxing entities.
Conclusion:
Staff recommends that the Successor Agency Board approve the resolution authorizing and directing the defeasance of the Successor Agency to the Pico Rivera Redevelopment Agency 2021 Tax Allocation Refunding Bonds.
Steve Carmona
SC:AG:JG:ep
Enclosure: 1) Resolution
RESOLUTION NO. SA-__
RESOLUTION OF THE SUCCESSOR AGENCY TO THE DISSOLVED
PICO RIVERA REDEVELOPMENT AGENCY AUTHORIZING THE
DEFEASANCE OF THE SUCCESSOR AGENCY TO THE PICO RIVERA
REDEVELOPMENT AGENCY 2021 TAX ALLOCATION REFUNDING
BONDS, AND APPROVING CERTAIN ACTS IN CONNECTION
THEREWITH AND CERTAIN OTHER MATTERS
WHEREAS, the Successor Agency to the Pico Rivera Redevelopment Agency (Successor Agency) is a public body, corporate and politic, formed for the purpose of winding down the affairs of the dissolved Pico Rivera Redevelopment Agency; and WHEREAS, the governing board of the Successor Agency has previously caused the Successor Agency’s 2021 Tax Allocation Refunding Bonds (Series 2021 Bonds) to be issued pursuant to an Indenture of Trust, dated as of December 1, 2021 (Indenture), by and between the Successor Agency and U.S. Bank Trust Company, National Association (Trustee); and
WHEREAS, the governing board of the Successor Agency has determined that it is in the best interest of the Successor Agency to cause the full defeasance of the outstanding Series 2021 Bonds prior to December 1, 2025, final maturity thereof; and NOW, THEREFORE, BE IT RESOLVED by the Successor Agency to the Dissolved Redevelopment Agency of the City of Pico Rivera as follows:
SECTION 1. The Successor Agency hereby approves and directs the defeasance of the Series 2021 Bonds using (i) money received or to be received from the redevelopment property tax trust fund established for the Successor Agency, (ii) money on deposit with the Trustee in the funds and accounts maintained pursuant to the Indenture, and (iii) other money available to the Successor Agency as determined by the Executive Director of the Successor Agency. The Chairperson of the Successor Agency, or such other member of the of the Successor Agency as the Chairperson may designate, the Executive Director of the Successor Agency, and the Finance Director of the City, and their authorized designees (Authorized Officers), are each hereby authorized and directed, for and in the name and on behalf of the Successor Agency, to execute and deliver irrevocable instructions (Irrevocable Instructions) directing the Trustee to receive a deposit of money from the Successor Agency and to hold[, invest,] and apply such money, along with amounts on deposit in the funds and accounts under the Indenture, to the defeasance of the Series 2021 Bonds on the date set forth in such Irrevocable Instructions.
SECTION 2. The Authorized Officers are hereby authorized and directed to execute and deliver any and all documents and instruments and to do and cause to be done any and all acts and things necessary or proper for carrying out the defeasance of the Series 2021 Bonds, the Irrevocable Instructions and this resolution.
Enclosure 1
22a
RESOLUTION NO. SA-__
SECTION 3. Stradling Yocca Carlson & Rauth LLP, is hereby appointed and retained as Special Counsel, and Urban Futures, Inc. is hereby appointed and retained as Municipal Advisor in connection with the defeasance of the Series 2021 Bonds. Each Authorized Officer is hereby authorized and directed to enter into contracts or to sign such other documentation as is necessary or appropriate to evidence such engagement and retain such services in connection with the defeasance of the Series 2021 Bonds.
SECTION 4. This resolution shall take effect immediately upon its adoption by the governing board of the Successor Agency, and the Secretary shall certify the vote adopting this resolution.
APPROVED AND PASSED this 22nd day of April, 2025.
________________________________
John R. Garcia, Chairman
ATTEST: APPROVED AS TO FORM:
_____________________________ ________________________________ Cynthia Ayala, Agency Secretary Arnold M. Alvarez-Glasman, Agency Counsel AYES:
NOES:
To: Mayor and City Council
From: City Manager
Meeting Date: April 22, 2025
Subject: FIRST READING – INTRODUCE AN ORDINANCE ADOPTING
THE LOS ANGELES COUNTY ORDINANCE ADDRESSING
MEDICAL DEBT THROUGH DATA COLLECTION
Recommendation:
1. Introduce and waive the first reading of an ordinance incorporating the Los Angeles County Ordinance Addressing Medical Debt through Data Collection Ordinance into the Pico Rivera Municipal Code; and
2. Authorize the City Manager or his designee to coordinate with the Los Angeles County Department of Public Health for implementation.
Fiscal Impact:
There is no fiscal impact to the General Fund associated with this ordinance. The Los Angeles County Department of Public Health will assume responsibility for the work involved without any cost to the City of Pico Rivera (City).
Background:
Medical debt is a significant burden on many residents, leading to financial distress and barriers to accessing essential healthcare services, affecting approximately one (1) in ten adults—translating to about 810,000 individuals—as of 2021. The collective medical debt burden in Los Angeles County (LA County) escalated from over $2.6 billion in 2021 to over $2.9 billion in 2022. This growing financial strain not only impacts uninsured individuals but also affects 8.3% of insured residents, highlighting the pervasive nature of the issue. On September 10, 2024, the Los Angeles County Board of Supervisors adopted the Addressing Medical Debt through Data Collection Ordinance (Ordinance No. 2024-0048) to track and address the impact of medical debt on LA County residents. This ordinance mandates healthcare facilities to report medical debt data, allowing LA County to assess its effects and develop targeted relief programs.
To extend the benefits of this initiative to residents of Pico Rivera, the City proposes adopting LA County’s ordinance as part of its municipal code. By doing so, the City ensures that local residents facing medical debt are included in Countywide efforts 23 CITY COUNCIL AGENDA REPORT – MEETING OF APRIL 22, 2025 FIRST READING – INTRODUCE AN ORDINANCE ADOPTING THE LOS ANGELES
COUNTY ORDINANCE ADDRESSING MEDICAL DEBT THROUGH DATA
COLLECTION
aimed at identifying and addressing financial hardships stemming from medical expenses.
Discussion:
Need for LA County Medical Debt Ordinance
Medical debt arises when individuals are unable to pay for healthcare services, leading to unpaid bills that can accumulate over time. Factors contributing to medical debt include high healthcare costs, unexpected medical emergencies, inadequate insurance coverage, and socioeconomic disparities. The consequences of medical debt are farreaching, often resulting in financial hardship, damaged credit scores, and reluctance to seek necessary medical care due to fear of incurring additional debt.
The escalating issue of medical debt in Los Angeles County prompted the Board of Supervisors to take decisive action. The Addressing Medical Debt through Data Collection Ordinance serves several critical functions. The ordinance mandates the collection of anonymized data on medical debt from healthcare providers, allowing officials to understand the scope of the problem, identify trends, and determine which communities are most affected. By gathering comprehensive data, policymakers can develop more effective interventions to alleviate the financial burden on residents.
Additionally, this ordinance plays a crucial role in informing the development of policies that aim to reduce medical debt. With concrete data, government agencies and healthcare organizations can craft targeted solutions, such as financial assistance programs, debt forgiveness initiatives, and advocacy for systemic changes within the healthcare system. Data-driven policymaking ensures that resources are directed where they are needed most and that interventions are tailored to address the specific needs of affected populations.
Beyond policy development, the ordinance also facilitates better resource allocation. By identifying the extent and distribution of medical debt, government entities can prioritize funding for financial relief programs and work with healthcare providers to implement patient-friendly billing practices. The collected data helps ensure that support measures reach the most vulnerable individuals and that resources are not misallocated.
The ordinance strengthens advocacy efforts for systemic changes within the healthcare system. Medical debt is often a consequence of larger structural issues, such as high medical costs and insufficient insurance coverage. By highlighting the widespread nature of the problem, this initiative provides a stronger foundation for advocating reforms that could prevent medical debt from accumulating in the first place. These reforms may include greater transparency in medical billing, expansion of financial aid programs, and legislative measures to protect patients from predatory debt collection practices.
CITY COUNCIL AGENDA REPORT – MEETING OF APRIL 22, 2025
FIRST READING – INTRODUCE AN ORDINANCE ADOPTING THE LOS ANGELES
COUNTY ORDINANCE ADDRESSING MEDICAL DEBT THROUGH DATA
COLLECTION
Adoption by the City of Pico Rivera
For the City of Pico Rivera, adopting this ordinance presents several advantages. The ordinance enables the collection of localized data by Public Health, which is essential for understanding how medical debt specifically affects the City’s residents. With better insight into the problem, the City can work alongside LA County officials to develop targeted programs that directly benefit Pico Rivera’s most financially vulnerable populations.
Additionally, the ordinance aligns with the City’s Legislative Platform, which is to identify opportunities to leverage LA County resources to provide regional benefits, creating a unified approach to tackling medical debt. By participating in this initiative, Pico Rivera contributes to a broader Countywide strategy that leverages collective resources and expertise. This collaboration ensures that the City benefits from established LA County programs and avoids duplicative efforts, maximizing efficiency and impact.
Lastly, the ordinance provides a foundation for future initiatives aimed at reducing financial hardship caused by medical debt. With ongoing data collection and analysis, Pico Rivera and LA County can continually refine their policies and advocate for further measures to protect residents from the burden of medical expenses. The adoption of this ordinance demonstrates the City’s commitment to addressing financial challenges and promoting equitable healthcare access for all residents.
Conclusion:
The adoption of the Los Angeles County Ordinance Addressing Medical Debt through Data Collection represents a proactive step toward understanding and alleviating the medical debt burden among Pico Rivera residents. By aligning with LA County initiatives, the City can effectively contribute to broader efforts aimed at enhancing financial and healthcare outcomes for the community. Staff recommends that the City Council introduce and waive the proposed ordinance to integrate this vital measure into the Pico Rivera Municipal Code.
Steve Carmona
SC:JGG:smc
Enclosure: 1) Ordinance
ORDINANCE NO. ____
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PICO
RIVERA, CALIFORNIA, ADOPTING AND INCORPORATING LOS
ANGELES COUNTY ORDINANCE NO. 2024-0048 BY REFERENCE
INTO THE PICO RIVERA MUNICIPAL CODE BY ADDING SECTION 8.10, “ADDRESSING MEDICAL DEBT COLLECTION” TO THE PICO RIVERA
MUNICIPAL CODE
WHEREAS, the City of Pico Rivera (“City”), pursuant to the police powers delegated to it by the California Constitution, has the authority to enact laws which promote the public health, safety and general welfare of its residents; and WHEREAS, approximately one in ten adults suffer from financial distress stemming from medical debt; and
WHEREAS, the collective debt burden in Los Angeles County elevated from 2.6 billion dollars in 2021 to over 2.9 billion in 2022; and WHEREAS, on September 10, 2024, the Los Angeles County Board of Supervisors unanimously adopted the “Addressing Medical Debt through Data Collection” Ordinance (“Ordinance No. 2024-0048”) to track and address the impact of medical debt on county residents; and
WHEREAS, (“Debt Data”) is defined as the patient’s name, medical record number, date of birth, phone number, residence and mailing address, email, and insurance name and policy number; and
WHEREAS, this Ordinance plays a crucial role in the development of policies created to reduce medical debt by providing government and healthcare agencies with useful Debt Data. Such data is then used by the agencies to make informed systemic changes meant to address the specific needs of those individuals most in need; and WHEREAS, this Ordinance would require hospitals with a low-income percent of seventy or higher (“Safety Net Hospitals”) to prepare and submit a report with Debt Data to the County of Los Angeles Department of Public Health (“Department”) within sixty days of initiating any collection of debt; and
WHEREAS, this Ordinance would also require those hospitals that are not considered Safety Net Hospitals to prepare and submit a report with Debt Data to the Department within thirty days of initiating any collection of debt; and WHEREAS, by adopting this Ordinance into the municipal code the City of Pico Rivera would ensure that the benefits of said Ordinance would extend onto the residents of Pico Rivera.
NOW THEREFORE, BE IT ORDAINED by the City Council of Pico Rivera as follows:
SECTION 1. The City Council finds that the above recitals are true and correct and incorporated herein as part of the findings.
23a
Enclosure 1
ORDINANCE NO. ____
SECTION 2. The City Council finds that medical debt is a significant problem that is affecting many individuals in Los Angeles County.
SECTION 3. City hereby adopts procedures established in Los Angeles County Ordinance No. 2024-0048. By adopting this ordinance by reference the Pico Rivera Municipal Code is amended by adding Section 8.10 to read as follows:
CHAPTER 8.10 ADDRESSING MEDICAL DEBT THROUGH DATA COLLECTION § 8.10.010 County Health and Safety Code adopted.
A. There is adopted by reference, except as hereinafter provided, the Los Angeles County Code, Title 11, Health and Safety, as currently in effect and as amended through Los Angeles County Ordinance No. 2024-0048 and by this reference the Los Angeles County ordinances and codes shall become the “Addressing Medical Debt through Data Collection” ordinance of the city of Pico Rivera.
B. In the event of any conflict or ambiguity between any provision contained in the Los Angeles County Code and any other provision of the Pico Rivera Municipal Code, the provisions of the Pico Rivera Municipal Code shall have control.
SECTION 4. This Ordinance shall take effect thirty (30) days after its passage pursuant to Government Code Section 36937.
SECTION 5. The City Clerk shall certify the adoption of this Ordinance. The City Council hereby finds and determines that there are no newspapers of general circulation both published and circulated within the City and, in compliance with Section 36933 of the Government Code directs the City Clerk to cause said Ordinance, within fifteen (15) days after its passage, to be posted in at least five (5) public places within the City. This Ordinance shall take effect thirty (30) days after its adoption.
ADOPTED AND PASSED this 22nd day of April 2025.
___________________________
John R. Garcia, Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ________________________________ Cynthia Ayala, CMC, City Clerk Arnold M. Alvarez-Glasman, City Attorney ORDINANCE NO. ____
STATE OF CALIFORNIA )
)§
COUNTY OF LOS ANGELES )
I, Cynthia Ayala, City Clerk of the City of Pico Rivera, do hereby certify that the foregoing Ordinance No. _____ was adopted at a regular meeting of the City Council of the City of Pico Rivera, held on _________________, with the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Cynthia Ayala, City Clerk
COUNCIL
MEETING
DATE
COUNCIL MEMBER REQUEST DETAIL DIRECTOR(S)
ACTION TAKEN: Memo; Staff
Report; Closed Session;
Presentation; Follow-up
Meeting; City Manager Reports;
Informal Action
DISCUSSION
ITEM
ACTION
ITEM DATE
STATUS:
Complete;
Pending;
On-going;
In-Progress
2/11/2025 Garcia/Lara Pico Boys relocation discussion Future City Council meeting In Progress
GOOD OF THE ORDER