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COOPERATION AGREEMENT
FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT,
HOME INVESTMENT PARTNERSHIPS PROGRAM, AND
EMERGENCY SOLUTIONS GRANT
FOR FISCAL YEARS 2027, 2028, 2029
This Cooperation Agreement for the Community Development Block Grant, HOME Investment Partnerships Program, and the Emergency Solutions Grant for Fiscal Years 2027, 2028, and 2029, hereinafter referred to as “Agreement” is made and entered into this ______ day of __________ 2026, by and between the COUNTY OF RIVERSIDE, a political subdivision of the State of California, hereinafter referred to as "COUNTY", and CITY OF RANCHO MIRAGE, an incorporated municipality within the geographical boundaries of the COUNTY, hereinafter referred to as "CITY.” City and County individually referred to herein as “Party” and collectively as the “Parties.”
RECITALS
WHEREAS, the Housing and Community Development Act of 1974, as amended (42 U.S.C.A. § 5301 et seq.) (Public Law 93-383), hereinafter called "ACT", provides that Community Development Block Grant funds hereinafter referred to as "CDBG", may be used for the support of activities that provide decent housing, suitable living environments, and expanded economic opportunities principally for persons of low and moderate-income; and WHEREAS, the HOME Investment Partnerships Act program, hereinafter referred to as “HOME,” was enacted as Title II of the National Affordable Housing Act of 1990, for the purposes of: expanding the supply of decent, affordable housing for low and very-low income families with emphasis on rental housing; building State and local capacity to carry out affordable housing programs; and providing for coordinated assistance to participants in the development of affordable low-income housing; and
WHEREAS, the Emergency Solutions Grant, hereinafter referred to as “ESG,” was authorized by the McKinney-Vento Homeless Assistance Act of 1987 and the Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act of 2009. The objectives of the ESG program are to increase the number and quality of emergency shelters and transitional 345
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housing facilities for homeless individuals and families, to operate these facilities and provide essential social services, and to help prevent homelessness; WHEREAS, CDBG regulations require counties to re-qualify as an Urban County under the CDBG program every three (3) years.
WHEREAS, the chief executive officer of the COUNTY is authorized to execute this Agreement pursuant to Riverside County Ordinance No. 442.
WHEREAS, the City Manager or Mayor of CITY is authorized to execute this Agreement on the CITY’s behalf.
WHEREAS, the COUNTY Board of Supervisors on July 14, 2026 via Minute Order 30623 authorized the COUNTY Director of Housing and Workforce Solutions to execute this agreement on behalf of the COUNTY.
NOW THEREFORE, in consideration of the mutual covenants herein set forth and the mutual benefits to be derived there from, the parties agree as follows:
1. GENERAL.
(a). This Agreement gives COUNTY authority to undertake, or assist in undertaking, activities for Fiscal Years 2027, 2028, and 2029, that will be funded from the CDBG, HOME, and ESG programs and from any program income generated from the expenditure of such funds. COUNTY and CITY agree to cooperate, to undertake, or to assist in undertaking, community renewal and lower-income housing assistance activities. COUNTY is qualified as an "Urban County" under the ACT. CITY, by executing this Agreement, hereby gives notice of its election to participate in an Urban County’s Community Development Block Grant (CDBG), Home Investment Partnerships Act (HOME), and Emergency Solutions Grant (ESG) programs, hereinafter referred to as "Urban County Programs".
(b). By executing this Agreement, CITY understands that it may not apply for grants from appropriations under the Small Cities or State CDBG Programs for fiscal years during the period in which it participates in the Urban County’s CDBG program, and that CITY may only participate in the HOME program through the COUNTY’S Urban County Programs, not a HOME 346
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consortium. The CITY may also apply for HOME funds from the State of California, if permitted by the State.
(c). By executing this Agreement, CITY understands that it may only receive a formula allocation of ESG funds through the COUNTY’S Urban County Programs. The CITY may also apply for ESG funds from the State of California, if permitted by the State.
2. TERM.
The term of this Agreement shall be for three (3) years commencing on July 1, 2027, and expiring on June 30, 2029, unless an earlier date of termination is fixed by U.S.
Department of Housing and Urban Development, hereinafter called HUD, pursuant to ACT. This Agreement shall remain in effect until funds granted and program income received during the three-year program period are expended and the funded activities completed. Neither the COUNTY nor the CITY may terminate, withdraw, or be removed from the program during the three-year program period.
This Agreement will renew automatically for participation in one successive three- year Urban County qualification period (Federal Fiscal Years 2027-29), unless the CITY or the COUNTY provides written notice to the other party that it elects not to participate in a new qualification period. The terminating party shall send a copy of the notice of termination to the HUD field office by the date specified on the HUD Exchange Urban Counti es website. By executing this Agreement, the CITY acknowledges that it has been notified in writing of the CITY’s right to make this election. A copy of this Agreement will be sent to the HUD field office by the date specified on the HUD Exchange Urban Counties website.
The Parties agree to adopt amendment(s) to this Agreement as may be required by HUD to meet any new Urban County Qualification requirement(s), when applicable. Failure by either Party to adopt any such amendment, and to submit such amendment to HUD, will void the agreement for such qualification period.
3. PREPARATION OF FEDERALLY REQUIRED FUNDING APPLICATIONS.
The County of Riverside Housing and Workforce Solutions, subject to approval of COUNTY’s Board of Supervisors, shall be responsible for preparing and submitting to the U.S. 347
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Department of Housing and Urban Development (HUD), in a timely manner, all reports and statements required by the ACT and the Federal regulations promulgated by HUD to secure entitlement grant funding under the CDBG, HOME, and ESG programs. This duty shall include the preparation and processing of COUNTY Housing, Community, and Economic Development Needs Identification Report, Citizen Participation Plan, the County Five-Year Consolidated Plan, One-Year Action Plan, Consolidated Annual Performance and Evaluation Report (CAPER), and other related programs which satisfy the application requirements of ACT and its regulations.
4. COMPLIANCE WITH FEDERAL STATUTES, REGULATIONS AND
OTHER APPLICABLE STATUTES, REGULATIONS AND ORDINANCES.
(a) COUNTY and CITY will comply with the applicable provisions of the ACT and those Federal regulations promulgated by HUD pursuant thereto, as the same currently exists or may hereafter be amended.
(b) The COUNTY and CITY are hereby obligated to take all actions necessary to assure compliance with COUNTY’s certification regarding affirmatively furthering fair housing pursuant to Section 104 (b) of Title I of ACT, as amended. (c) COUNTY and CITY will comply with the applicable provisions of the following: National Environmental Policy Act of 1969; Title VI of the Civil Rights Act of 1964 and the implementing regulations at 24 CFR Part 1; The Fair Housing Act, Title VIII of the Civil Rights Act of 1968, the implementing regulations at 24 CFR Part 100, and the duty to affirmatively further fair housing (AFFH); Title 24 Code of Federal Regulations part 570; Cranston-Gonzales National Affordable housing Act (Public Law 101-625); Executive Order 11063, as amended by Executive Order 12259; Executive Order 11988; the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C.§4630, et. seq.); Section 109 of Title I of the ACT and implementing regulations at 24 CFR part 6, including Section 504 of the Rehabilitation Act of 1973 and the implementing regulations at 24 CFR Part 8, Title II of the Americans with Disabilities Act and the implementing regulations at 28 CFR part 35, the Age Discrimination Act of 1975 and the implementing regulations at 24 CFR part 146, Section 3 of the Civil Rights Act of 1963, as amended, Section 3 of the Housing and Urban Development Act of 1968, the Uniform 348
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Relocation Assistance and Real Property Acquisition Policies Act of 1970 and the implementing regulations at 49 CFR Part 24, and Section 104(d) of the Act and implementing regulations at 24 CFR Part 42; and other Federal or state statute or regulation applicable to the use of CDBG, HOME Investment Partnerships Act (enacted as Title II of the National Affordable Housing Act of 1990), and Emergency Solutions Grant funds.
(d) CITY agrees that the Urban County Program funding for activities in, or in support of, the CITY are prohibited if CITY does not affirmatively further fair housing within CITY’S jurisdiction or impedes COUNTY actions to comply with its fair housing certification. (e) CITY and COUNTY shall meet the citizen participation requirements of 24 CFR 570.301 and provide Urban County Program citizens with all of the following:
i. The estimate of the amount of CDBG funds proposed to be used for activities that will benefit persons of low and moderate-income; ii. A plan for minimizing displacement of persons as a result of activities assisted with CDBG funds and to assist persons actually displaced as a result of such activities;
iii. A plan that provides for and encourages citizen participation, with particular emphasis on participation by persons of low and moderate-incomes, residents of slum and blighted areas, and of areas in which funds are proposed to be used, and provides for participation of residents in low and moderate-income neighborhoods; iv. Reasonable and timely access to local meetings, information, and records relating to the grantee’s proposed use of funds, as required by the regulations of the Secretary, and relating to the actual use of funds under the ACT; v. Provide for public meetings to obtain citizen views and to respond to proposals and questions at all stages of the community development program, including at least the development of needs, the review of proposed activities and review of program performance.
Meeting shall be held after adequate notice, at times and locations convenient to potential or actual beneficiaries, and with accommodation for the disabled. 349
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(f). CITY shall develop a community development plan, for the period of this Agreement, which identifies community development and housing needs and specifies both short and long-term community development objectives.
(g). CITY certifies, to the best of its knowledge and belief, that:
i. No Federal appropriated funds have been paid or will be paid, by or on behalf of the CITY, to any person influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress, in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment or modification of any Federal contract, grant, loan or cooperative agreement.
ii. If any funds other than Federally-appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress, in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit standard Form-LLL, "Disclosure Form to Report Lobbying", in accordance with its instructions.
iii. The CITY shall require that the language provided in Sections 4(c) of this Agreement be included in the award documents for all sub-awards at all tiers (including subcontracts, sub- grants and contracts under grants, loans, and cooperative agreements) and that all sub-recipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into.
(iv). In accordance with Section 519 of Public Law 101-144, (the 1990 HUD Appropriations Act), the CITY certifies that it has adopted and is enforcing a policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations, and that it has adopted and is enforcing applicable State and local laws against physically barring entrance to, or exit from, a 350
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facility or location which is the subject of such non-violent civil rights demonstrations within its jurisdiction.
5. COMPLIANCE WITH POLICY AND PROGRAM OBJECTIVES.
The COUNTY’s Board of Supervisors have adopted policies and procedures to ensure efficient and effective administration of the CDBG, HOME and ESG programs. COUNTY will provide these policies and procedures to CITY within a reasonable time after this Agreement’s commencement date. COUNTY and City agree to comply with these said policies and program objectives and to take no actions to obstruct implementation of the approved 2024-2029 Five Year Consolidated Plan and the subsequent Five-Year Consolidated Plan.
6. OTHER AGREEMENTS
Pursuant to Federal regulations at 24 CFR 570.501(b), CITY is subject to the same requirements applicable to sub-recipients, including the requirement of a written agreement set forth in Federal regulations at 24 CFR 570.503. For each fiscal year during the term of this Agreement, COUNTY and CITY shall enter into an additional agreement, commonly known as a Supplemental Agreement, that will have a term coinciding with a CDBG Program Year and enumerate the project(s) CITY will implement with its entitlement funds. Said Supplemental Agreement will set forth the time schedule for completion of said project(s) and any funding sources, in addition to entitlement funds, that will be used in completing the project(s). If substantial compliance with the completion schedule, due to unforeseen or uncontrollable circumstances, cannot be met by CITY, the schedule for the project(s) may be extended by COUNTY. If COUNY determines that substantial progress toward drawdown of funds is not made during the term of the Supplemental Agreement, the entitlement funds associated with the project(s) may be reprogrammed by COUNTY, to other activities as determined by COUNTY, after COUNTY provides appropriate written notice to CITY. COUNTY's decision not to extend the completion schedule associated with the project(s), or to reprogram the entitlement funds associated with the project(s), will not excuse CITY from complying with terms of this Agreement.
7. DETERMINATION OF PROJECTS TO BE FUNDED AND
DISTRIBUTION OF ENTITLEMENT FUNDS.
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CITY agrees to submit to COUNTY in writing, no later than the date specified by COUNTY prior to each program year, the activities that the CITY desires to implement with its entitlement funds, said designation to comply with statutory and regulatory provisions governing citizen's participation. Said designation is to be reviewed by the COUNTY's Housing and Workforce Solutions to determine that the projects are eligible under Federal regulations for funding and inclusion in the One Year Action Plan of the County’s Five-Year Consolidated Plan and consistent with both Federal and COUNTY policy governing use of Community Development Block Grant (CDBG) funds.
In the event that CITY fails to submit to COUNTY the identified activities that the CITY desires to implement with its entitlement funds by the date specified prior to each program year, the COUNTY may determine the activities to be funded, without consent of the CITY, consistent with both Federal and COUNTY policy governing use of Community Development Block Grant (CDBG) funds.
Consistent with Sections 3, 4, 5, 6, and 7 of this Agreement, COUNTY's Board of Supervisors will make the final determination of the distribution and disposition of all CDBG funds received by COUNTY pursuant to the Act.
8. COMMUNITY DEVELOPMENT BLOCK GRANT MANUAL.
CITY warrants that those officers, employees, and agents, retained by it and responsible for implementing projects funded with CDBG have received, reviewed, and will follow the Community Development Block Grant Manual that has been prepared and amended by COUNTY, which Manual is incorporated herein and made a part hereof by this reference.
9. REAL PROPERTY ACQUIRED OR PUBLIC FACILITY
CONSTRUCTED WITH CDBG FUNDS.
When CDBG funds are used, in whole or in part, by CITY to acquire real property or to construct a public facility, CITY shall comply with the National Environmental Policy Act of 1969 (42 U.S.C. § 4321, et seq.), the California Environmental Quality Act (Cal. Pub. Resources Code § 21000, et seq.), the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. § 4630, et seq.), and California Government Code Sections 7260 et seq., 352
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as those laws may be amended from time-to-time and any Federal or state regulations issued to implement the aforementioned laws.
In addition, the following is to occur:
(a) Title to the real property shall vest in CITY;
(b) The real property title will be held by or the constructed facility will be maintained by the CITY for the approved use until five years after the date that the project is reported as “Completed” within the annual Consolidated Annual Performance and Evalu ation Report
(c) While held by CITY, the real property or the constructed facility is to be used exclusively for the purpose for which acquisition or construction was originally approved by COUNTY;
(d) CITY shall provide timely written notice to COUNTY of any action which would result in a modification or change in the use of the real property purchased or improved, in whole or in part, with CDBG or HOME funds from that planned at the time of acquisitio n or improvement, including disposition.
(e) CITY shall provide timely written notice to citizens and opportunity to comment on any proposed modification or change;
(f) Written approval from COUNTY must be secured if the property or the facility is to be put to an alternate use that is or is not consistent with Federal regulations governing CDBG funds;
(g) Should CITY desire during the five (5) year period to use the real property or the constructed facility for a purpose not consistent with applicable Federal regulations governing CDBG funds or to sell the real property or facility, then:
(i) If CITY desires to retain title, it will have to reimburse either COUNTY or the Federal government an amount that represents the percentage of current fair market value that is identical to the percentage that CDBG funds initially comprised when the property was acquired or the facility was constructed;
(ii) If CITY sells the property or facility, or is required to sell the property 353
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or facility, CITY is to reimburse the COUNTY an amount that represents the percentage of proceeds realized by the sale that is identical to the percentage that CDBG funds comprised of the monies paid to initially acquire the property or construct the facility. This percentage amount will be calculated after deducting all actual and reasonable cost of sale from the sale proceeds.
10. DISPOSITION OF INCOME GENERATED BY THE EXPENDITURE
OF CDBG FUNDS.
CITY shall inform COUNTY in writing of any income generated by the expenditure of CDBG funds received by CITY from COUNTY. CITY may not retain program income so generated. Any and all program income shall be returned to the County and may only be used for eligible activities in accordance with all CDBG requirements, including all requirements for citizen participation.
The COUNTY is required by HUD to monitor and report the receipt and use of all program income. CITY is required to track, monitor, and report any and all program income as requested by COUNTY.
11. TERMINATION.
Except as provided for in Section 2, CITY and COUNTY cannot terminate or withdraw from this Agreement while it remains in effect.
12. NOTICES.
All correspondence and notices required or contemplated by this Agreement shall be delivered to the respective parties at the addresses set forth below and are deemed submitted two days after their deposit in the United States mail, postage prepaid:
COUNTY OF RIVERSIDE CITY OF RANCHO MIRAGE
Heidi Marshall, Director Isaiah Hagerman, City Manager County of Riverside HWS City of Rancho Mirage
3403 Tenth Street, Suite 300 69825 CA-111
Riverside, CA 92501 Rancho Mirage, CA 92270
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13. AGREEMENT ADMINISTRATION.
The City Manager of the CITY, and the Director of Housing and Workforce Solutions of County of Riverside, or their designee, shall administer the terms and conditions of this Agreement for their respective city or county.
14. COOPERATION; FURTHER ACT.
The PARTIES shall cooperate fully with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purpose of the Agreement.
15. NO THIRD-PARTY BENEFICIARIES.
This Agreement is made and entered into for the sole protection and benefit of the PARTIES hereto and shall not create any rights in any third parties. No other person or entity shall have any right or action based upon the provisions of the Agreement.
16. SECTION HEADINGS.
The Section headings herein are for the convenience of the PARTIES only and shall not be deemed to govern, limit, modify or in any manner affect the scope, meaning or intent of the provisions or language of this Agreement.
17. FORMER AGREEMENTS UTILIZING COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDS BETWEEN COUNTY AND CITY.
All agreements between CITY and COUNTY regarding the use of CDBG funds for fiscal years 1975-76 through fiscal years 2026-27 and any Supplemental Agreements there under, shall remain in full force and effect. If the language of this Agreement is in conflict or inconsistent with the terms of any prior said agreements between CITY and COUNTY, the language of this Agreement will be controlling.
18. INDEMNIFICATION
CITY agrees to indemnify, defend, and hold harmless COUNTY and its authorized officers, employees, agents, and volunteers from any and all claims, actions, losses, damages, and/or liability arising from CITY acts, errors or omissions and for any costs or expenses incurred by COUNTY on account of any claim therefore, except where such indemnifications is prohibited 355
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by law. CITY shall promptly notify COUNTY in writing of the occurrence of any such claims, actions, losses, damages, and/or liability.
CITY shall indemnify and hold harmless COUNTY against any liability, claims, losses, demands, and actions incurred by COUNTY as a result of the determination by HUD or its successor that activities undertaken by CITY under the program(s) fail to comply with any laws, regulations, or policies applicable thereto or that any funds billed by and disbursed to CITY under this Agreement were improperly expended.
19. COMPLIANCE WITH LAWS AND REGULATIONS.
By executing this Agreement, the Parties hereby certify that they will adhere to and comply with all Federal, state and local laws, regulations and ordinances.
20. ENTIRE AGREEMENT.
It is expressly agreed that this Agreement embodies the entire agreement of the Parties in relation to the subject matter hereof, and that no other agreement or understanding, verbal or otherwise, relative to this subject matter, exists between the Parties at the time of execution.
21. SEVERABILITY.
Each paragraph and provision of this Agreement is severable from each other provision and in the event any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provision will never t he less continue in full force without being impaired or invalidated in any way.
22. ASSIGNMENT.
CITY shall not make any sale, assignment, conveyance or lease of any trust or power, or transfer in any other form with respect to this Agreement, or delegate or assign any interest in this Agreement without prior written approval of the County.
23. INTERPRETATION AND GOVERNING LAW.
This Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives 356
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and purposes of the Parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not be employed in interpreting this Agreement, all Parties having been represented by counsel in the negotiation and preparation hereof.
24. WAIVER.
Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Party, or the failure by a Party to exercise its rights upon the default of the other Party, shall not constitute a waiver of such Party’s right to insist and demand strict compliance by the other Party with the terms of this Agreement thereafter.
25. JURISDICTION AND VENUE.
Any action at law or in equity arising under this Agreement or brought by a Party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed in the Superior Court of California, County of Riverside, State of California, and the Parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court or jurisdiction.
26. AMENDMENTS
No change, amendment, or modification to the Agreement shall be valid or binding upon CITY or COUNTY unless such change, amendment, or modification is in writing and duly executed. CITY and COUNTY agree to adopt any necessary amendments to this Agreement to incorporate changes required by HUD as set forth in the Urban County Qualification Notice.
Amendments must be submitted to HUD as provided in the Urban County Qualification Notice and failure to do so will void the automatic renewal for such qualification period.
27. PROHIBITION OF CDBG FUND TRANSFER
Parties to this Agreement understand and agree that they may not sell, trade, or otherwise transfer all or any portion of CDBG Part 52 funds to a Metropolitan City, Urban County, unit of general local government, or insular area that directly or indirectly receives CDBG funds in exchange for any funds, credits, or non-Federal considerations, but must use such funds for activities eligible under Title I of the Housing and Community Development Act of 1974, as amended
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28. EMERGENCY SOLUTIONS GRANT FORMULA ALLOCATION
CITY acknowledges that while participating in the COUNTY’s Urban County program, CITY can only receive a formula Emergency Solutions Grant (ESG) allocation from the Urban County program and only at such times as authorized by the Board of Supervisors. The CITY and COUNTY may also apply for ESG funds from the State of California, if permitted by the State.
29. HOME INVESTMENT PARTNERSHIP ACT FORMULA
ALLOCATION
CITY acknowledges that while participating in the COUNTY’s Urban County program, CITY can only receive a formula HOME allocation from the Urban County program and only at such times as authorized by the Board of Supervisors. The CITY and COUNTY may also apply for HOME funds from the State of California, if permitted by the State.
30. AUTHORITY TO EXECUTE.
The persons executing this Agreement or exhibits attached hereto on behalf of the Parties to this Agreement hereby warrant and represent that they have the authority to execute this Agreement and warrant and represent that they have the authority to bind the respective Parties to this Agreement to the performance of its obligations hereunder.
31. INCORPORATION OF RECITALS
The Parties hereby affirm the facts set forth in the recitals above. Said recitals are incorporated herein and made an operative part of this Agreement.
32. COUNTERPARTS
This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument.
[SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the COUNTY and CITY have executed this Agreement on the date shown below.
Date: _______________________
COUNTY OF RIVERSIDE, CITY OF RANCHO MIRAGE,
a political subdivision of the a charter city
State of California
BY: ____________________________ BY: _________________________ Heidi Marshall, Director Mayor or City Manager Housing and Workforce Solutions
APPROVED AS TO FORM: ATTEST:
Minh C. Tran,
County Counsel
BY: ________________________
By: __________________________________ City Clerk Braden Holly
Deputy County Counsel
APPROVED AS TO FORM:
BY: __________________________
City Attorney
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COUNTY COUNSEL CERTIFICATION
The Office of County Counsel of the County of Riverside hereby certifies that the terms and provisions of this Agreement are fully authorized under state and local law and that the Agreement provides full legal authority for the COUNTY to undertake, or assist in undertaking, essential community development and housing assistance activities specifically urban renewal and publicly assisted housing.
County Counsel
By: ____
Deputy County Counsel, Braden Holly
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City Council Staff Report
Documentation and Reimbursement of General Fund Advance for Successor Agency Enforceable Obligation Payment and Approval of Loan Agreement between City of Rancho Mirage and Successor Agency to the Rancho Mirage Redevelopment Agency
DATE ITEM #
July 16, 2026 ACTION CALENDAR - 7C.
Presented To Presented By
Mayor and City Council Kofi Antobam, Director of Administrative Services
RECOMMENDED ACTION
1) Adopt Resolution No. 2026-(Next-in-Order), Authorizing the Execution and Delivery of a Debt Service Loan Agreement Between the City of Rancho Mirage and the Successor Agency to the Rancho Mirage Redevelopment Agency to Memorialize and Repay an Enforceable Obligation of the Successor Agency, Making Certain Determinations Relating thereto, and Authorizing Certain Other Action in Connection therewith; and 2) Adopt Resolution No. 2026-SA-(Next-in-Order), Authorizing the Execution and Delivery of a Debt Service Loan Agreement Between the City of Rancho Mirage and the Successor Agency to the Rancho Mirage Redevelopment Agency to Memorialize and Repay an Enforceable Obligation of the Successor Agency, Making Certain Determinations Relating thereto, and Authorizing Certain Other Action in Connection therewith.
DISCUSSION
On April 1, 2025, the Successor Agency was required to make a scheduled payment on then outstanding Rancho Mirage Redevelopment Agency Whitewater Redevelopment Project Subordinate Lien Tax Allocation Bonds, Series 2003A-1 issued on December 4, 2003 (the "Series 2003A-1 Bonds"), a duly constituted enforceable obligation of the Successor Agency. Immediately prior to that date, an insufficiency in the designated Redevelopment Obligation Retirement Fund was discovered as a result of the required line item for payment of debt service on the Series 2003A-1 Bonds being inadvertently omitted from the Recognized Obligation Payment Schedule (“ROPS”) for the 2024-25 payment period, contrary to the requirements of California Health and Safety Code section 34177(l), and that, accordingly, pledged funds were not available for that payment. To ensure that the Successor Agency met its payment obligation on the Series 2003A-1 Bonds and avoid unnecessary reimbursement costs and credit implications from a claim on a municipal bond insurance policy guaranteeing the payment of principal (or accreted value) and interest on the Series 2003A-1 Bonds when due, City staff advanced general funds not pledged to any redevelopment obligations including the Series 2003A-1 Bonds. In that way, debt service was timely paid on the Series 2003A-1 Bonds.
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The advance was made strictly for the purpose of satisfying the Successor Agency’s enforceable obligation and with the City’s expectation that reimbursement of the advance would be sought from Redevelopment Property Tax Trust Fund (“RPTTF”) proceeds in a subsequent ROPS cycle. The City sought reimbursement of the advance by timely submission of the required amended ROPS forms for the 2025-26 ROPS in October 2025, detailing the fact that the enforceable obligation payment was inadvertently omitted from the ROPS. As part of that submission, the Successor Agency sought and obtained approval by the Countywide Oversight Board for the County of Riverside (the “OB”). The amendment request was denied in the Department of Finance (“DOF”) determination letter dated October 24, 2025. In a second attempt, the request was then included by line item on the 2026-27 ROPS and was again denied in the DOF determination letter dated April 15, 2026. That line item on the 2026-27 ROPS was denied by the DOF due to the absence of a properly documented enforceable obligation reflecting both the advance and repayment obligation. This absence of an enforceable obligation was asserted as to the advance and the fact that the Series 2003A-1 Bonds had at that point matured and been paid in full, including from the advance. Staff requested a Meet and Confer with the DOF after the determination letter dated April 15, 2026. On April 27, 2026, staff met with representatives from the DOF and discussed the denied enforceable obligation. The DOF issued its determination letter dated May 15, 2026, on the meet and confer meeting and again denied the item. One of the reasons for the denial was “There is no evidence that the City's payment was to be considered a loan to the Agency and no evidence that the Agency understood it would be required to repay the City for payments made on the Agency's behalf.”
Since April 2025, the Advance has been continuously carried as a negative cash balance in the Successor Agency general ledger, acknowledged as a City interfund payable at the Successor Agency, remains outstanding and has not been repaid, forgiven, waived, written off, or discharged, was not intended as a gift, grant, subsidy, waiver, or permanent contribution of unrestricted City funds.
City Council and Successor Agency are now taking formal action to approve the execution and delivery of a Debt Service Loan Agreement between the City subject to approval and the Successor Agency to document the City’s advance, with interest thereon, as an enforceable obligation pursuant to Health and Safety Code section 34171(d), which includes contracts or agreements necessary for administration or fulfillment of obligations. This is proposed to enable reimbursement of the advance with interest through the ROPS process in full compliance with current law, subject to approval by the Countywide Oversight Board, the Department of Finance, and recognition and approval on a future ROPS submission for payment.
Should the Oversight Board or Department of Finance contend that the enforceable obligation ceased post- payment, it is important to note that the underlying obligation was fulfilled by an advance from the City. The City’s right to reimbursement of the advance with interest constitutes a new enforceable obligation, created by necessity and recognized under law, until such time as repayment is made.
FISCAL IMPACT
Approval of the resolutions and Loan Agreement does not authorize a new expenditure of City funds beyond the prior $3,340,000 advance. The fiscal effect is to document the City’s reimbursement claim and the Successor Agency’s corresponding repayment obligation, including any interest approved through the ROPS process, subject to Oversight Board approval, DOF review, and availability of RPTTF.
Attachments
Attachment 1 - Draft City Council Resolution
Attachment 2 - Draft Successor Agency Resolution
Attachment 3 - Draft Agreement
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RESOLUTION NO. 2026-____
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO MIRAGE
AUTHORIZING THE EXECUTION AND DELIVERY OF A DEBT SERVICE LOAN
AGREEMENT BETWEEN THE CITY OF RANCHO MIRAGE AND THE SUCCESSOR
AGENCY TO THE RANCHO MIRAGE REDEVELOPMENT AGENCY, AFFIRMING
THAT LOAN TO THE SUCCESSOR AGENCY FOR THE PAYMENT OF DEBT
SERVICE, MAKING CERTAIN DETERMINATIONS RELATING THERETO, AND
AUTHORIZING CERTAIN OTHER ACTION IN CONNECTION THEREWITH WHEREAS, the City of Rancho Mirage (the “City”) is a charter city and a political subdivision of the State of California for certain purposes; and WHEREAS, pursuant to the Community Redevelopment Law (Part 1 of Division 24 of the Health and Safety Code of the State of California and referred to herein as the “Law”), the City Council of the City created the former Rancho Mirage Redevelopment Agency (the “Former Agency”);
WHEREAS, the Former Agency was a redevelopment agency, a public body, corporate and politic duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the Law, and the powers of such agency included the power to issue bonds for any of its corporate purposes; WHEREAS, on December 4, 2003, the Former Agency issued the Rancho Mirage Redevelopment Agency Whitewater Redevelopment Project Subordinate Lien Tax Allocation Bonds, Series 2003A-1 (the “Series 2003A-1 Bonds”) as capital appreciation bonds, with an April 1, 2025 maturity date and a maturity value of $3,340,000; WHEREAS, pursuant to Assembly Bill No. 1X 26, as modified by Assembly Bill No. 1484 and further modified by Senate Bill No. 107, which added Parts 1.8 and 1.85 to Division 24 of the California Health and Safety Code (“Dissolution Act”), the Former Agency was dissolved on February 1, 2012, and the Successor Agency to the Rancho Mirage Redevelopment Agency (also referred to as the City of Rancho Mirage Successor Agency and the “Successor Agency” herein) was vested with all authority, rights, powers, duties, and obligations of the Former Agency, including obligations arising under the Series 2003A-1 Bonds;
WHEREAS, the Series 2003A-1 Bonds were limited obligations of the Former Agency and, following dissolution, administered by the Successor Agency, and were not and are not debt, obligations, or liabilities of the City; WHEREAS, on April 1, 2025, the Successor Agency was required to make a scheduled debt service payment on the outstanding Series 2003A-1 Bonds, a duly constituted enforceable obligation of the Successor Agency, in the amount of $3,340,000; ATTACHMENT 1
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WHEREAS, just prior to the payment date, it was discovered that the Redevelopment Obligation Retirement Fund did not have sufficient funds to cover the payment, due to the Successor Agency’s inadvertent omission of the required line item for debt service on the Series 2003A-1 Bonds from the Recognized Obligation Payment Schedule (“ROPS”) for the 2024-25 payment period, contrary to requirements of California Health and Safety Code Section 34177(l), resulting in pledged funds not being available for the scheduled payment;
WHEREAS, to ensure that the Successor Agency met its obligation on the Series 2003A-1 Bonds and avoided unnecessary reimbursement costs and potential credit consequences from a claim on the municipal bond insurance policy guaranteeing payment of principal (or accreted value) and interest, City staff advanced general funds in the amount of $3,340,000 (the “Advance”) not pledged to any redevelopment obligation, including the Series 2003A-1 Bonds, thereby allowing timely payment of debt service on the Series 2003A-1 Bonds;
WHEREAS, the City made this Advance as an interfund loan of funds not otherwise pledged or available for the payment of the Series 2003A-1 Bonds and no part of the original Former Agency obligation, and solely for the purpose of satisfying the Successor Agency’s enforceable obligation, with the expectation that reimbursement would be sought from Redevelopment Property Tax Trust Fund (“RPTTF”) proceeds in a subsequent ROPS cycle;
WHEREAS, the next opportunity to amend a ROPS and request for reimbursement of the omitted debt service payment made by the Advance was the amended ROPS for the period January 1, 2026 through June 30, 2026 in October 2025; WHEREAS, the Successor Agency submitted an Amended ROPS for the period January 1, 2026 through June 30, 2026 (Amended ROPS 25-26B) in October 2025, providing details regarding the inadvertent omission and the City’s Advance of funds to pay debt service, and seeking reimbursement of the Advance, and as part of this process, the Successor Agency sought and obtained review and approval from the Countywide Oversight Board for the County of Riverside (the “Oversight Board”); WHEREAS, the Department of Finance (“DOF”) denied the Amended ROPS 25- 26B in its determination letter dated October 24, 2025; a second attempt to secure reimbursement by including the request as a line item on the 2026-27 ROPS was likewise denied in DOF’s determination letter dated April 15, 2026; and a third attempt through a meet and confer process with the DOF to secure reimbursement was again denied in DOF’s determination letter dated May 15, 2026;
WHEREAS, since April 2025, the Advance has been continuously carried as a negative cash balance in the Successor Agency general ledger, acknowledged as a City interfund payable at the Successor Agency, remains outstanding and has not been repaid, forgiven, waived, written off, or discharged, was not intended as a gift, grant, subsidy, waiver, or satisfaction of the Successor Agency’s liability, or permanent contribution of unrestricted City funds;
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WHEREAS, the City and the Successor Agency desire to authorize the execution of a Debt Service Loan Agreement between the City and Successor Agency to document the City’s Advance as an enforceable obligation pursuant to Health and Safety Code Section 34171(d) and Section 34173(h), which includes contracts or agreements necessary for administration or fulfillment of obligations; WHEREAS, by the Debt Service Loan Agreement, the City will claim reimbursement of the Advance, with interest, through the ROPS process in full compliance with current law;
WHEREAS, the Debt Service Loan Agreement is intended to constitute an enforceable obligation of the Successor Agency as that term is defined in Health and Safety Code Section 34171(d), to be submitted for recognition as an enforceable obligation and for repayment pursuant to Health and Safety Code Sections 34171(d), 34173(h), 34177, 34179, and 34180, subject to Oversight Board approval, DOF review or deemed approval, and to be listed on the Successor Agency's approved ROPS; WHEREAS, the City’s advance of funds for payment of the debt service payment on the outstanding Series 2003A-1 Bonds is evidenced in City ledgers for fiscal years 2024-25 and 2025-26, which initially document and continue the interfund obligation for the City’s undertaking a Successor Agency obligation in the form of the Advance; WHEREAS, there has been presented at this meeting a form of Debt Service Loan Agreement by and between the City and the Successor Agency (the “Loan Agreement”); WHEREAS, following approval of the Oversight Board of the execution and delivery of the Loan Agreement by the Successor Agency and upon approval by the Department of Finance of such approval by the Oversight Board and the Loan Agreement as an enforceable obligation, the Successor Agency will cause the execution and delivery of the Loan Agreement as an enforceable obligation, and the submission of the obligation as a line item on the 2027-28 ROPS or immediately subsequent ROPS; and WHEREAS, the City Council is fully advised in this matter; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rancho Mirage as follows:
1. Recitals True and Correct. The recitals above are true and correct and incorporated herein by this reference.
2. Approval of Loan Agreement. The form of Loan Agreement, between the City and the Successor Agency (the “Loan Agreement”), presented at this meeting is hereby approved and the Mayor, the City Manager, and the Director of Administrative Services of the City (each an “Authorized Officer”), each, acting alone, is authorized and directed, for and in the name of and on behalf of the City, to execute, acknowledge and deliver the Loan Agreement in substantially the form presented at this meeting with such changes therein as the Authorized Officer executing the same may approve, such approval to be conclusively evidenced by the execution and delivery thereof. The interest 365
rate or rates, payment dates and other terms shall be as provided in the Loan Agreement as finally executed; provided that, the defined Stated Rate (as defined therein) shall not exceed a rate DOF deems reasonable and lawful for the nature and duration of the Advance, and the City acknowledges that the final interest rate applied to ROPS reimbursement is subject to DOF review and approval.
3. Ratification of Prior Actions. That all actions heretofore taken by the officers, employees and agents of the City with respect to the Advance and accounting treatment as an interfund loan are hereby approved, confirmed and ratified.
4. Further Actions. That the officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this resolution and not inconsistent with the provisions hereof.
5. Effective Date. That this resolution shall take effect immediately upon its adoption.
6. Environmental Review. The action does not constitute a “project” within the meaning of Section 15378 of the California Environmental Quality Act (“CEQA”) Guidelines.
7. Severability. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.
8. Certification. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
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PASSED, APPROVED AND ADOPTED by the City Council of the City of Rancho Mirage on July 16, 2026.
CITY OF RANCHO MIRAGE:
Lynn Mallotto, Mayor
ATTEST:
Kristie Ramos, City Clerk
APPROVED AS TO FORM:
Colin D. Kirkpatrick, City Attorney
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RESOLUTION NO. 2026-SA_____
RESOLUTION OF THE SUCCESSOR AGENCY TO THE RANCHO MIRAGE
REDEVELOPMENT AGENCY AUTHORIZING THE EXECUTION AND DELIVERY OF A
DEBT SERVICE LOAN AGREEMENT BETWEEN THE CITY OF RANCHO MIRAGE
AND THE RANCHO MIRAGE REDEVELOPMENT AGENCY TO MEMORIALIZE AND
REPAY AN ENFORCEABLE OBLIGATION OF THE SUCCESSOR AGENCY, MAKING
CERTAIN DETERMINATIONS RELATING THERETO, AND AUTHORIZING CERTAIN
OTHER ACTION IN CONNECTION THEREWITH
WHEREAS, pursuant to the Community Redevelopment Law (Part 1 of Division 24 of the Health and Safety Code of the State of California and referred to herein as the “Law”), the City Council of the City of Rancho Mirage (the “City”) created the former Rancho Mirage Redevelopment Agency (the “Former Agency”); WHEREAS, the Former Agency was a redevelopment agency, a public body, corporate and politic duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the Law, and the powers of such agency included the power to issue bonds for any of its corporate purposes; WHEREAS, on December 4, 2003, the Former Agency issued the Rancho Mirage Redevelopment Agency Whitewater Redevelopment Project Subordinate Lien Tax Allocation Bonds, Series 2003A-1 (the “Series 2003A-1 Bonds”) as capital appreciation bonds, with an April 1, 2025 maturity date and a maturity value of $3,340,000, payable from and secured by certain Surplus Tax Revenues (defined in the Indenture for the Series 2003A-1 Bonds), to be derived from the Agency’s Whitewater Redevelopment Project (the “Project Area”);
WHEREAS, on February 19, 2004 the City adopted Resolution No. 858 amending and restating the Redevelopment Plans for the Whitewater Redevelopment Project and its Whitewater Project Area (the “Whitewater Sub-Area”) and the Rancho Mirage Redevelopment Plan – 1984 Project and its Northside Project Area (the “Northside Sub- Area”) thereby creating the Amended and Restated Redevelopment Plan for the Rancho Mirage Merged Redevelopment Project Area (the “Merged Plan”), which was adopted and approved in accordance with the Law;
WHEREAS, pursuant to Assembly Bill No. 1X 26, as modified by Assembly Bill No. 1484 and further modified by Senate Bill No. 107, which added Parts 1.8 and 1.85 to Division 24 of the California Health and Safety Code (“Dissolution Act”), the Former Agency was dissolved on February 1, 2012, and the Successor Agency to the Rancho Mirage Redevelopment Agency (also referred to as the City of Rancho Mirage Successor Agency and the “Successor Agency” herein) was vested with all authority, rights, powers, duties, and obligations of the Former Agency, including obligations arising under the Series 2003A-1 Bonds;
ATTACHMENT 2
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WHEREAS, on April 1, 2025, the Successor Agency was required to make a scheduled debt service payment on the outstanding Series 2003A-1 Bonds, a duly constituted enforceable obligation of the Successor Agency and the Merged Plan, in the amount of $3,340,000;
WHEREAS, just prior to the payment date, it was discovered that the Redevelopment Obligation Retirement Fund did not have sufficient funds to cover the payment, due to the Successor Agency’s inadvertent omission of the required line item for debt service on the Series 2003A-1 Bonds from the Recognized Obligation Payment Schedule (“ROPS”) for the 2024-25 payment period, contrary to requirements of California Health and Safety Code Section 34177(l), resulting in pledged funds not being available for the scheduled payment;
WHEREAS, to ensure that the Successor Agency met its obligation on the Series 2003A-1 Bonds and avoided unnecessary reimbursement costs and potential credit consequences from a claim on the municipal bond insurance policy guaranteeing payment of principal (or accreted value) and interest, City staff advanced general funds in the amount of $3,340,000 (the “Advance”) not pledged to any redevelopment obligation, including the Series 2003A-1 Bonds, thereby allowing timely payment of debt service on the Series 2003A-1 Bonds;
WHEREAS, the City made this Advance as an interfund loan of funds not otherwise pledged or available for the payment of the Series 2003A-1 Bonds and no part of the original Former Agency obligation, and solely for the purpose of satisfying the Successor Agency’s enforceable obligation, with the expectation that reimbursement would be sought from Redevelopment Property Tax Trust Fund (“RPTTF”) proceeds in a subsequent ROPS cycle;
WHEREAS, the next opportunity to amend a ROPS and request for reimbursement of the omitted debt service payment made by the Advance was the amended ROPS for the period January 1, 2026 through June 30, 2026 in October 2025;
WHEREAS, the Successor Agency submitted an Amended ROPS for the period January 1, 2026 through June 30, 2026 (Amended ROPS 25-26B) in October 2025, providing details regarding the inadvertent omission and the City’s Advance of funds to pay debt service, and seeking reimbursement of the Advance, and as part of this process, the Successor Agency sought and obtained review and approval from the Countywide Oversight Board for the County of Riverside (the “Oversight Board”);
WHEREAS, the Department of Finance (“DOF”) denied the Amended ROPS 25- 26B in its determination letter dated October 24, 2025; a second attempt to secure reimbursement by including the request as a line item on the 2026-27 ROPS was likewise denied in DOF’s determination letter dated April 15, 2026; and a third attempt through a meet and confer process with the DOF to secure reimbursement was again denied in DOF’s determination letter dated May 15, 2026;
369
WHEREAS, since April 2025, the Advance has been continuously carried as a negative cash balance in the Successor Agency general ledger, acknowledged as a City interfund payable at the Successor Agency, remains outstanding and has not been repaid, forgiven, waived, written off, or discharged, was not intended as a gift, grant, subsidy, waiver, or satisfaction of the Successor Agency’s liability, or permanent contribution of unrestricted City funds;
WHEREAS, the Successor Agency and City desire to authorize the execution of a Debt Service Loan Agreement between the City and Successor Agency to document the City’s Advance as an enforceable obligation pursuant to Health and Safety Code Section 34171(d) and Section 34173(h), which includes contracts or agreements necessary for administration or fulfillment of obligations;
WHEREAS, by the Debt Service Loan Agreement, the City will claim reimbursement of the Advance, with interest, through the ROPS process in full compliance with current law;
WHEREAS, the Debt Service Loan Agreement is intended to constitute an enforceable obligation of the Successor Agency as that term is defined in Health and Safety Code Section 34171(d), to be submitted for recognition as an enforceable obligation and for repayment pursuant to Health and Safety Code Sections 34171(d), 34173(h), 34177, 34179, and 34180, subject to Oversight Board approval, DOF review or deemed approval, and to be listed on the Successor Agency's approved ROPS;
WHEREAS, the City’s advance of funds for payment of the debt service payment on the outstanding Series 2003A-1 Bonds is evidenced in City ledgers for 2024-25 and 2025-26, which initially document and continue the interfund obligation for the City’s undertaking a Successor Agency obligation in the form of the Advance;
WHEREAS, there has been presented at this meeting a form of Debt Service Loan Agreement by and between the City and the Successor Agency (the Loan Agreement”);
WHEREAS, the Loan Agreement is intended to further evidence and document the City’s post-payment advance to the Successor Agency for the purpose of satisfying debt service on a preexisting enforceable obligation and is submitted for recognition and repayment pursuant to Health and Safety Code Section 34173(h), subject to approval through the ROPS process; and
WHEREAS, following approval of the Oversight Board of the execution and delivery of the Loan Agreement by the Successor Agency and upon approval by the Department of Finance of such approval by the Oversight Board and the Loan Agreement as an enforceable obligation, the Successor Agency will cause the execution and delivery of the Loan Agreement as an enforceable obligation, and the submission of the obligation as a line item on the 2027-28 ROPS or immediately subsequent ROPS; 370
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO MIRAGE
ACTING AS SUCCESSOR AGENCY TO THE RANCHO MIRAGE REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS:
1. Recitals True and Correct. The recitals above are true and correct and incorporated herein by reference.
2. Approval of Loan Agreement. The form of Loan Agreement, between the City and the Successor Agency (the “Loan Agreement”), presented at this meeting is hereby approved and the Mayor acting for the Successor Agency, the City Manager serving as Executive Director, and the Administrative Services Director of the City acting for the Successor Agency (each an “Authorized Officer”), each, acting alone, is authorized and directed, for and in the name of and on behalf of the Successor Agency, to execute, acknowledge and deliver the Loan Agreement in substantially the form presented at this meeting with such changes therein as the Authorized Officer executing the same may approve, such approval to be conclusively evidenced by the execution and delivery thereof. The interest rate or rates, payment dates and other terms shall be as provided in the Loan Agreement as finally executed; provided that, the defined Stated Rate (as defined therein) shall not exceed a rate DOF deems reasonable and lawful for the nature and duration of the Advance, and the Successor Agency acknowledges that the final interest rate applied to ROPS reimbursement is subject to DOF review and approval.
3. Countywide Oversight Board Approval of the Loan Agreement. The Successor Agency hereby requests the Countywide Oversight Board as authorized by Health and Safety Code Section 34180 to approve the Loan Agreement.
4. Determinations by the Countywide Oversight Board. The Successor Agency requests that the Countywide Oversight Board make the following determinations upon which the Successor Agency will rely in finalizing the Loan Agreement:
(i) the Successor Agency is a separate public entity from the City; (ii) the City advanced unrestricted City funds to allow timely payment of a Successor Agency enforceable obligation;
(iii) the Advance was not a gift, grant, waiver, or permanent contribution of City funds;
(iv) the Loan Agreement documents the repayment obligation and does not authorize a new redevelopment project, bond issuance, refunding, or new pledge of property tax revenues;
(v) repayment will be sought only through an approved and valid ROPS; and (vi) the repayment terms, including interest, must comply with applicable limitations under Health and Safety Code Sections 34171(d), 34173(h), 34177, 34179, and 34180.
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5. Filing of Evidence of Advance and Resolution. The City Clerk, acting for the Successor Agency, is hereby authorized and directed to file evidence of the Advance as determined in consultation with the City Attorney, acting for Successor Agency, together with a certified copy of this Resolution, with the Countywide Oversight Board, and, as provided in Health and Safety Code Section 34180(j) with the Riverside County Administrative Officer, the Riverside County Auditor-Controller and the California Department of Finance.
6. Other Acts. The officers and staff of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things, to execute and deliver any and all documents, which in consultation with the City Attorney, acting for Successor Agency, they may deem necessary or advisable in order to consummate or otherwise effectuate the purposes of this Resolution, and any and all such actions previously taken by such officers or staff members are hereby ratified and confirmed.
7. Effective Date. This Resolution shall take effect upon adoption for the purpose of authorizing the officers and staff of the Successor Agency to submit this Resolution, the Loan Agreement, and related supporting documentation to the Countywide Oversight Board, the County Administrative Officer, the County Auditor- Controller, and the California Department of Finance in accordance with the California Redevelopment Dissolution Law. Notwithstanding the foregoing, the approval of the Loan Agreement, the recognition of the repayment obligation described therein as an enforceable obligation, and any payment by the Successor Agency under the Loan Agreement shall be subject to approval by the Countywide Oversight Board, review and approval or deemed approval by the Department of Finance pursuant to Health and Safety Code Section 34179(h), and inclusion of the applicable payment amounts on an approved and valid Recognized Obligation Payment Schedule pursuant to Health and Safety Code Section 34177. Upon satisfaction of the foregoing conditions, the operative approvals and authorizations set forth in this Resolution shall become effective without further action of the Successor Agency, except as otherwise required by law.
8. Environmental Review. The action does not constitute a “project” within the meaning of Section 15378 of the California Environmental Quality Act (“CEQA”) Guidelines.
9. Severability. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The Successor Agency to the Rancho Mirage Redevelopment Agency would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.
372
PASSED, APPROVED and ADOPTED this ______________, 2026.
CITY OF RANCHO MIRAGE ACTING AS
SUCCESSOR AGENCY TO THE RANCHO
MIRAGE REDEVELOPMENT AGENCY
Lynn Mallotto, Mayor, acting for Successor
Agency
ATTEST:
Kristie Ramos, City Clerk,
acting for Successor Agency
APPROVED AS TO FORM:
Colin D. Kirkpatrick, Esq.
City Attorney, acting for Successor Agency
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7/8/26 Draft
DEBT SERVICE LOAN AGREEMENT
by and between
CITY OF RANCHO MIRAGE, CALIFORNIA
and the
SUCCESSOR AGENCY TO THE RANCHO MIRAGE REDEVELOPMENT AGENCY _____________ ___, 2026
ATTACHMENT 3
374
DEBT SERVICE LOAN AGREEMENT
THIS DEBT SERVICE LOAN AGREEMENT, dated as of ______ __, 2026 (the “Loan Agreement”), by and between the CITY OF RANCHO MIRAGE, a political subdivision organized and existing under and by virtue of the laws of the State of California (the “City”) and the SUCCESSOR AGENCY TO THE RANCHO MIRAGE REDEVELOPMENT AGENCY, a public body, corporate and politic, duly organized and existing pursuant to the Community Redevelopment Law of the State of California (the “Successor Agency”);
W I T N E S S E T H:
WHEREAS, pursuant to the Community Redevelopment Law (Part 1 of Division 24 of the Health and Safety Code of the State of California and referred to herein as the “Law”), the City Council of the City created the former Rancho Mirage Redevelopment Agency (the “Former Agency”);
WHEREAS, the Former Agency was a redevelopment agency, a public body, corporate and politic duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the Law, and the powers of such agency included the power to issue bonds for any of its corporate purposes; WHEREAS, on December 4, 2003, the Former Agency issued the Rancho Mirage Redevelopment Agency Whitewater Redevelopment Project Subordinate Lien Tax Allocation Bonds, Series 2003A-1 (the “Series 2003A-1 Bonds”) as capital appreciation bonds, with an April 1, 2025 maturity date and a maturity value of $3,340,000, payable from and secured by certain Surplus Tax Revenues (defined in the Indenture for the Series 2003A-1 Bonds), to be derived from the Agency’s Whitewater Redevelopment Project (the “Project Area”);
WHEREAS, on February 19, 2004 the City adopted Resolution No. 858 amending and restating the Redevelopment Plans for the Whitewater Redevelopment Project and its Whitewater Project Area (the “Whitewater Sub-Area”) and the Rancho Mirage Redevelopment Plan – 1984 Project and its Northside Project Area (the “Northside Sub- Area”) thereby creating the Amended and Restated Redevelopment Plan for the Rancho Mirage Merged Redevelopment Project Area (the “Merged Plan”), which was adopted and approved in accordance with the Law;
WHEREAS, pursuant to Assembly Bill No. 1X 26, as modified by Assembly Bill No. 1484 and further modified by Senate Bill No. 107, which added Parts 1.8 and 1.85 to Division 24 of the California Health and Safety Code (“Dissolution Act”), the Former Agency was dissolved on February 1, 2012, and the Successor Agency was vested with all authority, rights, powers, duties, and obligations of the Former Agency, including obligations arising under the Series 2003A-1 Bonds and related indenture or similar documents;
WHEREAS, on April 1, 2025, the Successor Agency was required to make a scheduled debt service payment on the outstanding Series 2003A-1 Bonds, a duly 375
7/8/26 Draft
2 constituted enforceable obligation of the Successor Agency and the Merged Plan, in the amount of $3,340,000;
WHEREAS, just prior to the payment date, it was discovered that the Redevelopment Obligation Retirement Fund did not have sufficient funds to cover the payment, due to the Successor Agency’s inadvertent omission of the required line item for debt service on the Series 2003A-1 Bonds from the Recognized Obligation Payment Schedule (“ROPS”) for the 2024-25 payment period, contrary to requirements of California Health and Safety Code Section 34177(l), resulting in pledged funds not being available for the scheduled payment;
WHEREAS, approved Redevelopment Property Tax Trust Fund (“RPTTF”) and other approved funding sources were unavailable or insufficient for the omitted final debt service on the Series 2003A-1 Bonds when due because the required line item was not included on the operative ROPS, and no other approved source was available in time to avoid default or a bond insurance claim;
WHEREAS, to ensure that the Successor Agency met its obligation on the Series 2003A-1 Bonds and avoided unnecessary reimbursement costs and potential credit consequences from a claim on the municipal bond insurance policy guaranteeing payment of principal (or accreted value) and interest, City staff advanced general funds in the amount of $3,340,000 (the “Advance”) not pledged to any redevelopment obligation, including the Series 2003A-1 Bonds, thereby allowing timely payment of debt service on the Series 2003A-1 Bonds;
WHEREAS, the City made this Advance as an interfund loan of funds not otherwise pledged or available for the payment of the Series 2003A-1 Bonds and no part of the original Former Agency obligation, and solely for the purpose of satisfying the Successor Agency’s enforceable obligation, with the expectation that reimbursement would be sought from RPTTF proceeds in a subsequent ROPS cycle; and WHEREAS, this Loan Agreement is intended to document the City’s Advance as an enforceable obligation pursuant to Health and Safety Code Section 34171(d) and Section 34173(h), which includes contracts or agreements necessary for administration or fulfillment of obligations, pursuant to which the City will claim reimbursement of the Advance, with interest, through the ROPS process in full compliance with current law and this Loan Agreement is not intended to revive or reestablish any pre-dissolution City– Former Agency agreement and is to be submitted as a post-payment Health and Safety Code Section 34173(h) City loan to the Successor Agency; NOW, THEREFORE, in consideration of the mutual covenants herein contained it is agreed by and between the parties hereto, as follows:
Section 1. Definitions. Unless the context otherwise requires, the terms defined in this Section 1 shall, for all purposes of this Loan Agreement and of any amendment hereto, and of any certificate, opinion, estimate or other document herein mentioned, have the meanings herein specified
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3 “City” means the City of Rancho Mirage, California, a political subdivision organized and existing under and by virtue of the laws of the State of California. “Law” means the Community Redevelopment Law of the State of California, constituting Part 1 of Division 24 of the Health and Safety Code of the State of California and the acts amendatory thereof and in supplement thereto. Whenever reference is made in this Loan Agreement to the Law, reference is made to the law as in force on the date of the execution of this Loan Agreement, unless the context otherwise requires. “Loan Balance” means, as of any date of calculation, the sum of (i) initial principal amount of this Loan Agreement as provided in Section 2, plus (ii) the accrued but unpaid interest on the Loan Balance pursuant to Section 3, less (iii) payments made by the Successor Agency to the City against the Loan Balance as provided in Section 3, if any. “RPTTF” or “Redevelopment Property Tax Trust Fund” shall mean the fund by that name established pursuant to Health and Safety Code Section 34170.5(b) and administered by the County Auditor-Controller.
“Series 2003A-1 Bonds” means the Rancho Mirage Redevelopment Agency Whitewater Redevelopment Project Subordinate Lien Tax Allocation Bonds, Series 2003A-1, issued on December 4, 2003, as capital appreciation bonds, with an April 1, 2025 maturity date and a maturity value of $3,340,000.
“Stated Rate” means the applicable annual rate of interest determined as follows:
(a) For the period commencing April 1, 2025 and ending June 30, 2025, the Stated Rate shall be determined on July 1, 2025, and shall be equal to the rate of interest earned by the Local Agency Investment Fund (“LAIF”) for the quarter ending March 31, 2025.
(b) For the period commencing July 1, 2025 and ending June 30, 2026, the Stated Rate shall be determined on July 1, 2026, and shall be equal to the rate of interest earned by LAIF for the quarter ending March 31, 2026.
(c) For the period commencing July 1, 2026 and ending December 31, 2026, the Stated Rate shall be determined on October 31, 2026, and shall be equal to the rate of interest earned by LAIF for the quarter ending September 30, 2026. (d) For any subsequent fiscal year period, and for any partial period not described in clauses (a) through (c), the Stated Rate shall be determined by applying the same timing and LAIF-rate methodology used for the most analogous period described above. For a full fiscal year period, the rate shall be determined on July 1 immediately following that fiscal year and shall equal the rate of interest earned by LAIF for the quarter ending on the immediately preceding March 31. For a partial period, the rate shall be determined as of the date reasonably corresponding to the determination date for the analogous partial period above and shall equal the rate of interest earned by LAIF for the most recently ended calendar quarter preceding that determination date. 377
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4 “Successor Agency” means the Successor Agency to the Rancho Mirage Redevelopment Agency, a public body, corporate and politic, duly organized and existing pursuant to the Community Redevelopment Law of the State of California. “Tax Revenues” shall mean all taxes annually allocated and paid to the Successor Agency pursuant to Article 6 of Chapter 6 (commencing with Section 33670 of the Law), Section 16 of Article XVI of the Constitution of the State and other applicable state laws for allocation to the Successor Agency in connection with the Merged Plan and on deposit in the RPTTF, to the extent not payable with respect to pass-through obligations, and subject to the equal and senior claims of indebtedness, if, any.
Section 2. Amount of Debt Service Obligation and Loan Repayment. The City and the Successor Agency hereby agree that the total outstanding principal amount of the Advance is $3,340,000. This amount, included as a component of the Loan Balance, represents sums advanced by the City to the Successor Agency to make a scheduled payment on the outstanding Series 2003A-1 Bonds as described in this Loan Agreement, plus accrued interest thereon over the term of the loan at the Stated Rate.
The Successor Agency hereby acknowledges that the Advance was made as a loan and that the Successor Agency is obligated to repay the City subject to Oversight Board approval, DOF review, and an approved ROPS.
Section 3. Loan Repayment; Interest Rate. (a) The amount of the Loan Balance shall constitute a loan from the City to the Successor Agency to be repaid in accordance with this Loan Agreement. The Successor Agency and the City agree that the Loan Balance will accrue interest, compounded annually, at the Stated Rate until the Loan Balance is fully repaid. Each year, upon the calculation of the Stated Rate by the Administrative Services Director of the City, the Administrative Services Director shall provide a written calculation to the Successor Agency of the Loan Balance and the interest accrual for the preceding twelve month period. The Successor Agency agrees that it will repay all or any portion of the Loan Balance to the City upon demand and solely to the extent included on an approved and valid ROPS or otherwise payable from a legally available source approved in accordance with the Dissolution Act. If more than one repayment, all repayments shall be applied first to principal and second to interest. (b) The Successor Agency shall cause repayment of the loan from Tax Revenues or from any other legally available source of funds. The Successor Agency shall take all actions required under the Dissolution Act to include on its ROPS the amounts described in this Section and Section 2 above to be transmitted to the City for the applicable ROPS Period in order to satisfy the requirements of this Loan Agreement.
This Loan Agreement shall not constitute a lien on or pledge of any Tax Revenues and the payment of amounts under this Loan Agreement shall in all events be subordinate to all other approved enforceable obligations, including any bonds, notes, or other third- party indebtedness heretofore or hereafter issued or entered into by the Successor Agency.
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5 (c) The Successor Agency shall designate the City as payee on all ROPS line items submitted in connection with repayment of the Loan Balance, identifying the line item as reimbursement of the City's Advance under this Loan Agreement.
Section 4. Entire Agreement. This Loan Agreement constitutes the entire agreement between the City and the Successor Agency concerning the repayment terms described herein; provided, however, that nothing herein supersedes, limits, or modifies any resolutions, ROPS submissions, Countywide Oversight Board approvals, internal accounting entries, City Council staff reports, bond documents, or historical records evidencing the existence, amount, or enforceability of the underlying Advance.
Section 5. Governing Law. This Loan Agreement shall be construed and governed in accordance with the laws of the State of California.
IN WITNESS HEREOF, the parties hereto have executed this Loan Agreement as of the day and year first above written.
CITY OF RANCHO MIRAGE
By:
City Manager
SUCCESSOR AGENCY TO THE RANCHO
MIRAGE REDEVELOPMENT AGENCY
By:
Executive Director
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