The Santa Clara County Oversight Board unanimously adopted a resolution to approve an amended and restated joint exercise of powers agreement that will remove the Sunnyvale Successor Agency from the Sunnyvale Financing Authority and substitute the newly created Sunnyvale Industrial Development Authority.

Board staff member Brian said, “what's before the oversight board today is a resolution ... to remove the Sunnyvale Successor agency from a long standing JPA,” explaining the change would allow the City of Sunnyvale to maintain the JPA and its bonding capacity as the successor agency winds down.

The move matters because Sunnyvale plans to use the financing authority for a pending public offering of debt to fund the city’s “smart station” project. Matt Pollan, Sunnyvale’s finance director, told the board the city will “use the Sunnyvale financing authority for that transaction” and that replacing the successor agency on the JPA with the Sunnyvale Industrial Development Authority would give investors clarity about the city’s plan.

During discussion a board member asked whether there is any outstanding debt or ongoing property purchases under the financing authority; Pollan confirmed there is outstanding debt through the financing authority. Pollan also confirmed the county action to amend and restate the JPA would not impose new financial or legal obligations on the successor agency. Brian said the action amends and restates the agreement rather than terminating it, noting a separate disclosure in the agency’s ACFR about termination while debt remains outstanding.

Board staff said Sunnyvale and county staff have been having “productive conversations” about the successor agency’s final three properties. Staff said they are aiming to bring an agreement to transfer those properties to the board for review in January; if the board and the other taxing entities approve that transfer and the city approves, that would officially trigger unwinding of the successor agency.

Chairperson Estramara called for a motion to adopt the resolution; a motion was made and seconded by Vice Chairperson Snow. The board took a roll-call vote: Member Niebala — yes; Member Klein — yes; Member Gomez — yes; Member Pascual — yes; Vice Chairperson Snow — yes; Chairperson Estramara — aye. The motion carried unanimously.

The board had already approved meeting minutes earlier and adjourned with no date set for the next meeting; staff said the next meeting will be in January but a date has not yet been set.