HomeMy WebLinkAbout1999-294
,
(See Also Res CDC 1999-42)
1
RESOLUTION NO.
1999-294
2
3
A RESOLUTION OF THE MAYOR AND COMMON COUNCIL
OF THE CITY OF SAN BERNARDINO APPROVING THE
1999 LOAN AGREEMENT BETWEEN THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO AND THE
CITY OF SAN BERNARDINO (CITY OF SAN BERNARDINO
LOANS TO THE SAN BERNARDINO INTERNATIONAL
AIRPORT AUTHORITY)
4
5
6
7 WHEREAS, the City of San Bernardino ("City") is a municipal
8 corporation and charter city organized and existing pursuant to the
9 constitution of the State of California; and
10
11
WHEREAS, the City is a member of the San Bernardino
12 International Airport Authority (the "Authority"), which is a joint
13 powers authority, duly established and authorized to transact
14 business and exercise powers under and pursuant to a Joint Exercise
15 of Powers Agreement, as amended, by and among the County of San
16 Bernardino, the City of San Bernardino, the City of Highland, the
17 City of Colton, the City of Lorna Linda (the "Members") and the City
18 of Redlands; and
19
20 WHEREAS, the City of Redlands has voluntarily withdrawn
21 as a member of the Authority; and
22
23 WHEREAS, the Authority was established for the purposes
24 of acquiring, operating, repairing, maintaining and administrating
25 the aviation portions of the former Norton Air Force Base, now
26 known as the San Bernardino International Airport; and
27
28
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1 WHEREAS, the Authority desires to borrow money from the
2 City for the purpose of paying certain operating costs and other
3 expenses of the Authority; and
4
5 WHEREAS, the City possess the legal ability and authority
6 to loan funds to the Authority for the purposes specified above
7 (the "AdvancesH) and desires to do so; and
8
9
WHEREAS,
the City intends to enter into the San
10 Bernardino International Airport Authority Fiscal Year 1999-2000
11 Second, Third and Fourth Quarter Operating Cost and Capital
12 Expenditure Loan Agreement of September 15, 1999 (the "Authority
13 Member Loan AgreementH); and
14
15 WHEREAS, the City desires to borrow and the Redevelopment
16 Agency of the City of San Bernardino ("AgencyH) desires to lend the
17 money for the City to make Advances to the Authority under the
18 Authority Member Loan Agreement (the "LoanH); and
19
20
WHEREAS, all acts and proceedings required by law
21 necessary to make this Loan Agreement, when executed by the Agency
22 and the City, the valid, binding and legal obligation of the City
23 and the Agency, and to constitute this Loan Agreement as a valid
24 and binding agreement for the uses and purposes herein set forth in
25 accordance with its terms, have been done and taken, and the
26 execution and deli very of this Loan Agreement has been in all
27 respects, duly authorized by the Agency and the City; and
28
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1
WHEREAS, the Authority has determined that the Members
2 should loan to the Authority Ten Thousand Dollars ($10,000.00) per
3 vote on the Authority board for the month of August, 1999, as was
4 previously billed to each Member on or about August 20, 1999; and
5
6
WHEREAS the Authority has further determined that for the
7 months of October, November and December of 1999, assuming no
8 rental income is received by the Authority from the lease for the
9 Hangar Facilities referred to as Building 763 and no delinquent
10 rents are received by the Authority that were scheduled to have
11 been paid to the Authority for the period of time commencing on
12 January 1, 1999, through and including August 31, 1999, the Members
13 must loan Ten Thousand Two Hundred Dollars ($10,200.00) per vote
14 per month for this period of time (the "1999 Monthly Loan Amount")
15 to the Authority; and
16
17
WHEREAS, the Authority has further determined that for
18 the months of January through June of 2000, inclusive, assuming no
19 rental income is received by the Authority from the lease for the
20 Hangar Facilities referred to as Building 763, no delinquent rents
21 are received by the Authority that were scheduled to have been paid
22 to the Authority for the period of time commencing on January 1,
23 1999, through and including August 31, 1999, and additional funds
24 are required for
the payment of monthly operating deficits and
25 capital expenditures of the Authority during these months, the
26 Members must loan Sixteen Thousand Dollars ($16,000.00) per vote
27 per month for this second period of time (the "2000 Monthly Loan
28 Amount") to the Authority; and
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1
WHEREAS, it is proposed that a loan agreement in substantially
2 the form attached hereto as Exhibit A (the "Loan Agreement") be
3 entered into by and among the City and the Agency pursuant to which
4 the City would borrow money from the Agency for the purpose of
5 paying certain obligations of the City under the proposed Authority
6 Member Loan Agreement;
7
8 NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE
9 MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS FOLLOWS:
10
11
Section 1.
The form of Loan Agreement attached hereto as
12 Exhibit A is hereby approved. The Mayor of the City ("Mayor") is
13 hereby authorized and directed for and in the name of and on behalf
14 of the City to execute and deliver the Loan Agreement and
15 corresponding promissory note in substantially the form attached
16 hereto as Exhibit A and presented to and considered at this
17 meeting, with such changes therein as the Mayor, in her discretion,
18 may approve as being in the best interest of the City, such
19 approval to be conclusively evidenced by such execution and
20 delivery thereof.
21
22
Section 2.
All actions heretofore taken by any officer or
23 officers of the City with respect to the Loan Agreement and
24 corresponding
25 ratified.
26 III
27 III
28 III
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promissory note are hereby approved, confirmed and
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1999-294
1 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO APPROVING THE 1999 LOAN AGREEMENT BETWEEN THE
2 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND THE CITY OF
SAN BERNARDINO (CITY OF SAN BERNARDINO LOANS TO THE SAN BERNARDINO
3 INTERNATIONAL AIRPORT AUTHORITY)
4
5
Section 3.
effective
This
Resolution
shall
become
6 immediately upon its adoption.
7
8 I HEREBY CERTIFY that the foregoing Resolution was duly
9 adopted by the Mayor and Common Council of the City of
10 San Bernardino at a joint regular
11 the 15th
12
13 Council:
ESTRADA
14 LIEN
MCGINNIS
15 SCHNETZ
(VACANT)
16 ANDERSON
MILLER
17
18
19
20
meeting thereof, held on
day of November, 1999, by the following vote, to wit:
AYES
x
x
x
x
- 5th Ward
X
NAYS
ABSTAIN
ABSENT
x
. AtVnriJuJvhtl ~LU ~;Jafrl
City Clerk 1 ~
The foregoing resolution is hereby approved this ;"
as to form and legal
,.u~
.ty Attorney
Q,
! tUt.-
J. d~th Valles, Mayor
Ciky of San Bernardino
/
con ,;'t:
day of November, 1999.
21
22
23
24
By:
25
26
27
28
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1999-294
EXHIBIT A
1999 LOAN AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO AND THE
CITY OF SAN BERNARDINO
(CITY OF SAN BERNARDINO LOANS TO THE
SAN BERNARDINO INTERNATIONAL AIRPORT AUTHORITY)
1999-294
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
1999 LOAN AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY
OF SAN BERNARDINO AND THE CITY OF SAN BERNARDINO
(CITY OF SAN BE~ARDINO LOANS TO THE
SAN BERNARDINO INTERNATIONAL AIRPORT AUTHORITY)
THIS INVESTMENT LOAN AGREEMENT (the "Investment Loan
Agreement") is made and entered into as of A/,;c.v'r.#Ji:u,.,..... /:7, 1999,
by and among the REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO, a public body corporate and politic (the "Agency"), and
the CITY OF SAN BERNARDINO, a charter city (the "City") .
WITNESSETH:
WHEREAS, the City is a member of the San Bernardino
International Airport Authority (the "Authority"), which is a joint
powers authority, duly established and authorized to transact
business and exercise powers under and pursuant to a Joint Exercise
of Powers Agreement, as amended, by and among the County of San
Bernardino, the City of San Bernardino, the City of Highland, the
City of Colton, the City of Loma Linda (the "Members") and the City
of Redlands; and
WHEREAS, the City of Redlands has voluntarily withdrawn
as a member of the Authority; and
WHEREAS, the Authority was established for the purposes
of acquiring, operating, repairing, maintaining and administrating
the aviation portions of the former Norton Air Force Base, now
known as the San Bernardino International Airport; and
WHEREAS, the Authority desires to borrow money from the
City for the purpose of paying certain operating costs and other
expenses of the Authority; and
WHEREAS, the City possess the legal ability and authority
to loan funds to the Authority for the purposes specified above
(the "Advances") and desires to do so; and
WHEREAS, the City intends to enter into the San
Bernardino International Airport Authority Fiscal Year 1999-2000
Second, Third and Fourth Quarter Operating Cost and Capital
Expenditure Loan Agreement of September 15, 1999 (the "Authority
Member Loan Agreement"); and
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WHEREAS, the City desires to borrow
desires to lend the money for the City to make
Authority under the Authority Member Loan
"Investment Loan"); and
and the Agency
Advances to the
Agreement (the
WHEREAS, the Agency has available cash invested in its
Low and Moderate Income Housing Fund and the Investment Loan
contemplated under this Investment Loan Agreement is a permitted
investment of Low and Moderate Income Housing funds; and
WHEREAS, in order to establish and declare the terms and
conditions upon which the Investment Loan is to be made, the Agency
and the City desire to enter into this Investment Loan Agreement;
and
WHEREAS, all acts and proceedings required by law
necessary to make this Investment Loan Agreement, when executed by
the Agency and the City, the valid, binding and legal obligation of
the City and the Agency, and to constitute this Investment Loan
Agreement as'a valid and binding agreement for the uses and
purposes herein set forth in accordance with its terms, have been
done and taken, and the execution and delivery of this Investment
Loan Agreement has been in all respects, duly authorized by the
Agency and the City; and
WHEREAS, the Authority has determined that the Members
should loan to the Authority Ten Thousand Dollars ($10,000.00) per
vote on the Authority board for the month of August, 1999, as was
previously billed to each Member on or about August 20, 1999; and
WHEREAS the Authority has further determined that (i) for
the months of October, November and December of 1999, assuming no
rental income is received by the Authority from the lease for the
Hangar Facilities referred to as Building 763 and no delinquent
rents are received by the Authority that were scheduled to have
been paid to the Authority for the period of time commencing on
January 1, 1999, through and including August 31, 1999, the Members
must loan Ten Thousand Two Hundred Dollars ($10,200.00) per vote
per month for this period of time (the "1999 Monthly Loan Amount")
to the Authority; and
WHEREAS, the Authority has further determined that for
the months of January through June of 2000, inclusive, assuming no
rental income is received by the Authority from the lease for the
Hangar Facilities referred to as Building 763, no delinquent rents
are received by the Authority that were scheduled to have been paid
to the Authority for the period of time commencing on January 1,
1999, through and including August 31, 1999, and additional funds
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are required for the payment of monthly operating deficits and
capital expenditures of the Authority during these months, the
Members must loan Sixteen Thousand Dollars ($16,000.00) per vote
per month for this second period of time (the "2000 Monthly Loan
Amount") to the Authority.
NOW, THEREFORE, in consideration of the promises and the
mutual agreements herein contained, the parties hereto do hereby
agree as follows:
ARTICLE I
Definitions
Section 1.01. Definitions. Unless the context clearly
otherwise requires or unless otherwise defined herein, the
capitalized terms in this Investment Loan Agreement shall have the
respecti ve meanings as defined in this Section 1.01, for all
purposes of this Investment Loan Agreement.
"LAIF Rate" means the Local Agency Investment Fund 30-Day
rate.
"Investment Loan Agreement" means this Investment Loan
Agreement by and among the Agency and the City, as originally
entered into or as amended or supplemented pursuant to the
provisions hereof.
Section 1.02. Rules of Construction. All references
herein to "Articles," "Sections" and other subdivisions are to the
corresponding Articles, Sections or subdivisions of this Investment
Loan Agreement, and the words "herein," "hereof," "hereunder" and
other words of similar import refer to this Investment Loan
Agreement as a whole and not to any particular Article, Section or
subdivision.
ARTICLE II
Agreements to Extend Investment Loans
Section 2.01. Investment Loan Amounts and Invoices. The
City shall submit monthly invoices ("Authority Invoices") received
by the City from the Authority under the Authority Member Loan
Agreement to the Agency which state the specific dollar amount to
be paid by the City to the Authority under the Authority Invoice.
Within ten (10) business days of receipt of an Authority Invoice
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from the City, the Agency shall pay to the City the amount of such
Authority Invoice.
The aggregate dollar amount of funds disbursed to the
City by the Agency under this Investment Loan Agreement shall be
limited to the aggregate total of the 1999 Monthly Loan Amount and
the 2000 Monthly Loan Amount.' The Agency shall have no obligation
to disburse funds under this Investment Loan Agreement after June
30, 2000.
Section 2.02. Investment Loan Terms. The Agency
hereby agrees to disburse installments of the Investment Loan to
the City for use and application by the City for the purposes set
forth in Section 2.01. The parties hereto agree and acknowledge
that the outstanding balance of all disbursements of installments
of the Investment Loan shall mature and be payable to the Agency,
together with interest thereon, on the fourth (4 th) anniversary
date following the date of the first such installment, subject to
the following.terms:
a. The principal amount of said Investment Loan
will bear simple annual interest at the rate of two (2) points over
the LAIF Rate in effect at the time each principal amount is
disbursed by the Agency, with said rate being adjusted from time to
time as the LAIF Rate changes so as to ahoJays be two (2) points
over the LAIF Rate, with interest accruing on all unpaid principal
from the date said principal is disbursed by the Agency until the
aggregate amount of all of said principal is repaid in full.
b. The principal of the Investment Loan, together
with any accrued interest thereon, will be repaid, in whole or in
part, prior to maturity, as the City receives partial repayment
from the Authority on any loans from the City to the Authority.
c. In the event that the Agency determines that
the maturity date of the Investment Loan must be accelerated in
order for the_investment not to be classified as "Excess Surplus"
as defined at Health and Safety Code Section 33334.12(g) (1), then
in such event the City shall pay the outstanding principal amount
of the Investment Loan, together with accrued and unpaid interest,
upon ninety (90) days written notice from the Agency
d. The obligations of the City under this
Investment Loan Agreement shall be evidenced by a promissory note,
in substantially the form attached hereto as Exhibit "A" and
incorporated herein by this reference, executed by the City.
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Section 2.03. Paritv with Other Citv Loans. The
Investment Loan made from the Agency to the City under this
Investment Loan Agreement is hereby deemed to have equal dignity
and priority with any other loans made by the City to the
Authority, such that the City shall use any funds received from the
Authority for repayment of obligations of the Authority to the City
to repay the obligations of. the City to the Agency under this
Investment Loan Agreement proportionately and equally with the
application of such repayments to other obligations of the
Authority to the City.
Section 2.04. Reoresentation of City as to Authoritv
Action. The City hereby represents and warrants that its
representatives on the Authority board will not act to unreasonably
prevent or delay repayment of the obligations of the City under
this Investment Loan Agreement at the earliest feasible time.
ARTICLE III
Default Provisions
Section 3.01. Default. In the event that the City
shall receive funds from the Authority and not use the funds for
repayment of the obligations of the City created under this
Investment Loan Agreement, the City shall be in default of this
Investment Loan Agreement, provided that the City first receive
written notice, given in accordance with Section 4.09 hereof,
specifying the nature of the default.
ARTICLE IV
Miscellaneous Provisions
Section 4.01. Ootional Preoavment. The City has the
right to prepay any portion of the Investment Loan made under the
provisions of. this Investment Loan Agreement without penalty at any
time and from time to time in the amount of principal then
outstanding. Any payments made by the City shall be credited first
to unpaid interest then outstanding, and then to unpaid principal
then outstanding.
Section 4.02. Books and Accounts: Financial Statement.
The City will keep, or cause to be kept, proper books of record and
accounts, in which complete and correct entries shall be made of
all transactions relating to the Investment Loan made under this
Investment Loan Agreement. Such books of record and accounts shall
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at all times during business hours be subject, upon prior
request, to the reasonable inspection of the Agency
representatives authorized in writing.
written
or its
Section 4.03. Further Assurances. The Agency and the
City, and each of them, will adopt, make, execute and deliver any
and all such further resolutions, instruments and assurances as may
be reasonably necessary or proper to carry out the intention or to
facilitate the performance of this Investment Loan Agreement.
Section 4.04. Benefits Limited to Parties. Nothing in
this Investment Loan Agreement, expressed or implied, is intended
to give to any person other than the Agency and the City, any
right, remedy or claim under or by reason of this Investment Loan
Agreement.
Section 4.05. No Assianment. Neither of the parties
to this Investment Loan Agreement may assign or transfer any right
or obligation created by this Investment Loan Agreement without the
express written consent of the other party.
Section 4.06. Amendment. This Investment Loan
Agreement may be amended by the parties hereto but only in writing
and with the approval of each party hereto, and the authorization
of the governing body of each party.
Section 4.07. Waiver of Personal Liabilitv. No member,
officer, agent or employee of the Agency or the City shall be
individually or personally liable for the payment of the principal
or interest provided for in this Investment Loan Agreement, but
nothing herein contained shall relieve any such member, officer,
agent or employee from the performance of any official duty
provided by law.
Section 4.08. Payment on Business Days. Whenever in
this Investment Loan Agreement any amount is required to be paid on
a day which is not a business day, such payment shall be required
to be made on.the business day immediately following such day.
Section 4.09. Notices. All written notices to be
given under this Investment Loan Agreement shall be given by first
class mail or personal delivery to the party entitled thereto at
its address set forth below, or at such address as the party may
provide to the other party in writing from time to time. Notice
shall be effective 48 hours after deposit in the United States
mail, postage prepaid or, or in the case of personal delivery to
any person, upon actual receipt at the address set forth below:
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If to the City of
San Bernardino:
City of San Bernardino
300 North "0" Street, Sixth Floor
San Bernardino, CA 92418
Attn: City Administrator
If to the
Redevelopment Agency
of the City of San
Bernardino:
Redevelopment Agency
of ehe City of San Bernardino
201 North "E" Street, Suite 301
San Bernardino, CA 92401
Attn: Executive Director
Section 4.10. Partial Invalidity. If any Section,
paragraph, sentence, clause or phrase of this Investment Loan
Agreement shall for any reason be held illegal, invalid or
unenforceable, such holding shall not affect the validity Df the
remaining portions of this Investment Loan Agreement.
Section 4.11. Governina Law.
Agreement shall be construed and governed
laws of the State of California.
This Investment Loan
in accordance with the
Section 4.12. Counteq)arts.
Agreement may be executed in one or more
which shall constitute an original.
This Investment Loan
counterparts, each of
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:!\S TO FORM:
By:
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AGENCY
the City
By:
8
.__ .._.______ ___. .H_~:._.__.__
1999-294
ATTEST:
By: ~/~JQr-d
~ty Clerk D
APPROVED AS TO FORM:
ity Attorney
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CITY
City of San Bernardino
BY'~/I~
Esther Estrada
Mayor Pro Tem
9
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EXHIBIT "A"
PROMISSORY NOTE
10
1999-294
PROMISSORY NOTE PAYABLE TO A PUBLIC AGENCY
Place:
Redevelopment Agency of
the City of San Bernardino
201 North "E" Street, Suite 301
San Bernardino, Cal~fornia 92401
Promisor: City of San Bernardino
300 North no" Street
San Bernardino, California 92418
Date:
, 1999
FOR VALUE RECEIVED, the City of San Bernardino (the
"City") promises to pay to the Redevelopment Agency of the City of
San Bernardino (the "Agency") or its successors or assigns, those
principal sums invested with the City under the 1999 Loan Agreement
between the Redevelopment Agency of the City of San Bernardino and
the City of San Bernardino (City of San Bernardino Loans to the San
Bernardino International Airport Authority) of even date herewith
(the "Investment Loan Agreement"), which is incorporated herein by
this reference as though fully set forth herein, and to pay
interest on the unpaid principal amount of this Promissory Note, in
accordance with the provisions contained in the Investment Loan
Agreement.
A failure to pay any sum when due as provided for under
any of the following shall constitute a breach hereof and shall
entitle the Agency to declare all sums due hereunder immediately
due and payable and to pursue all remedies available under this
Promissory Note:
(i) this Promissory Note; or
(ii) 1999 Loan Agreement between the Redevelopment
Agency of the City of San Bernardino and the City
of San Bernardino (City of San Bernardino Loans to
the San Bernardino International Airport Authority)
of even date herewith.
All payments due under this Promissory Note shall be made
in lawful money of the United States in the name of the Agency at
the principal office of the Agency, 201 North nE" Street, Suite
301, San Bernardino, California 92401 or at such other address as
may from time-to-time be designated by the Agency in writing.
The City reserves the right to prepay at any time all or
any part of the principal amount of this Promissory Note without
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the payment of penalties or premiums.
IN THE EVENT the City shall fail to pay any payment when
due under this Promissory Note, and if such failure be subsisting
thirty (30) days thereafter, the unpaid principal amount of this
Promissory Note, together with accrued interest and applicable late
charges, shall become due and payable, at the option of the Agency,
upon notice to the City as provided under the Investment Loan
Agreement. Failure of the Agency to exercise such an option shall
not constitute a waiver of such default. If any payment to the
Agency on this Promissory Note is not paid within ten (10) days of
the due date, the City shall pay to the Agency a late charge of 5%
on the amount past due and remaining unpaid. If this Promissory
Note is reduced to a judgment against the City, such judgment shall
bear the statutory interest rate on judgments.
In no event shall the total interest and late charge
payable hereunder exceed the maximum amount of interest permitted
under the usury laws of the State of California.
If suit is instituted by the Agency to recover on this
Promissory Note, the non-prevailing party agrees to pay all costs
of such collection, including reasonable attorney's fees and court
costs. Demand, protest and notice of demand and protest are hereby
waived and the City hereby waives, to the extent authorized by law,
any and all other exemption rights which otherwise would apply to
the debt evidenced by this Promissory Note.
IN WITNESS WHEREOF, this Promissory Note has been duly
executed by the City, as of its date.
CITY OF
BERNARDINO
By:
<
ATTEST:
By: Aavnd~aJrw~vl ~
City Clerk ' (j
J~th les,
Ma or of the
C'~Y of San Bernardino
,
APPRO~ D AS TO FORM:
.~
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