HomeMy WebLinkAbout1996-073
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RESOLUTION NO. 96-73
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO APPROVING A CERTAIN
FINANCING BY THE SAN BERNARDINO INTERNATIONAL
AIRPORT AUTHORITY AND ACKNOWLEDGING CERTAIN
OBLIGATIONS INCURRED BY THE CITY OF SAN BERNARDINO
PURSUANT TO A JOINT POWERS AGREEMENT ESTABLISHING
THE SAN BERNARDINO INTERNATIONAL AIRPORT
AUTHORITY
WHEREAS, the City of San Bernardino (the "City") together with the County of
San Bernardino and the Cities of Colton, Loma Linda, Highland and Redlands (collectively, the
"Members") have adopted a certain Joint Exercise of Powers Agreement, as amended, dated as
of May 20, 1992 (the "JP A Agreement"), creating the San Bernardino International Airport
Authority ("SBIAA"); and
WHEREAS, the SBIAA has received the conveyance of the airport portions of the
former Norton Air Force Base (the "SBD Airport") from the United States Air Force and is
presently operating the aviation facilities thereon as a general aviation airport; and
WHEREAS, the SBIAA requires additional funds at this time for the purposes of:
(i) undertaking public improvement projects to gain better vehicular access to the SBD Airport,
(ii) upgrading the aviation facilities located on the SBD Airport by contributing local match funds
together with federal grant funds, and (iii) paying the operating deficits created by the ongoing
operations of the SBD Airport and the payment of the necessary administrative expenses of the
SBIAA; and
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RES 96-73
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WHEREAS, Section II of the JP A Agreement requires each of the Members to
pay their proportionate share of the operating deficits and other debt of the SBIAA as may be
assessed by the SBIAA to the respective Members; and
WHEREAS, it has become necessary for the SBIAA to obtain funds through the
issuance of tax-exempt notes (the "Notes") to be underwritten and sold in the municipal finance
market for the funding of the ongoing capital improvement budget and the operating deficits of
the SBIAA for both the 1995-96 and the 1996-97 fiscal years of the SBIAA for which the
financial commitments of the Members will be required to ensure the marketability ofthe Notes
at the best terms available; and
WHEREAS, the Members have been requested by the SBlAA to adopt a form of
this Resolution pursuant to the provisions of Section 11 of the JP A Agreement and to thereby
commit, jointly and severally, for the repayment of the entire indebtedness to be evidenced by the
Notes to be issued by the SBIAA.
NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS
FOLLOWS:
SECTION I. The Mayor and Common Council ofthe City of San Bernardino
hereby finds and determines that the above set forth recitals are true and correct in all respects.
-2-
RES 96-73
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SECTION 2. The Mayor and Common Council of the City of San Bernardino
hereby approves the issuance of the Notes by the SBIAA in the principal amount not to exceed
$2,950,000. The Mayor and Common Council of the City of San Bernardino acknowledges the
existence of the obligations of the City to be incurred pursuant to Section II of the JP A
Agreement establishing the SBIAA and consents to all terms, conditions and provisions thereof.
SECTION 3. The Mayor and Common Council of the City of San Bernardino
further acknowledges and agrees that in the event the City should fail to pay any amounts when
due as hereinafter provided for a total period of three (3) consecutive months after the date that
the first payment is due and payable, whether or not notice of such payment has been delivered
to the City, the Mayor and the individual Councilperson appointed by the City to the Board of
Directors of the SBIAA shall have their voting rights and the right to participate in meetings of
the SBIAA suspended until such time as all delinquent amounts, plus interest thereon, have been
paid in full by the City in the manner as provided in the JP A Agreement. In addition, the Mayor
and Common Council of the City of San Bernardino further acknowledges and agrees that in the
event the City should fail to pay any amounts when due as hereinafter provided for a total period
of twelve (12) consecutive months after the date that the first payment is due and payable,
whether or not notice of such payment has been delivered to the City, the City shall thereupon
be automatically expelled from the membership of the SBIAA and shall no longer be a Member
of the SBlAA all as further provided in the JP A Agreement. The City agrees to execute and
deliver any documents or releases at the request of the SBIAA as may be reasonably required
under the circumstances to evidence any such expulsion of the City from the membership of the
SBIAA.
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RES 96-73
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SECTION 4. The Mayor and Common Council of the City of San Bernardino
agrees that in the event one or more current Members of the SBlAA should fail to make the
necessary payments as required for the payment and repayment of the principal of and interest
and redemption premium on the Notes, that portion allocable to the City of San Bernardino will
thereupon be increased by a proportionate amount as required to reallocate the delinquent
amounts not paid by a defaulting Member or defaulting Members of the SBIAA. The Mayor and
Common Council of the City of San Bernardino further acknowledges and agrees that in the event
all other Members of the SBlAA should default in their respective obligations to pay all amounts
when due, either pursuant to the terms of the Notes or with respect to the other debts, obligations
and administrative and operating expenses of the SBIAA, the City of San Bernardino will pay
when due the total principal amount of the Notes, plus interest and redemption premium thereon,
and all debts, obligations and administrative and operating expenses incurred by the SBlAA
whether such has become due and payable either at the time of adoption of this Resolution or at
a latter date if payment is required pursuant to the JP A Agreement.
SECTION 5. The Mayor and Common Council of the City of San Bernardino
hereby agrees that the City shall be obligated to pay when due an amount equal to not less than:
(i) $842,857, being an amount equal to 2/7ths of the principal amount of the Notes, and (ii)
$42,143, being an amount equal to 2/7ths of the interest due on the Notes through July 1, 1997,
which amounts are equal to the proportionate share of the principal amount of and interest on the
Notes to be due and payable by the City of San Bernardino to the SBlAA on or before July I,
1997. The Mayor and Common Council of the City of San Bernardino acknowledges and agrees
that in addition to being obligated for the full amount of the proportionate share of the principal
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"..." Q/;-71
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of and interest due and payable on the Notes as of said date, the City of San Bernardino may be
additionally obligated for the payment of an amount which shall be increased to equal one
hundred percent (100%) of the principal of and interest on the Notes in the event all other
Members of the SBIAA should default in their obligations pursuant to Section II of the JP A
Agreement. In such event the City of San Bernardino shall thereupon become solely obligated
for all debt service payments and all administrative and operating expenses of the SBIAA all as
further provided in the JP A Agreement.
SECTION 6. This Resolution shall be effective from and after the date of its
adoption and shall be non-repealable during the term that all or any principal amount of the Notes
remain outstanding together with any refunding or refinancing obligations issued by the SBIAA
to refund or otherwise pay the principal and interest amounts that become due and payable on the
Notes at the maturity date thereof.
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llF.!: 96-73
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO APPROVING A CERTAIN FINANCING BY THE SAN BERNARDINO
INTERNATIONAL AIRPORT AUTHORITY AND ACKNOWLEDGING CERTAIN
OBLIGATIONS INCURRED BY THE CITY OF SAN BERNARDINO PURSUANT TO A
JOINT POWERS AGREEMENT ESTABLISHING THE SAN BERNARDINO
INTERNATIONAL AIRPORT AUTHORITY
SECTION 7. The findings and determinations herein shall be final and
conclusive. This Resolution shall take effect upon the date of its adoption.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
Mayor and Common Council of the City of San Bernardino at a Adjourned Regular meeting
thereof, held on the 25th day of March, 1996, by the following vote, to wit:
Council:
AYES
NAYS
ABSTAIN
ABSENT
x
NEGRETE
CURLIN
ARIAS
OBERHELMAN
DEVLIN
ANDERSON
MILLER
x
--.lL.
~
x
x
x
Harch
~.I'L ~
City lerk
The foregoing resolution is hereby approved this .;?6t'A day of
,1996. ~
~- i~,,-
/c');?~. z ~ (tf{.t6'1...
Mayor of the ity of
San Bernardino
Approved as to
24 form and legal content:
25 /'1 0
26 B:~~~~~. ile~
1/
27 c/
SBEQ\OOOI\DOC\3088
28 3\19\96 1230"
-6-
RES 96-73 '
14-9507-000
Rev. 01/96
SBIM;
BOS-Gen'l.;
Inc. Cities
MINUTES OF THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY, CALIFORNIA
listed
April 16, 1996
FROM:
JERRY EAVES
Supervisor, Fifth District
R"."'CI"!C
'e\./"
!:r r'
SUBJECT: Approve the San Bernardino InternationafAirj\iit A'tlthllllilY4lf1ancing
alternative number two and declare intent to commit the County to adopt at a later date
an appropriate modified form of Guaranty Resolution providing for the guaranty of 117ths
of the not to exceed $4,000,000 principal amount of Notes to be issued by the San
Bernardino International Airport Authority maturing on June 30, 1998.
RECOMMENDATION: Approve the San Bernardino International Airport Authority
financing alternative number two and declare intent to commit the County to adopt at a
later date an appropriate ml'ldified fann of Guarar.ty Resolution providing for the guaranty
of 117ths of the not to exceed $4,000,000 principal amount of Notes to be issued by the
San Bernardino International Airport Authority maturing on June 30, 1998.
BACKGROUND: In May of 1992, the county joined with the cities of Colton, Highland,
Loma Linda, Redlands and San Bernardino to establish the San Bernardino International
Airport Authority (SBIAA). SBIAA is presently operating the former Norton Air Force
Base's aviation facilities.
To fund the ongoing capital and operating budget deficits of SBIM for 1996-97, SBIAA
intends to obtain funds through the issuance of Tax-exempt notes, to be repaid from
lease revenues generated from airport operations. However, to ensure marketability of
the notes at the best terms possible, each member must acknowledge their obligation
with regard to their proportionate share of these notes. Financing alternative number two
is on file with the County Administrative Office.
This action is intended to eventually amend the action taken by the Board of Supervisors
on March 26, 1996, regarding SBIAA financing.
FINANCIAL DATA: The Principal amount of these notes is not to exceed $4,000,000, of
which the county's proportionate share is approximately $571,428 plus $33,333 in
interest. This payment will be due on or before June 30, 1998. SBIM intends to repay
the total note obligation from lease revenues generated from airport operations.
REVIEW BY OTHERS: County Counsel, Craig Jordan, has reviewed the item.
PRESENTER: Jerry Eaves, Supervisor
Page 1 of 2
cc: BOS-Eaves
SBIM
Cities listed
Co. Counsel-Jordan
Auditor
File
Action of the Board of Supervisors
APPROVED BOARD OF SUPERVISORS
COUNTY OF SAN BERNARDINO
Ani MOTKlN
4 5
1w
OARD
Deputy
'0
DATE~;\~PRll16, 1996'
\\':,'
ITEM 60B
RES 96-73 .
SUBJECf: SAN BERNARDINO INTERNATIONAL AIRPORT AUTHORITY FINANCING
PAGE20F2
.DISCUSSION: Supervisor Eaves presents the staff report.
Jady Scott states that under the financial data, the pa)'1llent due date should be 1998, rather than 1996.
Supervisor Eaves states that is correct and that it will be changed.
. Jeff Wright states concern about the amount of money being used to build the Orange Show Road bridge
and feels the Inland Valley Development Agency should reconsider that project. He also asks \\hich
Constitutional Law applies here.
Supervisor Eaves states that the int.:rpreta1ion of the Constitution has nothing to do with this item, but
rather the previous item, and what it says is that the Constitution prevents any public entity from loaning
it's credit to some other entity, \\hether public or private.
On call of the Chainnan, no further testimony is presented.
Supervisor Eaves makes a motion to approve the reconunendation.
4116/96 1w #60b
RR<: Q/i-71
I
MINUTES OF THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY, CALIFORNIA
. \
,.
<<
SBlAAl
BOS-Gen' 1. ;
Cities listed
March 26, 1996
REU' ,
i~ I
FROM:
JERRY EAVES
Supervisor, Fifth District
'G'
,0
-4 ~ R :,~B
SUBJECT: Adopt resolution approving a certain financing by the San Bernardino International
Airport Authority and acknowledging obligations related thereto pursuant to the Joint
Powers Agreement establishing the Authority
RECOMMENDATION: Adopt resolution approving a certain financing by the San Bernardino
International Airport Authority and acknowledging obligations related thereto pursuant to the Joint Powers
Agreement establishing the Authority
BACKG~OUND: In May of 1992, the county joined with the cities of Colton, Highland, Loma
Linda, Highland, Redlands, and San Bernardino to establish the San Bernardino Intemational Airport
Authority (SBIM). SBIM has now received conveyance of the airport portions of the former Norton Air
Force Base, and is presently operating the former base's aviation facilities.
Necessary upgrades to the facilities, including public access improvements, in addition to ongoing
operating costs, require additional funds. Under the JPA, each member has agreed to pay a proportionate
share of these costs.
To fund the ongoing capital improvement budget and the operating deficits of the SBIM for 1996-97,
SBIM intends to obtain funds through issuance of tax-exempt notes, to be repaid from lease revenues
generated from airport operations. However, to ensure marketability of the notes at the best terms
possible, each member must acknowledge their obligation with regard to their proportionate share of these
notes.
FINANCIAL DATA:
The principal amount of the notes is not to exceed $2,810,000, of which the county's proportionate share is
$401,428.57, plus $23,417 in interest This payment will be due on or before June 3D, 1997. SBIM
intends to repay the total note obligation from lease revenues generated from airport operations.
REVIEW BY OTHERS:
County Counsel (Craig Jordan, March 25, 1996) has reviewed and approved the resolution. The city
council of each of the member cities will also adopt this resolution for their city.
*DISCUSSIOIl: Supervisor Eaves presents the staff report.
JE:va
Res to:
Jeff Wright questions the impact on the cities in the area.
cc: BOS-Eaves
SBlAA
Cities listed
CAO-Hlawek
Auditor
Co. Counsel-Jordan
File
Action of the Board of Supervisors
Resolution No. 96-57
lw
,
Ani
4
MQI!QM
5
14-9507-000
Rev. 10/81
";," " _' ',' _' -_~..':LCc-' ',0
DATED: MARCli~G..~W6) c
","",,"; - -'-~
Deputy
ITEM 57
J
RES 96-73
.
RESOLUTION NO. 96-57
RESOLUTION OF THE COUNTY OF SAN BERNARDINO
APPROVING A CERTAIN FINANCING BY THE
SAN BERNARDINO INTERNATIONAL AIRPORT AUTHORITY AND
ACKNOWLEDGING CERTAIN OBLIGATIONS INCURRED BY THE COUNTY OF SAN BERNARDINO
PURSUANT TO A JOINT POWERS AGREEMENT ESTABLISHING THE
SAN BERNARDINO INTERNATIONAL AIRPORT AUTHORITY
On motion by Supervisor Eaves, seconded by Supervisor Riordan, and carried, the Board
adopts the following resolution:
WHEREAS, the County of San Bernardino (the "County") together with the cities of Colton, Loma
Linda, Highland, Redlands and San Bernardino (collectively, the "Members") have adopted a certain Joint
Exercise of Powers Agreement, as amended, dated as of May 11, 1992 (the "JPA Agreement"), creating
the San Bernardino International Airport Authority ("SBIAA"); and
WHEREAS, the SBIAA has received the conveyance of the airport portions of the former Norton
Air Force Base (the "SBD Airport") from the United States Air Force and is presently operating the aviation
facilities thereon as a general aviation airport; and
WHEREAS, the SBIAA requires additional funds at this time for the purposes of (i) undertaking
public improvement projects to gain better vehicular access to the SBD Airport, (ii) upgrading the aviation
facilities located on the SBD Airport by contributing local match funds together with federal grant funds,
and (Hi) paying the operating deficits created by the ongoing operations of the SBD Airport and the
payment of the necessary administrative expenses of the SBIAA; and
WHEREAS, Section 11 of the JPA Agreement requires each of the Members to pay their
proportionate share of the operating deficits and other debt of the SBIAA as may be assessed by the
SBIAA to the respective Members; and
WHEREAS, it has become necessary for the SBIAA to obtain funds through the issuance of tax
exempt notes (the "Notes") to be underwritten and sold in the municipal finance market for the funding of
the ongoing capital improvement budget and the operating deficits of the SBIAA for the 1996-97 fiscal year
of the SBIAA for which the financial commitments of the Members will be required to ensure the
marketability of the Notes at the best terms available; and
WHEREAS, the Members have been requested by the SBIAA to adopt a form of this resolution
pursuant to the provisions of Section 11 of the JPA Agreement and to thereby commit. jointly and
severally, for the repayment of the entire indebtedness to be evidenced by the Notes to be issued by the
SBIAA.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE BOARD OF
SUPERVISORS OF THE COUNTY OF SAN BERNARDINO, AS FOLLOWS:
SECTION 1. The Board of Supervisors of the County of San Bernardino hereby finds and
determines that the above set forth recitals are true and correct in all respects.
SECTION 2. The Board of Supervisors of the County of San Bernardino hereby approves the
issuance of the Notes by the SBIAA in the principal amount not to exceed $2,810,000. The Board of
Supervisors of the County of San Bernardino acknowledges the existence of the obligations of the County
to be incurred pursuant to Section 11 of the JPA Agreement establishing the SBIAA and consents to all
terms, conditions and provisions thereof
3/26/96 1w #57
RES 96-73
SECTION 3. The Board of Supervisors of the County of San Bernardino further acknowledges
and agrees that in the event the County should fail to pay any amounts when due as hereinafter provided
for a total period of three (3) consecutive months after the date that the first payment is due and payable,
whether or not notice of such payment has been delivered to the County, the individual Board member
appointed by the County to the Board of Directors of the SBIM shall have their voting rights and the right
to participate in meetings of the SBIM suspended until such time as all delinquent amounts, plus interest
thereon, have been paid in full by the County in the manner as provided in the JPA Agreement In
addition, the Board of Supervisors of the County of San Bernardino further acknowledges and agrees that
in the event the County should fail to pay any amounts when due as hereinafter provided for a total period
of twelve (12) consecutive months after the date that the first payment is due and payable, whether or not
notice of such payment has been delivered to the County, the County shall thereupon be automatically
expelled from the membership of the SBIM and shall no longer be a Member of the SBIM all as further
provided in the JPA Agreement The County agrees to execute and deliver any documents or releases at
the request of the SBIM as may be reasonably required under the circumstances to evidence any such
expulsion of the County from the membership of the SBIM.
SECTION 4. The Board of Supervisors of the County of San Bernardino agrees that in the
event one or more current Members of the SBIM should fail to make the necessary payments as required
for the payment and repayment of the principal of and interest and redemption premium on the Notes, that
portion allocable to 'he County of San Bernardino will thereupon be increased by a proportionate amount
as required to reali~.::ate the delinquent amounts not paid by a defaulting Member or defaulting Members
of the SBIM. The Board of Supervisors of the County of San Bernardino further acknowledges and
agrees that in the event all other Members of the SBIM should default in their respective obligations to
pay all amounts when due, either pursuant to the terms of the Notes or with respect to the other debts,
obligations and administrative and operating expenses of the SBIM, the County of San Bernardino will
pay when due the total principal amount of the Notes, plus interest and redemption premium thereon, and
all debts, obligations and administrative and operating expenses incurred by the SBIM whether such has
become due and payable either at the time of adoption of this resolution or at a latter date if payment is
required pursuant to the JPA Agreement
SECTION 5. The Board of Supervisors of the County of San Bernardino hereby agrees that the
County shall be obligated to pay when due an amount equal to not less than: (i) $401,428.57 (1/7 of the
principal amount of the Notes), and (ii) $23,417 (1/7 of the interest due on the Notes through June 30,
1997) which amounts are equal to the proportionate share of the principal amount of and interest on the
Notes to be due and payable by the County of San Bernardino to the SBIM on or before June 30, 1997.
The Board of Supervisors of the County of San Bernardino acknowledges and agrees that in addition to
being obligated for the full amount of the proportionate share of the principal of and interest due and
payable on the Notes as of said date, the County of San Bernardino may be additionally obligated for the
payment of an amount which shall be increased to equal one hundred percent (100%) of the principal of
and interest of the Notes in the event all other Members of the SBIM should default in their obligations
pursuant to Section 11 of the JPA Agreement In such event, the County of San Bernardino shall
thereupon become solely obligated for all debt service payments and all administrative and operating
expenses of the SBIM all as further provided in the JPA Agreement
SECTION 6. This resolution shall be effective from and after the date of its adoption and shall
be non repealable during the term that all or any principal amount of the Notes remain outstanding together
with any refunding or refinancing obligations issued by the SBIM to refund or otherwise pay the principal
and interest amounts that become due and payable on the Notes at the maturity date thereof.
This resolution is hereby adopted and approved as of this 26th day of Marc~ 1996, by the
Board of Supervisors of the County of San Bernardino by the following vote, to wit:
3/26/96 1w #57
RES 96-73
PASSED AND ADOPTED by the Board of Supervisors of San Bernardino County, State of California, by
the following vote:
AYES: Mikels, Riordan, Walker, Eaves, Turoci
NOES: None
ABSENT: None
STATE OF CALIFORNIA )
) ss:
SAN BERNARDINO COUNTY )
I, EARLENE SPROAT, Clerk of the Board of Supervisors of San Bernardino County, California, State of
California, hereby certify the foregoing to be a full, true and correct copy of the record of the action taken
by said Board of Supervisors, by vote of the members present, as t me appears in the Official
Minutes of said Board at its meeti~1 of March 26, 1996.
3/26/96 1w #57