HomeMy WebLinkAboutRS1-Economic Development Agency
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ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
REQllEST_FDR.cOMMISSIQJ\/lCOIINcn. ACTION
FROM: TIMOTHY C. STEINHAUS
Agency Administrator
SUBJECT:
SAN BERNARDINO JOINT POWERS
FINANCING AUTHORITY PUBLIC
FACILITIES LEASE REVENUE
REFUNDING BONDS, 1997 SERIES A
FRED WILSON
Acting City Administrator
(g(Q)[?)"L(
DATE: May 29,1997
Synopsis of Previouu:ommissioJ1LCJlundIlCllJnJDlttee~ctillJ1(S);
N/A
Recommended.Motion(s):
(May_orand CllJnJDon.CounciI)
MOTION A: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO, AUTHORIZING CERTAIN LEASE AGREEMENTS, THE FORMS
OF CERTAIN DOCUMENTS RELATED THERETO AND THE TRANSFER OF
CERTAIN PROPERTY TO THE SAN BERNARDINO JOINT POWERS FINANCING
AUTHORITY.
(Motions Continued on Next Page)
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nifi'~N
Acting City Administrator
TIMOTHY C. STEINHAUS
Agency Administrator
Contact Person(s): Iimoth.}'C....Steinhaus/Fr""-.Wilson
Phone:
.5l181____~
Project Area(s):
N/A
Ward(s): _ u NLA__ _ ____._ ..._
Supporting Data Attached: Staff.Report;.Resolutions_
FUNDING REQUIREMENTS: Amount: $..NLA_
Source:
.NlA_nn___
Budget Authority:
N.one....___
Commi~~inn/CODJU':iLN_o.tes.:
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COMMISSION MEETING AGENDA
MEETING DATE: ()(jf02l1997
Continued to
avj;v /91
Agenda Item Number:
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ECONOMIC DEVELOPMENT AGENCY
Request for Commission/Council Action
May 29, 1997
Page 2
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Recommended Motion(s) Continued:
(Community_Development Commission)
MOTION B: RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO AUTHORIZING A CERTAIN LOAN
AGREEMENT AND LIBRARY AND FIRE STATION LEASE
(JllintJ~owenFinancingAllthority-)
MOTION C: RESOLUTION OF THE SAN BERNARDINO JOINT POWERS
FINANCING AUTHORITY AUTHORIZING THE ISSUANCE OF
NOT TO EXCEED $16,250,000 PUBLIC FACILITIES LEASE
REVENUE REFUNDING BONDS 1997 SERIES A, APPROVING
THE FORM OF LEGAL DOCUMENTS RELATED THERETO AND
AUTHORIZING AND DIRECTING PREPARATION, EXECUTION
AND DELIVERY OF THE FINAL FORMS THEREOF
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COMMISSION MEETING AGENDA
MEETING DATE: 06/02/1997
Agenda Item Number: &l
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ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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BACKGROUND AND STRUCTURE
In August 1989, the San Bernardino Joint Powers Financing Authority (the "Authority") issued
on behalf of the City the $10,215,000 Public Facilities Lease Revenue Refunding Bonds (the
"1989 Bonds"). The 1989 Bonds were issued to refund the $3,200,000 Redevelopment Agency
of the City of San Bernardino, California, Public Facilities Lease Revenue Bonds, Issue of 1982,
Series A (the "1982 Bonds"), and the $6,790,000 Redevelopment Agency of the City of San
Bernardino, California, Public Facilities Lease Revenue Bonds, Issue of 1983, Series A (Central
Library) (the "1983 Bonds"). The 1989 Bonds have a final maturity date of September 1,2013.
The annual Debt Service payment on the 1989 Bonds is equal to approximately $890,000 per
year; and the net interest rate is equal to 7.218%.
City Staff has been working with representatives of Miller & Schroeder Financial, Inc. ("Miller
& Schroeder"), to assist the City: (i) in resolving the anticipated budget deficits that are expected
to occur for the 1997-98 fiscal year, (ii) to deal with certain financial concerns brought about by
the recent passage of Proposition 218 in November, 1996, (iii) to obtain additional funds for the
development of the fueling station at the City Corporate Yards, and (iv) to assist in the
refinancing the 1989 Bonds for debt service savings purposes.
The refunding of the 1989 Bonds would achieve a reduction in the annual debt service cost to the
City and would provide a lower interest rate. This refunding of the 1989 Bonds alone would
create debt service savings for the City commencing in the 1997-98 fiscal year and additional
future savings over the life of the proposed 1997 Refunding Bonds.
The 1997 Refunding Bonds would be issued in a principal amount not to exceed $16,250,000
and would also provide approximately $700,000 of additional funds for the construction of the
fuel station improvements to the City Corporate Yards. The annual cost for obtaining these
funds would be approximately $65,000 per year with the costs to be distributed among the
Refuse Fund, the General Fund and the Sewer Fund on the basis of vehicle fleet size. The City
has been notified by the County Hazardous Materials Section to cease the fueling operations in
the City Corporate Yard by June, 1997, or until soil contamination caused by leaking of the
underground storage tanks is mitigated. It initially appeared to be cost effective to contract with
the County for fuel services in lieu on constructing a new fueling facility. Although the County
fueling facility is located within the City limits and would meet the needs of the City fleet
vehicles, the cost based upon initial discussions with County staff would have been 5% to 10%
greater than the cost of the current City operation. The County subsequently submitted a written
proposal wherein the annual increase for the fueling service would have ranged from $250,000 to
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COMMISSION MEETING AGENDA
MEETING DATE: 06/02/1997
Agenda Item Number: M
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Economic Development Agency Staff Report
Public Facilities Lease Revenue Refunding Bonds
May 29, 1997
Page 2
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$300,000 per year. Based upon these figures, it appears as though the City could recoup the
capital cost of the fueling station within three years. City staff has also determined that it would
be advantageous for the City to retain its own fueling facility in the event of a disaster or other
emergency.
Based upon current interest rates, it is expected that the City will be able to reduce its annual debt
service costs on the 1989 Bonds by approximately $45,000 per year due exclusively to the
reduction in interest rates from 1989 to the current market conditions. If the maturity date of the
refunding bonds is extended from September 1,2013 to September 1,2022, the City could
further reduce its annual debt service cost by $110,000 per year through the year 2013 which is
the current maturity date for the 1989 Bonds. The City may additionally include as capitalized
interest the amount necessary to pay the initial interest-only payment which is due and payable
on September I, 1997, for the 1997 Refunding Bonds. By capitalizing interest for the first debt
service payment in September 1997, for the 1997 Refunding Bonds, the issuance of the 1997
Refunding Bonds will thereby reduce the first year debt service cost in 1997-98 by $500,000.
These cost savings figures are summarized below:
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Interest rate savings from the issuance of the 1997 Refunding Bonds - $45,000 per year
2. Annual debt service reduction by extending the maturity of the 1989 Bonds from
September 1, 2013, to September 1,2022, for the 1997 Refunding Bonds - $110,000
through the original maturity date of 20 13 for the 1989 Bonds
3. Funding of the September 1, 1997, debt service payment produces an additional 1997-98
fiscal year savings - $500,000
FINANCING OF REFUSE DEPARTMENT OPERATIONS AT CORPORATE YARD
The Refuse Department of the City presently has an extensive use of the City Corporate Yard for
the storage and maintenance of the Refuse Department vehicles and the storage of trash bins and
other receptacles that are distributed to customers. An appraisal has been obtained which
concludes that the Refuse Department is presently utilizing a percentage of the City Corporate
Yard which has a current appraised value of $5,400,000. The City, in full compliance with the
recently adopted Proposition 218, is able to transfer title for that portion of the City Corporate
Yard that is utilized by the Refuse Department operations to the Joint Powers Financing
Authority in exchange for the payment of the $5,400,000 of the land and improvement value.
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COMMISSION MEETING AGENDA
MEETING DATE: 06/02/1997
Agenda Item Number: l)~ L
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Economic Development Agency Staff Report
Public Facilities Lease Revenue Refunding Bonds
May 29,1997
Page 3
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The City will then lease back that same portion of the City Corporate Yard pursuant to the Lease
Purchase Agreement whereby the primary pledge of revenues and the source of repayment will
be the refuse collection fees obtained through the enterprise fund of the Refuse Department.
AMBAC will additionally require that the City General Fund be obligated to remit any payments
that are not or can not be made at any time in the future. Both AMBAC and the purchasers of the
1997 Refunding Bonds will also require that the $5,400,000 be released to the City in two (2)
installments: $2,700,000 during the 1997-98 fiscal year and the second installment of
$2,700,000, plus interest earnings thereon, during the 1998-99 fiscal year.
It has been proposed that the transaction be structured as follows:
The Authority would issue its Public Facilities Lease Revenue Refunding Bonds, Series 1997A,
and transfer a portion of the proceeds to the City to advance refund the 1989 Bonds. The City
would then lease the Library Building to the Authority and the Agency, which presently holds
title to the Fire Station, will lease the Fire Station to the Authority. The City would then transfer
to the Authority title to that portion of the City Corporate Yard that is presently being used for
the operations of the Refuse Department. The Authority will loan the proceeds of the 1997
Refunding Bonds to the Agency, pursuant to a Loan Agreement. The Loan Agreement will be
secured by Base Rental Payments to be made by the City pursuant to a Library and Fire Station
Lease Agreement between the City and the Agency. The Authority would also lease the City
Corporate Yard to the City. The 1997 Refunding Bonds would be secured by payments made
under the Loan Agreement and payments made under the Lease of the City Corporate Yard.
Finally, the City would be obligated to make payments from the General Fund for the Fire
Station, Library and City portion of the fueling station, and the revenues of the Refuse
Department would be used as the primary source of repayment of the debt service of the Refuse
Department portion of the City Corporate Yard and the fueling station.
AMBAC has previously provided municipal bond insurance on the 1989 Bonds and will issue a
new policy for the continuation of bond insurance on the new bonds in order to obtain a rating of
AAA. AMBAC has agreed to substantially reduce its premium on the refunding bonds from the
typical insurance premium of .65% as was paid on the 1989 Bonds to a .39% premium as
negotiated with AMBAC for the Refunding Bonds.
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COMMISSION MEETING AGENDA
MEETING DATE: 06/02/1997
Agenda Item Number: 'll5 - f
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Economic Development Agency Staff Report
Public Facilities Lease Revenue Refunding Bonds
May 29,1997
Page 4
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PROPOSED ACTIONS
The Council should decide on the following policy matters to assist City Staff in the structuring
of the proposed refinancing and the issuance of the Refunding Bonds. The decisions that need to
be addressed by the Council are listed below, and any motion to approve the accompanying
Resolutions must be qualified to take into account the directions of the Council on the following
structural matters.
1. Issue the Refunding Bonds to achieve an interest rate savings and debt service reductions
of approximately $45,000 per year.
2. Extend the maturity date of the 1989 Bonds from September 1,2013, to the maturity date
of the Refunding Bonds of September I, 2022, for an annual debt service reduction of
$110,000 per year through 2013.
3. Fund the September 1,1997, interest-only payment with the proceeds of the 1997
Refunding Bonds to reduce the payment obligations of the City in the 1997-98 fiscal year
by approximately $500,000.
4.
Fund the $700,000 of construction and installation costs for the fueling station at the City
Corporate Yard.
5. Authorize the transfer of title of the Refuse Department portion of the City Corporate
Yard for a consideration of$5,400,000 to be released to the City in equal installments
during the 1997-98 and the 1998-99 fiscal years with a lease-back to the City and
payments to be made from the enterprise fund of the Refuse Department. Each
installment of $2,700,000 will be released to the City on July 1 for each of the 1997-98
and 1998-99 fiscal years.
It is recommended that the attached resolutions of the Mayor and Common Council, the San
Bernardino Joint Powers Public Finance Authority and the Community Development
Commission be adopted to provide for the issuance of the Authority's Public Facilities Lease
Revenue Bonds, Series 1997 A, for the refinancing of the 1989 Bonds and for various other
public projects subject to the further direction of the Council as outlined in items 1 through 5
above.
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COMMISSION MEETING AGENDA
MEETING DATE: 06/02/1997
Agenda Item Number: i 5' - (
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Economic Development Agency Staff Report
Public Facilities Lease Revenue Refunding Bonds
May 29, 1997
Page 5
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Based on the foregoing, staff recommends adoption of the attached resolutions.
fIdL
FRED WILSON
Acting City Administrator
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COMMISSION MEETING AGENDA
MEETING DATE: 06/02/1997
Agenda Item Number: R s - I
SAN BERNARDINO JQJNT POWERS FINANClNG AUnIORITY
PUBUC FACILITIES LEASE REVENUE REFUNDING BONDS
e ANNUAL DEBT SERVICE
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Refunding $5.4 Million $700,000
Date Portion Portion Portion Combined
3/1/98 249,883.75 . 167,701.25 21,883,75 438,931.~S
9/1/98 439,883.75 297,701.25 36,883.75 773,931.25
9/1/99 692,357.50 465,332.50 58,182.50 1,214,797.50
9/1/00 689,057.50 464,730.00 62,560.00 1,210,272.50
9/1/01 690,037.50 463,570.00 61,680.00 1,214,432.50
9/1/02 690,147.50 461,900.00 60,760.00 1,211,952.50
9/1/03 689,572.50 464,850.00 59,820.00 1,213,387.50
9/1/04 693,292.50 462,170.00 58,860.00 1,213,467.50
9/1105 691,042.50 464,085.00 62,880,00 1,212,152.50
9/1/06 693,042.50 460,335.00 61,630.00 1,214,402.50
9/1/07 689,017.50 461,155.00 60,355.00 1,214,922.50
9/1/08 689,197.50 461,275.00 59,055,00 1,213,662.50
9/1/09 688,297.50 465,675.00 62,730.00 1,210,572.50
9/1110 691,287.50 464.065.00 61.110.00 1,210,602.50
9/1/11 693,030.00 461.802.50 59,475,00 1,213,720.00
9/1/12 688,327.50 463.760.00 57.810,00 1,214,310.00
9/1/13 692.607.50 464,760.00 61,130.00 1,212,630.00
9/1/14 689,895.00 464,522.50 59,117.50 1,212,955.00
9/1/15 691,032.50 463,422.50 62,105.00 1,210,980.00
9/1/16 690,732.50 461.460.00 59,805.00 1,211.705.00
9/1/17 688,995.00 463,635.00 62,505.00 1,214.842.50
9/1/18 690,820.00 464,660,00 59,917.50 1,215.105.00
9/1/19 690,400.00 464,185.00 62,285.00 1,211,577.50
9/1120 688,225.00 462,540.00 59,360.00 1,215,125.00
9/1121 689,295.00 464,725,00 61.435.00 1,210.162.50
9/1122 693,317.50 460,447.50 58,217.50 1,211,982.50
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO, AUTHORIZING CERTAIN LEASE
AGREEMENTS, THE FORMS OF CERTAIN DOCUMENTS RELATED
THERETO AND THE TRANSFER OF CERTAIN PROPERTY TO THE SAN
BERNARDINO JOINT POWERS FINANCING AUTHORITY
WHEREAS, the City of San Bernardino (the "City") and
the Redevelopment Agency of the City of San Bernardino (the
"Agency") have heretofore entered into a Joint Exercise of Powers
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Agreement establishing the San Bernardino Joint Powers Financing
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11 Authority (the "Authority") for the purpose, among other things,
12 of issuing bonds to be used to make loans to finance certain
13 activities of the City and the Agency; and
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WHEREAS, the Authority and Security Pacific National
Bank, as succeeded as trustee by First Trust of California,
National Association, entered into that certain Indenture of
Trust dated as of September 27, 1989, which provided for the
issuance of the San Bernardino Joint Powers Financing Authority
Public Facilities Lease Revenue Bonds, 1989 Series A (the "Prior
Bonds") which were secured by lease payments to be made by the
City; and
WHEREAS, the City has requested that the Authority and
the Agency assist in refinancing the City's obligations in
connection with the Prior Bonds and providing additional capital
for certain other public improvements; and
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1 WHEREAS, in order to carry out the financing, the
2 Authority shall enter into a Loan Agreement with the Agency dated
3 as of June 1, 1997 (the "Loan Agreement") which shall be secured
4 by certain Base Rental Payments to be made by the City to the
5 Agency under that certain Library and Fire Station Lease
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Agreement dated as of June 1, 1997 (the "Library and Fire Station
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WHEREAS, the Authority proposes to transfer certain
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11 moneys to the City and in consideration therefore, the City shall
12 transfer the City's Maintenance Facility Yard to the Authority
Lease"); and
13 and the Authority shall then lease the Maintenance Facility Yard
. 14 back to the City pursuant to that certain Maintenance Facilities
15 Lease dated as of June 1, 1997 (the "Maintenance Facilities
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Lease"); and
WHEREAS, the Authority has determined to issue its
Public Facilities Lease Revenue Refunding Bonds, 1997 Series A,
in the principal amount of not to exceed $16,250,000 (the
"Bonds") pursuant to and secured by the Indenture of Trust dated
as of June 1, 1997 (the "Indenture") and loan the proceeds
thereof to the City; and
WHEREAS, the Authority shall pledge payments to be made
under the Loan Agreement and Maintenance Facility Lease as
security for the Bonds; and
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2 receive payments under the Loan Agreement and Maintenance
3 Facility Lease (the "Payments") , its right to enforce payment of
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WHEREAS, Miller & Schroeder Financial, Inc., as
prospective underwriter of the Bonds (the "Underwriter") has
informed the Authority that it intends to submit an offer to
purchase the Bonds and shall cause to be prepared a Preliminary
Official Statement and an Official Statement relating to such
Bonds, as may be necessary in the sale and marketing of the
Bonds, the form of which Preliminary Official Statement is
presently on file with the Secretary of the Authority; and
WHEREAS,
the
City
has
determined
the
to
approve
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1 under the Grant Deed, and has duly considered such transactions
2 and seeks at this time to approve said transaction and documents
3 in the public interests of the City.
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and determines that the sale of the Property will result in
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12 significant public benefits.
NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO DO HEREBY RESOLVE, DETERMINE AND ORDER AS
FOLLOWS:
Section 1.
Determinations.
The City hereby finds
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1 directed to execute and deliver, and the City Clerk is hereby
2 authorized and directed to attest to, the final forms of the City
3 Documents when the same have been prepared.
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Section 3.
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of Indenture of Trust.
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of the Bonds under and
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Section 4. Aporoval of Final Form of Continuin9
Disclosure A9reement. The City hereby approves the form of
Continuing Disclosure Agreement presently on file with the City
Clerk (the "Continuing Disclosure Agreement") together with any
changes therein or additions thereto as may be approved by the
Mayor when such terms and conditions have been ascertained. The
City hereby further authorizes and directs that the form of
Continuing Disclosure Agreement presently on file with the City
Clerk be converted into the final form thereof, together with
such changes or modifications as deemed necessary or desirable by
the Mayor upon the recommendation of Bond Counsel. The Mayor or
such other authorized officer of the City is hereby authorized
and directed to execute and deliver, and the City Clerk is hereby
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1 authorized and directed to attest to, the final form of the
2 Continuing Disclosure Agreement when the same has been prepared
3 and such execution and delivery shall be deemed to be conclusive
4 evidence of the approval thereof.
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The City hereby authorizes the transfer of certain
reserve fund agreements from the Prior Bond funds to the funds
and accounts established under the Indenture. The Underwriter is
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9 San Bernardino at a
10 thereof, held on the day of
11 1997, by the following vote, to wit:
12 Council: AYES .t:ffiY..S. ABSTAIN ABSENT
13 NEGRETE
CURLIN
. 14 ARIAS
OBERHELMAN
15 DEVLIN
ANDERSON
16 MILLER
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1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO, AUTHORIZING CERTAIN LEASE AGREEMENTS, THE FORMS OF
2 CERTAIN DOCUMENTS RELATED THERETO AND THE TRANSFER OF CERTAIN
3 PROPERTY TO THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY
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Section 6.
Effective Date.
This Resolution shall
6 take effect from and after the date of its passage and adoption.
7 I HEREBY CERTIFY that the foregoing Resolution was duly
8 adopted by the Mayor and Common Council of the City of
meeting
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19 day of
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City Clerk
The foregoing resolution is hereby approved this
, 1997.
Mayor of the City of
San Bernardino
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12 Authority (the "Authority") for the purpose, among other things,
13 of issuing bonds to be used to make loans to finance certain
e 14 activities of the City and the Agency; and
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RESOLUTION NO.
RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING
AUTHORITY AUTHORIZING THE ISSUANCE OF NOT TO EXCEED
$16,250,000 PUBLIC FACILITIES LEASE REVENUE REFUNDING
BONDS 1997 SERIES A, APPROVING THE FORM OF LEGAL
DOCUMENTS RELATED THERETO AND AUTHORIZING AND DIRECTING
PREPARATION, EXECUTION AND DELIVERY OF THE FINAL FORMS
THEREOF
WHEREAS, the City of San Bernardino (the "City") and
9 the Redevelopment Agency of the City of San Bernardino (the
10 "Agency") have heretofore entered into a Joint Exercise of Powers
11 Agreement establishing the San Bernardino Joint Powers Financing
WHEREAS, the Authority and Security Pacific National
Bank, as succeeded as trustee by First Trust of California,
National Association, entered into that certain Indenture of
Trust dated as of September 27, 1989, which provided for the
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26 WHEREAS, the City has requested that the Authority and
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connection with the Prior Bonds and providing additional capital
for certain other public improvements; and
WHEREAS, in order to carry out the financing, the
Authority shall enter into a Loan Agreement with the Agency dated
as of June 1, 1997 (the "Loan Agreement") which shall be secured
by certain Base Rental Payments to be made by the City to the
Agency under that certain Library and Fire Station Lease
Agreement dated as of June 1, 1997 (the "Library and Fire Station
11 Lease"); and
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13 WHEREAS, the Authority proposes to transfer certain
14 moneys to the City and in consideration therefore, the City shall
15 transfer the City's Maintenance Facility Yard to the Authority
16 and the Authority shall then lease the Maintenance Facility Yard
17 back to the City pursuant to that certain Maintenance Facilities
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Lease dated as of June 1, 1997 (the "Maintenance Facilities
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Lease"); and
WHEREAS, the Authority has determined to issue its
Public Facilities Lease Revenue Refunding Bonds, 1997 Series A,
in the principal amount of not to exceed $16,250,000 (the
"Bonds") pursuant to and secured by the Indenture of Trust dated
as of June 1, 1997 (the "Indenture") and loan the proceeds
thereof to the City; and
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receive
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8 Facility Lease (the "Payments"), its right to enforce payment of
9 the Payments and otherwise to enforce its interest and rights
10 under the Loan Agreement and Maintenance Facility Lease in the
11 event of a default thereunder by the City, to the Trustee
12 pursuant to the Indenture to provide for the repayment of the
13 Bonds; and
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WHEREAS, the Authority shall pledge payments to be made
under the Loan Agreement and Maintenance Facility Lease as
security for the Bonds; and
WHEREAS,
payments
the Authority
under the Loan
shall assign its right to
Agreement and Maintenance
WHEREAS, the proceeds of the Bonds will be applied to
refund the Prior Bonds, fund certain capital proj ects, fund
capitalized interest and a reserve fund and pay costs of issuance
of the Bonds; and
WHEREAS, Miller & Schroeder Financial, Inc., as
prospective underwriter of the Bonds (the "Underwriter") has
informed the Authority that it intends to submit an offer to
purchase the Bonds and shall cause to be prepared a Preliminary
Official Statement and an Official Statement relating to such
Bonds, as may be necessary in the sale and marketing of the
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1 Bonds,
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8 the Authority.
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10 NOW, THEREFORE, THE SAN BERNARDINO JOINT POWERS
11 FINANCING AUTHORITY DOES HEREBY RESOLVE, DETERMINE AND ORDER AS
12 FOLLOWS:
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14 Section 1. Findinas and Determinations. Pursuant to
15 Article 4 of the Act (the "Marks-Roos Act"), the Authority hereby
16 finds and determines that the issuance of the Bonds will cause
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Section 2. Issuance of the Bonds: Approval of Form of
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24 Indenture: Authorization of and Direction for Preparation of
25 Final Form Thereof. The Authority hereby authorizes the
26 issuance of the Bonds under and pursuant to the Marks-Roos Act
27 and the Indenture in the principal amount of not to exceed
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the form of which Preliminary Official Statement is
presently on file with the Secretary of the Authority; and
WHEREAS, the Authority has considered the terms of the
transaction as contemplated herein and desires at this time to
approve the terms of said transaction in the public interests of
savings in effective interest rates, bond preparation and bond
underwriting costs and thereby will result in significant public
benefits to its members within the contemplation of Section 6586
of the Marks-Roos Act.
- 4 -
e
$16,250,000 and the preparation of certain financing documents
e
e
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r-
e
e
e
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.
Section 4. Sale of the Bonds. The Authority hereby
approves the sale of the Bonds by negotiated purchase with the
Underwriter, pursuant to that certain Bond Purchase Agreement to
be provided by the Underwriter prior (the "Purchase Agreement"),
and the sale of the Bonds pursuant to the Purchase Agreement is
hereby approved. The Authority hereby further authorizes a form
.
.
Section 5. Approval of Final Form of Continuina
Disclosure Aareement. The Authority hereby approves the form of
- 7 -
.
Continuing Disclosure Agreement presently on file with the
Secretary together with any changes therein or additions thereto
as may be approved by the Chairman, Administrator or Director and
as necessary to incorporate certain terms and conditions when
such terms and conditions have been ascertained. The Authority
.
Section 6. Official Statement. The Authority
hereby approves the form of the Preliminary Official Statement
(the "Preliminary Official Statement") presently on file with the
Secretary and acknowledges that said document is in substantially
.
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e
7
8
9
10
11
12
13
e 14
15
16
17
18
19
20
21
22
23
24
1
of the Preliminary Official Statement as shall be necessary or
2
3
4
5
6
required in connection with the sale of the Bonds to prospective
purchasers thereof. The Authority hereby authorizes and directs
that the Preliminary Official Statement be converted to a final
Official Statement together with such changes or modifications as
deemed desirable or necessary in the sale and marketing of the
Bonds and as approved by the Chairman, Administrator or Director
upon the recommendation of Bond Counsel and the Underwriter. The
Authority hereby authorizes distribution of the Preliminary
Official Statement and the final Official Statement by the
Underwriter when the same have been prepared. The Chairman is
hereby authorized and directed to execute the final form of said
Official Statement in the name and on behalf of the Authority and
to deliver the same to the Underwriter upon execution thereof,
together with the changes or modifications approved by the
Chairman. Execution of said final Official Statement shall be
conclusi ve evidence of approval thereof, including any such
changes and additions.
Section 7. Official Action. The Chairman,
Administrator, Director, Secretary, Bond Counsel and any and all
other officers of the Authority are hereby authorized and
25 directed, for and in the name and on behalf of the Authority, to
26 do any and all things and take any and all actions, including
e 27 execution and delivery of any and all assignments, certificates,
28
- 9 -
.
.
The Authority hereby authorizes the payment of all
costs of issuance in connection with the issuance of the Bonds
.
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.
.
.
1
2
3
4
5
6
7 Bond Counsel
8 Underwriter
Section 8. Approval of Financina Team.
Authority hereby approves the following entities for
respective category of services in connection with
transactions contemplated by this resolution:
The
the
the
Sabo & Green, a Professional Corporation
Miller & Schroeder Financial, Inc.
Hinshaw & Culbertson
First Trust of California, National
Association
- 11 -
.
.
.
1
2
3
4
5
RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING
AUTHORITY AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $16,250,OO~
PUBLIC FACILITIES LEASE REVENUE REFUNDING BONDS 1997 SERIES A,
APPROVING THE FORM OF LEGAL DOCUMENTS RELATED THERETO AND
AUTHORIZING AND DIRECTING PREPARATION, EXECUTION AND DELIVERY OF
THE FINAL FORMS THEREOF
Section 9. Effective Date: Subject to Citv Approval.
6 This Resolution shall take effect from and after its passage and
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27 By:
adoption. This Resolution shall be subject in all respects to
the approval by the City of the execution and delivery of the
Lease Agreement and to the issuance of the Bonds by the
Authority.
I HEREBY CERTIFY that the foregoing Resolution was
duly adopted by the San Bernardino Joint Powers Financing
Authority at a special meeting thereof, held on the
day of
, 1997, by the following vote, to wit:
~
NAYS
ABSTAIN
ABSENT
Council:
NEGRETE
CURLIN
ARIAS
OBERHELMAN
DEVLIN
ANDERSON
MILLER
The foregoing
day of
City Clerk
resolution is hereby approved this
, 1997.
Tom Minor, Chairman
San Bernardino Joint Powers
Financing Authority
content:
Authority
28 SBEO\016B\DOC\6
- 12 -
Summary of Debt Service Annual Costs and Savings to City of San Bernardino
Date
Existing Refunding Savings $5.4M
Debt Service Portion to City Portion
$700,000 Annual
Portion Combined
9/1/97 587,017 0 587,017 0 0
3/1/98 297,637 249,883 47,754 167,701 21,883
FY97-98 884,654 249,883 634,771 167,701 21,883
(following 9/1/98 payment represents a single payment in the 98-99 fiscal year)
9/1/98 597,637 439,883 157,754 297,701 36,883 774,467
(following 9/1/99 to 9/1/22 payments represent payments within a calendar year; e.g., 3/1/99 and 9/1/99))
9/1/99 895,025 692,357 202,668 465,332 58,182 1,215,871
9/1/00 893,265 689,057 204,208 464,730 62,560 1,216,347
9/1/01 894,975 690,037 204,938 463,570 61,680 1,215,287
9/1/02 894,790 690,147 204,643 461,900 60,760 1,212,807
9/1/03 896,905 689,572 207,333 464,850 59,820 1,214,242
9/1/04 896,875 693,292 203,583 . 462,170 58,860 1,214,322
9/1/05 894,700 691,042 203,658 464,085 62,880 1,218,007
9/1/06 895,380 693,042 202,338 460,335 61,630 1,215,007
9/1/07 898,557 689,017 209,540 461,155 60,355 1,210,527
9/1/08 893,875 689,197 204,678 461,275 59,055 1,209,527
9/1/09 896,690 688,297 208,393 465,675 62,730 1,216,702
9/1/10 896,287 691,287 205,000 464,065 61,110 1,216,462
9/1/11 897,667 693,030 204,637 461,802 59,475 1,214,307
9/1/12 895,472 688,327 207,145 463,760 57,810 1,209,897
9/1/13 894,702 692,607 202,095 464,760 61,130 1,218,497
9/1/14 0 689,895 -689,895 464,522 59,117 1,213,534
9/1/15 0 691,032 -691,032 463,422 62,105 1,216,559
9/1/16 0 690,732 -690,732 461,460 59,805 1,211,997
9/1/17 0 688,995 -688,995 463,635 62,505 1,215,135
9/1/18 0 690,820 -690,820 464,660 59,917 1,215,397
9/1/19 0 690,400 -690,400 464,185 62,285 1,216,870
9/1/20 0 688,225 -688,225 462,540 59,360 1,210,125
9/1/21 0 689,295 -689,295 464,725 61,435 1,215,455
9/1/22 0 693,317 -693,317 460,447 58,217 1,211,981
o
439,467
439,467
Entered into Record.t I 1"17
CouncillCmyDevCms Mtg: (, /'l
by .~~ ~
re Agenda Item I< S J
~h.~
City Clerk/COC Secy
City of San Bernardino
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