HomeMy WebLinkAboutR10-Economic Development Agency
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ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
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REQl1EST FOR COMMISSION/COUNCIL AC'f1OJll
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
DATE: June 11, 1997
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Synnpsis of Previous .Commission/CounciVCommittee Adion(s):
On June 2, 1997, the Mayor and Common Council/Community Development Commission and the Joint Powers
Financing Authority continued this item until June 16, 1997.
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RecommendedMo.tion(s):
(Mayor and Common Council)
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)
FRED WILSON
Acting City Administrator
TIMOT . STEINHAUS
Agency Administrator
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Contact Person(s): T.imoth)'.c.. Steinhaus/Fred Wilson
Phone:
5ll8J
Project Area(s):
NlA
Ward(s):
l'//A
Supporting Data Attached: Staff Report; Resolutions
FUNDING REQUIREMENTS: Amount: $.N/A
Source:
.N/A
Budget Authority: l'/one
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C.ommission/CQIlDcill'lmes.:
Continued to () 7/07/97
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COMMISSION MEETING AGENDA
MEETING DATE: 06/16/1997
Agenda Item Number: RJ 0
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ECONOMIC DEVELOPMENT AGENCY
Request for Commission/Council Action
May 29, 1997
Page 2
Recommended Motion(s) Continued:
(Cnmmunity Dev_elopmentCommission)
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
(JointPowers Financing Authority)
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
TCS:lmp:jpa.cdc
COMMISSION MEETING AGENDA
MEETING DATE: 06/16/1997
Agenda Item Number:
10
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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 Staffhas 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: 06/16/1997
Agenda Item Number: _~D
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Economic Development Agency Staff Report
Public Facilities Lease Revenue Refunding Bonds
May 29, 1997
Page 2
$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 I, 2013 to September I, 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:
1.
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 I, 2013, to September I, 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 I, 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: 06/16/1997
Agenda Item Number: --10.--
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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 ofthe 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: 06/16/1997
Agenda Item Number: ~
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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 I, 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: 06/16/1997
Agenda Item Number: J{)
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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.
FRED WILSON
Acting City Administrator
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COMMISSION MEETING AGENDA
MEETING DATE: 06/16/1997
Agenda Item Number: --\6-
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SANBERNARDINO JOINT POWERS FINANCING AUTIiORITY
PUBUC FAcn.ITJES LEASE REVENUE REFUNDING BONDS
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
9/1198 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
9/1100 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
9/1103 689,572.50 464,850.00 59,820.00 1,213,387.50
9/1104 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
9/1106 693,042.50 460,335.00 61,630.00 1,214,402.50
9/1107 689,017.50 461,155.00 60,355.00 1,214,922.50
9/1108 689,197.50 461,275.00 59,055.00 1,213,662.50
9/1109 688,297.50 465,675.00 62,730.00 1,210,572.50
9/1110 691)87.50 464,065.00 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
9/1113 692,607.50 464,760.00 61,130.00 1,212,630.00
9/1114 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
9/1119 690,400.00 464,185.00 62,285.00 1,211,577.50
9/ln.O 688,225.00 462,540.00 59,360.00 1,215,125.00
9/1/21 689,295.00 464,725.00 61,435.00 1,210,162.50
9/1n.2 693,317.50 460.447.50 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
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
16 Bank, as succeeded as trustee by First Trust of California,
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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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Lease"); and
16 Lease"); and
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26 WHEREAS, the Authority shall pledge payments to be made
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28 security for the Bonds; 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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WHEREAS, the proceeds of the Bonds will be applied to
refund the Prior Bonds, fund certain capital projects, 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
Bonds, the form of which Preliminary Official Statement is
presently on file with the Secretary of the Authority; and
WHEREAS,
the
City
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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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Issuance of the Bonds: Approval of Form
The City hereby authorizes the issuance
pursuant to the Act, the Government Code
of the State of California and the Indenture of Trust (The
UIndenture") on file with the City Clerk, in the principal amount
not to exceed $16,250,000 and the preparation of certain
financing documents related thereto which are necessary to carry
out the issuance of the Bonds.
Section 3.
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of Indenture of Trust.
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of the Bonds under and
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Section 5.
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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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defined in the Indenture) held by the
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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
9 San Bernardino at a
10 thereof, held on the
meeting
day of
11 1997, by the following vote, to wit:
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Council:
NEGRETE
CURLIN
14 ARIAS
OBERHELMAN
15 DEVLIN
ANDERSON
16 MILLER
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ABSTAIN
ABSENT
City Clerk
day of
The foregoing resolution is hereby approved this
, 1997.
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Mayor of the City of
San Bernardino
By:
SBEO\016B\9
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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
12 Authority (the "Authority") for the purpose, among other things,
13 of issuing bonds to be used to make loans to finance certain
14 activities of the City and the Agency; and
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Bank,
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WHEREAS, the Authority and Security Pacific National
as succeeded as trustee by First Trust of California,
National Association, entered into that certain Indenture of
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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
Bondsfl) which were secured by lease payments to be made by the
City; and
WHEREAS, the City has requested that the Authority and
27 the Agency assist in refinancing the City's obligations in
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8 by certain Base Rental Payments to be made by the City to the
9 Agency under that certain Library and Fire Station Lease
10 Agreement dated as of June 1, 1997 (the "Library and Fire Station
11 Lease"); 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
WHEREAS, the Authority proposes to transfer certain
moneys to the City and in consideration therefore, the City shall
transfer the City's Maintenance Facility Yard to the Authority
and the Authority shall then lease the Maintenance Facility Yard
back to the City pursuant to that certain Maintenance Facilities
Lease dated as of June 1, 1997 (the "Maintenance Facilities
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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~ 1 WHEREAS, the Authority shall pledge payments to be made
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under the Loan Agreement and Maintenance Facility Lease as
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security for the Bonds; and
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WHEREAS, the Authority shall assign its right to
receive payments under the Loan Agreement and Maintenance
Facility Lease (the "Payments"), its right to enforce payment of
the Payments and otherwise to enforce its interest and rights
under the Loan Agreement and Maintenance Facility Lease in the
event of a default thereunder by the City, to the Trustee
pursuant to the Indenture to provide for the repayment of the
Bonds; and
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1 Bonds, the form of which Preliminary Official Statement is
2 presently on file with the Secretary of the Authority; and
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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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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
Section 1.
Findings and Determinations.
Pursuant to
Section 2. Issuance of the Bonds: Aooroval of Form of
Indenture: Authorization of and Direction for Preoaration of
Final Form Thereof. The Authority hereby authorizes the
issuance of the Bonds under and pursuant to the Marks-Roos Act
and the Indenture in the principal amount of not to exceed
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1 $16,250,000 and the preparation of certain financing documents
2 related thereto which are necessary to carry out the issuance of
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the Bonds. The Author1ty hereby approves the form of Indenture
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as presently on file with the Secretary of the Authority with
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such changes thereto as may be approved by the Chairman,
Administrator or Director of the Authority and as necessary to
incorporate the principal amount, interest rate, maturity and
redemption dates and such other terms and conditions with respect
to the Bonds when such terms and conditions have been
ascertained. The Authority hereby further authorizes and directs
that the form of Indenture presently on file with the Secretary
be converted into the final form of Indenture, authorizing the
issuance of the Bonds together with such changes or modifications
as deemed necessary or desirable by the Chairman, Administrator
or Director of the Authority, upon the recommendation of Sabo &
Green, a Professional Corporation ("Bond Counsel"). The
Chairman, Vice-Chairman, Administrator, Director or such other
authorized officer of the Authority is hereby authorized and
directed to execute and deliver, and the Secretary or Assistant
Secretary is hereby authorized and directed to attest to, the
final form of the Indenture when the same has been prepared for
and in the name of the Authority, and such execution and delivery
shall be deemed to be conclusive evidence of the approval
26 thereof. The Authority hereby authorizes the delivery and
27 performance of the obligations under the Indenture.
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Section 3.. Aporoval of Final Forms of Loan Aareement.
Maintenance Facility Lease A9reement. A9reement of Transfer and
Grant Deed. The Authority hereby approves the forms of Loan
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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"),
.
.
Section 5. Approval of Final Form of Continuina
Disclosure Aareement. The Authority hereby approves the form of
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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
hereby further authorizes and directs that the form of Continuing
Disclosure Agreement presently on file with the Secretary be
converted into the final form thereof, together with such changes
or modifications as deemed necessary or desirable by the
Chairman, Administrator or Director of the Authority upon the
recommendation of Bond Counsel. The Chairman, Vice-Chairman,
Administrator, Director or such other authorized officer of the
Authority is hereby authorized and directed to execute and
deliver, and the Secretary or Assistant Secretary is hereby
authorized and directed to attest to, the final form of the
Continuing Disclosure Agreement when the same has been prepared
and such execution and delivery shall be deemed to be conclusive
evidence of the approval thereof.
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Section 7. Official Action. The Chairman,
Administrator, Director, Secretary, Bond Counsel and any and all
other officers of the Authority are hereby authorized and
directed, for and in the name and on behalf of the Authority, to
do any and all things and take any and all actions, including
execution and delivery of any and all assignments, certificates,
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The Authority hereby authorizes the payment of all
costs of issuance in connection with the issuance of the Bonds
including all legal fees of Bond Counsel, Underwriter's Counsel,
bond printing and Trustee fees. Bills for all such items shall
be submitted to and approved by the Administrator or Director of
the Authority.
.
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Section 8. Aooroval 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
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27 By:
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
Section 9. Effective Date: Sub;ect to City A~Droval.
This Resolution shall take effect from and after its passage and
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:
Council:
NEGRETE
CURLIN
ARIAS
OBERHELMAN
DEVLIN
ANDERSON
MILLER
KiE.S.
N81:.S.
ABSTAIN
ABSENT
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\0168\DOC\6
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TO:
Fred Wilson, City Administrator
CITY OF SAN BERNARDINO
PUBLIC SERVICES
INTER-OFFICE MEMORANDUM
Entered into Record at J - / /1-
Caun "I/CmyOevCms MtD: CP / / h . r .
end a Item Ih ({ C DC D
~~h,~
City Clerk/COC Secy
City of San Bernardino
FROM:
Jim Howell, Director of Public Servi
DATE: June 16, 1997
SUBJECT: CITY YARD
FUELING STATIONIVEHICLE WASH
COPIFS: Bill Oppenheim, Fleet Manager
Ed Raya, Director of Risk Management
Roger Hardgrave, Director of Public Works/City Engineer
Gene Klatt, Assistant City Engineer
John Murphy, Purchasing Manager
Wayne Harp, Assistant Chief of Police
Larry Pitzer, Fire Chief
Tom Marek, Safety Officer
The City was notified by the County Hazardous Materials Section to cease the City Yard
fueling operation by June, 1997 or until soil contamination caused by leaking
underground storage tanks is mitigated. Initially, it appeared cost effective to contract
for fuel services with the County instead of constructing a new fueling facility. The
County's facility is within City limits, meets the needs of our fleet and, based on initial
discussions with County staff, would have cost five to ten percent more than our current
operation.
Attached, is a proposal from the County. The County more than doubled the prices
discussed earlier. This would result in an annual increase to fuel cost ranging from
$250,000 to $300,000. A major oil company was also contacted and proposed retail prices
(no discount) plus a $.50 per service "transaction fee". This proposal would result in an
annual increase of $259,000 if selected. .
In consideration of these proposals, I recommend the consideration of constructing a new
fueling facility at an estimated cost not to exceed $700,000. It appears that construction
costs could be recouped within three years. Additionally, it would be advantageous to
have our own fueling operation in the event of a disaster/ emergency.
Also attached are the costs, as projected by GTS in the Corporate Yard Study for
construction of the new Fueling/Car Wash Facility; and a Comparison of County Fueling
Contract and Current Fueling Costs.
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CITY YAllD
FUEIlNG STATIONIVEHICLE WASH
Page 2
CITY YARD
CONSTRUCTION OF FUELING/CAR WASH FACn.ITY
Unit
Descri,ption Ouantity !lnk ~ Total
Perimeter Wall 300 LF 83.00 $ 24,900.00
Grading, Paving 37,800 SF 2.75 103,950.00
Utility Relocation 1 LS 51,400.00 51,400.00
Canopy 1 EA 84,000.00 84,000.00
Car Wash Replacement 1 LS 125,000.00 125,000.00
Fuel Controller System 1 LS 30,000.00 30,000.00
Automatic: Entry, Uti( 1 LS 15,000.00 15,000.00
20,000 Gal UST 2 ES 25,000.00 50,000.00
Relocate Propane 1 EA 5,000.00 5,000.00
Electrical 1 LS 20,000.00 20.000.00
Net Construction Cost $509,250.00
General Contractor Profit 0 15% 76,387.00
Contingency 0 10% 58,563.00
Architect's Fee @ 6% 38.652.00
TOTAL PROJECT COST $682,852.00
CITY YARD
FUELING STAnONIVEHICLE WASH
Page 3
Revised 6/16/97
COMPARISON OF ALTERNATE FUELING COSTS