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MAYOR AND COMMON COUNCIL
OF THE
CITY OF SAN BERNARDINO
AGENDA Auqust 15. 1994
STAFF REPORT
TO:
Mayor and Common Council
FROM:
Staff
DATE:
August 9, 1994
RE:
[Not to Exceed] $3,500,000 Community Facilities
District No. 995 of the City of San Bernardino
(Verdemont Area) Special Tax Refunding Bonds
Backqround
On August 1, 1994, the City of San Bernardino (the
"City") ratified certain judicial foreclosure actions filed on
January 14, 1994 and January 24, 1994 bearing San Bernardino
Superior Court Case Nos. SCV09593, SCV09594, SBCI09793 and
SCV09790, authorized the filing of an action for judicial
foreclosure of the delinquent special tax liens associated with
certain undeveloped parcels in the City's Community Facilities
District No. 995 (the "District") and approved a form of Mutual
Release and Settlement Agreement in connection with the District.
There have been certain modifications to the Mutual
Release and Settlement Agreement in order to meet the requests of
all of the parties thereto. The revised Mutual Release and
Settlement Agreement (the "Settlement Agreement") is on file with
the City Clerk.
The Settlement Agreement was modified in large part to
reflect the agreement between the San Bernardino Unified School
District (the "School District"), the City and the Developers of
the District to enter a Mitigation Agreement (the "Mitigation
Agreement") under which prior bond proceeds held on behalf of the
School District shall be released in return for the School
District allowing such funds to be disbursed to the City in order
for the City to redeem a portion of its $7,440,000 Community
Facilities District No. 995 (Verdemont Area) Special Tax Bonds
(the "Prior Bonds"). The Mitigation Agreement further provides
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for the reimbursement of said funds when certain amounts are
received by the City.
On August 1, 1994, the City also approved the issuance
of not to exceed $3,500,000 of special tax bonds (the "Bonds") in
order to refund a portion of the Prior Bonds and approved the
appointment of Bank of America as Trustee. Bank of America
declined to accept such appointment and City consultants have
contacted First Trust of California, N.A., which has agreed to
provide services as Trustee and Escrow Agent upon the approval of
the Mayor and Common Council.
City staff and consultants have determined that the
only feasible method to pay and redeem the Prior Bonds is as
follows: (1) utilize the funds loaned by the School District to
purchase and cancel approximately $1,000,000 of the Prior Bonds;
and (2) deposit with the Escrow Agent for defeasance of the
remaining Prior Bonds to September 1, 1998, with a 2% premium,
(a) $500,000 from amounts disbursed to the City by the School
District, (b) approximately $800,000 from the School District
Subacccount o~ the PriQr Bonds, and (c) approximately $3,000,000
from Bond proceeds.
Recommendation
Staff recommends that the Mayor and Common Council
approve the following resolutions at this time:
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AUTHORIZING THE PURCHASE
OF A ?ORTION OF CERTAIN BONDS ENTITLED COMMUNITY
FACILITIES DISTRICT NO. 995 OF THE CITY OF SAN
BERNARDINO (VERDEMONT AREA) SPECIAL TAX BONDS,
APPROVING THE CANCELLATION OF A PORTION OF SAID
BONDS AND THE DEFEASANCE OF THE REMAINDER,
APPROVING THE FORM OF ESCROW AGREEMENT RELATED
THERETO AND AUTHORIZING AND DIRECTING
PREPARATION, EXECUTION AND DELIVERY OF THE FINAL
FORM THEREOF
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO APPROVING A CERTAIN MUTUAL
RELEASE AND SETTLEMENT AGREEMENT AND A CERTAIN
MITIGATION AGREEMENT IN CONNECTION WITH COMMUNITY
FACILITIES DISTRICT NO. 995
SBEO\0125\DOC\22
8\9\94 215 law
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MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO, CALIFORNIA
AGENDA
August 15, 1994
Item:
RESOLUTION OF THE MAYOR AND COMMON COL~CIL OF THE
CITY OF SAN BERNARDINO APPROVING A CERTAIN MUTUAL
RELEASE AND SETTLEMENT AGREEMENT AND A CERTAIN
MITIGATION AGREEMENT IN CONNECTION WITH COMMUNITY
FACILITIES DISTRICT NO. 995
Action to
be Taken:
Adopt Resolution.
Certified copy of Resolution to be returned to Sabo & Green, A
Professional Corporation.
SBEO/012S!OOC/21
8/8/94 24$ law
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL
OF THE CITY OF SAN BERNARDINO APPROVING A
CERTAIN MUTUAL RELEASE AND SETTLEMENT
AGREEMENT AND A CERTAIN MITIGATION AGREEMENT
IN CONNECTION WITH COMMUNITY FACILITIES
DISTRICT NO. 995
WHEREAS, on August 1, 1994, the City of San Bernardino
(the "City") ratified certain judicial foreclosure actions filed
on January 14, 1994 and January 24, 1994 bearing San Bernardino
Superior Court Case Nos. SCV09593, SCV09594, SBCI09793 and
SCV09790, authorized the filing of an action for jucicial
foreclosure of the delinquent special tax liens associated with
certain undeveloped parcels in the City's Community Facilities
District No. 995 (the "District") and approved a form of Mutual
Release and Settlement Agreement in connection with the District;
and
WHEREAS, there have been certain modifications to the
Mutual Release and Settlement Agreement in order to meet the
requests of all of the parties thereto and said revised Mutual
Release and Settlement Agreement (the "Settlement Agreement"' is
presently on file with the City Clerk; and
WHEREAS, the San Bernardino Unified School District
(the "School District") has agreed to enter a Mitigation
Agreement (the "Mitigation Agreement") (a form of which is
presently on file with the City Clerk), under which funds held on
behalf of the School District shall be released in return for the
School District disbursing said funds to the City in order for
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the City to redeem a portion of its $7,440,000 Special Tax Bonds
(the "Prior Bonds"); and
WHEREAS, the Mitigation Agreement provides for the
reimbursement of said funds when certain amounts are received by
the City; and
WHEREAS, the
Settlement Agreement
interests of the City.
City now desires to enter
and Mitigation Agreement in
into the
the best
~OW, rHEREFORE, THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO, CALIFORNIA, DO HEREBY FIND, RESOLVE,
DETERMINE AND ORDER AS FOLLOWS:
Section 1. The recitals contained herein are true
and correct and are incorporated herein by this reference.
Section 2. The Mayor and Common Council hereby
approve the Mutual Release and Settlement Agreement with the
owners of, and interest holders in undeveloped parcels within the
District in the form as on file with the City Clerk.
Section 3. The Mayor and Common Council hereby
approve the Mitigation Agreement in the form as on file with the
City Clerk.
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Section 4. The Mayor or the City Administ.rator and
the City Clerk of the City are hereby authorized and directed to
execute the Settlement Agreement and the Mitigation Agreement on
behalf of the Clty with any such changes as may be approved by
the Mayor and Counsel for the City.
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO APPROVING A CERTAIN MUTUAL RELEASE AND SETTLEMENT
AGREEMENT AND A CERTAIN MITIGATION AGREEMENT IN CONNECTION WITH
COMMUNITY FACILITIES DIST~ICT NO. 995
Section 5.
This Resolution shall become effective
immediately upon 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
meeting
thereof, held on the
day of
1994, by the following vote, to wit:
AYES:
Council Members
NAYS:
ABSENT:
City Clerk
The foregoing resolution is hereby approved this
day of , 1994.
Mayor of the City of
San Bernardino
Approved as to form and legal content:
JAMES F. PENMAN
City Attorney
By:
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STATE OF CALIFORNIA
COUNTY OF
On before me,
(here insert name and title of the officer). personally appeared
, personally known to me (or proved to
me on the basis of satisfactory evidence) to be the person(s)
whose name (s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies). and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature
(Seal)