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07- Development Department
D E V E L O P M E N T D E P A R T M E N T OF THE CITY OF SAN BERNARDINO REQUEST FOR COMMISSION/COUNCIL ACTION From: KENNETH J. HENDERSON Subject: SOUTHEAST INDUSTRIAL PARK Executive Director BOND REFUNDING Date: May 19, 1993 -------------------------------------------------- -- Synopsis of Previous Commission/Council/Committee Action(s)- On February 4, 1993, the Redevelopment Committee recommended approval of refunding the Southeast Industrial Park Bonds, Issues of 1981 and 1985. On April 19, 1993, the Joint Powers Financing Authority reviewed this item and continued it to May 24, 1993. Recommended Motion(s): (Community Development Commission) MOTION A: RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $7,500,000 SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY TAX ALLOCATION REFUNDING BONDS, ISSUE OF 1993 (SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA), APPROVING THE FORM OF LEGAL DOCUMENTS RELATED THERETO AND AUTHORIZING AND DIRECTING PREPARATION, EXECUTION AND DELIVERY OF THE FINAL FORMS THEREOF (Motions Continued to Nest Pag ...) Administrator KENNETH J. BE14PERSON Executive Director ------------------------------------------------------------------------------- Contact Person(s): Ken Henderson/Barbara Lindseth Phone: 5081 Project Area(s): Southeast Industrial Park (SEIP) Ward(s): 1 and 3 Supporting Data Attached: Staff Report. Proposal: Resolutions FUNDING REQUIREMENTS: Amount: $ N/A Source: N/A Budget Authority: N/A ------------------------------------------------------------------------------- Commission/Council Notes: ------------------------------------------------------------------------------- KJH:lmp:1172E COMMISSION MEETING AGENDA Meeting Date: 05/24/1993/ Agenda Item Number: / O O REQUEST FOR COMMISSION/COUNCIL ACTION Southeast Industrial Park Bond Refunding May 19, 1993 Page Number -2- Recommended Motion(s) Continued: (Mayor and Common Council) MOTION B: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO CALIFORNIA, APPROVING THE ISSUANCE OF NOT TO EXCEED $7,500,000 SAN BERNARDINO JOINT POWERS AUTHORITY TAX ALLOCATION REFUNDING BONDS, ISSUE OF 1993 (SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA) AND THE BORROWING BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO OF THE PROCEEDS THEREFROM PURSUANT TO THAT CERTAIN LOAN AGREEMENT (Community Development Commission) MOTION C: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, AUTHORIZING, ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, THE BORROWING OF FUNDS FROM THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY IN A TOTAL AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $7,500,000 TO REFUND CERTAIN OUTSTANDING TAX ALLOCATION BONDS, AUTHORIZING THE FORM OF CERTAIN LEGAL DOCUMENTS RELATED THERETO AND AUTHORIZING AND DIRECTING THE PREPARATION, EXECUTION AND DELIVER OF THE FORMS THEREOF. ------------------------------------------------------------------------------- KJH:lmp:1172E COMMISSION MEETING AGENDA Meeting Date: 05/24/1993 Agenda Item Number: C/ D E V R L 0 P M E P T D E P A R T M E N T OF THE CITY OF SAM BERNARDINO STAFF REPORT SOUTHEAST INDUSTRIAL PARK BOND REFUNDING BACKGROUND At the April 19, 1993 Commission Meeting, the subject agenda item was removed from the consent calendar for further discussions. Concerns voiced by Commission members centered around the following issues: - The need for the bond refunding - Anticipated savings - The cost to the Agency if the bonds were extended - The reason for the increase in the amount of bonds outstanding if the refunding was approved. The information set forth below addresses the issues identified above to assist the Commission in arriving at an informed decision. ANALYSIS The purpose of bringing the refunding issue forward for Commission consideration was the anticipated savings expected to accrue to the Agency. The figures discussed focused upon an approximate $50,000 annual savings if the maturity remained the same and as much as $200,000 a year if the bonds were extended. Since this discussion occurred, we have learned that the bond insurer (AMBAC) will insure the refunded bonds as long as the issuance is on a parity basis and the debt service structure is the same as the 1981 and 1985 issues, producing total level debt service when all outstanding Southeast Industrial Park Tax Allocation Bonds are combined. These conditions eliminates the option of extending the 1981 issue. The Southeast Industrial Park Redevelopment Project Area currently has five tax allocation bond issues outstanding: The Southeast Industrial Park Redevelopment Project Area Tax Allocation Refunding Bonds, Issue of 1981, ("the 1981 Issue"), the Southeast Industrial Park Redevelopment Project Area, Tax Allocation Bonds, Issue of 1985, ("the 1985 Issue"), the Southeast Industrial Park Redevelopment Project Area, Tax Allocation Refunding Bonds, Issue of 1988 ("the 1988 Refunding Issue"), the Tax Allocation Bonds, Issue of 1988 ("the 1988 Issue"), and the San Bernardino Joint Powers Financing Authority, Tax Allocation Bonds, Issue of 1990, Series F ("the 1990 Issue"), We are currently proposing to refund the 1981 Issue and the 1985 Issue to produce annual and present value savings. ------------------------------------------------------------------------------- KJH:1mp:1172E COMMISSION MEETING AGENDA Meeting Date: 05/24/1993 Agenda Item Number: G DEVELOPMENT DEPARTMENT STAFF REPORT SOUTHEAST INDUSTRIAL PARR BOND REFUNDING May 19, 1993 Page Number -2- The 1981 Issue has interest rates from 9.6% to 10.00%, and average annual payments of $624,000 through the year 2006. The 1985 Issue has interest rates from 8.25% to 8.3%, and average annual payments of $185,000 through 2006 and $196,000 through 2015. A refunding of the 1981 Issue and the 1985 Issue into one new refunding issue will reduce the interest rate to between approximately 2.8% and 5.85% and annual payments to approximately $744,000 through 2006 and $174,000 from 2006 through 2015. An increase in the total number of bonds outstanding from $6,275,000 to $7,535,000 is due to the following uses of funds for the refunding: 1. Cost of the escrow to defease the 81 and 85 Issues including a 2 1/2% Redemption Premium of $ 156,875; 2. Underwriter's Discount of 1.35%; 3. Bond Insurance Premium of .94%; and 4. Cost of Issuance including Bond Counsel, Underwriter's Counsel, Trustee, Bond and Official Statement Printing. Funds from the 1981 and 1985 Issues Debt Service Reserve Fund will be transferred to the new refunding bond issue Reserve Fund. With all costs and expenses paid, a refunding produces over $702.000 in net Present value benefit or over 11.19% in savings. The refunding saves approximately $64,000 a year through 2006 and approximately $20,000 a year from 2006 through 2015. Enclosed are the following individual schedules and a summary chart which show the detail of the numbers presented: A - The 1981 Issue original Debt Service Schedule B - The 1985 Issue original Debt Service Schedule C - The 1981 and 1985 Issues combined Debt Service Schedule D - Refunding Issue Sources and Uses E - Refunding Issue Debt Service Schedule F - Refunding Issue Savings Schedule G - Summary Schedules Staff recommends adoption of the attached resolutions. I - KE �J. H DERSON, Executive Director Development epartment -------- -------- ------------------------------------------ KJH:lmp:1172E COMMISSION MEETING AGENDA Meeting Date: 05/24/19`93 U Agenda Item Number: Seidler-Fitzgerald Ptiblic Finance A Dhision of Scidler Amdec Securities Inc.•Nlcmtxr:\c",York Stock Exchange,Inc. May 6, 1993 ��I�� _ -- ULI hAY Mr. Timothy Steinhaus ► 01993 Economic Development Agency Ec of the City of San Bernardino 201 North "Ell Street Third Floor San Bernardino, CA 92401 Re: $7, 500,000 San Bernardino Joint Powers Financing Authority Tax Allocation Refunding Bonds, Issue of 1993 (Southeast Industrial Park Redevelopment Project Area) Dear Mr. Steinhaus: We have been requested to render this opinion as an independent financial consultant to the Economic Development Agency of the City of San Bernardino ("EDA") , with respect to certain aspects of the proposed issuance of the $7, 500, 000 San Bernardino Joint Powers Financing Authority, Tax Allocation Refunding Bonds, Issue of 1993 (Southeast Industrial Park Redevelopment Project Area) (the 111993 Bonds") to refund the previously issued (i) $5, 600, 000 Redevelopment Agency of the City of San Bernardino, Southeast Industrial Park Redevelopment Project Area, Tax Allocation Refunding Bonds, Issue of 1981 (Series A) (the 111981 Bonds") and (ii) the $2, 000, 000 Redevelopment Agency of the City of San Bernardino, Southeast Industrial Park Redevelopment Project Area, Tax Allocation Bonds, Issue of 1985 (the 1985 Bonds are herein collectively referred to as the "Refunded Bonds") . It is customary in the current municipal bond market environment that an underwriter's discount of approximately 1.00% to 1.50% is typical for an insured, Aaa/AAA rated issue. Costs of issuance could equal approximately $200,000 which figure also includes $105, 000 as an insurance premium to be paid to AMBAC for municipal bond insurance on the 1993 Bonds. From our review of the projected costs of issuance and underwriter's discount, it is our opinion that such costs are within those customarily charged. The AMBAC insurance premium as quoted above is larger in amount than current non-TAB issues. However, this is a direct result of the concerns by the credit markets, rating agencies and the municipal bond insurers as to the uncertain economic and budget conditions currently facing real estate values and tax increment revenues within the State of California. 515 South Figueroa Street•Los Angeles,California 90071-3396•(213)624.4232 l/f 0 Mr. Timothy Steinhaus May 6, 1993 Page two It is our understanding that the final maturity dates of 2006 for the 1981 Bonds and 2015 for the 1985 Bonds will not be extended and that the debt service for the 1993 Bonds when consolidated with the other outstanding issuances from the Southeast Industrial Park Redevelopment Project Area will produce a lower debt service payment through the final maturity date of both the 1993 Bonds. We have also reviewed the net present value savings to be achieved by a refunding of the 1981 Bonds and the 1985 Bonds and it is our opinion that the refunding is justifiable from the standpoint of the level of net present value savings. The refunding of the 1981 Bonds and the 1985 Bonds is further warranted because an actual cash flow savings will be realized. The Agency will experience an actual cash savings averaging approximately $61, 500 per year from bond years ending 3/l/93 1993 through 2006 and approximately $21, 400 per year thereafter through the year 2015. Even though the Agency will be. required to issue an additional principal amount of bonds to accomplish the refunding, the interest rate reduction from that currently associated with the 1981 Bonds and the 1985 Bonds will more then offset the increased principal repayment obligation. The issuance of additional bonds is required to fund the escrow deposit necessary to accomplish the establishment of the refunding escrow. This is a direct result of current investment interest rates being less than the stated interest rates to be paid on the 1981 Bonds and the 1985 Bonds. We have also reviewed the proposed transfer of bond proceeds equal to $825, 000 from the existing combined Debt Service Reserve Fund established for the 1981 Bonds and 1985 Bonds to similarly establish a Reserve Fund equal to approximately $748, 000 for the 1993 Bonds. This is a customary transfer of prior bond proceeds held by the trustee, which is typical of virtually all tax-exempt refunding bond structures. Should you require any additional information or have further questions with regard to any of the matters addressed herein, please do not hesitate to contact the undersigned. Sincerely, ., J hn erald Managing erector JCF/pf l!/ 4 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA TA REFUNDING BONDS, ISSUE OF 1981 SERIES A DEBT SERVICE SCHEDULE DATE PRINCIPAL COUPON INTEREST DEBT SERVICE 3/01/1993 - - - - 3/01/1994 180,000.00 9.60000% 440,630.00 620,630.00 3/01/1995 200,000.00 9.70000% 423,350.00 623,350.00 3/01/1996 220,000.00 9.75000% 403,950.00 623,950.00 3/01/1997 240,000.00 10.00000% 382,500.00 622,500.00 3/01/1998 265,000.00 10.00000% 358,500.00 623,500.00 3/01/1999 290,000.00 10.00000% 332,000.00 622,000.00 3/0112000 320,000.00 10.00000% 303,000.00 623,000.00 3/01/2001 350,000.00 10.00000% 271,000.00 621,000.00 3/01/2002 385,000.00. 10.00000% 236,000.00 621,000;00 3/01/2003 425,000.00 10.00000% 197,500.00 622,500.00 3/01/2004 470,000.00 10.00000% 155,000.00 625,000.00 3/01/2005 515,000.00 10.00000% 108,000.00 623,000.00 3/01/2006 565,000.00 10.00000% 56,500.00 621,500.00 TOTAL 4,425,000.00 - 3,667,930.00 8,092,930.00 Miller & Schroeder Financial FILE = SBSE81 Public Finance 4/19/1993 11:47 AM YIELD STATISTICS Accrued Interest from 03/01/1993 to 03/01/1993... - Average Life...................................... 8.297 YEARS Bond Years........................................ 36,715.00 Average C oupon.................................... 9.9902765% Net Interest Cost (NIC)........................... 9.9902765% Bond Yield for Arbitrage Purposes................. 9.9865472% True Interest Cost (TIC).......................... 9.9865472% Effective Interest Cost (EIC)..................... 9.9865472% I _ REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA TA BONDS, ISSUE OF 1985 DEBT SERVICE SCHEDULE DATE PRINCIPAL COUPON INTEREST DEBT SERVICE 3/01/1993 - - - - 3/01/1994 25,000.00 8.25000% 153,420.00 178,420.00 3/01/1995 30,000.00 8.25000% 151,357.50 181,357.50 3/01/1996 35,000.00 8.25000% 148,882.50 183,882.50 `3/01/1997 35,000.00 8.25000% 145,995.00 180,995.00 3/01/1998 40,000.00 8.25000% 143,107.50 183,107.50 3/01/1999 45,000.00 8.25000% 139,807.50 184,807.50 3/01/2000 50,000.00 8.25000% 136,095.00 186,095.00 3/01/2001 50,000.00 8.30000% 131,970.00 181,970.00 3/01/2002 .55,000.00 8.30000% 127,820.00 182,820.D0 3/01/2003 60,000.00 8.30000% 123,255.00 183,255.00 3/01/2004 70,000.00 8.30000% 118,275.00 188,275.00 3/01/2005 75,000.00 8.30000% 112,465.00 187,465.00 3/01/2006 80,000.00 8.30000% 106,240.00 186,240.00 3/01/2007 90,000.00 8.30000% 99,600.00 189,600.00..' 3/01/2008 100,000.00 8.30000% 92,130.00 192,130.00 3/01/2009 110,000.00 8.30000% 83,830.00 193,830.00 3/01/2010 120,000.00 8.30000% 74,700.00 194,700.00 3/01/2011 130,000.00 8.30000% 64,740.00 194,740.00 3/01/2012 140,000.00 8.30000% 53,950.00 193,950.00' 3/01/2013 155,000.00 8.30000% 42,330.00 197,330.00 3/01/2014 170,000.00 8.30000% 29,465.00 199,465.00 3/01/2015 185,000.00 8.30000% 15,355.00 200,355.00 TOTAL 1,850,000.00 - 2,294,790.00 4,144,790.00 Miller 8 Schroeder Financial FILE = SBSE85 Public Finance 4/19/1993 11:48 AM YIELD STATISTICS Accrued Interest from 03/01/1993 to 03/01/1993... - Average Life...................................... 14.949 YEARS Bond Years........................................ 27,655.00 Average Capon.................................... 8.2979208% Net Interest Cost (NIC)........................... 8.2979208% Bond Yield for Arbitrage Purposes................. 8.2969076% True Interest Cost (TIC).......................... 8.2969076% Effective Interest Cost (EIC)..................... 8.2969076% 0 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA ISSUE OF 1981 AND ISSUE OF 1985 DEBT SERVICE SCHEDULE DATE PRINCIPAL COUPON INTEREST DEBT SERVICE 3/01/1993 - - - - 3/01/1994 205,000.00 - 594,050.00 799,050.00 3/01/1995 230,000.00 - 574,707.50 804,707.50 3/01/1996 255,000.00 - 552,832.50 807,832.50 3/0111997 275,000.00 - 528,495.00 803,495.00 3/01/1998 305,000.00 - 501,607.50 806,607.50 3/01/1999 335,000.00 - 471,807.50 806,807.50 3/01/2000 370,000.00 - 439,095.00 809,095.00 3/01/2001 400,000.00 - 402,970.00 802,970.00 3/01/2002 440,000.00 363,820.00 803,820.00 3/01/2003 485,000.00 - 320,755.00 805,755.00 3/01/2004 540,000.00 - 273,275.00 813,275.00 3/01/2005 590,000.00 - 220,465.00 810,465.00 3/01/2006 645,000.00 - 162,740.00 807,740.00 3/01/2007 90,000.00 - 99,600.00 189,600.00 3/01/2008 100,000.00 - 92,130.00 192,130.00 3/01/2009 110,000.00 - 83,830.00 193,830.00 3/01/2010 120,000.00 - 74,700.00 194,700.00 3/01/2011 130,000.00 - 64,740.00 194,740.00 3/01/2012 140,000.00 53,950.00 193,950.00. 3/01/2013 155,000.00 - 42,330.00 197,330.00 3/01/2014 170,000.00 - 29,465.00 199,465.00 3/01/2015 185,000.00 - 15,355.00 200,355.00 TOTAL 6,275,000.00 - 5,962,720.00 12,237,720.00 Miller 8 Schroeder Financial FILE - SBSECOM Public Finance 4/19/1993 11:49 AM RDA OF THE CITY OF SAN BERNARDINO SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA REFUNDING 1981 A AND 1985 TA BONDS ISSUE OF 1993 (NOT LEVEL DEBT SERVICE) SOURCES AND USES Dated 3/01/1993 Delivery 5/01/1993 Par Amount of Bonds............................... $7,535,000.00 Accrued Interest from 03/01/1993 to 05/01/1993... 61,041.67 Transfers tram Prior Issue DSR Funds.............. 825,000.00 Total Sources $8,421,041.67 Total Underwriter's Discount (1.350%)............. $101,722.50 Costs of Issuance................................. 90,000.00 Gross Bond Insurance Premium...................... 105,127.80 Deposit to Debt Service Reserve Fund (DSRF)....... 747,897.50 Deposit to Debt Service Fund...................... 61,041.67 Deposit to Escrow Fund............................ 7,310,000.00 Contingency....................................... 5,252.20 Total Uses $8,421,041.67 Miller $ Schroeder Fi nanciaL FILE = SBSECOMR Public Finance 4/19/1993 12:14 PM RDA OF THE CITY OF SAN BERNARDINO SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA REFUNDING 1981 A AND 1985 TA BONDS ISSUE OF 1993 (NOT LEVEL DEBT SERVICE) DEBT SERVICE SCHEDULE DATE PRINCIPAL COUPON INTEREST DEBT SERVICE 3/01/1994 380,000.00 2.85000% 366,250.00 746,250.00 3/01/1995 390,000.00 3.50000% 355,420.00 745,420.00 3/01/1996 400,000.00 3.80000% 341,770.00 741,770.00 3/01/1997 420,000.00 4.15000% 326,570.00 746,570.00 3/01/1998. 435,000.00 4.35000% 309,140.00 744,140.00 3/01/1999 455,000.00 4.55000% 290,217.50 745,217.50 3/01/2000 475,000.00 4.75000% 269,515.00 744,515.00 3/01/2001 495,000.00 4.90000% 246,952.50 741,952.50 3/01/2002 520,000.00 5.00000% 222,697.50 742,697.50 3/01/2003 550,000.00 5.15000% 196,697.50 746,697.50'. 3/01/2004 575,000.00 5.30000% 168,372.50 743,372.50 3/01/2005 610,000.00 5.45000% 137,897.50 747,897.50 3/01/2006 640,000.00 5.55000% 104,652.50 744,652.50 3/01/2007 105,000.00 5.60000% 69,132.50 174,132.50 3/01/2008 110,000.00 5.65000% 63,252.50 173,252.50 3/01/2009 115,000.00 5.85000% 57,037.50 172,037.50 3/01/2010 125,000.00 5.85000% 50,310.00 175,310.00 3/01/2011 130,000.00 5.85000% 42,997.50 172,997.50 3/01/2012 140,000.00 5.85000% 35,392.50 175,392.50 3/01/2013 145,000.00 5.85000% 27,202.50 172,202.50 3/01/2014 155,000.00 5.85000% 18,720.00 173,720.00 3/01/2015 165,000.00 5.85000% 9,652.50 174,652.50 TOTAL 7,535,000.00 - 3,709,850.00 11,244,850.00 Miller & Schroeder Financial FILE = SBSECOMR Public Finance 4/19/1993 12:14 PM YIELD STATISTICS Accrued Interest from 03/01/1993 to 05/01/1993... 61,041.67 Average Life...................................... 9.322 YEARS Bond Years........................................ 70,245.00 Average Coupon.................................... 5.2813012% Net Interest Cost (NIC)........................... 5.4261122% Bond Yield for Arbitrage Purposes................. 5.4325084% True Interest Cost (TIC).......................... 5.4257616% Effective Interest Cost (ETC)..................... 5.8202318% 0 e RDA OF THE CITY OF SAN BERNARDINO SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA REFUNDING 1981 A AND 1985 TA BONDS ISSUE OF 1993 (NOT LEVEL DEBT SERVICE) DEBT SERVICE COMPARISON FROM 5/01/1993 DATE DEBT SERVICE PRIOR D/S SAVINGS 3/01/1994 746,250.00 799,050.00 52,800.00 3/01/1995 745,420.00 804,707.50 59,287.50 3/01/1996 741,770.00 807,832.50 66,062.50 3/01/1997 746,570.00 803,495.00 56,925.00 3/01/1998 744,140.00 806,607.50 62,467.50 3/01/1999 745,217.50 806,807.50 61,590.00 3/01/2000 744,515.00 809,095.00 64,580.00 3/01/2001 741,952.50 802,970.00 61,017.50 3/01/2002 742,697.50 803,820.00 61,122.50 3/01/2003. 746,697.50 805,755.00 59,057.50 3/01/2004 743,372.50 813,275.00 69,902.50 3/01/2005 747,897.50 810,465.00 62,567.50 3/01/2006 744,652.50 807,740.00 63,087.50 3/01/2007 174,132.50 189,600.00 15,467.50 3101/2008 173,252.50 192,130.00 18,877.50 3/01/2009 172,037.50 193,830.00 21,792.50 3/01/2010 175,310.00 194,700.00 19,390.00 3/01/2011 172,997.50 194,740.00 21,742.50 3/01/2012 175,392.50 193,950.00 18,557.50 3/01/2013. 172,202.50 197,330.00 25,127.50 3/01/2014 173,720.00 199,465.00 25,745.00 3/01/2015 174,652.50 200,355.00 25,702.50 TOTAL 11,244,850.00 12,237,720.00 992,870.00 Miller 8 Schroeder Financial FILE = SBSECOMR Public Finance 4/19/1993 12:14 PM GROSS PRESENT VALUE DEBT SERVICE SAVINGS $641,199.01 OtherBenefits.................................... - Deposit to Debt Service Fund...................... 61,041.67 Amrouit released from Prior Issue DSR Funds........ - Other Costs....................................... - CashContribution................................. - Transfers from Prior Issue Debt Service Fund...... - NET PRESENT VALUE BENEFIT $702,240.68 Savings as a % of refunded bond principal aaiou t.. 39:i5Bf8551t A © mNA • WWWW WW1 WW1 WW1 WWWWWW WWWW m ' 11111111111111111111111 : i z�< ° •O OOVPWswN+O O�VPNPU : n�� p � MPWN+O >�m • 9 D O ti f � • A C A • U U P P 1wN NNN NN+ • 2 K yLf r �y P+VNpMN•pPPNOp • O T9 M • U UO N NO O O NO 000 ��' 9 D O N 0 0 0 0 00000..0. 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NN,.Z.i Z!2 S;;%W P VR+ P P V N ' v •' Z N< O D +m� HIV+UVW +p�pP mO pM•.p +O M.Mp pp•O pC,mNp • Nr O � WHppWO�LO OI OIpWmWmOOmNWmO ' N • N•OONf P•O PfAPNU•ONPO N'OAdM � ao � i� qq V'O W'OVm+vMy • 00 • N • Omt�I1RA +OP ONNW OA WMN+l W6p • yX ..pp:•ow �{mN�foo{f{��poJ�pA R•o yo mw v'�yYi � O NW�NWNVp+NPmNOIPPiP+ • A • NVON y� p O • VVVPVVmV P•O+PWPIO IfiI W9&=9 °w � �'w d•7i:1�v�mi��N S's:�o`�M'�w�°w� : " 1 2 SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY 3 GEN 4 5 April 19, 1993 6 Item: RESOLUTION OF THE SAN BERNARDINO JOINT POWERS 7 FINANCING AUTHORITY AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $7,500, 000 SAN BERNARDINO JOINT 8 POWERS FINANCING AUTHORITY TAX ALLOCATION REFUNDING BONDS, ISSUE OF 1993 (SOUTHEAST 9 INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA) , APPROVING THE FORM OF LEGAL DOCUMENTS RELATED 10 THERETO AND AUTHORIZING AND DIRECTING PREPARATION, EXECUTION AND DELIVERY OF THE FINAL 11 FORMS THEREOF 12 13 Action to be Taken: Adopt Resolution. 14 15 Certified copy of Resolution to be returned to Sabo & Green, A 16 Professional Corporation. 17 18 19 20 21 22 23 24 25 SBEOro1171DOCn 26 u13M 930 27 28 1 RESOLUTION NO. 2 RESOLUTION OF THE SAN BERNARDINO JOINT POWERS 3 FINANCING AUTHORITY AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $7, 500, 000 SAN BERNARDINO JOINT 4 POWERS FINANCING AUTHORITY TAX ALLOCATION REFUNDING BONDS, ISSUE OF 1993 (SOUTHEAST 5 INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA) , APPROVING THE FORM OF LEGAL DOCUMENTS RELATED 6 THERETO AND AUTHORIZING AND DIRECTING PREPARATION, EXECUTION AND DELIVERY OF THE FINAL 7 FORMS THEREOF 8 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 of issuing its bonds 13 to be used to make loans to any of its members to finance public 14 capital improvements; and 15 16 WHEREAS, the Agency has previously issued its 17 $5, 600, 000 Redevelopment Agency of the City of San Bernardino, 18 Southeast Industrial Park Redevelopment Project Area, Tax 19 Allocation Refunding Bonds, Issue of 1981 (Series A) (the 111981 20 Bonds") and its $2, 000, 000 Redevelopment Agency of the City of 21 San Bernardino, Southeast Industrial Park Redevelopment Project 22 Area, Tax Allocation Bonds, Issue of 1985 (the 111985 Bonds") ; and 23 24 WHEREAS, the Agency desires to borrow money for the 25 purpose of refunding the 1981 Bonds and 1985 Bonds; and 26 27 28 - 1 - I WHEREAS, the Authority proposes at this time to issue 2 its San Bernardino Joint Powers Financing Authority Tax 3 Allocation Refunding Bonds, Issue of 1993 (Southeast Industrial 4 Park Redevelopment Project Area) (the "Bonds") pursuant to the 5 Marks-Roos Local Bond Pooling Act of 1985, codified at 6 Section 6584, gt sea, , of the California Government Code (the 7 "Marks-Roos Act") , and pursuant to a certain Indenture of Trust 8 to be dated as of March 1, 1993 (the "Indenture") , by and between 9 the Authority and Bank of America National Trust and Savings 10 Association, as trustee (the "Trustee") , a form of which is it presently on file with the Secretary of the Authority; and 12 13 WHEREAS, the proceeds of the Bonds will be loaned to 14 the Agency pursuant to and in accordance with a certain Loan 15 Agreement which shall be dated as of March 1, 1993 (the "Loan 16 Agreement") , by and between the Authority, the Agency and the 17 Trustee, a form of which is presently on file with the Secretary 18 of the Authority; and 19 20 WHEREAS, the Authority proposes to secure the Bonds 21 with a pledge of revenues and an assignment of its rights under 22 the Loan Agreement as further provided in the Loan Agreement; and 23 24 WHEREAS, the Agency has previously issued its 25 $12,215,000 Southeast Industrial Park Redevelopment Project Area, 26 Tax Allocation Refunding Bonds, Issue of 1988 (the 11$12,215, 000 27 Issue of 198811) ; and 28 2 - Grn 1 WHEREAS, the Agency has previously issued its 2 $1,750,000 Southeast Industrial Park Redevelopment Project Area, 3 Tax Allocation Bonds, Issue of 1988 (the "$1,750,000 Issue of 4 1988") ; and 5 6 WHEREAS, the Authority has previously issued its 7 $5,700, 000 Tax Allocation Bonds, 1990 Series F (Southeast 8 Industrial Park Redevelopment Project) (the "$5,700, 000 Issue of 9 1990") ; and 10 11 WHEREAS, the Bonds shall be on parity with the 12 $12, 215,000 Issue of 1988, the $1, 750, 000 Issue of 1988 and the 13 $5,700, 000 Issue of 1990; and 14 15 WHEREAS, Miller & Schroeder Financial, Inc. , as 16 prospective underwriter of the Bonds (the "Underwriter") has 17 informed the Authority that it intends to submit an offer to 18 purchase the Bonds and shall cause to be prepared a Preliminary 19 Official Statement and an Official Statement relating to such 20 Bonds, as may be necessary in the sale and marketing of the 21 Bonds, a form of which is presently on file with the Secretary of 22 the Authority; and 23 24 WHEREAS, the Board has duly considered such transaction 25 and desires at this time to approve said transaction in the 26 public interests of the Authority; 27 28 3 - 1 NOW, THEREFORE, THE SAN BERNARDINO JOINT POWERS 2 FINANCING AUTHORITY DOES HEREBY RESOLVE, DETERMINE AND ORDER AS 3 FOLLOWS: 4 5 Section 1. Findings and D t2rminations. Pursuant to 6 the Marks-Roos Act, the Board hereby finds and determines that 7 the issuance of the Bonds will result in savings in effective 8 interest rates, bond preparation, bond underwriting and/or bond 9 issuance costs and thereby will result in significant public 10 benefits to its members within the contemplation of Section 6586 11 of the Marks-Roos Act. 12 13 Section 2. Issuance of the Bonds: Annroyal of Form of 14 Indenture, Authorization for the Preparation of Final Forms 15 Thereof. The Board hereby authorizes the issuance of the Bonds 16 under and pursuant to the Marks-Roos Act and the Indenture in the 17 principal amount of not to exceed $7,500, 000 and the preparation 18 of certain financing documents related thereto which are 19 necessary to carry out the issuance of the Bonds and the loan of 20 proceeds therefrom to the Agency. The Board hereby approves the 21 form of Indenture as presently on file with the Secretary of the 22 Authority with such changes thereto as may be approved by the 23 Chairman of the Authority and as necessary to incorporate the 24 principal amount, interest rate, maturity and redemption dates 25 and such other terms and conditions with respect to the Bonds 26 when such terms and conditions have been ascertained. The Board 27 hereby further authorizes and directs that the form of Indenture 28 presently on file with the Secretary be converted into the final 4 - !` V/ I form of Indenture, authorizing the issuance of the Bonds together 2 with such changes or modifications as deemed necessary or 3 desirable by the Chairman of the Authority upon the 4 recommendation of Bond Counsel or as requested by any municipal 5 bond rating agency or municipal bond insurance company. The 6 Chairman, Vice-Chairman or such other authorized officer of the 7 Authority is hereby authorized and directed to execute and 8 deliver, and the Secretary or Assistant Secretary is hereby 9 authorized and directed to attest to, the final form of Indenture to when the same has been prepared for and in the name of the 11 Authority, and such execution and delivery shall be deemed to be 12 conclusive evidence of the approval thereof. The Board hereby 13 authorizes the delivery and performance of the Indenture. 14 15 Section 3. ADDrgyal of Final Form of Loan Agreement. 16 The Board hereby approves the form of Loan Agreement presently on 17 file with the Secretary together with any changes therein or 18 additions thereto as may be approved by the Chairman and as 19 necessary to incorporate the principal amount, interest rate, 20 maturity, prepayment dates and such other terms and conditions 21 when such terms and conditions have been ascertained. The Board 22 hereby further authorizes and directs that the form of Loan 23 Agreement presently on file with the Secretary be converted into 24 the final form of Loan Agreement, together with such changes or 25 modifications as deemed necessary or desirable by the Chairman of 26 the Authority upon the recommendation of Bond Counsel or as may 27 be requested by any municipal bond rating agency or municipal 28 bond insurance company. The Chairman, Vice-Chairman or such 5 - lid I other authorized officer of the Authority is hereby authorized 2 and directed to execute and deliver, and the Secretary or 3 Assistant Secretary is hereby authorized and directed to attest 4 to, the final form of the Loan Agreement when the same has been 5 prepared and such execution and delivery shall be deemed to be 6 conclusive evidence of the approval thereof. The Board hereby 7 authorizes the delivery and performance of the Loan Agreement. 8 9 Section 4 . ale of the Bonds. The Board hereby 10 approves the sale of the Bonds by negotiated purchase with the 11 Underwriter, pursuant to that certain Bond Purchase Agreement to 12 be prepared and as shall be provided by the Underwriter prior to 13 the time of purchase of the Bonds (the "Purchase Agreement") , and 14 the sale of the Bonds pursuant to the Purchase Agreement is 15 hereby approved. The Board hereby further authorizes a form of 16 Purchase Agreement as presently on file with the Secretary, 17 together with any changes therein or additions thereto approved 18 by the Chairman or an authorized representative of the Chairman, 19 and as necessary to incorporate the principal amount, the 20 interest rate, the purchase price and such other terms and 21 conditions when such terms and conditions have been ascertained. 22 The Board hereby authorizes and directs the Underwriter to cause 23 the preparation of the final Purchase Agreement of which such 24 terms are a part, and the Chairman, the Vice-Chairman or such 25 other authorized officer of the Authority is hereby authorized 26 and directed to evidence the Authority's acceptance of the offer 27 made by the Purchase Agreement by executing and delivering the 28 Purchase Agreement in said form as on file with such changes 6 Id 4 1 therein as the officer or the officers executing the same may 2 approve, such approval to be conclusively evidenced by the 3 execution and delivery thereof. 4 5 Section 5. Official Statement. The Board hereby 6 approves the form of the Preliminary Official Statement presently 7 on file with the Secretary. The Board further authorizes the 8 preparation and distribution of a Preliminary Official Statement 9 as shall be necessary or required in connection with the sale of 10 the Bonds to prospective purchasers thereof. The Board hereby it authorizes and directs that the Preliminary official Statement be 12 converted to a final Official Statement together with such 13 changes or modifications as deemed desirable or necessary in the 14 sale and marketing of the Bonds and as approved by the Chairman, 15 upon the recommendation of Bond Counsel and the Underwriter. The 16 Board hereby authorizes distribution of the Preliminary Official 17 Statement and the final official Statement by the Underwriter 18 when the same have been prepared. The Chairman is hereby ig authorized and directed to execute the final form of said 20 Official Statement in the name and on behalf of the Authority and 21 to deliver the same to the Underwriter upon execution thereof, 22 together with the changes or modifications approved by the 23 Chairman. Execution of said final official Statement shall be 24 conclusive evidence of approval thereof, including any such .fir changes and additions. 26 27 Section 6. Official Action. The Chairman, the 28 Secretary, the Authority Counsel and any and all other officers 7 �n 1 of the Authority are hereby authorized and directed, for and in 2 the name and on behalf of the Authority, to do any and all things 3 and take any and all actions, including execution and delivery of 4 any and all assignments, certificates, requisitions, agreements, 5 notices, consents, instruments of conveyance, warrants and other 6 documents, which they, or any of them, may deem necessary or 7 advisable in order to consummate the lawful issuance and sale of 8 the Bonds as described herein, including, but not limited to, the 9 submission of any and all documents to any municipal bond rating 10 agency and any municipal bond insurance companies and the ii distribution of the Preliminary Official Statement to any 12 prospective purchasers when the same shall become available for 13 distribution. Whenever in this Resolution any officer of the 14 Authority is authorized to execute or countersign any document or 15 take any action, such execution, countersigning or action may be 16 taken on behalf of such officer by any person designated by such 17 officer to act on his or her behalf in the case such officer 18 shall be absent or unavailable. The Board hereby appoints its 19 Chairman as agent of the Authority for purposes of executing any 20 and all documents and instruments which any officer of the 21 Authority is authorized to execute hereunder. 22 23 The Board hereby acknowledges that, in connection with 24 the authorization of the issuance of the Bonds hereunder and 25 under the Indenture, a form of which is presently on file with 26 the Secretary of the Authority, the Underwriter has submitted the 27 proposed bond transaction to certain municipal bond insurance 28 companies for consideration in connection with the issuance of - 8 - 0 1 municipal bond insurance policies insuring payment of the 2 principal of and interest on the Bonds and to certain municipal 3 bond rating agencies for consideration in connection with the 4 rating of the Bonds. 5 6 The Board hereby authorizes the payment of all costs of 7 issuance in connection with the issuance of the Bonds including 8 all legal fees of Bond Counsel, special tax counsel, bond 9 printing, Trustee fees, and any rating agency fees and bond 10 insurance premiums. Bills for all such items shall be submitted 11 to and approved by the Executive Director of the Agency. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 9 fn I AUTHORIZING FTHE ISSUANCE OF O NOTN TOO E CEEDN $7, 500,000 AUTHORITY { 2 BERNARDINO JOINT POWERS FINANCING AUTHORITY TAX ALLOCATION REFUNDING BONDS, ISSUE OF 1993 (SOUTHEAST INDUSTRIAL PARK 3 REDEVELOPMENT PROJECT) , APPROVING THE FORM OF LEGAL DOCUMENTS RELATED THERETO AND AUTHORIZING AND DIRECTING PREPARATION, 4 EXECUTION AND DELIVERY OF THE FINAL FORMS THEREOF 5 Section 7. Effective Date • SubieC* to AcfengY--Approval. 6 This Resolution shall take effect from and after its Passage and 7 adoption. This Resolution shall be subject in all respects to 8 the approval by the Agency of the execution and delivery of the 9 Loan Agreement and to the issuance of the Bonds by the Authority. 10 I HEREBY CERTIFY that the foregoing Resolution was duly 11 adopted by the San Bernardino Joint Powers Financing Authority at 12 a special meeting thereof, held on the day of 13 1993, by the following vote, to wit: , 14 AYES: Members I � 15 16 NAYS: 17 ABSENT: 18 19 Secretary 20 The foregoing resolution is hereby approved this 21 day of , 1993. 22 W.R. Holcomb, Chairman 23 San Bernardino Joint Powers 24 Financing Authority Approved as to form and legal content: 25 26 By' eucnorlty"Counsel 27 28 - 10 n O 1 STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss 2 CITY OF SAN BERNARDINO ) 3 1 Secretary of the San Bernardino Joint Powers F nancing Authority, DO HEREBY 4 CERTIFY that the foregoing and attached copy of San Bernardino Joint Powers Financing Authority Resolution No. is a 5 full, true and correct copy of that now on file in this office. 6 IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the San Bernardino Joint Powers 7 Financing Authority this day of 1993. 8 9 10 Secretary 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 j _. o 1 2 MAYOR AND COMMON COUNCIL OF THE 3 CITY OF SAN BERNARDINO, CALIFORNIA 4 AGENDA 5 April 19, 1993 6 Item: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE 7 CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE 8 ISSUANCE OF NOT TO EXCEED $7, 500, 000 SAN BERNARDINO JOINT POWERS AUTHORITY TAX 9 ALLOCATION REFUNDING BONDS, ISSUE OF 1993 (SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT 10 AREA) AND THE BORROWING BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO OF THE I1 PROCEEDS THEREFROM PURSUANT TO THAT CERTAIN LOAN AGREEMENT 12 Action to 13 be Taken: Adopt Resolution. 14 15 Certified copy of Resolution to be returned to Sabo & Green, A 16 Professional Corporation. 17 18 19 20 21 22 23 24 25 sBflomin/Doem 411393 M 26 27 28 1 1 RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL 3 OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE ISSUANCE OF NOT TO EXCEED 4 $7,500,000 SAN BERNARDINO JOINT POWERS AUTHORITY TAX ALLOCATION REFUNDING BONDS, 5 ISSUE OF 1993 (SOUTHEAST INDUSTRIAL PARR REDEVELOPMENT PROJECT AREA) AND THE s BORROWING BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO OF THE PROCEEDS 7 THEREFROM PURSUANT TO THAT CERTAIN LOAN AGREEMENT 8 9 WHEREAS, the Redevelopment Agency of the City of San 10 Bernardino (the "Agency") is a redevelopment agency (a public 11 body, corporate and politic) duly created and existing pursuant 12 to the Community Redevelopment Law (Part 1 of Division 24, 13 commencing with Section 33000) of the Health and Safety Code of 14 the State of California (the "Community Redevelopment Law") ; and 15 16 WHEREAS, the City of San Bernardino (the "City") and 17 the Agency have heretofore entered into a Joint Exercise of 18 Powers Agreement establishing the San Bernardino Joint Powers 19 Authority (the "Authority") for the purpose of issuing its bonds 20 to be used to make loans to any of its members to finance public 21 capital improvements; and 22 23 WHEREAS, the Agency has previously issued its 24 $5,600,000 Redevelopment Agency of the City of San Bernardino, 25 Southeast Industrial Park Redevelopment Project Area, Tax 26 Allocation Refunding Bonds, Issue of 1981 (Series A) (the "1981 27 Bonds") and its $2, 000, 000 Redevelopment Agency of the City of 28 - 1 - I San Bernardino, Southeast Industrial Park Redevelopment Project 2 Area, Tax Allocation Bonds, Issue of 1985 (the "1985 Bonds") ; and 3 4 WHEREAS, the Agency desires to borrow money for the 5 purpose of refunding the 1981 Bonds and 1985 Bonds; and 6 7 WHEREAS, the Authority proposes at this time to issue 8 its San Bernardino Joint Powers Authority Tax Allocation 9 Refunding Bonds, Issue of 1993 (Southeast Industrial Park 10 Redevelopment Project Area) (the "Bonds") for the purpose of 11 providing funds to make a certain loan (the "Loan") to the Agency 12 in a total principal amount not to exceed $7,500, 000 to refund 13 the 1981 Bonds and 1985 Bonds; and 14 15 WHEREAS, the Loan will be made by the Authority to the 16 Agency pursuant to that certain Loan Agreement which shall be 17 dated as of March 1, 1993 (the "Loan Agreement") , by and among 18 the Agency, the Authority and Bank of America, National Trust and 19 Savings Association, as trustee (the "Trustee") , a form of which 20 is presently on file with the Secretary of the Agency; and 21 22 WHEREAS, pursuant to the Community Redevelopment Law, 23 the Agency has the power and authority to borrow moneys for the 24 purpose of funding redevelopment activities or refunding prior 25 obligations of the Agency incurred therefor; and 26 27 28 - 2 - 0 4 1 WHEREAS, the Agency has previously issued its 2 $12,215,000 Southeast Industrial Park Redevelopment Project Area, 3 Tax Allocation Refunding Bonds, Issue of 1988 (the "$12,215, 000 4 Issue of 1988") ; and 5 6 WHEREAS, the Agency has previously issued its 7 $1,750,000 Southeast Industrial Park Redevelopment Project Area, 8 Tax Allocation Bonds, Issue of 1988 (the "$1,750, 000 Issue of 9 1988") ; and 10 11 WHEREAS, the Authority has previously issued its 12 $5,700,000 Tax Allocation Bonds, 1990 Series F (Southeast 13 Industrial Park Redevelopment Project) (the "$5,700, 000 Issue of 14 1990") ; and 15 16 WHEREAS, the Bonds shall be on parity with the $12,215,000 17 Issue of 1988, the $1,750,000 Issue of 1988 and the $5,700,000 18 Issue of 1990; and 19 20 WHEREAS, the Mayor and Common Council have duly 21 considered such transaction and documentation and desire at this 22 time to approve said transaction and documentation in the public 23 interests of the City; 24 25 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON 26 COUNCIL OF THE CITY OF SAN BERNARDINO, AS FOLLOWS: 27 28 3 - 1 SECTION 1. ADDroVal of the Authority Bonds.. The 2 Mayor and Common Council hereby approve the issuance by the 3 Authority of its Bonds in a total principal amount of not to 4 exceed $7,500, 000 for the purpose of providing funds to make a 5 certain loan (the "Loan") to the Agency in a total principal 6 amount of not to exceed $7,500, 000 to refund the 1981 Bonds and 7 1985 Bonds. The Mayor and Common Council hereby further approve 8 the Loan to the Agency and the borrowing of funds by the Agency 9 for the purpose of refunding the 1981 Bonds and 1985 Bonds, 10 pursuant to the terms of the Loan Agreement to be entered into by 11 the Agency. 12 13 SECTION 2. Official Actions. The Mayor and Common 14 Council, the City Clerk, and any and all other officers of the 1 15 City are hereby authorized and directed, for and in the name and 16 on behalf of the City, to do any and all things and to take any 17 and all actions, including execution and delivery of any and all 18 assignments, certificates, requisitions, agreements, notices, 19 consents, Warrants and other documents which they, or any of 20 them, may deem necessary or advisable in connection with the 21 execution and delivery of the Bonds and the borrowing by the 22 Agency of the proceeds derived therefrom pursuant to the Loan 23 Agreement and any related closing documents, as required, and the 24 consummation of the transaction described herein and therein. 25 26 27 28 - 4 - 0 r 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERN ARDINO, CALIFORNIA, APPROVING THE ISSUANCE OF NOT TO EXCEED 2 $7,500,000 SAN BERNARDINO JOINT POWERS AUTHORITY TAX ALLOCATION REFUNDING BONDS, ISSUE OF 1993 (SOUTHEAST INDUSTRIAL PARK 3 REDEVELOPMENT PROJECT AREA) AND THE BORROWING BY THE 4 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO OF THE PROCEEDS THEREFROM PURSUANT TO THAT CERTAIN LOAN AGREEMENT 5 SECTION 3 . E f iv Da e. The findings and 6 determinations herein shall be final and conclusive. This Resolution shall take effect upon the date of its adoption. 8 9 I HEREBY CERTIFY that the foregoing Resolution was duly 10 adopted by the Mayor and Common Council of the City of 11 San Bernardino at a meeting 12 thereof, held on the day of 13 1993, by the following vote, to wit: 14 Council Members: AYES NAYS ABSTAIN ABSENT 15 ESTRADA REILLY — 16 HERNANDEZ — MAUDSLEY — 17 MINOR — POPE-LUDLAM — 18 MILLER — 19 20 City Clerk 21 The foregoing resolution is hereby approved this day of , 1993 . 22 23 Mayor of the City of San Bernardino 24 Approved as to form and legal content: JAMES F. PENMAN 25 City Attorney 26 sy: SB ITD C16 27 28 - 5 - 0 1 RESOLUTION NO. 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF 3 THE CITY OF SAN BERNARDINO, AUTHORIZING, ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, 4 THE BORROWING OF FUNDS FROM THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY IN A TOTAL AGGREGATE 5 PRINCIPAL AMOUNT OF NOT TO EXCEED $7,500, 000 TO REFUND CERTAIN OUTSTANDING TAX ALLOCATION BONDS, AUTHORIZING 6 THE FORM OF CERTAIN LEGAL DOCUMENTS RELATED THERETO AND AUTHORIZING AND DIRECTING THE PREPARATION, EXECUTION 7 AND DELIVERY OF THE FORMS THEREOF 8 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 Authority 12 (the "Authority") for the purpose of issuing its bonds to be used 13 to make loans to any of its members to finance public capital 14 improvements; and 15 16 WHEREAS, the Agency has previously issued its 17 $5,600, 000 Redevelopment Agency of the City of San Bernardino, 18 Southeast Industrial Park Redevelopment Project Area, Tax 19 Allocation Refunding Bonds, Issue of 1981 (Series A) (the 111981 20 Bonds") and the $2,000,000 Redevelopment Agency of the City of 21 San Bernardino, Southeast Industrial Park Redevelopment Project 22 Area, Tax Allocation Bonds, Issue Of 1985 (the 111985 Bonds") ; and 23 24 WHEREAS, the Agency desires to borrow money from the 25 Authority for the purpose of refunding the 1981 Bonds and 1985 26 Bonds; and 27 28 - 1 - I WHEREAS, the Authority proposes at this time to issue 2 its not to exceed $7,500, 000 San Bernardino Joint Powers 3 Authority, Tax Allocation Refunding Bonds, Issue of 1993 4 (Southeast Industrial Park Redevelopment Project Area) (the 5 "Bonds") to make a loan (the "Loan") to the Agency in a total 6 principal amount of not to exceed $7, 500,000 to refund the 1981 7 Bonds and the 1985 Bonds; and 8 9 WHEREAS, the Loan to the Agency from the Authority 10 shall be made pursuant to and in accordance with a certain Loan 11 Agreement which shall be dated as of March 1, 1993 (the "Loan 12 Agreement") , by and among the Agency, the Authority and Bank of 13 erica National Trust and Savings Association, as trustee (the 14 "Trustee,,) , a form of which has been prepared and is presently on 15 file with the Secretary of the Commission; and 16 17 WHEREAS, the Agency has previously issued its 18 $12,215, 000 Southeast Industrial Park Redevelopment Project Area, 19 Tax Allocation Refunding Bonds, Issue of 1988 (the "$12,215, 000 20 Issue of 1988") ; and 21 22 WHEREAS, the Agency has previously issued its 23 $1,750,000 Southeast Industrial Park Redevelopment Project Area, 24 Tax Allocation Bonds, Issue of 1988 (the "$1,750,000 Issue of 25 1988") ; and 26 27 WHEREAS, the Authority has previously issued its 28 $5,700,000 Tax Allocation Bonds, 1990 Series F (Southeast 2 - 4 I Industrial Park Redevelopment Project) (the "$5,700,000 Issue of 2 1990") ; and 3 4 WHEREAS, the Bonds shall be on parity with the 5 $12,215,000 Issue of 1988, the $1,750, 000 Issue of 1988 and the 6 $5,700,000 Issue of 1990; and 7 8 WHEREAS, Miller & Schroeder Financial, Inc. , as 9 prospective underwriter of the Bonds (the "Underwriter") has 10 informed the Authority that it intends to submit an offer to 11 purchase the Bonds and shall cause to be prepared a Preliminary 12 Official Statement and an Official Statement relating to such 13 Bonds as may be necessary in the sale and marketing of the Bonds, a 14 a form of which is presently on file with the Secretary of the 15 Authority; and 16 17 WHEREAS, the Agency is authorized pursuant to Section 18 33601 of the Health and Safety Code of the State of California to 19 borrow moneys for redevelopment purposes; and 20 21 WHEREAS, the Commission has determined to approve the 22 borrowing by the Agency of a certain amount representing proceeds 23 of the sale of the Bonds under the Loan Agreement for the purpose 24 of refunding the 1981 Bonds and the 1985 Bonds; and 25 26 WHEREAS, the Commission has duly considered such i V 27 transaction and wishes at this time to approve said transaction 28 in the public interests of the Agency; 3 I NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION 2 ACTING ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN 3 BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: 4 5 Section 1. Determinations. The Commission hereby 6 finds and determines that the issuance of the Bonds by the 7 Authority will result in significant public benefits, consisting 8 of demonstrable savings in any and all of the following: 9 effective interest rates, bond preparation, bond underwriting or 10 bond issuance costs. 11 12 Section 2. Authorization of Loan; Ann oval of Loan 13 Agreement. The Commission hereby authorizes and approves the 14 Loan to be made to the Agency by the Authority in the total 15 principal amount of not to exceed $7, 500,000 pursuant to and in 16 accordance with the terms of the Loan Agreement for the purpose 17 of refunding the 1981 Bonds and the 1985 Bonds. The Commission 18 hereby acknowledges that the loan shall be on parity with the 19 loans made pursuant to the $5,700, 000 Issue of 1990, $12,215,000 20 Issue of 1988 and the $1,750, 000 Issue of 1988.. The Commission 21 hereby approves the form of the Loan Agreement as presently on 22 file with the Secretary of the Commission, together with any 23 changes therein or additions thereto as may be approved by the 24 Chairman and as necessary to incorporate the principal amount, 25 interest rate, maturity and prepayment dates and such other terms 26 and conditions when such terms and conditions have been 27 ascertained. The Commission hereby further authorizes and 28 directs that the form of the Loan Agreement be converted into the 4 1 final form of the Loan Agreement. The Chairman, Vice-Chairman or 2 such other members of the Commission are hereby authorized and 3 directed to execute and deliver, and the Secretary or Assistant 4 Secretary is hereby authorized and directed to attest to and 5 affix the seal of the Commission to, the final form of the Loan 6 Agreement when the same has been prepared for and in the name of 7 and on behalf of the Agency and such execution and delivery shall 8 be deemed to be conclusive evidence of the approval thereof. The 9 proceeds of the Loan shall be applied by the Agency to refund the 10 1981 Bonds and the 1985 Bonds. The Commission hereby authorizes 11 the delivery and performance of the Loan Agreement. 12 13 Section 3 . Official Actions. The Chairman, Vice- 14 Chairman and other members of the Commission, the Secretary, 15 Assistant Secretary, counsel to the Commission, the Executive 16 Director of the Agency, Agency Counsel and any and all other 17 members and officers of the Commission and the Agency are hereby 18 authorized and directed, for and in the name and on behalf of the 19 Agency, to do any and all things and to take any and all actions, 20 including execution and delivery of any and all assignments, 21 certificates, requisitions, agreements, notices, consents, 22 instruments of conveyance, warrants and other documents which 23 they, or any of them, may deem necessary or advisable in 24 connection with the execution and delivery of the Loan Agreement 25 and the consummation of the transaction described therein. 26 27 The Commission hereby acknowledges that, in connection 28 with the authorization of the issuance of the Bonds by the - 5 - © 4 1 Authority pursuant to the Indenture, a form of which is presently 2 on file with the Secretary of the Authority, the Underwriter has 3 submitted the proposed bond transaction to certain municipal bond 4 insurance companies for consideration in connection with the 5 issuance of municipal bond insurance policies insuring payment of 6 the principal of and interest on the Bonds and to certain 7 municipal bond rating agencies for consideration in connection 8 with the rating of the Bonds. 9 10 11 / / / • 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6 - I RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, AUTHORIZING, ON BEHALF OF THE REDEVELOPMENT 2 AGENCY OF THE CITY OF SAN BERNARDINO, THE BORROWING OF FUNDS FROM THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY IN A TOTAL 3 AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $7,500,000 TO REFUND CERTAIN OUTSTANDING TAX ALLOCATION BONDS, AUTHORIZING THE FORM OF 4 CERTAIN LEGAL DOCUMENTS RELATED THERETO AND AUTHORIZING AND DIRECTING THE PREPARATION, EXECUTION AND DELIVERY OF THE FORMS 5 THEREOF 6 Section 4. Effective Da This Resolution shall 7 take effect from and after the date of its passage and adoption. 8 9 I HEREBY CERTIFY that the foregoing Resolution was duly 10 adopted by the Community Development Commission of the City of 11 San Bernardino at a meeting 12 thereof, held on the day of 13 1993, by the following vote, to wit: 14 Commission Members: AYES NAYS ABSTAI ABSENT 15 ESTRADA REILLY — 16 HERNANDEZ — MAUDSLEY -- — 17 MINOR — POPE-LUDLAM — 18 MILLER — 19 20 Secretary 21 The foregoing resolution is hereby approved this 22 day of , 1993. 23 W. R. Holcomb, Chairman 24 Community Development Commission 25 of the City of San Bernardino Approved as to form and legal content: 26 27 By: s Agency C nsel 28 7 I STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss 2 CITY OF SAN BERNARDINO ) 3 1, City Clerk of the City of San Bernardino, DO HEREBY CERTIFY that the foregoing and attached 4 copy of Mayor and Common Council of the City of San Bernardino Resolution No. is a full, true and correct copy of that 5 now on file in th s off ce. 6 IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the Mayor and Common Council of the 7 City of San Bernardino this day of 1993. , 8 9 10 C ty Clerk City of San Bernardino I1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 © �? 1 STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss 2 CITY OF SAN BERNARDINO ) 3 1, Secretary of the Community Development COmm16S on of the C ty of San Bernardino, DO HEREBY 4 CERTIFY that the foregoing and attached copy of Community Development Commission of the City of San Bernardino Resolution 5 No• is a full, true and correct copy of that now on file nth s office. 6 IN affixed the official alse WHEREOF,l of the Community Development Commission of the City of San Bernardino this day of $ , 1993. 9 10 Secretary of the Community Development 11 Commission of the 12 City of San Bernardino 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - B - 1 2 COMMUNITY DEVELOPMENT COMMISSION CITY OF SAN BERNARDINO, CALIFORNIA 3 4 AGENDA 5 April 19, 1993 6 Item: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF 7 THE CITY OF SAN BERNARDINO, AUTHORIZING, ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, 8 THE BORROWING OF FUNDS FROM THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY IN A TOTAL AGGREGATE 9 PRINCIPAL AMOUNT OF NOT TO EXCEED $7, 500, 000 TO REFUND CERTAIN OUTSTANDING TAX ALLOCATION BONDS, AUTHORIZING 10 THE FORM OF CERTAIN LEGAL DOCUMENTS RELATED THERETO AND AUTHORIZING AND DIRECTING THE PREPARATION, EXECUTION it AND DELIVERY OF THE FORMS THEREOF 12 13 Action to be Taken: Adopt Resolution. 14 15 Certified copy of Resolution to be returned to Sabo & Green, A 16 Professional Corporation. 17 18 19 20 21 22 23 24 25 26 SBe0101 171DOC+ VIM M 27 28 ICVELOPMENT DEPARTME . r OF THE CITY OF SAN BERNARDINO REQUEST FOR COMMISSION/COUNCIL ACTION w FROM: KENNETH J. HENDERSON SUBJECT: FINANCING OF NEW Executive Director POLICE FACILITY DATE: May 19, 1993 Synopsis of Previous Commission/Council/Committee Actions : On May 13, 1993, the Community Development Commission continued this item to May 24, 1993. Recommended Motion(s): (Community Development Committee) MOTION: That the Community Development Commission adopt alternative k5 as set forth in the attached Staff Report relative to the financing of the new police facility. Further, that the Commission review its priorities adopted on March 7, 1992 and take all necessary and appropriate actions resulting in the reappropriation of tax allocation bond proceeds in an amount sufficient to finance the construction and furnishing of the new police facility. Administrator KENNETA J. HEND P RSON Executive Director Contact Person(s): Kenneth J. Henderson Phone: 5081 Project Area(s): Central City North (CCM Ward(s): One (1) Supporting Data Attached: Staff Report FUNDING REQUIREMENTS: Amount: $10.663.142 Source: Bond Pmceeds Budget Authority: Reauested CommiaaiodConncil Notes: _.—___r_—-----—_—_------------------------------------------------------------------------------- KJH:lag:plcfm.agd COMMISSION MEETING AGENDA 1r.. MEETING DATE: 05/24/1993 Agenda Item Number: 0 DEVELOPMENT DEPARTMENT STAFF REPORT -------------------------------------------------------------------------------------------------------------------------- Financine of New Police Facility Over the last several months, the Community Development Commission and its Redevelopment Committee have conducted ongoing discussions regarding the construction of the new police facility project. These discussions have included Ad Hoc comments on the method of proposed financing. As staff and outside architects and engineers are expediting the entitlement, cost estimating and preparation of construction drawing processes, it is appropriate to review possible financing strategies. During the deliberations conducted by the Mayor and Common Council while setting the date for the vacation of Seventh Street Public Hearing, it was requested that various financing alternatives be considered during the discussion anticipated to occur at the public hearing. It is with the above in mind that staff presents the following alternatives: 1. PRIVATE FINANCING: This would entail the development and issuance of a Request for Proposals (RFP) to competitively select a developer with established banking relationships who could obtain private construction financing subject to the City entering into a long-term lease with the developer for occupancy of the facility by the Police Department. The benefits to this scenario is that neither that City or the Agency would have to debt finance the construction of the building and the building would be on the tax rolls generating property taxes for the City and the Agency. A key negative from the City's perspective would be the uncertainty of the lease rates over time, but this issue could be most effectively handled during the initial lease negotiations. This alternative would probably also upset the current construction schedule. 2. ISSUANCE OF "A" RATED CERTIFICATES OF PARTICIPATION WITH $2 MILLION CASH CONTRIBUTION BY AGENCY (30 YEAR TERM): This scenario would require $11,655,000 with the primary uses being deposits to the Construction Fund ($9.7 million), the Debt Service Reserve Fund ($721,577) and furniture, fixtures and equipment ($1 million). This last figure is just a guesstimate. The benefits to this scenario are that the City and Agency share in the costs for this project, with the Agency financing the acquisition ($3.5 million), architectural and engineering ($550,000) and cash contribution ($2 million) and the City handling the thirty (30) year debt service of approximately $720,000 a year. An obvious downside to this scenario from the City's perspective is the need to budget for the debt service ($720,000) for the next thirty (30) years, especially with lean General Fund budgets being the rule rather than the exception. An additional wrinkle to this scenario is that the Agency, with existing bond proceeds, pay the first 2-3 years debt service, allowing the City to better plan for this obligation and for an upturn in the economy. A twenty-five (25) year term of the above scenario would require annual debt service of about $767,000. —------------------------------------------------------------------------------------------------------------------------ KJH:lag:plcfin.agd COMMISSION MEETING AGENDA MEETING DATE: 05/24/1993 Agenda Item Number: © ^� DEVELOPMENT DEPARTMENT STAFF REPORT Financing of New Police Facility May 19, 1993 Page Number -2- ------------------------------------------------------------------------------------------------------------------------- 3. SUBORDINATE TAX ALLOCATION BOND ISSUE (25 YEAR TERM): This alternative would require $11,755,000 with the primary uses of the bond proceeds being the Construction Fund($9.7 million),the Debt Service Reserve Fund($810,070) and$1 million to finance furniture, fixtures and equipment. As noted earlier, this last number is a very rough estimate. This alternative also assumes, and includes, a $2 million up-front cash contribution by the Agency. The primary difference between this scenario and alternative #2 is that the Agency would bear 100% of the cost of the project, including an annual debt service averaging $808,000 and the aforementioned acquisition, architectural and engineering costs of$3.5 million and $550,000, respectively. The benefits from the City's perspective is that it gets a brand new purpose-built police facility at no cost to its General Fund. From the Agency's perspective, however, we would be incurring additional bonded indebtedness with significant amounts of unexpended bond proceeds on hand, further limiting our ability to conduct business with private developers. Additionally, as noted above, the Agency would be incurring the entire cost of the new police facility, including acquisition, architecture and engineering,construction,furniture,fixtures and equipment and a $2 million cash contribution, plus acquisition of the existing police facility and the south side of Seventh Street ($500,000). Today, as outright cash payments, these items amount to $17,675,000. Having to finance the construction cost (includes furniture, fixtures and equipment) over twenty-five (25) or thirty (30) years would add $21 to $24 million to the initial cash outlay of $6,975,000. An anticipated benefit to the Agency would be the sale of the Pacific Federal Building for at least $2-3 million when the new police facility is constructed and occupied. A twenty (20) year subordinate tax allocation issue would be the same as above, except that annual debt service would average approximately $856,000. Alternatively, twenty-five (25) and thirty (30) year issues without the $2 million cash contribution from the Agency would require annual debt service amounts approximating $993,000 and $1,052,000, respectively. 4. ASSESSMENT DISTRICT FINANCING: It is possible to form a City-wide assessment district as was previously done for street sweeping. Assuming a $10 million issue, for illustrative purposes, at a seven percent (7%) interest rate and a term of ten (10) years, preliminary discussions with the Real Property Section of the Public Works Department revealed an average annual assessment of approximately $17 for the 63,831 parcels currently on record in the City. The actual numbers would have to be refined if the Council was seriously interested in this alternative. ------------------------------------------------------------------------------------------------------------------ KJH:lag:plcfm.agd COMMISSION MEETING AGENDA MEETING DATE: 05/24/19933 Agenda Item Number: / DEVELOPMENT DEPAQ DENT STAFF REPORT Financing of the New Police Facility May 19, 1993 Page Number -3- -------------------------------------------------------------------------------- •,,,,, --------------------------- The benefits to this alternative are that the burden is spread equally among all property owners and beneficiaries with total costs to each property owner over the ten (10) year period approximately $170.00-$200.00 per parcel. This amount could be less if a provision could be included that would automatically apply to newly-annexed property as well. Additionally, neither the City's General Fund or the Agency would be obligated to finance the costs previously described. On the negative side, there will most likely be serious opposition that the Council could override and the construction schedule that has been set out would certainly be delayed, may be substantially so. Moreover, the Public Works Department would most likely have to front the district formation costs which we believe could be reimbursed by the bond proceeds. 5. USE OF EXISTING BOND PROCEEDS: Currently, there exists approximately $12.0 million in obligated but unexpended bond proceeds. These proceeds were obligated by the Commission at its March 7, 1992 Budget Workshop. The benefits of this scenario is that new indebtedness would not have to be incurred by the Agency (or City for that matter) and the existing indebtedness has already been properly structured and included in the current Agency budget. You would also immediately eliminate such high cost items as the debt service reserve fund, underwriter's discount and the cost of issuance as there would be no bond issue. This altemative would also facilitate the existing construction schedule. The downside to this particular alternative is that it would require a major re-ordering of the thirteen (13) priorities adopted by the Commission on March 7, 1992. Further, it would mean the Agency bearing 100% of the costs of the project as discussed earlier. The difference here, however, is that there would be no long-term financing or obligation of the Agency that would negatively impact future Agency budgets. 6. ANTI-RECESSIONARY LEGISLATION: In this alternative, staff would continue its activities with respect to the preparation of plan and specifications, in order to be job ready. Were the Presidents stimulus package to be resuscitated and passed by Congress, the new police facility could be financed as part of this initiative. The beneifts are that the City or Agency would not have to incur any costs over and above those already budgeted. _------—-------------------------------------------------------------------------------------------- — KJH:lag:plcfm.agd COMMISSION MEETING AGENDA MEETING DATE: 05/24/1993 Agenda Item Number: DEVELOPMENT DEPAL .ENT STAFF REPORT Financing of the New Police Facility May 19, 1993 Page Number -4- ------------------------------------------------------------------------------------------------------------------- On the negative side, the project would be subject to the whims of Congress and Washington politics with no certainty of positive action. Additionally, the project schedule being closely adhered to by staff would have to be shelved with the result that the Police Department would have to remain in its existing facility for the foreseeable future. This would also prevent any significant development from occurring on the Superblock, delaying and possibly foreclosing on the possibility of any serious development desperately needed in the downtown Central Business District. As a part of considering the staff recommendation it is important the Commission take into account the current bidding environment and the funds expended to date regarding professional architectural and engineering services. For the last year. Agency capital improvement projects have come in 30% to 40% below the engineer's estimate Moreover, approximately $400,000 has been expended to get to the pQint of being construction-ready It is important to take advantage of the economic climate and commence construction of the facility as soon as possible so additional development can occur in the superblock area. Based upon the alternatives listed above, the need to move the Police Department as soon as possible, the impact the demolition of the existing Police facility will have on future development, the need not to incur additional indebtedness on behalf of the City and Agency and the ability to adhere to the existing construction schedule, staff recommends the adoption of alternative #5. Staff recommends adoption of the form motion. KENN9T11 J. H NDERSON, Executive Director Development Department ----------------------------------------------------------------------------------------------------------------------- KJH:lag:plcfm.agd COMMISSION MEETING AGENDA MEETING DATE: 05/24/1993 Agenda Item Number: I r 0 4 LAW OFFICES of Reid & HeRyer WILLIAMS, HEL YER GEO. W.APROFESSIO NAL CORPo RAnON R Clapp-19691 POST OFFICE BOX 6066 T..S C. R... II D IS-19901 DONALD MGOw ILL SAN BHRNAH INO. CALIFORNIA 92412 JOHN A — MES J 1v G.IN TELEPHONE 19091 661-4704 ' 629-5325 W Cp REWC TE LECOPIER 19091 381-9285 599 N. ARROWHEAD AVENUE .v EE 5 SAN BERNARDINO. CA 92101 P .C.. OT . D. ROTH DAN VE E Iry DAN G. V M C. R MARK A .... RG NORMAN E wsc rvW .cH ACHCM ALEXANDRA S. WO E 3800 LEMON STREET,»FIFTH FLOOR J. WARD GERALD J. . .RLIH G CHARLES RIVERSIDE. GL 92601 MICHAEL J. 4009, OE WRA • LE -ERV Is O MW.RO J NO W A...KI ID M ROWER. W. CANNON JAMES E. COFFIN 27710 JEFFERSON AVENUE T SANLEY.. H iE MEC VLA. CA 92590 MICHAEL 0 K RBS BTCVEN G. LEE 18 091 67.-M2. MICHAEL A MARKEL LI NARIEvs.AR.1 May 24 , 1993 WCOR . ANGER OUR FILE NUMBER MICMACL LEWIN WILLIAM M EHLKE JUANDA OOWER EARCY ..AN CµP ESTHER R •ry RANDALL s STAMEN The Honorable W. R. "Bob" Holcomb, Mayor Members of the Common Council City of San Bernardino 300 North D Street San Bernardino, CA 92418-0001 Re: Relocation of San Bernardino City Police Department Headquarters Dear Mayor Holcomb and Members of the Council: I am sending you this letter as a downtown businessman. I have been fortunate to work with representatives of the City and the business community toward the redevelopment of downtown. Specifically, as well as seeking new facilities for my own firm, I have worked with the Mayor' s office, the Chamber of Commerce, and others on the retention of the Bankruptcy Court and Caltrans, and the efforts to centralize State offices in the downtown area. Further, I have been fortunate enough to work with the Mayor' s office and the IVDA on the efforts to attract the Department of Defense Accounting Office to San Bernardino. Through these efforts, it has become very clear that the development of the so called "super block" is critical to the revitalization of downtown. Several of the agencies which the City is seeking to retain or attract to San Bernardino are considering the super block for location of their facilities. Further, I believe that the location of a new private office building in downtown, and most likely in the super block, is critical to the revitalization of downtown San Bernardino. I am also further convinced that development of the super block depends on relocation of the police department as quickly as possible. Location of the police department in the super block is not, in my opinion, necessary for development of that area. In fact, I believe that relocation of the police department to the The Honorable W. R. "Bob" Holcomb, Mayor Members of the City Council City of San Bernardino May 24, 1993 Page 2 property on 7th Street previously occupied by Pacific Federal Savings and Loan Association is probably the most expeditious and cost effective means of relocating the police department to an adequate facility. For these reasons, I strongly encourage the Mayor and the Common Council to proceed, with all due haste, with the relocation of the police department to the former Pacific Federal facility. Redevelopment of downtown has gone beyond the matter of high priority in the City. It is now critical to the survival of the City as a business center. very truly yours, Mark C. Edwards 1/S/99908-020/MOLCOMB.008/lep 4 DEVELOPMENT DEPARTMENT OF THE CITY OF SAN BERNARDINO MEMORANDUM ---------------------------------------------------------------------------------------------------------------------- TO: Mayor Holcomb Mayor-elect Minor FROM: KENNETH J. HENDERSON Executive Director SUBJECT: FINANCING OF NEW POLICE FACILITY DATE: May 24, 1993 COPIES: Common Council; Councilman-elect Negrete; Councilman-elect Curlin; Councilman-elect Oberhelman; City Administrator, Chief of Police; Director of Public Works; Administrator-EDA; Deputy Director of Development; Project Manager Hoeger; File ---------------------------------------------------------------------------------------------------------------------- BACKGROUND Item 97 on the May 24, 1993 Community Development Commission agenda discusses various financing options available to the Commission relative to construction of the new police facility. The authorization for the architect of record to proceed, location, type of building and construction cost estimating methods were approved by the Community Development Commission on December 7, 1992. These actions were subsequently re-affirmed by the Mayor and Common Council and Community Development Commission on March 8, 1993 and April 19, 1993, respectively. The preparation of construction drawings is proceeding expeditiously. Approximately $400,000 has been expended for design services and grading of the site could commence inside of forty-five (45) days. ANALYSIS On March 7, 1992, the Community Development Commission conducted a Budget Workshop that resulted in the establishment of thirteen (13) priorities worth approximately $15,700,000. There exists sufficient funding within the approved priorities to finance the construction of the new police facility. It is recommended that the furniture, fixtures and equipment (F,F & E), ---------------------------------------------------------------------------------------------------------------------- Knr:ieg:mayor5.mem DEVELOPMENT DEPARTMENT MEMORANDUM FINANCING OF NEW POLICE FACILITY May 24, 1993 Page Number -2- -------------------------------------------------------------------------------------------------------------------- currently budgeted at $1 million be financed when needed (approximately 18 months from the commencement of construction). In any event, the F, F & E can be bonded for, if necessary. Set forth below are the sources of funds (previously adopted priorities) to finance the estimated construction cost of $7.8 million. Blight Removal and Beautification $1,000,000 New Police Headquarters 2,000,000 Platt Building Demolition 500,000 ' Rancon Whole-Block Development 4,500,000 Mobilehome Park 1,000.000 TOTAL $9,000,000 Funds for Main Street Street Scape Phase II, Mt. Vernon Specific Plan Implementation, the Performing Arts Center, Wal-Mart at Highland and Boulder and the Community Hospital (Medical Office Building) would remain untouched. As an aside, contracts have already been awarded for the Main Street Street Scape and the Wal-Mart project. In addition to the above sources, the Agency in all probability can cash out or borrow against the HAB Loan and the Carousel Mall loan if additional funds are needed or to finance the furniture, fixtures and equipment. Finally, it is vitally important this project move ahead for reasons including, but not limited to, the following: Approximately $400,000 has already been spent in getting the project construction-ready. The current recession has created an extremely favorable bid climate, with many public works projects coming in at 30%-40% below the Engineer's estimate. ---------------------------------------------------------------------------------------------------------------------- Kiu:iag:mayor5.mem 0 0 DEVELOPMENT DEPARTMENT MEMORANDUM FINANCING OF NEW POLICE FACILITY May 24, 1993 Page Number -3- -------------------------------------------------------------------------------------------------------------------- - It is important the Commission understand that virtually nothing can occur on the Superblock site unless and until the Police Department is moved from its current location to the proposed new facility. The Commission recently approved staff submitting a proposal to the state for its consolidated office complex. Unless we can assure the state that we can deliver the Superblock site within about eighteen (18) months, we will not be able to compete with Riverside and other surrounding cities. RECOMMENDATION Based upon the foregoing, staff recommends that Commission approve the staff recommendation in connection with Agenda Item #7. Further that the Commission appropriate $9 million in tax allocation bond proceeds to finance the construction of the new police facility. Please call me at extension 5081 should you require additional information or clarification regarding this matter ng 1~k4 1 KENNETH J. 11 NDERSON, Executive Director Administrator Development Department ---------------------------------------------------------------------------------------------------------------------- xrnaag:mayor5.mem