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HomeMy WebLinkAbout09- City Manager's Office CITY OF SAN BERNARDINO - REQUEST FOR COUNCIMIDWA`r From: Charles McNeely, City Manager Subject: Resolution authorizing Amendment No. 1 to the Facility Lease Dept: City Manager's Office dated April 15, 2006 by and between the City of San Bernardino and the California Date: September 4, 2009 Infrastructure and Economic Development Bank. Meeting Date: 9/21/09 Synopsis of Previous Council Action: 3/6/06 Mayor and Council adopted a resolution authorizing the IBank Site Lease and Facility Lease to secure funding for pavement reconstruction and rehabilitation. 9/6/05 Mayor and Council adopted resolutions authorizing the submission of the application to the California Infrastructure and Economic Development Bank for financing of pavement reconstruction and rehabilitation and declaring the City's official intent to reimburse certain expenditures from proceeds of obligation. 8/15/05 Mayor and Common Council adopted a resolution approving the FY 2005- 06/2009-10 Capital Improvement Program. 9/15/03 Mayor and Common Council adopted a resolution authorizing the submission of a financing application to the California Infrastructure and Economic Development Bank for financing of the Verdemont Fire Station. Recommended motion: Adopt Resolution. Signature Contact person: Teri Baker Phone: 5122 Supporting data attached: Staff Report,Resolution,Facility Lease Ward: All Amendment No. I FUNDING REQUIREMENTS: Amount: None. Source: (Acct No.) (Acct. Description) Finance: Council Notes: ' �SD ate- 3a.� Agenda Item No. 9.2�-oq CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT Subiect: Resolution authorizing the Amendment No. 1 to the Facility Lease dated April 15, 2006 by and between the City of San Bernardino and the California Infrastructure and Economic Development Bank. Background: In September of 2005, Mayor and Council approved the submission of a $10 million loan application to the Infrastructure and Economic Development Bank (IBank) for pavement rehabilitation and reconstruction. The IBank Board subsequently approved that application and the loan was secured by a lease arrangement between the City and the IBank. Eight of the City's fire stations were used as collateral to secure the loan. In April of 2006, the Mayor and Council approved Site Lease and the Facility lease documents to finalize the loan. Section 2.08(d) of the Facility Lease provided that final invoices were to be due from the City to the IBank no later than November 14, 2008. However, on that date there was a balance of $386,122 remaining on the loan. In November of 2008, City staff submitted a letter to the IBank requesting an extension until June 30, 2009 to allow time to spend the remaining funds. Staff was told that the funds could not be spent until the extension was approved by the IBank. After several inquires regarding approval for the extension, the IBank Board approved the extension and the ls` amendment to the Lease Agreement was forwarded to the City for approval by the Mayor and Council in August. Understanding that this has taken a considerable amount of time on the part of the IBank, the Board agreed to extend the final invoice due date until March of 2010. Public Services has an item on today's agenda requesting approval for a contract with Matich Corporation which includes projects for this source of funding. Fiscal Impact: None. Recommendation: Adopt Resolution. 1 RESOLUTION NO. Copy 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY 3 OF SAN BERNARDINO AUTHORIZING AMENDMENT NO. 1 TO THE FACILITY LEASE DATED APRIL 15, 2006 BY AND BETWEEN THE CITY 4 OF SAN BERNARDINO AND THE CALIFORNIA INFRASTRUCTURE AND 5 ECONOMIC DEVELOPMENT BANK 6 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF 7 THE CITY OF SAN BERNARDINO AS FOLLOWS: 8 SECTION 1. That the City of San Bernardino (Lessee) and the California 9 Infrastructure and Economic Development Bank (Lessor) wish to amend the Facility Lease dated April 15, 2006 in order to extend the time to submit invoices the Lessor 10 from November 14, 2008 to March 31, 2010. '-' SECTION 2. The City Manager is hereby authorized and directed to execute 11 Amendment No. 1 to the Facility Lease dated April 15, 2006 with the California 12 Infrastructure and Economic Development Bank. A copy of said Amendment is 13 attached hereto as Exhibit"A"and incorporated herein by reference. 14 SECTION 3. Authorization to execute the above-referenced Amendment is rescinded if the parties to the Amendment do not execute it within 90 day of the 15 passage of this Resolution. 16 17 18 19 20 21 22 23 24 HI 25 26 27 HI 28 q0 I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY 2 OF SAN BERNARDINO AUTHORIZING THE FIRST AMENDMENT TO THE FACILITY LEASE BY AND BETWEEN THE CITY OF SAN 3 BERNARDINO AND THE CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK 4 5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the 6 Mayor and Common Council of the City of San Bernardino at a meeting 7 thereof, held on the_day of 2009, by the following vote, to wit: 8 Council Members: AYES NAYS ABSTAIN ABSENT 9 ESTRADA 1n II BAXTER 12 BRINKER 13 SHORETT 14 KELLEY 15 JOHNSON 16) MCCAMMACK 17 — 18 19 Rachel Clark, City Clerk 20 The foregoing resolution is hereby approved this day of 21 2009. 22 23 Patrick Morris, Mayor 24 Approved as to form: 25 By 26 A ES F. PENMAN, 27 ty Attorney 28 Recording Requested By ) And When Recorded Mail To: ) California Infrastructure and Economic ) Development Bank ) Attn: Credit Support Unit ) P.O. Box 2830 ) Sacramento, California 95812-2830 ) (Space above for Recorder's use) This document is recorded for the benefit of the CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK and the recording is fee-exempt under Section 27383 of the California Government Code. FIRST AMENDMENT TO THE FACILITY LEASE by and between the CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK and the City of San Bernardino relating to $10,000,000 Agreement No. CIEDB B05-064 Dated as of November 14,2008 Exhibit "A" 1 THIS FIRST AMENDMENT TO THE FACILITY LEASE (the "First Amendment") is effective as of November 14, 2008, by and between the City of San Bernardino, a public body, corporate and politic duly organized and existing under the laws of the State of California, as Lessee (the "Lessee"), and the California Infrastructure and Economic Development Bank, duly organized and validly existing pursuant to the Bergeson-Peace Infrastructure and Economic Development Bank Act, constituting Division 1 of Title 6.7 of the California Government Code (commencing at section 63000 thereof) as now in effect and as it may from time to time hereafter be amended (the "Act") as Lessor (the "Lessor"). WITNESSETH WHEREAS, the Lessee and the Lessor entered into that certain Facility Lease dated as of April 15, 2006 (the "Facility Lease"); WHEREAS, the Facility Lease was recorded in Official Records, County of San Bernardino; WHEREAS, the Lessee and the Lessor desire to amend certain terms of the Facility Lease; WHEREAS, all acts and proceedings required by law necessary to make this First Amendment, when executed by the Lessee and the Lessor, the valid, legal and C binding obligation of the Lessee and the Lessor, and to constitute this First Amendment a legal, valid, and binding agreement for the uses and purposes herein set forth in accordance with its terms, have been done and taken, and the execution of this First Amendment has been in all respects duly authorized; and WHEREAS, all capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Facility Lease; NOW, THEREFORE, in consideration of the promises and the mutual agreements herein contained, the parties hereto do hereby agree as follows: Section 1. Section 2.08(d) is hereby deleted and replaced with the following: (d) Lessee must both: (i) begin Project construction no later than twelve (12) months after September 27, 2005, and (ii) submit invoices to the Lessor for the entire Project Amount no later than March 31, 2010. If the Lessee fails to meet the March 31, 2010 requirement, the Lessor shall, if required by federal law, hold any or all undisbursed funds and apply such funds to the optional redemption of Bonds in accordance with the Indenture (in which event the moneys on deposit in the Project Account shall be reduced by the principal amount of Bonds so redeemed). Exhibit "A" Section 2. All other terms and conditions of the Facility Lease shall remain in full force and effect. IN WITNESS WHEREOF,the parties hereto have caused this First Amendment to be signed by the respective officers, all as of this_day of September 2009. CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK, as Lessor By Stanton C.Hazelroth Executive Director ATTEST By Roma Cristia-Plant Assistant Executive Director ® The City of San Bernardino, as Lessee By Charles McNeely City Manager ATTEST BY Rachel G. Clark City Clerk Approved As to Form: By: James F. Penman City Attorney O Exhibit "A" C Recording Requested By ) And When Recorded Mail To: ) California Infrastructure and Economic ) Development Bank ) Attn: Credit Support Unit ) P.O. Box 2830 ) Sacramento, California 95812-2830 (Space above for Recorder's use) This document is recorded for the benefit of the CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK and the recording is fee-exempt under Section 27383 of the California Government Code. FIRST AMENDMENT TO TIME FACILITY LEASE by and between the CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK and the City of San Bernardino relating to $10,000,000 Agreement No. CIEDB B05-064 Dated as of November 14, 2008 i THIS FIRST AMENDMENT TO THE FACILITY LEASE (the "First Amendment') is effective as of November 14, 2008, by and between the City of San Bernardino, a public body, corporate and politic duly organized and existing under the laws of the State of California, as Lessee (the "Lessee"), and the California Infrastructure and Economic Development Bank, duly organized and validly existing pursuant to the Bergeson-Peace Infrastructure and Economic Development Bank Act, constituting Division 1 of Title 6.7 of the California Government Code (commencing at section 63000 thereof) as now in effect and as it may from time to time hereafter be amended (the "Act') as Lessor (the "Lessor"). WITNESSETH WHEREAS, the Lessee and the Lessor entered into that certain Facility Lease dated as of April 15,2006 (the "Facility Lease"); WHEREAS, the Facility Lease was recorded in Official Records, County of San Bernardino; WHEREAS, the Lessee and the Lessor desire to amend certain terms of the Facility Lease; WHEREAS, all acts and proceedings required by law necessary to make this First Amendment, when executed by the Lessee and the Lessor, the valid, legal and binding obligation of the Lessee and the Lessor, and to constitute this First Amendment a legal, valid, and binding agreement for the uses and purposes herein set forth in accordance with its terms, have been done and taken, and the execution of this First Amendment has been in all respects duly authorized; and WHEREAS, all capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Facility Lease; NOW, THEREFORE, in consideration of the promises and the mutual agreements herein contained,the parties hereto do hereby agree as follows: Section 1. Section 2.08(d) is hereby deleted and replaced with the following: (d) Lessee must both: (i) begin Project construction no later than twelve (12) months after September 27, 2005, and (ii) submit invoices to the Lessor for the entire Project Amount no later than March 31, 2010. If the Lessee fails to meet the March 31, 2010 requirement, the Lessor shall, if required by federal law, hold any or all undisbursed funds and apply such funds to the optional redemption of Bonds in accordance with the Indenture (in which event the moneys on deposit in the Project Account shall be reduced by the principal amount of Bonds so redeemed). Section 2. All other terms and conditions of the Facility Lease shall remain in full force and effect. IN WITNESS WHEREOF,the parties hereto have caused this First Amendment to be signed by the respective officers, all as of this_day of September 2009. CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK, as Lessor By Stanton C. Hazelroth Executive Director ATTEST By Roma Cristia-Plant Assistant Executive Director © The City of San Bernardino, as Lessee By Charles McNeely City Manager ATTEST By Rachel G. Clark City Clerk Approved As to Fortn: By: i J e F.Penman C 't Attorney Recording Requested By ) And When Recorded Mail To: ) California Infrastructure and Economic ) Development Bank ) Attn: Credit Support Unit ) P.O. Box 2830 ) Sacramento, California 95812-2830 ) (Space above for Recorder's use) This document is recorded for the benefit of the CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK and the recording is fee-exempt under Section 27383 of the California Government Code. FIRST AMENDMENT TO THE FACILITY LEASE by and between the CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK and the City of San Bernardino relating to $10,000,000 Agreement No. CIEDB B05-064 Dated as of November 14,2008 THIS FIRST AMENDMENT TO THE FACILITY LEASE (the "First Amendment') is effective as of November 14, 2008, by and between the City of San Bernardino, a public body, corporate and politic duly organized and existing under the laws of the State of California, as Lessee (the "Lessee"), and the California Infrastructure and Economic Development Bank, duly organized and validly existing pursuant to the Bergeson-Peace Infrastructure and Economic Development Bank Act, constituting Division 1 of Title 6.7 of the California Government Code (commencing at section 63000 thereof) as now in effect and as it may from time to time hereafter be amended (the "Act') as Lessor (the "Lessor"). WITNESSETH WHEREAS, the Lessee and the Lessor entered into that certain Facility Lease dated as of April 15,2006 (the"Facility Lease"); WHEREAS, the Facility Lease was recorded in Official Records, County of San Bernardino; WHEREAS, the Lessee and the Lessor desire to amend certain terns of the Facility Lease; WHEREAS, all acts and proceedings required by law necessary to make this First Amendment, when executed by the Lessee and the Lessor, the valid, legal and binding obligation of the Lessee and the Lessor, and to constitute this First Amendment a legal, valid, and binding agreement for the uses and purposes herein set forth in accordance with its terms, have been done and taken, and the execution of this First Amendment has been in all respects duly authorized; and WHEREAS, all capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Facility Lease; NOW, THEREFORE, in consideration of the promises and the mutual agreements herein contained, the parties hereto do hereby agree as follows: Section 1. Section 2.08(d) is hereby deleted and replaced with the following: (d) Lessee must both: (i) begin Project construction no later than twelve (12) months after September 27, 2005, and (ii) submit invoices to the Lessor for the entire Project Amount no later than March 31, 2010. If the Lessee fails to meet the March 31, 2010 requirement, the Lessor shall, if required by federal law, hold any or all undisbursed funds and apply such funds to the optional redemption of Bonds in accordance with the Indenture (in which event the moneys on deposit in the Project Account shall be reduced by the principal amount of Bonds so redeemed). Section 2. All other terms and conditions of the Facility Lease shall remain in full force and effect. IN WITNESS WHEREOF,the parties hereto have caused this First Amendment to be signed by the respective officers, all as of this_day of September 2009. CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK, as Lessor By Stanton C. Hazelroth Executive Director ATTEST By Roma Cristia-Plant Assistant Executive Director CThe City of San Bernardino, as Lessee By Charles McNeely City Manager ATTEST By Rachel G. Clark City Clerk Approved As to Form: oiyF. Penman Attorney CITY OF SAN BERNARDINO Interoffice Memorandum CITY CLERK'S OFFICE DATE: September 29. 2009 TO: Teri Baker, Assistant to the City Manager FROM: Margaret Fedor, Executive Assistant to the City Clerk RE: Transmitting Documents for Signature—Resolution Nos. 2009-321 At the Mayor and Common Council meeting of September 21, 2009, the City of San Bernardino adopted Resolution No. 2009-321 —Resolution of the Mayor and Common Council of the City of San Bernardino authorizing Amendment No. 1 to the Facility Lease dated April 15, 2006 by and between the City of San Bernardino and the California Infrastructure and Economic Development Bank. Attached are one (1) original agreement and two (2) duplicate agreements to be executed. Please obtain signatures in the appropriate locations and return the ORIGINAL agreement to Margaret Fedor in the City Clerk's Office as soon as possible. Please keep a copy for your records and for the other involved party. Please note that the agreement will be null and void if not executed by December 21, 2009. I hereby acknowledge receipt of tl f above mentioned documents. Signed: Please sign and return Date: 9 — A California Infrastructure and Economic Development Bank I BANK Arnold Schwarzenegger Governor Board Members: Dale E. Bonner October 14, 2009 � Z Chair Secretary, Business, Transportation and Housing Charles McNeely Agency City Manger �J Bill Lockyer City of San Bernardino State Treasurer 300 N. "D" Street Michael C.Genest San Bernardino, CA 92418 Director Department of Finance Dear Mr. McNeely: Rosario Merin Secretary, State and Enclosed please find an original executed copy of the First Amendment for the Facility Consumer Services Agency Lease CIEDB-1305-064, extending the disbursement period. Please retain this for your D. Everett Rice records. I will be sending a copy to the County Recorder for recordation, upon receipt Governors Appointee of that, I will forward you a recorded copy for your records. Any questions, please call me. Executive Director: Stanton C. Hazelroth Steve Grebner Municipal Finance Officer I-BANK Mailing Address: 980 9th Street (#900) P.O.Box 2630 Sacramento, CA 95814 Sacramento,CA 95612- 2830 ph: 916-322-6719 Office Address: 1001 1 Street, 19'"Floor Sacramento,CA 95814 (916)322-1399 (916)322-6314 FAX www.ibank.ca.gov