HomeMy WebLinkAbout05.M- Successor Agency RESOLUTION (ID # 4669) DOC ID: 4669
CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION
Appointment
From: Lisa Connor M/CC Meeting Date: 10/03/2016
Prepared by: Lisa Connor, (909) 663-
1044
Dept: Successor Agency Ward(s): All
Subject:
Resolution of the Board of the San Bernardino Joint Powers Financing Authority
Establishing Regular Meeting Dates and Appointing Secretary and General Counsel
(#4669)
Current Business Registration Certificate: Not Applicable
Financial Impact:
None.
Motion: Adopt the Resolution.
Synopsis of Previous Council Action:
On December 4, 1995, the Board of the San Bernardino Joint Powers Financing
Authority authorized the issuance of the San Bernardino Joint Powers Financing
Authority Lease Revenue Bonds (State of California Department of Transportation
Lease) 1995 Series A to finance the acquisition of real property and the construction of
an office building and related facilities at 464 West 4t" Street in the City of San
Bernardino.
Effective December 1, 1995, the Authority entered into a lease of the above property to
the California Department of Transportation for a term ending December 1, 2020,
subject to possible extension but terminating no later than December 1, 2094.
Background:
The San Bernardino Joint Powers Authority (the "Authority") was formed in 1989 by the
execution of a joint powers authority agreement (the "JPA Agreement") between the
City of San Bernardino and its Redevelopment Agency. One of the purposes of the
Authority is to provide funds for the financing of public capital improvements through the
issuance of bonds. The current members of the Authority are the City and the
Redevelopment Successor Agency. The JPA Agreement provides that the Authority
I shall be administered by a Board (the "Board") consisting of the members of the
Common Council of the City, and that the City Mayor shall serve as the chairperson of
the Authority.
As stated, in 1995 the Authority issued lease revenue bonds to obtain funding to acquire
and construct the property referenced above. The Authority also entered into a lease-
purchase agreement with the State of California Department of Transportation
("Caltrans") for the lease of the project. The bonds are secured by the lease and hence
Updated: 9/28/2016 by Jolena E. Grider I Packet Pg. 664
4669
are a debt of the State and not the Authority. The lease payments are equal to the debt
service on the bonds and are about $5 million per year for 23 years, ending in 2020,
totaling about $113 million. Caltrans has the option to purchase the property by either
fully paying off the bonds or paying $3,835,356. If the option has not been exercised by
December 1, 2094, the lease terminates and the Authority retains the property.
As constructed, the project consists of a twelve story building providing approximately
336,000 gross square feet of office and support space plus a separate parking structure
for 925 automobiles. Caltrans has the sole responsibility for the maintenance and repair
of the property while it is in possession of it, and is required to insure the property.
Caltrans seeks to reduce its debt service payments through issuance of refunding
bonds by the Authority. As before, payment of the debt service on the bonds will be the
sole obligation of the State and not the Authority.
Section 6592.1 of the California Government Code provides that a joint powers authority
such as the Authority may only issue bonds at a regular meeting of its governing board.
Currently, the Board has not established a schedule of regular meetings. However,
Section 4.C.(1) of the JPA Agreement authorizes the Board to provide for the holding of
regular meetings by resolution.
The attached resolution establishes October 17, 2016 and November 7, 2016 as regular
meeting dates for the Board and authorizes the meetings to be held jointly with the
Mayor and Common Council meetings on those dates. Although only one meeting of
the Board is expected to be needed to approve the necessary documents for the
refunding, the precise date on which the documents will be completed is not yet known,
and so two meetings are recommended as a precaution. If one of the meetings is not
needed, it can be cancelled.
Lastly, the resolution appoints the City Clerk as Secretary of the Authority and the Office
of the City Attorney as its General Counsel. Section 4.D(1) of the JPA Agreement
provides that the Authority shall appoint a Secretary of the Authority by resolution and
the appointment of the City Clerk is proposed pursuant to that provision. Outside
counsel for the RDA previously acted as counsel for the Authority, but with the loss of
funding as a result of redevelopment agency dissolution it is recommended that the
Office of the City Attorney serve as counsel to the Authority.
City Attorney Review:
Supporting Documents:
Reso Setting meetings appointing officers (DOC)
10
Updated: 9/28/2016 by Jolena E. Grider Packet Pg.665
1 RESOLUTION NO.
2 RESOLUTION OF THE BOARD OF THE SAN BERNARDINO JOINT POWER
3 FINANCING AUTHORITY ESTABLISHING REGULAR MEETING DATES AN
APPOINTING SECRETARY AND GENERAL COUNSEL
4
WHEREAS, the San Bernardino Joint Powers Financing Authority (the "Authority") is
5
joint exercise of powers authority duly organized and operating pursuant to Chapter 5, Division
6
7, Title 1 of the California Government Code (commencing with Section 6500) (the "JPA Act");
7
and
8
WHEREAS, the Authority was created by the Joint Exercise of Powers Agreement
9
executed by and between the City of San Bernardino (the "City") and the former Redevelopment
10
Agency of the City of San Bernardino, dated August 21, 1989, as amended (the "JP
11
Agreement"); and
12
WHEREAS, the current members of the Authority are the City and the City of San
13
Bernardino as Successor Agency to the former Redevelopment Agency of the City of San
14
Bernardino; and
15
WHEREAS, Section 4.B. of the JPA Agreement provides that the Authority shall b
16
administered by a Board (the "Board"), which shall consist of the members of the Common
17
Council of the City; and
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WHEREAS, Section 5 of the JPA Agreement provides that the Authority The Authority
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shall have the power to finance and refinance public capital improvements throuqh the issuance
20
of notes and bonds; and
21
WHEREAS, to fulfill its purposes, the Authority, from time to time, authorizes the
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issuance of bonds pursuant to the JPA Act including Article 4 (commencing with Section 6584
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of Chapter 5, Division 7, Title 1 of the California Government Code therein; and
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WHEREAS, the public capital improvements financed by the Authority through the
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issuance of bonds include an office building and related facilities (the "Facilities") located at 46
I West 4t" Street in the City and leased by the Authority to the Department of Transportation of the
2 State of California ("Caltrans"); and
3 WHEREAS, the debt service payments on the bonds issued by the Authority to finance
4 the Facilities consist are made by the State of California and are funded wholly by the leas
5 payments made by Caltrans for the use of the Facilities; and
6 WHEREAS, the State of California seeks to reduce said debt service and lease payment
7 through the issuance by the Authority of refunding bonds; and
8 WHEREAS, Government Code Section 6592.1 provides that a joint exercise of power
9 authority such as the Authority may adopt a resolution authorizing the issuance of bonds only
10 during a regular meeting held pursuant to Government Code Section 54954; and
11 WHEREAS, Section 4.C.(1) of the JPA Agreement provides that the Authority may by
12 resolution fix the dates upon which, and the hour and place at which, any regular meeting of the
13 Authority shall be held;
14 WHEREAS, the Authority desires to adopt this resolution in accordance with the
15 provisions of Section 4.C.(1) of the JPA Agreement and Government Code Sections 6592.1 an
16 54954 to establish dates for regular meetings of the Authority; and
17 WHEREAS, Section 4.D.(1) of the JPA Agreement provides that the Authority shall
18 appoint a Secretary of the Authority by resolution; and
19 WHEREAS, the Authority desires to appoint the City Clerk of the City as the Secretary
20 of the Authority; and
21 WHEREAS, the Authority desires to appoint the Office of the City Attorney of the
22 City as the General Counsel to the Authority.
23
24 NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF THE SA
BERNARDINO JOINT POWERS FINANCING AUTHORITY AS FOLLOWS:
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2
I SECTION 1. Each of the foregoing recitals is true and correct.
2 SECTION 2. In accordance with Section 4.C.(1) of the JPA Agreement, an
3 notwithstanding any prior resolutions or actions of the Authority to the contrary, a regular
4 meeting of the Board of the Authority shall be held at 4:00 p.m. on each of November 7, 2016,
5 and November 21, 2016, which regular meetings may be held as a joint meeting of the Board an
6 the Common Council of the City and may be adjourned or continued from time to time as
7 permitted by law, including as set forth in Government Code Sections 54955 and 54955.1. Such
8 regular meetings shall be held in the Council Chamber of the City, located at 300 North "D'
9 Street, San Bernardino, California. In the event that the Secretary determines that there is no
10 business of the Authority to be conducted at either of the regular meetings set forth in this
11 Section 2, then the Chairperson, Vice Chairperson, the Secretary and other officers of the
12 Authority are authorized to take whatever actions are required by law to cancel such regularly
13 scheduled meeting.
14 SECTION 3. The City Clerk of the City is hereby appointed as the Secretary of the
15 Authority and shall be authorized to carry out all the functions of the Secretary as set forth in the
16 JPA Agreement. The office of the City Attorney is hereby appointed as General Counsel to the
17 Authority.
18 SECTION 4. The Chairperson, Vice Chairperson, Secretary, Treasurer and Controller of
19 the Authority and the Authority General Counsel are authorized and directed, jointly an
20 severally, to do any and all things which they may deem necessary or advisable in order to
21 effectuate the purposes of this resolution, and such actions previously taken by such officers are
22 hereby ratified and confirmed.
23 SECTION 5. This resolution shall take effect immediately upon its adoption.
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3
1 RESOLUTION OF THE BOARD OF THE SAN BERNARDINO JOINT POWER
FINANCING AUTHORITY ESTABLISHING REGULAR MEETING DATES AN
2 APPOINTING SECRETARY AND GENERAL COUNSEL
3
4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Board o
5 the San Bernardino Joint Powers Financing Authority at a joint adjourned regular meeting
6 thereof, held on the 10th day of October, 2016, by the following vote, to wit:
7 Board Members: AYES NAYS ABSTAIN ABSENT
S MARQUEZ
9 BARRIOS
10 VALDIVIA
11
SHORETT
12
NICKEL
13
RICHARD
14
MULVIHILL
15
16
17 Georgeann Hanna, Secretary
is
19 The foregoing resolution is hereby approved this_day of October, 2016.
20
21 R. Carey Davis, Chairperson
22 Approved as to form:
23 Gary D. Saenz,
Authority General Counsel
24
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By:
4