HomeMy WebLinkAbout2017-2311
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RESOLUTION NO. 2017-231
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA ACTING AS THE SAN BERNARDINO JOINT
POWERS FINANCING AUTHORITY ESTABLISHING REGULAR MEETING DATES,
ADOPTING A DEBT MANAGEMENT POLICY, APPOINTING AN EXECUTIVE
DIRECTOR AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS IN
CONNECTION THEREWITH
WHEREAS, the San Bernardino Joint Powers Financing Authority (the "Authority") is a
joint powers agency that is duly organized and existing under Chapter 5 of Division 7 of Title 1
of the Government Code of the State of California (the "JPA Act"); and
WHEREAS, the Authority was created by the Joint Exercise of Powers Agreement,
dated August 21, 1989, by and between the City of San Bernardino (the "City") and the former
Redevelopment Agency of the City of San Bernardino (as amended, the "JPA Agreement"); and
WHEREAS, the current members of the Authority are the City and the City of San
Bernardino, as Successor Agency to the former Redevelopment Agency of the City of San
Bernardino; and
WHEREAS, Section 5 of the JPA Agreement provides that the Authority shall have the
power to finance and refinance public capital improvements through the issuance of notes and
17 11 bonds; and
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WHEREAS, to fulfill its purposes, the Authority, from time to time, authorizes the
issuance of bonds pursuant to the JPA Agreement and the JPA Act, including Article 4
(commencing with Section 6584) thereof, and
WHEREAS, Section 6592.1 of the JPA Act provides that a joint powers agency such as
the Authority may adopt a resolution authorizing the issuance of bonds only during a regular
meeting held pursuant to Section 54954 of the Government Code of the State of California; and
WHEREAS, Section 4.C.(1) of the JPA Agreement provides that the Authority may by
resolution fix the dates upon which, and the hour and place at which, any regular meeting of the
Authority shall be held; and
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WHEREAS, the Authority desires to adopt this resolution in accordance with the
provisions of Section 4.C.(1) of the JPA Agreement and Sections 6592.1 and 54954 of the
Government Code of the State of California to establish dates for regular meetings of the
Authority concurrently with the regular meetings of the City Council of the City; and
WHEREAS, Section 8855 of the Government Code of the State of California requires
the City and the Authority to adopt a debt management policy prior to the issuance of bonds; and
WHEREAS, the Authority wishes to adopt the debt management policy attached hereto
as the debt management policy of the Authority pursuant to Section 8855 of the Government
Code of the State of California; and
WHEREAS, Section 4.B. of the JPA Agreement provides that the Authority shall be
administered by a Board (the "Board"), which shall consist of the members of the City Council
of the City; and
WHEREAS, Section 4.D. of the JPA Agreement establishes the officers of the
Authority, and part (7) thereof gives the Board the power to appoint additional officers of the
Authority; and
WHEREAS, the Board desires to appoint the City Manager of the City as the Executive
Director of the Authority, who shall be responsible for execution and supervision of the affairs of
the Authority and who, except as otherwise authorized by resolution of the Board, may sign all
contracts, deeds and other instruments executed by the Authority; and
NOW, THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO ACTINGAS THE BOARD OF THE SAN BERNARDINO JOINT
POWERS FINANCING AUTHORITY DO HEREBY RESOLVE AS FOLLOWS:
Section 1. The Board hereby specifically finds and declares that each of the statements,
findings and determinations of the Authority in the recitals that are set forth above are approved
herein and are true and correct.
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Section 2. In accordance with Section 4.C.(1) of the JPA Agreement, and
notwithstanding any prior resolutions or actions of the Authority to the contrary, regular
meetings of the Board of the Authority shall be held concurrently with each regular meeting of
the Mayor and City Council of the City, which regular meetings may be held as joint meetings of
the Mayor and City Council of the City and of the Authority and may be adjourned or continued
from time to time as permitted by law, including as set forth in Sections 54955 and 54955.1 of
the Government Code of the State of California. Such regular meetings shall be held in the
Council Chamber of the City, located at 201 North "E" Street, San Bernardino, California. All
business of the Authority to be conducted at such a regular meeting shall be placed on the
meeting agenda as required by Sections 54954.2, 54954.5 and 54957.7 of the Government Code
of the State of California. In the event that there is no business of the Authority to be conducted
at any regular meeting, then no business of the Authority shall be placed on the meeting agenda
or conducted at the meeting and the meeting shall be considered to have been adjourned without
the conduct of any business as to the Authority. The Chairperson, Vice Chairperson, the
Secretary and other officers of the Authority are authorized to take whatever other actions may
be required by law to cancel or adjourn such a regularly scheduled meeting.
Section 3. The San Bernardino Joint Powers Financing Authority Debt Management
Policy that is attached hereto as Exhibit "A" is hereby adopted as the Debt Management Policy
of the Authority for purposes of Section 8855 of the Government Code of the State of California.
Section 4. In accordance with Section 4.D.(7) of the JPA Agreement, the City Manager
of the City is hereby appointed and designated as the Executive Director of the Authority. The
Executive Director shall be responsible for execution and supervision of the affairs of the
Authority and, except as otherwise authorized by resolution of the Board, may sign all contracts,
deeds and other instruments executed by the Authority.
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Section 5. The Chairperson, Vice Chairperson, Secretary, Treasurer and Controller of
the Authority and the Authority General Counsel are authorized and directed, jointly and
severally, to do any and all things which they may deem necessary or advisable in order to
effectuate the purposes of this resolution, and such actions previously taken by such officers are
hereby ratified and confirmed.
Section 6. This Resolution shall take effect immediately upon its adoption.
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA ACTING AS THE SAN BERNARDINO JOINT
POWERS FINANCING AUTHORITY ESTABLISHING REGULAR MEETING DATES,
ADOPTING A DEBT MANAGEMENT POLICY, APPOINTING AN EXECUTIVE
DIRECTOR AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS IN
CONNECTION THEREWITH
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
City Council of the City of San Bernardino at a Joint Regular Meeting thereof, held on the 6t'
day of December 2017, by the following vote, to wit:
Council Members: AYES NAYS
MARQUEZ X
BARRIOS X
VALDIVIA X
SHORETT X
NICKEL X(M)
RICHARD X
MULVIHILL x(S)
ABSTAIN ABSENT
Georgeann a, CMC, `ty Clerk
The foregoing Resolution is hereby approved this 6h day of December 2017.
J
R. Carey Da' , Mayor
City of San ernardino
Approved as to form:
Gary D. Saenz, City Attorney
By: %cc—�
G
SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY
DEBT MANAGEMENT POLICY
Adopted on December 6, 2017
This Debt Management Policy (the "Debt Policy") establishes the parameters within which debt may be
issued and administered by the San Bernardino Joint Powers Financing Authority (the "Authority").
Additionally, these policies apply to debt issued by the Authority on behalf of assessment, community
facilities, or other special districts, and conduit -type financing by a Authority for multifamily housing or
industrial development projects.
The Debt Policy may be utilized by staff of the Authority with the discretion to deviate as determined
appropriate by the Executive Director, and may be amended by the governing board of the Authority as
it deems appropriate from time to time in the prudent management of the debt and capital financing
needs of the Authority.
PURPOSE:
This Debt Policy is intended to comply with Government Code Section 8855(i), effective on January 1,
2017, and shall govern all debt undertaken by the Authority.
The Authority hereby recognizes that a fiscally prudent debt policy is required in order to:
■ Maintain the Authority's sound financial position.
■ Ensure the Authority has the flexibility to respond to changes in future service priorities, revenue
levels, and operating expenses.
■ Protect the Authority's credit -worthiness.
■ Ensure that all debt is structured in order to protect both current and future taxpayers,
ratepayers and constituents of the Authority and the City of San Bernardino (the "City").
■ Ensure that the Authority's debt is consistent with its planning goals and objectives and capital
improvement program or budget, as applicable.
POLICY
Purposes for Which Debt May Be Issued
1. Long -Term Debt. Long-term debt may be issued to finance the construction, acquisition, and
rehabilitation of capital improvements and facilities, equipment and land to be owned and operated
by the City.
1.1. Long-term debt financings are appropriate when the following conditions exist:
0 When the project to be financed is necessary to provide basic services.
■ When the project to be financed will provide benefit to constituents over multiple years.
■ When total debt does not constitute an unreasonable burden to the Authority's and the City's
taxpayers and/or ratepayers, as applicable.
■ When the debt is used to refinance outstanding debt in order to produce debt service
savings or to realize the benefits of a debt restructuring.
1.2. Long-term debt financings will not generally be considered appropriate for current operating
expenses and routine maintenance expenses.
1.3. The Authority may use long-term debt financings subject to the following conditions:
■ The project to be financed must be approved by the governing board of the Authority.
■ The weighted average maturity of the debt (or the portion of the debt allocated to the
project) will not exceed the average useful life of the project to be financed by more than
20%.
■ The Authority estimates that sufficient revenues will be available to service the debt through
its maturity.
■ The Authority determines that the issuance of the debt will comply with the applicable state
and federal law.
2. Short-term debt. Short-term debt may be issued to provide financing for the Authority's operational
cash flows in order to maintain a steady and even cash flow balance. Short-term debt may also be
used to finance short-lived capital projects; for example, the Authority may undertake lease -
purchase financing for equipment.
3. Financings on Behalf of Other Entities. The Authority may also find it beneficial to issue debt on
behalf of other governmental agencies or private third parties in order to further the public purposes
of Authority. In such cases, the Authority shall take reasonable steps to confirm the financial
feasibility of the project to be financed and the financial solvency of any borrower and that the
issuance of such debt is consistent with the policies set forth herein.
Types of Debt
The following types of debt are allowable under this Debt Policy:
■ General obligation bonds (GO Bonds)
■ Bond or grant anticipation notes (BANS)
■ Lease revenue bonds, certificates of participation (COPS) and lease -purchase transactions
■ Other revenue bonds and COPs
■ Tax and revenue anticipation notes (TRANs)
■ Land -secured financings, such as special tax revenue bonds issued under the Mello -Roos
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Community Facilities Act of 1982, as amended, and limited obligation bonds issued under
applicable assessment statutes
■ Tax increment financing to the extent permitted under State law
■ Conduit financings, such as financings for affordable rental housing and qualified 501(c)(3)
organizations
The governing body may from time to time find that other forms of debt would be beneficial to further its
public purposes and may approve such debt without an amendment of this Debt Policy.
Relationship of Debt to Capital Improvement Program and Budget
The City and Authority are committed to long-term capital planning. The City and Authority intend to
issue debt for the purposes stated in this Debt Policy and to implement policy decisions incorporated in
the capital budget and the capital improvement plan.
The City and Authority shall strive to fund the upkeep and maintenance of their infrastructure and
facilities due to normal wear and tear through the expenditure of available operating revenues. The
City and Authority shall seek to avoid the use of debt to fund infrastructure and facilities improvements
that are the result of normal wear and tear.
The Authority shall integrate its debt issuances with the goals of the capital improvement program by
timing the issuance of debt to ensure that projects are available when needed in furtherance of their
public purposes.
The Authority shall seek to avoid the use of debt to fund infrastructure and facilities improvements in
circumstances when the sole purpose of such debt financing is to reduce annual budgetary
expenditures.
The Authority shall seek to issue debt in a timely manner to avoid having to make unplanned
expenditures for capital improvements or equipment from its general fund.
Policy Goals Related to Planning Goals and Objectives
The City and Authority are committed to long-term financial planning, maintaining appropriate reserves
levels and employing prudent practices in governance, management and budget administration. The
Authority intends to issue debt for the purposes stated in this Debt Policy and to implement policy
decisions incorporated in the annual operations budget.
It is a policy goal of the City and the Authority to protect taxpayers, ratepayers (if applicable) and
constituents by utilizing conservative financing methods and techniques so as to obtain the highest
practical credit ratings (if applicable) and the lowest practical borrowing costs.
The City and the Authority will comply with applicable state and federal law as it pertains to the
maximum term of debt and the procedures for levying and imposing any related taxes, assessments,
rates and charges.
When refinancing debt, it shall be the policy goal of the Authority to realize, whenever possible, and
subject to any overriding non-financial policy considerations, (i) minimum net present value debt service
savings equal to or greater than 3.0% of the refunded principal amount, and (ii) present value debt
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service savings equal to or greater than 100% of any escrow fund negative arbitrage.
E. Internal Control Procedures
When issuing debt, in addition to complying with the terms of this Debt Policy, the Authority shall
comply with any other applicable policies regarding initial bond disclosure, continuing disclosure, post -
issuance compliance, and investment of bond proceeds.
Without limiting the foregoing, the Authority will periodically review the requirements of and will remain
in compliance with the following:
■ Any continuing disclosure undertakings entered into by the Authority in accordance with SEC
Rule 15c2-12.
■ Any federal tax compliance requirements, including, without limitation, arbitrage and rebate
compliance.
■ Investment policies as they relate to the use and investment of bond proceeds.
Proceeds of debt will be held either (a) by a third -party trustee or fiscal agent, which will disburse such
proceeds to or upon the order of the Authority upon the submission of one or more written requisitions
by the Executive Director or City Finance Director, or his or her written designee, or (b) by the Authority,
to be held and accounted for in a separate fund or account, the expenditure of which will be carefully
documented by the Authority.
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