HomeMy WebLinkAboutR15-Redevelopment Agency
, REWVELOPMENT AGENCY.~EST FOR ~MMISSION/COUNCIL AeflON
From: Glenda Saul, Executive Director
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......t: Redevelopment Agency
Subject: TRANSFERRING A PORTION OF 1985
BOND ALLOCATION BACK TO THE CITY OF
RIDGECREST
Date: October 28, 1985
Synopsis of Previous Commission/Council action:
4/1/85
Authorized establishing a fund to use for negotiating transfers of IDB
allocations from other cities.
7/15/85
Adopted Resolution 85-267 accepting a transfer of allocation from the City
of Ridgecrest.
Recommended motion:
(Mayor and Common Council)
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RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA,
TRANSFERRING TO THE CITY OF RIDGECREST, CALIFORNIA, A PORTION OF THE CALENDAR YEAR
1985 PRIVATE ACTIVITY BOND LIMIT OF THE CITY OF SAN BERNARDINO, CALIFORNIA
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Signature
Contact person:
GLENDA SAUL
FUNDING REQUIREMENTS:
Amount: $
N/A
Phone: 383-5081
N/A
Ward:
N/A
Project:
November 4, 1985
Date:
Supporting data attached:
YES
No adverse Impact on City:
~cil Notes:
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0714K,EB
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Agenda Item No. A. /5
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CIO OF SAN BERNARDQo - REQUIQT FOR COUNCIL AC.~N
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75-0264
STAFF REPORT
On September 27, 1985, staff sent letters to all cities who had transferred their
private activity bond allocations to San Bernardino. The letter explained the
amendments to the Governor's Proclamation, pointing out that the Proclamation limited
the amount of an administrative fee which could be forwarded to $1,000.00.
In our original agreement with the City of Ridgecrest, staff offered 1/4 of 1% x
1,152,000 = $2,880.00.
Subsequently, staff received a letter from Ridgecrest stating the action of the
Governor represented a "repudiation of the terms of the agreement" and, therefore, the
agreement was no longer in effect.
Bond Counsel has advised that San Bernardino must adopt a resolution transferring the
allocation back to Ridgecrest.
The total allocation for IDB's less the Ridgecrest allocation is $18,090,000. This
amount is sufficient to cover proposed IDB's for 1985.
The letter from the City of Ridgecrest is attached for your review.
Bond Counsel will be available to answer any questions you may have.
0714K/EB
11/4/85
M.yor
ANNA MARtE BERGENS
Council
MICHAEL R. MOWER
FLORENCE S. CONDOS
JIM PEARSON
THOMAS R. WIKNICH
City Admlnll".lor
LAWRENCE M. COOK
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THE CITY:
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ONE HUNDRED THIRTY NINE BALSAM STREET. RIDGECREST, CALIFORNIA 9)H5..~_TE
October 9, 1985
Glenda Saul, Executive Director
Redevelopment Agency of
City of San Bernardino
300 North "0" Street Room 320
San Bernardino, CA 92418
Dear Glenda:
This is in response to your letter of September 27, 1985, advising
that the City of San Bernardino recognizes that it is bound by the
provisions of Section 7 of the Governor's Proclamation dated August
30, 1985, limiting the amount of money the City of San Bernardino can
pay to the City of Ridgecrest for the transfer of Private Activity
Bond limit Allocation to one quarter of one percent (is) of the
amount of the Bond limit actually used by the City of San Bernardino
as was transferred by the City of Ridgecrest, but not to exceed One
Thousand Dollars ($1,000).
The City Council of the City of Ridgecrest adopted City of
Ridgecrest Resolution No. 85-24 transferring to the City of San
Bernardino the calendar year 1985 Private Activity Bond Limit Allo-
cation of the City of Ridgecrest on the understanding that the City
of San Bernardino would compensate the City of Ridgecrest in the
amount of Two Thousand Eight Hundred Eighty Dollars ($2,880.00) for
making the transfer.
In as much as the action of the Governor in his proclamation of
August 30, 1985, and the acceptance of the terms of that proclama-
tion by the City of San Bernardino, does represent a repudiation of
the terms of agreement between the City of San Bernardino and the
City of Ridgecrest as understood by the City of Ridgecrest on July
1, 1985, when the City of Ridgecrest made the transfer of its calen-
dar year 1985 Private Activity Bond limit Allocation to the City of
San Bernardino, we must therefore concl ude the agreement is no
longer in effect.
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Glenda Saul, Ex~tive Director
Redeevelopment ~cy of
City of San Bernardino
October 9, 1985
Page 2
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We therefore expect that the City of San Bernardino wi 11 submit to
the California Debt limit Allocation Committee the appropriate noti-
fication that the City of San Bernardino is no longer entitled to
the calendar year 1985 Private Activity Bond limit Allocation in the
amount of One Million One Hundred Fifty-two Thousand Dollars
($1,521,000) that is allocated to the City of Ridgecrest.
Sincerely yours,
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~M. Cook
City Administrator
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SBE 001-80/1105S/ak
10/22/85
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RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, TRANSFERRING TO THE
CITY OF RIDGECREST, CALIFORNIA, A PORTION OF THE
CALENDAR YEAR 1985 PRIVATE ACTIVITY BOND LIMIT OF
THE CITY OF SAN BERNARDINO, CALIFORNIA
WHEREAS, the City of San Bernardino, California (the
"City"), is a "home rule city" duly organized and existing under and
pursuant to a Charter adopted under the provisions of the
Constitution of the State of California; and
WHEREAS, the Tax Reform Act of 1984, as adopted by the
Congress of the United States on July 18, 1984 (the "Act"), provides
-- that each state shall provide either by a proclamation of the
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governor of each state or by legislation duly adopted by each state
legislature a procedure for the allocation of the aggregate
principal amount of Private Activity Bonds that may be issued by
state and local issuers in accordance with Section 103 (b) of the
Internal Revenue Code of 1954, as amended (the "Code"); and
WHEREAS, a proclamation was duly signed by the Governor of
the State of California on July 19, 1984 (the "Proclamation"), for
the purpose of implementing certain provisions of the Act; and
WHEREAS, the City of Ridgecrest, California, pursuant to
its Resolution No. 85-24 as adopted on June 19, 1985, has previously
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transferred a portion of its 1985 Private Activity Bond Limit in the
amount of $1,152,000 to the City for use by the City in furtherance
of the intent and purposes of the Proclamation; and
WHEREAS, the Mayor and Common Council of the City of
San Bernardino, California, (the "Mayor and Common Council") has
previously accepted said transfer of allocation from the City of
Ridgecrest, California, to the City in the amount of $1,152,000
pursuant to its Resolution No. 85-267 adopted on July 18, 1985, and
reported said action taken to the California Debt Limit Allocation
Committee (the "Committee") on or about July 22, 1985, and
WHEREAS, Section 4 of said Resolution No. 85-267 provided
~ that in the event the City utilizes any or all portion of the
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calendar year 1985 Private Activity Bond Limit of the City of
Ridgecrest, California, an amount equal to one-quarter of one
percent (0.25%) of that portion of said transferred allocation which
the City utilizes and applies for qualifying projects to be financed
by the City during calendar year 1985 would be paid to the City of
Ridgecrest, California; and
WHEREAS, on August 30, 1985, the Governor amended the
Proclamation by providing, in pertinent part, that in each calendar
year all or a portion of the Private Activity Bond Limit of each
Local Agency within the State, including the calendar year 1985
Private Activity Bond Limit of the City may be transferred by such
C Local Agency to another Local Agency in the State or to the State;
and
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WHEREAS,
the
Proclamation,
as
amended provides
that
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"-" compensation in an amount not to exceed one-quarter of one percent
(0.25%) of the amount of the Private Activity Bond Limit of a Local
Agency but not to exceed one thousand dollars ($1,000) may be made
to another Local Agency in exchange for the transfer of all or a
portion of the Private Activity Bond Limit of each Local Agency
within the State and therefore limits the amount that the City can
lawfully pay to the City of Ridgecrest, California to one thousand
dollars ($1,000); and;
WHEREAS, one-quarter of one percent (0.25%) of one million
one hundred fifty-two thousand dollars ($1,152,000) is an amount
equal to two thousand eight hundred eighty dollars ($2,880);
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WHEREAS, the City of Ridgecrest, California, has requested
the City to transfer back to the City of Ridgecrest, California,
said portion of its 1985 Private Activity Bond Limit in an amount of
$1,152,000; and
WHEREAS, the Mayor and Common Council hereby deems it
appropriate to take action on said request of the City of
Ridgecrest, California, and to transfer a portion of the calendar
year 1985 Private Activity Bond Limit of the City to the City of
Ridgecrest, California, upon the terms and conditions as hereinafter
set forth.
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NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF
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ORDER AS FOLLOWS:
Section 1. The
Mayor
and
Common
Council
hereby
acknowledges receipt of the written request as submitted to the City
by the City of Ridgecrest, California, dated October 9, 1985, and
the Mayor and Common Council hereby orders and directs the transfer
of an amount equal to $1,152,000 of the calendar year 1985 Private
Activity Bond Limit of the City to the City of Ridgecrest,
California, as more fully described in said request.
Section 2. The
Mayor
and
Common
Council
hereby
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,
acknowledges that the portion of the calendar year
1985 Private
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Activity Bond Limit of the City as transferred hereby to the City of
Ridgecrest, California, may be transferred by the City in the manner
as provided in the Proclamation.
Section 3. The
Mayor
and
Common
Council
hereby
acknowledges that such portion of the calendar year 1985 Private
Activity Bond Limit of the City as transferred to the City of
Ridgecrest, California, pursuant to this Resolution shall be
irrevocable upon the issuance of bonds pursuant to the procedures to
be taken hereafter by the City of Ridgecrest, California.
Section 4. The City of Ridgecrest, California, shall have
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the sole obligation and responsibility to comply with all reporting
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requirements as necessary to the Committee as established pursuant
to the Proclamation, as amended, and all other requirements therein
and in the Code to the extent the same shall be applicable to the
issuance by the City of Ridgecrest, California, of Private Activity
Bonds.
Section 5. This Resolution shall take effect upon adoption.
APPROVED AND ADOPTED this
day of
1985.
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adopted
I HEREBY CERTIFY that the foregoing resolution was duly
by
the
Mayor
and
Common
Council
of
the
City
of
San Bernardino at a
meeting thereof, held
following vote, to wit:
day of
1985, by the
day of
AYES:
Council Members
on the
NAYS:
ABSENT:
City Clerk
The foregoing resolution is hereby approved this
, 1985.
Mayor of the City of
San Bernardino
Approved as to form:
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STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) 55.
CITY OF SAN BERNARDINO )
I, SHAUNA CLARK, City Clerk in
San Bernardino, DO HEREBY CERTIFY that the
copy of San Bernardino City Resolution No,
and correct copy of that now on file in this
and for the City of
foregoing and attached,
is a full, true
office.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
the official seal of the City of San Bernardino this day of
, 1985.
City Clerk
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