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HomeMy WebLinkAboutR15-Redevelopment Agency , REWVELOPMENT AGENCY.~EST FOR ~MMISSION/COUNCIL AeflON From: Glenda Saul, Executive Director ,- ......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) c 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 ,~~ 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: '- 0714K,EB ,) Agenda Item No. A. /5 , CIO OF SAN BERNARDQo - REQUIQT FOR COUNCIL AC.~N ."- ....... ,--. \"... ,,- \"... 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the action of the Governor represented a "repudiation of the terms of the agreement" and, therefore, the agreement was no longer in effect.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 1"'"'- '- ..- '- " \,..... $" -""" ,'~. Ci~Y OF &.. f "' ,-,," "" 8- ~ ~o1',\'t~ ~ ~ t,\ '(\'\~' ?". <.> \'ll~. ~_ <: -":v--' ,..!'{":> b t5 \,,'- cC ..,.\ .-: r::::,"J\ ~ '%" ?) \,...- THE CITY: 1 u3tJ 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. c Glenda Saul, Ex~tive Director Redeevelopment ~cy of City of San Bernardino October 9, 1985 Page 2 /'" v , .- '- 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 ($1,521,000) that is allocated to the City of Ridgecrest. Sincerely yours, fl$;U ~M. Cook City Administrator bp .- "- j......-. '- ,r-.... , \....- """"" ....hJ!' SBE 001-80/1105S/ak 10/22/85 .- 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 '- 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 ....... .- .I" - 1 - c c 1""'-, V , /...-..... '- 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 "'- 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 - 2 - f""..... ~ ,-... ....... """,,", "'-" ,,# WHEREAS, the Proclamation, as amended provides that !~ "-" 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); c 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. ~.... ........ - 3 - l..- '" .,.,'.... I"....< -..# NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF ,- '-' SAN BERNARDINO, CALIFORNIA, DO HEREBY FIND, RESOLVE, DETERMINE AND 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 ."jOOO"", , acknowledges that the portion of the calendar year 1985 Private '- 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 .--..... the sole obligation and responsibility to comply with all reporting '- - 4 - ,-t"'-'-"'- '- -, '- _,<w..... '-' c ,.-.. '-' ...........'\ '-' .....",;' 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. - 5 - c "..", "",", I",.., ""'" _..__,J "-' ,,- 1.-. 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: A~{,~~ ""...-"-. '-' - 6 - r-- '- c ,,...,... '- c c '.... , .....) """ 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 - 7 -