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Home My WebLink About09-25-1989 Minutes• City of San Bernardino, California September 25, 1989 This is the time and place set for an Adjourned Regular Meeting of the Mayor and Common Council of the City of San Bernardino at their Regular Meeting held at 8:30 a.m., on Monday, September 18, 1989, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. The City Clerk has caused to be posted the Order of Adjournment of said meeting held on Monday, September 18, 1989, and has on file in the office of the City Clerk an affidavit of said posting together with a copy of said Order which was posted at 3:05 p.m., Tuesday, September 19, 1989, on the door of the place at which said meeting was held. The Adjourned Regular Meeting of the Mayor and Common Council of the City of San Bernardino was called to order by Mayor Pro Tempore Minor at 1:04 p.m., in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. ROLL CALL Roll Call was taken by Deputy City Clerk Reese with the following being present: Mayor Pro Tempore Minor; Council Members Reilly, Flores, Maudsley, Minor, Miller; Senior Assistant City Attorney Barlow; Deputy City Clerk Reese; City Administrator Julian. Absent: Mayor Holcomb; Council Members Estrada, Pope - Ludlam. PUBLIC COMMENTS There were no public comments. JOINT POWERS FINANCING AUTHORITY - APPROVAL OF FINAL FORM OF FINANCING DOCUMENTS Senior Assistant City Attorney Barlow explained the importance of the meeting today, as it is anticipated that the proposed action will provide the city with several million dollars within the next week. (1) Mr. Barlow explained that Bond Counsel, Jim Iverson, had been detained by a phone call and would be at the meeting shortly. Mr. Barlow introduced Mr. Michael Y. Toy of the Bond Counsel Firm of Hawkins, Delafield & Wood, 6320 Canoga Avenue, Suite 400, Woodland Hills, California 91367. Mr. Toy explained the five resolutions that are being considered at today's meeting. 0 1 9/25/89 . Jim Iverson, Senior Executive Vice President, Miller & Schroeder, 505 Lomas Santa Fe Dr., Suite 100, Solano Beach, California, arrived at the meeting and explained that he had been discussing a federal tax law structuring problem that could affect the golf course tax allocation refunding issue. He recommended that the resolutions be adopted and that this meeting be continued to Wednesday, September 27, 1989, in the event there may be some change required regarding the Shandin Hills Golf Course. COUNCIL MEMBER ESTRADA ARRIVED Council Member Estrada arrived at the Council meeting and took her place at the Council table. Mr. Iverson answered questions. Senior Assistant City Attorney Barlow agreed that the resolutions should be adopted at this meeting. A discussion ensued regarding the fact that the documents being considered were distributed so late, the Council did not have time to read them. Senior Assistant City Attorney Barlow answered questions, stating he had reviewed all the documents. • Mr. Iverson explained the urgency of adopting the resolutions today. If the transaction goes forward as presented, the bond issue will close tomorrow. If there are major structural changes, the issue will not close and will have to be brought back to Council for approval. MAYOR HOLCOMB ARRIVED Mayor Holcomb arrived at the Council meeting and took his place at the Council table. Mr. Iverson explained that part of the refunding transaction involves the Shandin Hills Golf Course. The 1986 Tax Code changed the rules with respect to management agreements with golf courses. Basically, the 1986 Tax Code indicates that tax exempt money can't be used to finance golf courses unless the golf course is owned by the governmental entity, and then it is permissible to enter into a management agreement with the proprietary group. The transaction that the City entered into prior to the 1986 Tax Code was legal and appropriate at that time. Mr. Iverson explained that the bonds had been marketed several weeks ago, and the savings have been created. He stated • 2 9/25/89 • it is possible that the transaction will net the City an additional seven million dollars. If it is necessary to go back to the market, there is a risk of losing the market. Mr. Iverson answered questions, stating that he anticipated that the problems being discussed by the tax attorneys would be solved by Wednesday, September 27, 1989. Mr. Iverson answered questions, and explained there are three transactions being considered today: (1) Refunding of the fire station and the library, which he recommended for approval; (2) A Residual Value Bond Taxable CMO on which there are no problems. He recommended it be approved; (3) The project for refunding for the Redevelopment Agency may or may not have a problem. Mr. Toy recommended that the Lease Revenue Refunding Bonds issue be approved. If that is done, there is a provision to lower the debt service payments in connection with the library and fire station. COUNCIL MEMBER POPE-LUDLAM ARRIVED Council Member Pope -Ludlam arrived at the Council meeting and took her place at the Council table. Discussion ensued regarding the golf course financing. • READING AND WAIVING OF RESOLUTIONS Deputy City Clerk Reese read the titles of all the resolutions on the agenda. Council Member Estrada made a motion, seconded by Council Member Reilly and unanimously carried, that further reading of all the resolutions on the agenda be waived. Mayor Holcomb recommended approval be given to all the resolutions, subject to approval by the City Attorney's office. Mr. Iverson explained the difficulty of finalizing documents in a time period in which everyone has plenty of time to review them. He stated that the market is constantly fluctuating and his office has to be ready to go to the market when the window is there. He stated they have been in contact with Mr. Barlow and Mr. Dukett to keep them advised as to the status of the issues. Mr. Barlow answered questions, stating that resolutions listed as A, B, and C, are not specific projects, but are all encompassing. He recommended they be adopted, subject to final approval by the City Attorney's office. • 3 9/25/89 • Council Member Miller made a motion, seconded by Council Member Estrada and unanimously carried, that the following resolutions be adopted, subject to final approval by the City Attorney's Office. RES. 89-386 - RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE FINAL FORM OF DOCUMENTS IN CONNECTION WITH CERTAIN FINANCINGS. (1A) RES. JPFA-4 - RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY APPROVING THE FINAL FORM OF DOCUMENTS IN CONNECTION WITH CERTAIN FINANCINGS. (lC) Resolution Nos. 89-386 and JPFA-4 were adopted by the following vote: Ayes: Council Members Estrada, Reilly, Flores, Maudsley, Minor, Pope -Ludlam, Miller. Noes: None. Absent: None. RES. 89-387 - RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, APPROVING THE FINAL FORM OF DOCUMENTS IN CONNECTION WITH CERTAIN FINANCINGS. (1D) Council Member Pope -Ludlam made a motion, seconded by Council Member Estrada and unanimously carried, that said • resolution be adopted, subject to final approval by the City Attorney's office. Resolution No. 89-387 was adopted by the following vote: Ayes: Council Members Estrada, Reilly, Flores, Maudsley, Minor, Pope -Ludlam, Miller. Noes: None. Absent: None. RECESS MEETING - CLOSED SESSION At 1:40 p.m., Council Member Flores made a motion, seconded by Council Member Miller and unanimously carried, that the meeting be recessed to Closed Session pursuant to the following: Government Code Section 54956.9(b)(1), to confer with its attorney regarding pending litigation, as there is significant exposure to litigation; (2) Government Code Section 54956.9(a) to confer with its attorney regarding pending litigation which has been initiated formally to which the City is a party as follows: (3) Hobbs vs. City of San Bernardino - San Bernardino Superior Court Case No. 250971. • 4 9/25/89 • CLOSED SESSION At 1:40 p.m., the Closed Session was called to order in the Conference Room of the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California. ROLL CALL Roll Call was taken with the following being present: Mayor Holcomb; Council Members Estrada, Reilly, Flores, Maudsley, Minor, Pope -Ludlam, Miller; City Attorney Penman, Deputy City Clerk Reese, City Administrator Julian. Absent: None. Also present: Assistant City Attorney Brue. ADJOURN CLOSED SESSION At 1:55 p.m., the Closed Session adjourned to the Adjourned Regular Meeting of the Mayor and Common Council of the City of San Bernardino in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. RECONVENE MEETING At 1:55 p.m., the Adjourned Regular Meeting of the Mayor and Common Council of the City of San Bernardino reconvened in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. ROLL CALL • Roll Call was taken by Deputy City Clerk Reese with the following being present: Mayor Holcomb; Council Members Estrada, Reilly, Flores, Maudsley, Minor, Pope -Ludlam, Miller, Senior Assistant City Attorney Barlow, Deputy City Clerk Reese, City Administrator Julian. Absent: None. ADJOURNMENT At 1:55 p.m., Council Member Flores made a motion, seconded by Council Member Miller and unanimously carried, that the meeting be adjourned to 1:00 p.m., Wednesday, September 27, 1989, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. SHAUNA CLARK City Clerk by �� `�jLQ��L2J Deputy C ty Clerk No. of Items: 3 No. of Hours: 1 0 5 9/25/89