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HomeMy WebLinkAboutR10-Economic Development Agency . . e ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ~@[?)V REQl1EST FOR COMMISSION/COUNCIL AC'f1OJll FROM: TIMOTHY C. STEINHAUS Agency Administrator SUBJECT: SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY PUBLIC FACILITIES LEASE REVENUE REFUNDING BONDS, 1997 SERIES A FRED WILSON Acting City Administrator DATE: June 11, 1997 ---------------------------------------------------------------------------------------------------------------------------------------- Synnpsis of Previous .Commission/CounciVCommittee Adion(s): On June 2, 1997, the Mayor and Common Council/Community Development Commission and the Joint Powers Financing Authority continued this item until June 16, 1997. ------------------------------------------------------------------------------------------------------------------------------------- RecommendedMo.tion(s): (Mayor and Common Council) MOTION A: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AUTHORIZING CERTAIN LEASE AGREEMENTS, THE FORMS OF CERTAIN DOCUMENTS RELATED THERETO AND THE TRANSFER OF CERTAIN PROPERTY TO THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY. (Motions Continued on Next Page) FRED WILSON Acting City Administrator TIMOT . STEINHAUS Agency Administrator ----------------------------------------------------------------------------------------------------------------------------------- Contact Person(s): T.imoth)'.c.. Steinhaus/Fred Wilson Phone: 5ll8J Project Area(s): NlA Ward(s): l'//A Supporting Data Attached: Staff Report; Resolutions FUNDING REQUIREMENTS: Amount: $.N/A Source: .N/A Budget Authority: l'/one .~-_._-------------------------------------------------------------------------------------------------------------------------------- C.ommission/CQIlDcill'lmes.: Continued to () 7/07/97 ~-------------------------------------------------------------------------------------------------------------.--- TCS:lmp:jpa.cdc COMMISSION MEETING AGENDA MEETING DATE: 06/16/1997 Agenda Item Number: RJ 0 e e e ECONOMIC DEVELOPMENT AGENCY Request for Commission/Council Action May 29, 1997 Page 2 Recommended Motion(s) Continued: (Cnmmunity Dev_elopmentCommission) MOTION B: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AUTHORIZING A CERTAIN LOAN AGREEMENT AND LIBRARY AND FIRE STATION LEASE (JointPowers Financing Authority) MOTION C: RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $16,250,000 PUBLIC FACILITIES LEASE REVENUE REFUNDING BONDS 1997 SERIES A, APPROVING THE FORM OF LEGAL DOCUMENTS RELATED THERETO AND AUTHORIZING AND DIRECTING PREPARATION, EXECUTION AND DELIVERY OF THE FINAL FORMS THEREOF TCS:lmp:jpa.cdc COMMISSION MEETING AGENDA MEETING DATE: 06/16/1997 Agenda Item Number: 10 . . e ECONOMIC DEVELOPMENT AGENCY STAFF REPORT ------------------------------------------------------------------------------------------------------------------ BACKGROUND AND STRUCTURE In August 1989, the San Bernardino Joint Powers Financing Authority (the "Authority") issued on behalf of the City the $10,215,000 Public Facilities Lease Revenue Refunding Bonds (the "1989 Bonds"). The 1989 Bonds were issued to refund the $3,200,000 Redevelopment Agency of the City of San Bernardino, California, Public Facilities Lease Revenue Bonds, Issue of 1982, Series A (the "1982 Bonds"), and the $6,790,000 Redevelopment Agency of the City of San Bernardino, California, Public Facilities Lease Revenue Bonds, Issue of 1983, Series A (Central Library) (the "1983 Bonds"). The 1989 Bonds have a final maturity date of September 1, 2013. The annual Debt Service payment on the 1989 Bonds is equal to approximately $890,000 per year; and the net interest rate is equal to 7.218%. City Staffhas been working with representatives of Miller & Schroeder Financial, Inc. ("Miller & Schroeder"), to assist the City: (i) in resolving the anticipated budget deficits that are expected to occur for the 1997-98 fiscal year, (ii) to deal with certain financial concerns brought about by the recent passage of Proposition 218 in November, 1996, (iii) to obtain additional funds for the development of the fueling station at the City Corporate Yards, and (iv) to assist in the refinancing the 1989 Bonds for debt service savings purposes. The refunding of the 1989 Bonds would achieve a reduction in the annual debt service cost to the City and would provide a lower interest rate. This refunding of the 1989 Bonds alone would create debt service savings for the City commencing in the 1997-98 fiscal year and additional future savings over the life of the proposed 1997 Refunding Bonds. The 1997 Refunding Bonds would be issued in a principal amount not to exceed $16,250,000 and would also provide approximately $700,000 of additional funds for the construction of the fuel station improvements to the City Corporate Yards. The annual cost for obtaining these funds would be approximately $65,000 per year with the costs to be distributed among the Refuse Fund, the General Fund and the Sewer Fund on the basis of vehicle fleet size. The City has been notified by the County Hazardous Materials Section to cease the fueling operations in the City Corporate Yard by June, 1997, or until soil contamination caused by leaking of the underground storage tanks is mitigated. It initially appeared to be cost effective to contract with the County for fuel services in lieu on constructing a new fueling facility. Although the County fueling facility is located within the City limits and would meet the needs of the City fleet vehicles, the cost based upon initial discussions with County staff would have been 5% to 10% greater than the cost of the current City operation. The County subsequently submitted a written proposal wherein the annual increase for the fueling service would have ranged from $250,000 to ------------------------------------------------------------------------------------------------------------------ TCS:lmp:jpa.cdc COMMISSION MEETING AGENDA MEETING DATE: 06/16/1997 Agenda Item Number: _~D e e e Economic Development Agency Staff Report Public Facilities Lease Revenue Refunding Bonds May 29, 1997 Page 2 $300,000 per year. Based upon these figures, it appears as though the City could recoup the capital cost of the fueling station within three years. City staff has also determined that it would be advantageous for the City to retain its own fueling facility in the event of a disaster or other emergency. Based upon current interest rates, it is expected that the City will be able to reduce its annual debt service costs on the 1989 Bonds by approximately $45,000 per year due exclusively to the reduction in interest rates from 1989 to the current market conditions. If the maturity date of the refunding bonds is extended from September I, 2013 to September I, 2022, the City could further reduce its annual debt service cost by $110,000 per year through the year 2013 which is the current maturity date for the 1989 Bonds. The City may additionally include as capitalized interest the amount necessary to pay the initial interest-only payment which is due and payable on September I, 1997, for the 1997 Refunding Bonds. By capitalizing interest for the first debt service payment in September 1997, for the 1997 Refunding Bonds, the issuance of the 1997 Refunding Bonds will thereby reduce the first year debt service cost in 1997-98 by $500,000. These cost savings figures are summarized below: 1. Interest rate savings from the issuance of the 1997 Refunding Bonds - $45,000 per year 2. Annual debt service reduction by extending the maturity of the 1989 Bonds from September I, 2013, to September I, 2022, for the 1997 Refunding Bonds - $110,000 through the original maturity date of 20 13 for the 1989 Bonds 3. Funding of the September I, 1997, debt service payment produces an additional 1997-98 fiscal year savings - $500,000 FINANCING OF REFUSE DEPARTMENT OPERATIONS AT CORPORATE YARD The Refuse Department of the City presently has an extensive use of the City Corporate Yard for the storage and maintenance of the Refuse Department vehicles and the storage of trash bins and other receptacles that are distributed to customers. An appraisal has been obtained which concludes that the Refuse Department is presently utilizing a percentage of the City Corporate Yard which has a current appraised value of $5,400,000. The City, in full compliance with the recently adopted Proposition 218, is able to transfer title for that portion of the City Corporate Yard that is utilized by the Refuse Department operations to the Joint Powers Financing Authority in exchange for the payment of the $5,400,000 of the land and improvement value. TCS:lrnp:jpa.cdc COMMISSION MEETING AGENDA MEETING DATE: 06/16/1997 Agenda Item Number: --10.-- . . . Economic Development Agency Staff Report Public Facilities Lease Revenue Refunding Bonds May 29,1997 Page 3 ----------------------------------------------------------------------------------------------------------------------.--- The City will then lease back that same portion of the City Corporate Yard pursuant to the Lease Purchase Agreement whereby the primary pledge of revenues and the source of repayment will be the refuse collection fees obtained through the enterprise fund of the Refuse Department. AMBAC will additionally require that the City General Fund be obligated to remit any payments that are not or can not be made at any time in the future. Both AMBAC and the purchasers of the 1997 Refunding Bonds will also require that the $5,400,000 be released to the City in two (2) installments: $2,700,000 during the 1997-98 fiscal year and the second installment of $2,700,000, plus interest earnings thereon, during the 1998-99 fiscal year. It has been proposed that the transaction be structured as follows: The Authority would issue its Public Facilities Lease Revenue Refunding Bonds, Series 1997A, and transfer a portion of the proceeds to the City to advance refund the 1989 Bonds. The City would then lease the Library Building to the Authority and the Agency, which presently holds title to the Fire Station, will lease the Fire Station to the Authority. The City would then transfer to the Authority title to that portion of the City Corporate Yard that is presently being used for the operations of the Refuse Department. The Authority will loan the proceeds of the 1997 Refunding Bonds to the Agency, pursuant to a Loan Agreement. The Loan Agreement will be secured by Base Rental Payments to be made by the City pursuant to a Library and Fire Station Lease Agreement between the City and the Agency. The Authority would also lease the City Corporate Yard to the City. The 1997 Refunding Bonds would be secured by payments made under the Loan Agreement and payments made under the Lease of the City Corporate Yard. Finally, the City would be obligated to make payments from the General Fund for the Fire Station, Library and City portion of the fueling station, and the revenues of the Refuse Department would be used as the primary source of repayment of the debt service of the Refuse Department portion ofthe City Corporate Yard and the fueling station. AMBAC has previously provided municipal bond insurance on the 1989 Bonds and will issue a new policy for the continuation of bond insurance on the new bonds in order to obtain a rating of AAA. AMBAC has agreed to substantially reduce its premium on the refunding bonds from the typical insurance premium of .65% as was paid on the 1989 Bonds to a .39% premium as negotiated with AMBAC for the Refunding Bonds. -----------.------------------------------------------------------------------------------------------------------ TCS:lmp:jpa.cdc COMMISSION MEETING AGENDA MEETING DATE: 06/16/1997 Agenda Item Number: ~ e e e Economic Development Agency Staff Report Public Facilities Lease Revenue Refunding Bonds May 29,1997 Page 4 -------------------------------------------------------------------------------------------------------------------------- PROPOSED ACTIONS The Council should decide on the following policy matters to assist City Staff in the structuring of the proposed refinancing and the issuance of the Refunding Bonds. The decisions that need to be addressed by the Council are listed below, and any motion to approve the accompanying Resolutions must be qualified to take into account the directions of the Council on the following structural matters. 1. Issue the Refunding Bonds to achieve an interest rate savings and debt service reductions of approximately $45,000 per year. 2. Extend the maturity date of the 1989 Bonds from September 1,2013, to the maturity date of the Refunding Bonds of September I, 2022, for an annual debt service reduction of $110,000 per year through 2013. 3. Fund the September I, 1997, interest-only payment with the proceeds of the 1997 Refunding Bonds to reduce the payment obligations of the City in the 1997-98 fiscal year by approximately $500,000. 4. Fund the $700,000 of construction and installation costs for the fueling station at the City Corporate Yard. 5. Authorize the transfer of title of the Refuse Department portion of the City Corporate Yard for a consideration of $5,400,000 to be released to the City in equal installments during the 1997-98 and the 1998-99 fiscal years with a lease-back to the City and payments to be made from the enterprise fund of the Refuse Department. Each installment of $2,700,000 will be released to the City on July 1 for each of the 1997-98 and 1998-99 fiscal years. It is recommended that the attached resolutions of the Mayor and Common Council, the San Bernardino Joint Powers Public Finance Authority and the Community Development Commission be adopted to provide for the issuance of the Authority's Public Facilities Lease Revenue Bonds, Series 1997 A, for the refinancing of the 1989 Bonds and for various other public projects subject to the further direction of the Council as outlined in items 1 through 5 above. ------------------------------------------------------------------------------------------------------------------ TCS:lmp:jpa.cdc COMMISSION MEETING AGENDA MEETING DATE: 06/16/1997 Agenda Item Number: J{) . . . Economic Development Agency Staff Report Public Facilities Lease Revenue Refunding Bonds May 29,1997 Page 5 -------------------------------------------------------------------------------------------------------------------------- Based on the foregoing, staff recommends adoption of the attached resolutions. FRED WILSON Acting City Administrator ----------------------------------------------------------------------------------------------------------------.- TCS:lmp:jpa.cdc COMMISSION MEETING AGENDA MEETING DATE: 06/16/1997 Agenda Item Number: --\6- . SANBERNARDINO JOINT POWERS FINANCING AUTIiORITY PUBUC FAcn.ITJES LEASE REVENUE REFUNDING BONDS ANNUAL DEBT SERVICE . Refunding $5.4 Million $700,000 Date Portion Portion Portion Combined 3/1/98 249,883.75 167,701.25 21,883.75 438,931.~S 9/1198 439,883.75 297,701.25 36,883.75 773,931.25 9/1/99 692,357.50 465,332.50 58,182.50 1,214,797.50 9/1100 689,057.50 464,730.00 62,560.00 1,210,272.50 9/1/01 690,037.50 463,570.00 61,680.00 1,214,432.50 9/1/02 690,147.50 461,900.00 60,760.00 1,211,952.50 9/1103 689,572.50 464,850.00 59,820.00 1,213,387.50 9/1104 693,292.50 462,170.00 58,860.00 1,213,467.50 9/1105 691,042.50 464,085.00 62,880,00 1,212,152.50 9/1106 693,042.50 460,335.00 61,630.00 1,214,402.50 9/1107 689,017.50 461,155.00 60,355.00 1,214,922.50 9/1108 689,197.50 461,275.00 59,055.00 1,213,662.50 9/1109 688,297.50 465,675.00 62,730.00 1,210,572.50 9/1110 691)87.50 464,065.00 61,110.00 1,210,602.50 9/1/11 693,030.00 461,802.50 59,475.00 1,213,720.00 9/1/12 688,327.50 463,760.00 57,810,00 1,214,310.00 9/1113 692,607.50 464,760.00 61,130.00 1,212,630.00 9/1114 689,895.00 464,522.50 59,117.50 1,212,955.00 9/1/15 691,032.50 463,422.50 62,105.00 1,210,980.00 9/1/16 690,732.50 461,460.00 59,805.00 1,211,705.00 9/1/17 688,995.00 463,635.00 62,505.00 1,214,842.50 9/1/18 690,820.00 464,660.00 59,917.50 1,215,105.00 9/1119 690,400.00 464,185.00 62,285.00 1,211,577.50 9/ln.O 688,225.00 462,540.00 59,360.00 1,215,125.00 9/1/21 689,295.00 464,725.00 61,435.00 1,210,162.50 9/1n.2 693,317.50 460.447.50 58,217.50 1,211,982.50 . ID .Ie:. _ I . . e 1 2 3 4 5 6 7 8 RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AUTHORIZING CERTAIN LEASE AGREEMENTS, THE FORMS OF CERTAIN DOCUMENTS RELATED THERETO AND THE TRANSFER OF CERTAIN PROPERTY TO THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY WHEREAS, the City of San Bernardino (the "City") and the Redevelopment Agency of the City of San Bernardino (the "Agency") have heretofore entered into a Joint Exercise of Powers 9 10 Agreement establishing the San Bernardino Joint Powers Financing 11 Authority (the "Authority") for the purpose, among other things, 12 of issuing bonds to be used to make loans to finance certain 13 activities of the City and the Agency; and 14 15 WHEREAS, the Authority and Security Pacific National 16 Bank, as succeeded as trustee by First Trust of California, 17 18 19 20 21 22 23 24 25 26 27 28 National Association, entered into that certain Indenture of Trust dated as of September 27, 1989, which provided for the issuance of the San Bernardino Joint Powers Financing Authority Public Facilities Lease Revenue Bonds, 1989 Series A (the ~Prior Bonds") which were secured by lease payments to be made by the City; and WHEREAS, the City has requested that the Authority and the Agency assist in refinancing the City's obligations in connection with the Prior Bonds and providing additional capital for certain other public improvements; and - 1 - 101 . . . . , Lease"); and 16 Lease"); and 17 18 19 20 21 22 23 24 25 26 WHEREAS, the Authority shall pledge payments to be made 27 under the Loan Agreement and Maintenance Facility Lease as 28 security for the Bonds; and WHEREAS, the Authority has determined to issue its Public Facilities Lease Revenue Refunding Bonds, 1997 Series A, in the principal amount of not to exceed $16,250,000 (the "Bonds") pursuant to and secured by the Indenture of Trust dated as of June 1, 1997 (the "Indenture") and loan the proceeds thereof to the City; and - 2 - 10 e e WHEREAS, the proceeds of the Bonds will be applied to refund the Prior Bonds, fund certain capital projects, fund capitalized interest and a reserve fund and pay costs of issuance of the Bonds; and WHEREAS, Miller & Schroeder Financial, Inc., as prospective underwriter of the Bonds (the "Underwriter") has informed the Authority that it intends to submit an offer to purchase the Bonds and shall cause to be prepared a Preliminary Official Statement and an Official Statement relating to such Bonds, as may be necessary in the sale and marketing of the Bonds, the form of which Preliminary Official Statement is presently on file with the Secretary of the Authority; and WHEREAS, the City has determined to approve the e ,- . . . \ 1 under the Grant Deed, and has duly considered such transactions 2 and seeks at this time to approve said transaction and documents 3 in the public interests of the City. 4 5 6 7 8 9 10 and determines that the sale of the Property will result in 11 12 significant public benefits. NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DO HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Determinations. The City hereby finds 10 . . e e 1 directed to execute and deliver, and the City Clerk is hereby 2 authorized and directed to attest to, the final forms of the City 3 Documents when the same have been prepared. 4 5 Issuance of the Bonds: Approval of Form The City hereby authorizes the issuance pursuant to the Act, the Government Code of the State of California and the Indenture of Trust (The UIndenture") on file with the City Clerk, in the principal amount not to exceed $16,250,000 and the preparation of certain financing documents related thereto which are necessary to carry out the issuance of the Bonds. Section 3. 6 of Indenture of Trust. 7 of the Bonds under and 8 . Section 5. e e The City hereby authorizes the transfer of certain reserve fund agreements from the Prior Bond funds to the funds and accounts established under the Indenture. The Underwriter is - 6 - [0 ~ 1 further authorized to invest on behalf of the City the balances defined in the Indenture) held by the ~ ~ - 7 - fa . . . 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AUTHORIZING CERTAIN LEASE AGREEMENTS, THE FORMS OF 2 CERTAIN DOCUMENTS RELATED THERETO AND THE TRANSFER OF CERTAIN 3 PROPERTY TO THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY 4 5 Section 6. Effective Date. This Resolution shall 6 take effect from and after the date of its passage and adoption. 7 I HEREBY CERTIFY that the foregoing Resolution was duly 8 adopted by the Mayor and Common Council of the City of 9 San Bernardino at a 10 thereof, held on the meeting day of 11 1997, by the following vote, to wit: 12 13 Council: NEGRETE CURLIN 14 ARIAS OBERHELMAN 15 DEVLIN ANDERSON 16 MILLER 17 18 19 20 21 ~ ~ ABSTAIN ABSENT City Clerk day of The foregoing resolution is hereby approved this , 1997. 22 23 24 25 26 27 28 Mayor of the City of San Bernardino By: SBEO\016B\9 - 8 - 10 e e ~ 1 2 3 4 5 6 7 8 RESOLUTION NO. RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $16,250,000 PUBLIC FACILITIES LEASE REVENUE REFUNDING BONDS 1997 SERIES A, APPROVING THE FORM OF LEGAL DOCUMENTS RELATED THERETO AND AUTHORIZING AND DIRECTING PREPARATION, EXECUTION AND DELIVERY OF THE FINAL FORMS THEREOF WHEREAS, the City of San Bernardino (the "City") and 9 the Redevelopment Agency of the City of San Bernardino (the 10 "Agency") have heretofore entered into a Joint Exercise of Powers 11 Agreement establishing the San Bernardino Joint Powers Financing 12 Authority (the "Authority") for the purpose, among other things, 13 of issuing bonds to be used to make loans to finance certain 14 activities of the City and the Agency; and 15 16 17 Bank, 18 WHEREAS, the Authority and Security Pacific National as succeeded as trustee by First Trust of California, National Association, entered into that certain Indenture of 19 20 21 22 23 24 25 26 Trust dated as of September 27, 1989, which provided for the issuance of the San Bernardino Joint Powers Financing Authority Public Facilities Lease Revenue Bonds, 1989 Series A (the "Prior Bondsfl) which were secured by lease payments to be made by the City; and WHEREAS, the City has requested that the Authority and 27 the Agency assist in refinancing the City's obligations in 28 - 1 - 10 . . . 1 2 3 4 5 6 7 8 by certain Base Rental Payments to be made by the City to the 9 Agency under that certain Library and Fire Station Lease 10 Agreement dated as of June 1, 1997 (the "Library and Fire Station 11 Lease"); and 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 connection with the Prior Bonds and providing additional capital for certain other public improvements; and WHEREAS, in order to carry out the financing, the Authority shall enter into a Loan Agreement with the Agency dated as of June 1, 1997 (the "Loan Agreement") which shall be secured WHEREAS, the Authority proposes to transfer certain moneys to the City and in consideration therefore, the City shall transfer the City's Maintenance Facility Yard to the Authority and the Authority shall then lease the Maintenance Facility Yard back to the City pursuant to that certain Maintenance Facilities Lease dated as of June 1, 1997 (the "Maintenance Facilities Lease"); and WHEREAS, the Authority has determined to issue its Public Facilities Lease Revenue Refunding Bonds, 1997 Series A, in the principal amount of not to exceed $16,250,000 (the "Bonds") pursuant to and secured by the Indenture of Trust dated as of June 1, 1997 (the "Indenture") and loan the proceeds thereof to the City; and - 2 - 10 ~ 1 WHEREAS, the Authority shall pledge payments to be made 2 under the Loan Agreement and Maintenance Facility Lease as 3 security for the Bonds; and 4 5 6 7 8 9 10 11 12 13 ~ 14 15 e WHEREAS, the Authority shall assign its right to receive payments under the Loan Agreement and Maintenance Facility Lease (the "Payments"), its right to enforce payment of the Payments and otherwise to enforce its interest and rights under the Loan Agreement and Maintenance Facility Lease in the event of a default thereunder by the City, to the Trustee pursuant to the Indenture to provide for the repayment of the Bonds; and - 3 - 10 ~ . . . 1 Bonds, the form of which Preliminary Official Statement is 2 presently on file with the Secretary of the Authority; and 3 4 5 6 7 8 the Authority. 9 10 NOW, THEREFORE, THE SAN BERNARDINO JOINT POWERS 11 FINANCING AUTHORITY DOES HEREBY RESOLVE, DETERMINE AND ORDER AS 12 FOLLOWS: 13 14 15 16 WHEREAS, the Authority has considered the terms of the transaction as contemplated herein and desires at this time to approve the terms of said transaction in the public interests of Section 1. Findings and Determinations. Pursuant to Section 2. Issuance of the Bonds: Aooroval of Form of Indenture: Authorization of and Direction for Preoaration of Final Form Thereof. The Authority hereby authorizes the issuance of the Bonds under and pursuant to the Marks-Roos Act and the Indenture in the principal amount of not to exceed - 4 - 10- e 6 7 8 9 10 11 12 13 e 14 15 16 17 18 19 20 21 22 23 24 25 it ! 1 $16,250,000 and the preparation of certain financing documents 2 related thereto which are necessary to carry out the issuance of 3 . the Bonds. The Author1ty hereby approves the form of Indenture 4 as presently on file with the Secretary of the Authority with 5 such changes thereto as may be approved by the Chairman, Administrator or Director of the Authority and as necessary to incorporate the principal amount, interest rate, maturity and redemption dates and such other terms and conditions with respect to the Bonds when such terms and conditions have been ascertained. The Authority hereby further authorizes and directs that the form of Indenture presently on file with the Secretary be converted into the final form of Indenture, authorizing the issuance of the Bonds together with such changes or modifications as deemed necessary or desirable by the Chairman, Administrator or Director of the Authority, upon the recommendation of Sabo & Green, a Professional Corporation ("Bond Counsel"). The Chairman, Vice-Chairman, Administrator, Director or such other authorized officer of the Authority is hereby authorized and directed to execute and deliver, and the Secretary or Assistant Secretary is hereby authorized and directed to attest to, the final form of the Indenture when the same has been prepared for and in the name of the Authority, and such execution and delivery shall be deemed to be conclusive evidence of the approval 26 thereof. The Authority hereby authorizes the delivery and 27 performance of the obligations under the Indenture. 28 - 5 - 10 . Section 3.. Aporoval of Final Forms of Loan Aareement. Maintenance Facility Lease A9reement. A9reement of Transfer and Grant Deed. The Authority hereby approves the forms of Loan . . - 6 - 10 . Section 4. Sale of the Bonds. The Authority hereby approves the sale of the Bonds by negotiated purchase with the Underwriter, pursuant to that certain Bond Purchase Agreement to be provided by the Underwriter prior (the "Purchase Agreement"), . . Section 5. Approval of Final Form of Continuina Disclosure Aareement. The Authority hereby approves the form of - 7 - \0 . 2 3 4 5 6 7 8 9 10 11 12 13 . 14 15 16 . 1 Continuing Disclosure Agreement presently on file with the Secretary together with any changes therein or additions thereto as may be approved by the Chairman, Administrator or Director and as necessary to incorporate certain terms and conditions when such terms and conditions have been ascertained. The Authority hereby further authorizes and directs that the form of Continuing Disclosure Agreement presently on file with the Secretary be converted into the final form thereof, together with such changes or modifications as deemed necessary or desirable by the Chairman, Administrator or Director of the Authority upon the recommendation of Bond Counsel. The Chairman, Vice-Chairman, Administrator, Director or such other authorized officer of the Authority is hereby authorized and directed to execute and deliver, and the Secretary or Assistant Secretary is hereby authorized and directed to attest to, the final form of the Continuing Disclosure Agreement when the same has been prepared and such execution and delivery shall be deemed to be conclusive evidence of the approval thereof. - 8 - 10 e 6 7 8 9 10 11 12 13 e 14 - Section 7. Official Action. The Chairman, Administrator, Director, Secretary, Bond Counsel and any and all other officers of the Authority are hereby authorized and directed, for and in the name and on behalf of the Authority, to do any and all things and take any and all actions, including execution and delivery of any and all assignments, certificates, - 9 - 10 . . The Authority hereby authorizes the payment of all costs of issuance in connection with the issuance of the Bonds including all legal fees of Bond Counsel, Underwriter's Counsel, bond printing and Trustee fees. Bills for all such items shall be submitted to and approved by the Administrator or Director of the Authority. . - 10 - 10 e Section 8. Aooroval of Financina Team. Authority hereby approves the following entities for respective category of services in connection with transactions contemplated by this resolution: The the the Sabo & Green, a Professional Corporation Miller & Schroeder Financial, Inc. Hinshaw & Culbertson First Trust of California, National Association e ~ - 11 - ,0 e e , 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 By: RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $16,250,000 PUBLIC FACILITIES LEASE REVENUE REFUNDING BONDS 1997 SERIES A, APPROVING THE FORM OF LEGAL DOCUMENTS RELATED THERETO AND AUTHORIZING AND DIRECTING PREPARATION, EXECUTION AND DELIVERY OF THE FINAL FORMS THEREOF Section 9. Effective Date: Sub;ect to City A~Droval. This Resolution shall take effect from and after its passage and adoption. This Resolution shall be subject in all respects to the approval by the City of the execution and delivery of the Lease Agreement and to the issuance of the Bonds by the Authority. I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the San Bernardino Joint Powers Financing Authority at a special meeting thereof, held on the day of , 1997, by the following vote, to wit: Council: NEGRETE CURLIN ARIAS OBERHELMAN DEVLIN ANDERSON MILLER KiE.S. N81:.S. ABSTAIN ABSENT The foregoing day of City Clerk resolution is hereby approved this , 1997. Tom Minor, Chairman San Bernardino Joint Powers Financing Authority content: Authority 28 SBEO\0168\DOC\6 ,0, - 12 - " 7: 2 0 -HI_ TO: Fred Wilson, City Administrator CITY OF SAN BERNARDINO PUBLIC SERVICES INTER-OFFICE MEMORANDUM Entered into Record at J - / /1- Caun "I/CmyOevCms MtD: CP / / h . r . end a Item Ih ({ C DC D ~~h,~ City Clerk/COC Secy City of San Bernardino FROM: Jim Howell, Director of Public Servi DATE: June 16, 1997 SUBJECT: CITY YARD FUELING STATIONIVEHICLE WASH COPIFS: Bill Oppenheim, Fleet Manager Ed Raya, Director of Risk Management Roger Hardgrave, Director of Public Works/City Engineer Gene Klatt, Assistant City Engineer John Murphy, Purchasing Manager Wayne Harp, Assistant Chief of Police Larry Pitzer, Fire Chief Tom Marek, Safety Officer The City was notified by the County Hazardous Materials Section to cease the City Yard fueling operation by June, 1997 or until soil contamination caused by leaking underground storage tanks is mitigated. Initially, it appeared cost effective to contract for fuel services with the County instead of constructing a new fueling facility. The County's facility is within City limits, meets the needs of our fleet and, based on initial discussions with County staff, would have cost five to ten percent more than our current operation. Attached, is a proposal from the County. The County more than doubled the prices discussed earlier. This would result in an annual increase to fuel cost ranging from $250,000 to $300,000. A major oil company was also contacted and proposed retail prices (no discount) plus a $.50 per service "transaction fee". This proposal would result in an annual increase of $259,000 if selected. . In consideration of these proposals, I recommend the consideration of constructing a new fueling facility at an estimated cost not to exceed $700,000. It appears that construction costs could be recouped within three years. Additionally, it would be advantageous to have our own fueling operation in the event of a disaster/ emergency. Also attached are the costs, as projected by GTS in the Corporate Yard Study for construction of the new Fueling/Car Wash Facility; and a Comparison of County Fueling Contract and Current Fueling Costs. f< 10 0-(~ -97 '. CITY YAllD FUEIlNG STATIONIVEHICLE WASH Page 2 CITY YARD CONSTRUCTION OF FUELING/CAR WASH FACn.ITY Unit Descri,ption Ouantity !lnk ~ Total Perimeter Wall 300 LF 83.00 $ 24,900.00 Grading, Paving 37,800 SF 2.75 103,950.00 Utility Relocation 1 LS 51,400.00 51,400.00 Canopy 1 EA 84,000.00 84,000.00 Car Wash Replacement 1 LS 125,000.00 125,000.00 Fuel Controller System 1 LS 30,000.00 30,000.00 Automatic: Entry, Uti( 1 LS 15,000.00 15,000.00 20,000 Gal UST 2 ES 25,000.00 50,000.00 Relocate Propane 1 EA 5,000.00 5,000.00 Electrical 1 LS 20,000.00 20.000.00 Net Construction Cost $509,250.00 General Contractor Profit 0 15% 76,387.00 Contingency 0 10% 58,563.00 Architect's Fee @ 6% 38.652.00 TOTAL PROJECT COST $682,852.00 CITY YARD FUELING STAnONIVEHICLE WASH Page 3 Revised 6/16/97 COMPARISON OF ALTERNATE FUELING COSTS