HomeMy WebLinkAboutR12-Redevelopment Agency
-
_ JtI
JII
~
-
\ R~VELOPMENT AGIENCV..fiQUEST FOR 9..1SSION/COUNCIL A910N
.
GLENDA SAUL, EXECUTIVE DIRECTOR
Subject: RESOLUTIONS AMENDING BOND POLICY
GUIDELINES
;,m.
~t:'
Dlte: SEPTEMBER 3, 1986
Redevelopment Agency
Synopsis of Previous Commission/Council action:
In June, 1985, the Mayor and Common Council issued multifamily mortgage revenue bonds in the
amount of $9,350,000 (series 1985) for Federicks Development (Pumalo Palms).
On July 21, 1986, the Mayor and Common Council heard the first reading of the amendment to
Ordinance No. 3815 and requested an analysis of the advantages and disadvantages of out-of-
state trustees for municipal financings.
On August 4, 1986, the Mayor and Common Council continued this matter to August 18, 1986.
On August 18, 1986, the Mayor and Common Council adopted Ordinance MC-536 amending Ordinance
#38l5,and directed the preparation of an amendment to the Bond Policy Guidelines to specify
the terms under which an out-of-state trustee would be permitted.
RlIcommended motion:
o
B.
(MAYOR AND COMMON COUNCIL)
MOVE TO ADOPT RESOLUTION OF THE CITY OF SAN BERNARDINO AMENDING POLICY GUIDELINES ON
PUBLIC AND NEGOTIATED BOND SALE PROCEDURES FOR THE CITY OF SAN BERNARDINO AND THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, ADDING PARAGRAPH "J" TO ARTICLE IV
TO ESTABLISH PROCEDURES APPLICABLE TO SELECTION OF TRUSTEE.
(COMMUNITY DEVELOPMENT COMMISSION)
MOVE TO ADOPT RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO AMENDING POLICY GUIDELINES ON PUBLIC AND NEGOTIATED BOND SALE PROCEDURES
FOR THE CITY OF SAN BERNARDINO AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO,
ADDING PARAGRAPH "J" TO ARTICLE IV TO ESTABLISH PROCEDURES APPLICABLE TO SELECTION OF
TRUSTEE.
.~fb/~~ Jiifr/
Signlture
GLENDA SAUL/KEN HENDERSON
Phone: 383-5081
Wlrd: 1-7
Contect person:
Supporting dltl Itteched: YES/STAFF REPORT
FUNDING REQUIREMENTS: Amount: $ NfA
No edverSl Impect on City:
Oneil Notes:
Projact: ALL
DItI:
SeDtember 8. 1986
Agenda Item No.
-1(/.;1..
-
--
-
-
I CI10 OF SAN BERNARDIa>> - REQUEtJ FOR COUNCIL ACTo-N
o
o
o
75-0264
STAFF REPORT
In June, 1986, the Mayor and Common Council authorized the issuance of
multifamily mortgage revenue bonds in the amount of $9,350,000 (series 1985)
for Fredericks Development (Pumalo Palms). Ordinance No. 3815 requires trust
companies or banks having powers of a trust company be within the State of
California. This particular requirement has caused Fredericks a number
problems inasmuch as the original trustee was an out-of-state company.
To temporarily remedy the situation, an in-state company has been operating as
interim trustee for the Pumalo Palms project until such time as the Mayor and
Common Council considered an amendment to Ordinance No. 3815. The amendment
was intended to specifically allow trust companies or banks having powers of a
trust company either within or outside the State of California to act as a
trustee for the purposes of municipal financings.
On July 2l, 1986, the Mayor and Common Council heard the first reading of the
amendment to Ordinance No. 3815 and requested an analysis of the advantages
and disadvantages of out-of-state trustees for municipal finsncings. During
the time between the July 21, 1986 and August 4, 1986, Council meetings, staff
received two (2) memoranda from Sabo and Deitsch, both of which are attached
to this report.
Although there could be problems associated with an out-of-state trustee as
outlined in Mr. Sabo's second memorandum, staff recolllllended the approval of
the amendment that would give the City that option. If a particular developer
requested an out-of-state trustee the request could be evaluated based upon
the four (4) pointa outlined in Mr. Saba's second memorandum.
On August 18, 1986, after considerable discussion, the Mayor and Common
Council adopted an amendment to Ordinance 13815 and directed staff to prepare
an amendment to the Bond Policy Guidelines clearly specifying the terms under
which an out-of-state trustee would be allowed.
Attached to this report are the resolutions amending Bond Policy Guidelines.
Staff recommends adoption of resolutions amending Bond Policy Guidelines.
1269L
o
o
o
o
o
o
o
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
~
23
~
25
26
27
28
RESOLUTION NO.
RESOLUTION OF THE CITY OF SAN BERNARDINO AMENDING POLICY
GUIDELINES ON PUBLIC AND NEGOTIATED BOND SALE PROCEDURES FOR THE
CITY OF SAN BERNARDINO AND THE REDEVELOPMENT AGENCY OF THE CITY
OF SAN BERNARDINO, ADDING PARAGRAPH J TO ARTICLE,IVTO ESTABLISH
PROCEDURES APPLICABLE TO SELECTION OF TRUSTEE.,
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
SECTION l. Those certain policy guidelines on public and
negotiated bond sale procedures for the City of San Bernardino
and the Redevelopment Agency of the City of San Bernardino,
heretofore adopted on July 15, 1985, by Resolution No. 85-260 of
the City of San Bernardino and by Resolution No. 4777 of the
Community Development Commission of the City of San Bernardino
are hereby amended by adding thereto a Paragraph J to Ar~icle IV
thereof, which shall read as follows:
RJ. Selection of Trustee. The trustee shall be recommended
by bond counsel and the financial consultant with selection to be
approved by the Mayor and Common Councilor the Community
Development Commission of the City of San Bernardino.
The
trustee shall be a trustee headquartered in the State of
California, and authorized to do business as a trustee within the
State of California, provided, however, that upon recommendation
of bond counsel and the financial consultant, an out-of-state
trustee may be appointed under the following circumstances:
1. Where none of the banks, major trust companies or
other trustees who normally serve as trustees for the City of San
Bernardino and the Agency on their various bond issues are
available or willing to perform the services needed on a
particular bond issue at a reasonable cost, the financial
1
o
o
o
o
o
o
o
consultant and bond counsel may recommend to the Mayor and Common
1
2 Councilor to the Community Development Commission that an out-
3 of-state trustee would be appropriate under all the
circumstances. An out-of-state trustee shall not be recommended
4
5 unless the high quality trustees usually utilized by the City and
6 Agency are not available, and no other suitable in state trustee
7 is reasonably available to provide the service.
8 2. The out-of-state trustee, if approved, must agree
9 to designate the Secretary of State of the State of California as
10 the trustee's agent for service of process within the State ~f
California.
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
3. The out-of-state trustee must agree, if selected,
that any litigation between City or Agency and the trustee will
be handled in the Municipal Cort or Superior Court for the County
of San Bernardino, State of California, and that the trustee
agrees that the state courts of the State of California shall
have jurisdiction over all controversies between the issuer and
the trustee, and the trustee must specifically waive any right to
have the cause transferred to the federal courts.
4. The trustee must agree to any and all other
conditions imposed by the Mayor and Common Councilor the
Community Development Commission, in any particular instance.-
SECTION 2. In all other respects, the policy guidelines on
public and negotiated bond sale procedures for the City of San
Bernardino and the Redevelopment Agency of the City of San
Bernardino are hereby ratified, and shall remain in full force
and effect, as amended hereby.
2
o
o
o
o
o
o
o
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a meeting thereof, held on
the day of , 1986, by the
following vote, to wit:
AYES:
1
2
3
4
5
6
7
8
9
10
11
12
13
14 of
15
16
17
18
19
20 city Attorney
21
22
23
24
25
26
27
28
NAYS:
ABSENT:
City Clerk
The foregoing resolution is hereby approved this
, 1986.
day
Mayor of the City of San Bernardino
Approved as to form:
~dJ44~/
3
0
1
0 2
3
4
5
6
7
8
9
10
11
12
13
0 14
15
16
17
18
19
20
21
22
23
U
25
26
0 27
28
o
o
o
RESOLUTION NO.
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO AMENDING POLICY GUIDELINES ON PUBLIC AND
NEGOTIATED BOND SALE PROCEDURES FOR THE CITY OF, SAN BERNARDINO
AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN 'BERNARDINO,
ADDING PARAGRAPH J TO ARTICLE IV TO ESTABLISH PROCEDURES
APPLICABLE TO SELECTION OF TRUSTEE.
BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. Those certain policy guidelines on pUblic and
negotiated bond sale procedures for the City of San Bernardino
and the Redevelopment Agency of the City of San Bernardino,
heretofore adopted on July 15, 1985, by Resolution No. 85-260 of
the City of San Bernardino and by Resolution No. 4777 of the
Community Development Commission of the City of San Bernardino
are hereby amended by adding thereto a Paragraph J to Article IV
thereof, which shall read as follows:
-J. Selection of Trustee. The trustee shall be recommended
by bond counsel and the financial consultant with selection to be
approved by the Mayor and Common Councilor the Community
Development Commission of the City of San Bernardino. The
trustee shall be a trustee headquartered in the State of
California, and authorized to do business as a trustee within the
State of California, provided, however, that upon recommendation
of bond counsel and the financial consultant, an out-of-state
trustee may be appointed under the following circumstances:
1. Where none of the banks, major trust companies or
other trustees who normally serve as trustees for the City of San
Bernardino and the Agency on their various bond issues are
available or willing to perform the services needed on a
particular bond issue at a reasonable cost, the financial
1
.
o
o
o
o
o
o
o
consultant and bond counsel may recommend to the Mayor and Common
Councilor to the Community Development Commission that an out-
of-state trustee would be appropriate under all the
circumstances. An out-of-state trustee shall .not be recommended
unless the high quality trustees usually utilized by the City and
Agency are not available, and no other suitable in state trustee
is reasonably available to provide the service.
2. The out-of-state trustee, if approved, must agree
to designate the Secretary of State of the State of California as
the trustee's agent for service of process within the State of
California.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
~
21 conditions imposed by the Mayor and Common Councilor the
22 Community Development Commission, in any particular instance."
23 SECTION 2. In all other respects, the policy guidelines on
24 public and negotiated bond sale procedures for the City of San
25 Bernardino and the Redevelopment Agency of the City of San
26 Bernardino are hereby ratified, and shall remain in full force
27 and effect, as amended hereby.
28 Dated:
3. The out-of-state trustee must agree, if selected,
that any litigation between City or Agency and the trustee will
be handled in the Municipal Cort or Superior Court for the County
of San Bernardino, State of California, and that the trustee
agrees that the state courts of the State of California shall
have jurisdiction over all controversies between the issuer and
the trustee, and the trustee must specifically waive any right to
have the cause transferred to the federal courts.
4. The trustee must agree to any and all other
2
0 0
1 Approved as to form:
0 2 AGENCY COUNSEL
3 ~/0
4 By
5 The foregoing
6 vote, to wit:
7 AYES: Members
8
9 NAYS:
10 ABSENT or
11 ABSTAIN:
12
13
0 14
15
16
17
18
19
20
21
22
23
24
25
26
0 27
I
28
i -
,
o
o
/
duly adopted by the following
3