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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