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CIT9 OF SAN Bl!RNARDIQ.- REQU.Q- FOR COUNCIL AC~N
From:
Kenneth J. ~, DiM...-AOMIH.InI~t:
CcmIImity Devel"l-""""d.. I!l88 Jll 2 J PM JI "6
SERVICES FOR CWlfiWS~ ~
1l1JlHJRlTlC/SAN BERNARDIN:> ~
IIlSPITAL SENICR IDJSIOO CXH'lEX
Dept:
Data: JUly 21, 1988
Synopsis of Previous Council action:
On Noveui:ler 17, 1986, the Mayor an:! 0.....1"\ Ca.mci.l ~ in CGt"""'l't the
devel"l-""""Jt of a fifty (SO) unit senior hoosin} OCIIpl.ex by City, the 1bJsin}
Authority an:! san Bernardino CQmImity Hospital.
On J\me 20, 1988, the Mayor an:! 0.....1"\ Ca.mci.l received an:! filed status L~t
an:! directed staff to prepare a detailed financiD;J plan.
Recommended motion:
'lhat the Mayor an:! O.....JI'I Cameil authorize staff to issue Request for PL~'"
(RFP) for Ixni umezwrlt.in:}lfinancial advisor services for i .....mnce of Ixnitxlt
to exceed 2.0 millia1 to finaooe ansite an:! offsite inprcMmIent:s for fifty (50)
unit Senior 1b.1sin} Q:Irplex at corner of 17th an:! Flores st..eets.
~~~ G. ~Jw~..
ignature \
Contact person:
Ken HemersonjMaurice oliva
Phone:
5065
Supporting data attached:
staff Report
Ward:
6
FUNDING REQUIREMENTS:
Amount: N/A
Source: (Acct. No.) N/A
(Acct. DescriPtion) N/A
Finance:
Council Notes:
Aaenda ltam No
1"2,
JU
'0 0 0 0
CITY OF SAN _RNARDlflO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
In NovaIi:Jer, 1986, the Mayor am 0.....11'\ Cooncil awraved in cc....q;L the
devel~lt of a fifty (50) unit senior citizen apartment ClCIIplex in
ClCI'Ijunct.icn with the Hcusi.n::J Authority of the cn.mty of san Bernardino
am the san Bernardino lhmI"lity Hospital. On June 20, 1988 the Mayor
ani (I..... ., Cooncil received am filed a status L"'i"'Lt am directed staff
to prepare a detailed finarciJ'xJ plan.
'lhe project is i"-uy:JSed CX1 ~tely two am CX1B half (2.5) acres of
lam owned by Arrowhead Health Care System, the parent: ~ of san
Bernardino lhmI"lity Hospital am located at the f'l1h~ oorner of Flores
am 17th streets. 'lhe hospital will lease the lani to the Authority for
thirty (30) years with two (2) ten (10) year qtions or thirty-five (35)
years with three (3) five (5) year c:ptions for CX1B dollar ($1.00) per
year of the lease am affected qtions. 'lbe ClOSt to COI'IStruct a fifty
(50) unit apartment ClCIIplex, a lII1ltipnp:lSEl builcli.n;J with a lY'Ol'II'II"lity
roan with office, storage, central kitchen, bathroans aml.aumry
facilities ClCI1taini.rxJ ~tely 2,000 to 3,000 square feet am the
rec;p.ti.red parki.rx:J is estiInated at ~tely two millicm dollars
($2,000,000).
'lhe ClOSt of ClClI'lStruct:i Flores am 17th streets inoludi.n:J sewer,
sidewalks, cuzb am gutter, was estimated at ~tely $350,000 by
the City Fublic WcmaJ Department in January, 1987. 'lbe ClOSt has IICSt
likely increased since then. staff will be requestin;J the Public WcmaJ
Department to update the initial preliminary estilIIate. Iastly, the ClOSt
of i""'UlUXlEl will be paid !ran the I:x:Ind pzc............;I...
'lbe followin:J sdIedu1e outlines the estimated project CXlSts to be paid by
the each party am the pz<:+<JSed method of payment:
Hcusincr Authoritv
One-hal.f (1/2) ClOSt of constJ:ucti.n;J fifty
(50) unit apad..II"""t ClCIIplex amlll1ltipnp:lSEl
facility .
One-half (1/2) ClOSt to ClCIIplete Flores am
17th streets (less ClOSt of cuzb am gutter
CX1 cglOSite side of project) .
$1,000,000
$ 168.000
Total :
$1,168,000*
*Abcve portiCX1 of Hcusi.n::J Authority's ClOSt
to be paid in cash.
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a.~n ~lth ('#IIn:tl ~.calIn
lease ~tely two point five (2.5) acres
for thirty five (35) years with two (2) fifteen
(15) year qrt:ioos. (Note: larxi is valued at
$23,000 per acre or $57,500 total.)
COst of cuzi:) am gutter on Flores am 17th
Sli...ets, og;x:site side of pzoject only.
Total :
*Tota1 portial of l'rmIInUty Hospital's oost
to be paid in cash.
city of San ~"""m;nn
one half (1/2) oost of c:onst.I\lcti.n fifty
(50) m1i.t apartment c:arplex am IIIlltip.u:pose
facility.
one half (1/2) oost to c:arplete Flores am 17th
St...=ts (less oost of cuzi:) am gutter on
og;x:site side of pzoject) .
Total:
SUbtotal :
'lWnty peroeut (20%) eont.in:Jetx:y:
(To be evenly divided by City am
Hoos~ Authority.)
COst of I:x:IrD issuan::e (rough estiJnate):
*Tota1 oost of issuan::e to be paid by the
City only.
Gram. Total of Estimated Project COst:
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N/A
$ 14.000
$ 14,000*
$1,000,000
$ 168.000
$1,168,000
$2,350,000
$ 470,000
$ 200,000*
$3.000.000
!bige Rose Guthrie Alexamer am Ferdon, bc:ni c:x:unsel selected to
l:eprs.Slllt the City of san Bernardino, pl:'4cses that the City of san
Bernardino pay its share of the ~~ three million dollar
($3,000,000) project (one point five million dollars ($1,500,000)) by use
of 01arter City Nates. under this type of fi.nanr::inj, the City woold
issue a Limited Cbligation ram A,jL...........t Revernle Bcr1d in the estiJnated
aDDlIlt of two million dollars ($2,000,000). '!he City woold retire the
bc:nied imebt:edness by pledg~ a portion of the tax ir...............t derived
fran twenty percent (20%) hous~ set-aside fun:1s generated by affected
redevel.v~""El1.t project areas.
'1be Redevel"1-""".t kJert:::Y tax inc1:ElIllElI.t projections indicate that in py
87/88 the Northwest, Tri-City am Salth Valley project areas prm.~ a
total of $245,548 in twenty percent (20%) hous~ set-aside fun:1s as of
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JUne 30, 1988. '!his reflected a twenty percent (20%) :inc:rease in tax
iraemeht for the period emed June 30, 1987. Total funds on deposit as
of Marc:tl 31, 1988, is repented at $381,476. RedevelVJ:oW""It 1qerDf staff
is workin:J on updatm;J that figure to reflect total funds available as of
JUne, 1988. Bcni ccunsel am lhmonU.ty Develc:pnent staff feel confident
that the haJsirq set-aside funds provide a secure sooroe of funllng si.me
the set-aside ftan the above mentioned redevelVJ:oW""It project areas has
been increasirq fifteen ~0El\1t (15%) to twenty percent (20%) annually.
To cxmplete the financial stzuc:turirq am llwL~iate analysis of the
1'X'~ project, the City mJSt stUl select a Ixni umerwriter/financial
advisor which will advise the City regardin;J the most ~~1ate am
cost-effective way to structure the bon:i financirq package to the
specific needs of the City.
'!be attadled Request for Prqlosa1, if appl:oved for isauance by the Mayor
am 0....."1 eam::il, wwld allow staff to solicit pl:~l.. for bon:i
umerwritinyfinancial advisor services for the prqceed, am ather,
projects as ag>roVed by the Mayor am Cu,....,., eam::il.
I reo:. ..".-xi adcption of the fom DDtian.
~t~ ~. ~~~1
Kenneth . HeOOerson
Director of lhmonU.ty DevelVJ:oW""lL
KllfIMlD/lab/1080
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CITlC OF SAN BERNARDINO
a:Hf.lNlTl( IEVEIDFMENl' DEPARIMENl'
REWEST FOR POOrosALS
FOR FINANCIAL ArNJSJI<< AND/OR ~ smvIC'!S
~l<n1-nmn
'DIe t........lI1ruty Devel.............t Department of the City of San Bemardino desires .
to retain a financial advisor or unjerwrlter to assist in the anticipated
i"""JaI'IOe of bcrxi financinJ not to ~ 'boio milliat dollars ($2,000,000)
for the puxpcse of financinJ the devel.............t of a fifty (50) unit senior
hoosin;J project in the City of San Bemardino.
'DIe total cost of the project is estimated at ~tely three million
dollars ($3,000,000). '!be project is an apartment exmplex for senior
citizens on fixed ir.:> ...... (primarily SSI am SSA recipients) am walld
in:::1ude a 1IUltipuxpcse facilty for leisure, educational am,tor avocational
activities. 'ltIe project will be located on ~tely 'boio point five
(2.5) acres at the fUture corner of Flores am 17th streets. 'ltIe project
will require the CCI1S1:ruction of l:lot:h Flores am 17th SL.......ts am
installatia1 of certain offsite ilIprovements related to the CXIIpleticn of
said ..L....eet:B.
'ltIe project will be financed as a joint venture bElt:ween the City of San
Bemardino, the HaJsin;J Authority of the Oc:ulty of San Bemardino am
Arrowhead Health care Systan, IrK::., the parent carpany of San Bemardino
C'rIrmlI11'\ity Hospital. Arn:Jwhead Health care Systan, IrK::., will lease the
land to the HaJsin;J Authority for thirty (30) years with 'boio (2) ten (10)
year cptians or thirty five (35) years with three (3) five (5) year cptions
for one dollar ($1.00) per year for the life of the lease am affected
cptions. 'ltIe HaJsin;J Authority am the City will share in financin;J the
cost of the project described aIxlve. '!be Hoosin;J Authority will own am
operate the project. '!be Authority will pay for architectural am
ergineerin;J services am a~tely one-bal.f (1/2) of the project cost
(estimated at one point five million dollars ($1,500,000)) with its own
revenues.
'ltIe City ~. 'l<B9S to pay its share of the project cost (estimated at
a~tely one point five millioo. dollars ($1,500,000)) by use of
0Iart.er City Nates. 'ltIe City int;.enjs to issue a Limited Cbligatia1 Ioan
1\greement: Revenue Bon:i in an amunt not to exceed 'boio milliat dollars
($2,000,000), am City will retire the bcrxi by pl~ a porticn of its
twenty percent (20%) hoosin;J set-aside furds generated frail Sl~8ful
redevel"P'"",.t project areas.
Recent City of San Bemardino Redevel.............t Iqew:::y tax iJa.ioL........1t
projections irxiicate that in fiscal year 1987/1988 three (3) of its eleven
(11) project areas pr'tY~nn." $245,548 in twenty percent (20%) hoosin;J set
aside furds since JUne, 1987. 'ltIe total set-aside furds an deposit as of
March 31, 1988 was. reported at $381,476. HaJsin;J set-aside incaae frail the
Northwest, Tri-City am Sa1th Valle project areas has been i:ncreasin;J
fifteen percent (15%) to twenty percent (20%) annually.
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For putpCses of this project, the City has selected as baxi ownsel the
fil:m of ~ Rose Glthrie Alexaniar ani Ferda1.
Mi.ninum Recnli I elue1ats
'!he City seeks a financial consultant or un:Jerwriter who will play a
leadership role thra.1ghcA.1t the pl:oceElS, prcwide CXI1timity of ~.......d,.
ani advise the City:regardin;J the JOOSt 42wL"'i'.date ani cost-effective way
to st:ructure the baxi fi.narx:in;J pBCkage to meet the needs of the City, the
Hoosin;J Authority, ani the Arrowhead Health care System, Inc. Respcr..leL/ts
to this RFP IIL1St have a full service office in Salthem California ani be
able to demcr1strate their ccmpet.ence ani OCIIIIIitment to the suooessful
fi.narx:in;J of similarly sized issues. '!he City wishes to minimize the time
ani effort required of its staff ani other consultants to "l'Y'Y'I1f?lish a
SlIO""'.""ful fi.nancilr;J. (Attac::hnent "1" prcwides a detailed descript:icn of
the services required.)
P..L.....,..~l Contents
'!he City requests the respc:n3ents to this RFP prcwide, at a minllIum, the
items iniicated belClil7:
1. 0'" lifications
'lhis section of the ~..",.:>eal shcW.d irxiicate breadth of experience of
ya1r fil:m in various types of lxni finan:led projects umertaken by
cities ani redevelq:ment ageooies. Include descriptions of ya1r f.iJ:m's
involvement in strocturin;J ani developin;J innovative fi.narx:in;J plans ani
techniques involvin;J the sale of I::loms to the m.mic:ipal baxi ma:rltet ani
prcwi.c1in;J the services listed in Attachment "1".
Please include at least three (3) references of clients for Wall ya1r
fil:m has perfot11lEld recel1t advisory services (within the last three (3)
years). Also describe the structure of ya1r f.iJ:m, ro"""""" of eapl.ayees,
location of offices ani its capital base. If possible, include a reoeht
aOOited fi.narx:ial statement.
Procosal.s fran finns that do not meet the reall; I elue.tt..s outlined above
will not be oonsirl..,..."..,
2. Sooce of ~l'V;.......
Attac::hnent "1" prcwides a list of the services the City will expect to
be provided by the selected fi.narx:ial advisorjun:lezwriter. '!he "soape
of services" section of the pl:~ should identify any m:xllfications,
deletions or additions to the listed services, as 1IIlell as a desc:riptian
of the nature ani extent of services bei.n;J 14-~.
Additionally, the },IL~ shcW.d (a) outline the preliminary fi.narx:in;J
st:ructure pl:~r (b) state whether credit enhanoement 1oIail.d be .
ne, -"IYr (c) state anticipated debt service ClOVel'age requirementsr
ani, (d) suJ:mit a list of ~1ral. steps involvedtoget:her with a
proposed timetable.
3. Fi.narx::i1n Costs ani O::IlIcensation
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'!he ~~] shcW.d include an estimate of financ:in;J costs inclur:1i:rq
fees am expens'!lS t\","""lated with the i~ of the J:xni am indicate
\tIether these costs will be ClClI'Itirgent upcn closirg of the sale of the
bcms.
Selection Cri h....i "
Consultants shall be selected thro.1gh review of the sutmitted ~qlO""'l..,
usirg the followirg criteria:
1. Demcn...t.....tion of specific current am extensive experieooe am track
record in structurirg am coorcUnatiIg boni financin;Js as permitted
under california law.
2. Responsiveness of the ~1l-wni"'Sion to the provisions am criteria of this
RFP.
3. Flexibility in tailorirg the structure of financirgs (e.g.,
anDrtization, CXlI7era<;JE! am reserve aspects) to the specific needs of the
City.
4. Experience, qualifications, continuity am availability of staff
assigned to the provision of the advisorjunderWritirg services.
5. Fees am expenses.
A limited mmlber of finDs may be invited to oral interviews prior to the
award of a COIlt.....ct for services.
Selection Schedule
Five (5) oopies of ",,,l-wni.....ions in response to this RFP lII.1St be received by
the City no later than 4:30 p.m., PDl', August , 1988, at the followirg
address: -
City of san Bernardino
r",,,,,unity Devel~tt Deparbnent
300 North "0" street, 5th Floor
san Bernardino, CA 92418
Attn: Maurice Oliva, Hoosirg Develcpnent specialist
Nothirg in this RFP shall be ~ to ocmni.t the City to ~ any
financial CXIllSlIltant am;or un3enIriter or to 1400e&J with the sale of any
bcms. No pl.q"oeal costs will be rei.mb.lrsed.
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O:lllSideration of the Sitton; ....ia1s will occur as soon as possible fol1awin;J
the above deadline am finDs selected for oral interviews will be CClI'ltacted
regaxdin;J sdledu1~ no later than August, _, 1988.
~ questions regaxdin;J this RFP may be directed to Mr. oliva at 714/384
5065.
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Att:actDnent "1"
crl'lC OF SAN BERNARDIN)
CXJoHlNlTlC DE.VEIDMm' IlEPARIMENl'
~ FOR m:>rosAIS
FOR FINANCIAL ATNISt:Rl AND/OR UNIERWlU'l'IOO SERVICES
Sl.laaef't"M Scxlce of servi """"
'lhe services listed below are those c:urrentl.y identified to be provided by
the selected financial advisor/un:let:writer. Arr:i suggest.ia1s for
llKXii.ficatians to these services shalld be in:::1uded in the ~~~l
subnitt.ed in response. to this RFP.
In general, the selected financial advisor/un:let:writer lIIOOld be required to
advise City staff and otheJ:wise CXlOrdinate the prq;lOSEld fi11ancin:.J.
'lhe initial services required will be to consult with City staff
regardinJthe plblic financirx.J cpti.oos available for the }'L' !l<&ed
fi11ancin:.J, and provide advice, camsel. and BlIggE!Stions as to feasible
altematives mi.ch wcW.d at"'t'Y'Oll"ish the goals of the City in a timely and
CXlSt-effective fashi.a1. 'lhe advisorjunderwriter wcW.d then be asked to
finalize the financirx.J plan and provide the followin,J services:
1. Prepare and r&.;uI&'o=lXi cuoortizatian sd1edules for the }'L,-\<JSed
fi11ancin:.J .
2. Arran;Je and inplement procennraJ. steps for the financirx.J.
3. Make r""'^-'lll....mations regardinJ the financial content of
resolutions, notices of sale, and other doc"I11"'lts.
4. Prepare and revise, as requested by City staff and oonsultants,
the Official statements and other drY'J"""'1tatian for the
fi11ancin:.J .
5. Coordinate the reproducti.at, mailirx.J and distrib1ti.an of the
notices of sale, Official statements, and other docI~, if
arr:l, to un:let:wri.ters and institutianal b1yers located
t:hJ:cu;Jhcut the cx:mltzy to en=x:JUragl! the best ......l"=titive
bi.ddin;J for the financinJ.
6. Assist in obtain.inJ bond ratiDJa fran Moodys am,tor stamard
and Poors, if apprq:>riate.
7. Assist in obtain.inJ mmicipal bond insurance or other credit
enhancement, if awrq>riate.
8. With due regard for the needs and requirements of the City,
make reoatIlleld!tioos regardinJ ti.mi.rq of the financirx.J to take
qtinum advantage of market oonditioos.
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9. Jldvise City staff as to the selection of the bcnl printers,
fiscal agents and payirq agents, iIcluiirq cbt:ainirJ;J
~titive bids, where _q.u.iate.
10. If p.tblicly bid, calculate bids for the bcn:1s, identify the
lowest bid and advise the City ~ award of the
financirq.
11. Arran;Je the closirq of the financirq and advise City staff
ooncerning inIt_l.u....t of fi.nanc:i.rq pl:00"""'Ic:, if any, pendin;J
their expelXiiture by the City. SUch advice shoold iIclude ally
very secure and insured investments so that the City "''''''''''''''''' D:)
risk matsoelTer regardin;J security of principal and guaranteed
return on investm3nt.
lab/1081
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