HomeMy WebLinkAboutAS3- Mayor's Office CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTIM
From: Mayor Tom Minor Subject: Resolution. . .Approving a certain
financing by the SBIAA and acknowledgin€
Dept: Mayor's Office certain obligations incurred by the Cit_-
of San Bernardino pursuant to a Joint
Date: August 29, 1996 Powers Agreement establishing the SBIAA.
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Synopsis of Previous Council action:
NONE
Recommended motion:
Adopt Resolution (1) Approving a certain financing by the SBIAA and acknowledging certain
obligations incurred by the City of San Bernardino pursuant to a Joint Powers Agreement
establishing the SBIAA.
Signature
Contact person: Mayor Tom Minor Phone: 5133
Supporting data attached: Attached Ward:
FUNDING REQUIREMENTS: Amount: -0-
Source: (Acct. No.) -0-
(Acct. Description) -0-
Finance:
Council (Votes:
Continued to
Agenda Item No
1 RESOLUTION NO.
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
3 CITY OF SAN BERNARDINO APPROVING A CERTAIN
FINANCING BY THE SAN BERNARDINO INTERNATIONAL
4 AIRPORT AUTHORITY AND ACKNOWLEDGING CERTAIN
OBLIGATIONS INCURRED BY THE CITY OF SAN
5 BERNARDINO PURSUANT TO A JOINT POWERS AGREEMENT
ESTABLISHING THE SAN BERNARDINO INTERNATIONAL
6 AIRPORT AUTHORITY
7
8 WHEREAS, the City of San Bernardino (the "City")
9 together with the County of San Bernardino and the Cities of
10 Colton, Loma Linda and Highland (collectively, the "Members")
11 and the City of Redlands have adopted a certain Joint Exercise of
12 Powers Agreement, as amended, dated as of May 20, 1992 (the "JPA
13 Agreement") , creating the San Bernardino International Airport
14 Authority ("SBIAA") ; and
15
16 WHEREAS, the City of Redlands by official action of the
17 City Council of the City of Redlands has determined to
18 voluntarily resign from the membership of the SBIAA; and
19
20 WHEREAS, the SBIAA has received the conveyance of the
21 airport portions of the former Norton Air Force Base (the "SBD
22 Airport") from the United States Air Force and is presently
23 operating the aviation facilities thereon as a general aviation
24 airport; and
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26
WHEREAS, the SBIAA requires additional funds at this
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28 time for the purposes of: (i) undertaking public improvement
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1 projects to gain better vehicular access to the SBD Airport, (ii)
2 upgrading the aviation facilities located on the SBD Airport by
3 contributing local match funds together with federal grant funds,
4
and (iii) paying the operating deficits created by the ongoing
5
6 operations of the SBD Airport and the payment of the necessary
administrative expenses of the SBIAA; and
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8
WHEREAS, Section 11 of the JPA Agreement requires each
9
10 of the Members to pay their proportionate share of the operating
11 deficits and other debt of the SBIAA as may be assessed by the
12 SBIAA to the respective Members; and
13
14 WHEREAS, it has become necessary for the SBIAA to
15 obtain funds through the issuance of either tax-exempt notes or
16 the obtaining of a tax-exempt loan or a conventional loan from a
17 commercial lender or other financing institution (the
18 "Financing") to be either underwritten and sold in the municipal
19 finance market or privately placed with a commercial lender or
20 other financing institution for the funding of the ongoing
21 capital improvement budget and the operating deficits of the
22 SBIAA for the 1996-97 fiscal year of the SBIAA for which the
23 financial commitments of the Members will be required to ensure
24 the marketability of the Financing at the best terms available;
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and
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1 WHEREAS, the Members have been requested by the SBIAA
2 to adopt this Resolution pursuant to the provisions of Section 11
3 of the JPA Agreement and to thereby commit for the repayment of
4 the respective p portion of the entire indebtedness of the
5
Financing on the basis of the current voting structure of the
6
7 Members as shall be evidenced by the Financing to be incurred by
the SBIAA; and
8
9
10 WHEREAS, the City currently has two (2) of the six (6)
11 votes on the Board of the SBIAA since the. date of the voluntary
12 resignation by the City of Redlands from the voting membership of
13 the SBIAA, and each of the other Members of the SBIAA, including
14 the County of San Bernardino and the Cities of Colton, Loma Linda
15 and Highland shall each have one (1) of the total of six (6)
16 votes on the Board of the SBIAA.
17
18 NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE
19 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER
20 AS FOLLOWS:
21
22 SECTION 1 . The City hereby finds and determines
23 that the above set forth recitals are true and correct in all
24 respects .
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SECTION 2 . The City hereby approves the incurring
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of the Financing by the SBIAA in the principal amount not to
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1 exceed $3, 000, 000 . The City acknowledges the existence of the
2 obligations of the City to be incurred pursuant to Section 11 of
3 the JPA Agreement establishing the SBIAA and consent's to all
4
terms, conditions and provisions thereof.
5
6
7 SECTION 3 . The City by the adoption of this
8 Resolution does hereby incur the general fund obligation to repay
a portion of the principal amount of the Financing in an amount
9
10 not to exceed $1, 000, 000, plus accrued and unpaid interest with
11 respect to the principal amount of the Financing, on or before
12 June 16, 1997, or such lesser principal amount representing two-
13 sixths (2/6ths) of the principal amount of the Financing as may
14 be authorized by the Board of the SBIAA and as shall be incurred
15 by the SBIAA. Such principal amount, plus accrued and unpaid
16 interest with respect to the principal amount of the Financing,
17 if not paid in full on or before said date shall thereafter bear
18 interest at the rate of interest equal to ten percent (10%) per
19 annum from and after June 17, 1997, until the full principal
20 amount outstanding pursuant to this Resolution and accrued
21 interest thereon has been paid unless on or before June 16, 1997,
22 the Financing has been paid in whole as of said date or other
23 satisfactory provision has been made by the SBIAA for such
24 payment in whole on or before June 30, 1997 .
25
26
The City agrees that in the event the City should fail
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28 to either remit the required payments on or before June 16,
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1 1997, this Resolution shall constitute an amendment to the JPA
2
Agreement establishing the SBIAA as referenced in the recitals
3
hereof and shall have the effect of automatically expelling the
4
5 City from the membership of the SBIAA as of June 17, 1997,
6 without any further action being required by either the City or
7 any other member jurisdiction of the SBIAA. The City agrees and
8 represents to the holders of the Financing that in the event of
9 such automatic expulsion from the membership of the SBIAA, the
10 City shall execute such documents as may reasonably be requested
11 by any trustee or lender in connection with the Financing or -by
12 the SBIAA to evidence such expulsion from the membership of the
13 SBIAA, including, but not limited to, any formal amendment
14 document or certificate of amendment to the JPA Agreement.
15
16 Upon any such automatic expulsion of the City from the
17 membership of the SBIAA as of June 17, 1997, the City
18 acknowledges and agrees that the City shall remain liable to the
19 trustee or other lender in connection with the Financing and the
20 holders of the Notes for a principal amount not to exceed
21 $1, 000, 000, plus accrued and unpaid interest with respect to the
22 principal amount of the Financing, and interest thereon at the
23 rate of interest per annum and in the manner as provided above
24
in addition to any costs, expenses and attorney fees incurred by
25
the trustee, any lender or other holders of the Financing in
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27 connection with the collection of the obligation of the City as
incurred herein.
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1 SECTION 4 . The City agrees that in the event one
2 or more current Members of the SBIAA should fail to make the
3 necessary payments as required for the payment and repayment of
4 the principal of and interest and redemption premium on the
5
Financing, that portion allocable to any such defaulting Member
6
7 or Members of the SBIAA may be assumed by the City either in
8 whole or in cooperation with one (1) or more nondefaulting
9 Member or Members . Under such circumstances the amount of the
10 Financing for which the City shall be responsible for the
repayment thereof will be increased by a proportionate amount as
11
12 required to reallocate the delinquent amounts not paid by a
13 defaulting Member or defaulting Members of the SBIAA. The City
14 further acknowledges and agrees that in the event all other
15 Members of the SBIAA should default in their respective
16 obligations to pay all amounts when due, either pursuant to the
17 terms of the Financing or with respect to the other debts,
18 obligations and administrative and operating expenses of the
19 SBIAA, the City may assume, either separately or in cooperation
20 with one (1) or more nondefaulting Member or Members, the total
21 principal amount of the Financing, plus interest and redemption
22 premium thereon, and all debts, obligations and administrative
23 and operating expenses incurred by the SBIAA whether such has
24 become due and payable either at the time of adoption of this
25 Resolution or at a latter date if a
p yment is required pursuant
26 to the JPA Agreement.
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1 SECTION 5. The City hereby agrees that the City
2 shall be obligated to pay when due an amount equal to not less
3 than: (i) $1, 000, 000, being an amount equal to 2/6thS of the
4
principal amount of the Financing, and (ii) an amount equal to
5
2/6ths of the unpaid interest due on and owing on the Financing
6
through June 30, 1997, which amounts are equal to the
7
8 proportionate share of the principal amount of and interest on
the Financing to be due and payable by the City to the SBIAA on
9
10 or before June 16, 1997 .
11
12 SECTION 6. This Resolution shall be effective from
13 and after the date of its adoption and shall be non-repealable
14 during the term that all or any principal amount of the
15 Financing, and accrued and unpaid interest thereon.
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1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
2 BERNARDINO APPROVING A CERTAIN FINANCING BY THE SAN BERNARDINO
INTERNATIONAL AIRPORT AUTHORITY AND ACKNOWLEDGING CERTAIN
3 OBLIGATIONS INCURRED BY THE CITY OF SAN BERNARDINO PURSUANT TO
A JOINT POWERS AGREEMENT ESTABLISHING THE SAN BERNARDINO
4 INTERNATIONAL AIRPORT AUTHORITY
5 SECTION 7 . The findings and determinations herein
6 shall be final and conclusive. This Resolution shall take
7 effect upon the date of its adoption.
8 I HEREBY CERTIFY that the foregoing Resolution was
9 duly adopted by the Mayor and Common Council of the City of San
10 Bernardino at a Adjourned Regular meeting thereof, held on the
11 day of 1996, 'by the following vote, to wit:
12 Council : AYES NAYS ABSTAIN ABSENT
13 NEGRETE
14 CURLIN
ARIAS
15 OBERHELMAN
DEVLIN
16 ANDERSON
MILLER
17
18
City Clerk
19
The foregoing resolution is hereby approved this
20 day of , 1996.
21
22 Mayor of the City of
23 San Bernardino
24 Approved as to
form and legal content:
25
By:
26 City Attorney
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SBIA/0001/DOC/217
28 8/15/96 2:55 ew.
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