HomeMy WebLinkAboutContracts & Agreements_111-99_CCv0001.pdf REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY, CALIFORNIA
AND RECORD OF ACTION
Agree. 99-1162; Agrees. listed below;
ECD-Gen'I.
December 7, 1999
FROM: THOMAS R. LAURIN, DIRECTOR
DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT
SUBJECT: PUBLIC HEARING AUTHORIZING COUNTY OF SAN BERNARDINO SINGLE
FAMILY HOME MORTGAGE REVENUE BONDS – COUNTYWIDE
RECOMMENDATION: 1) Conduct public hearing to consider proposed issuance of 2000 Series
Single Family Home Mortgage Revenue Bonds; 2) Adopt Resolution 99-279 approving and
authorizing application to the State of California Debt Limit Allocation Committee (CDLAC) to
permit the issuance of an amount not to exceed $50,000,000 of Qualified Mortgage Bonds;
approving a Bond Counsel legal services Agreement 99-1162; approving Investment Banker and
authorizing extension of the dates in the Cooperative Agreements between the County of San
Bernardino and various cities from December 31, 1999 to December 31, 2000, as shown below;
3) Adopt Resolution 99-280 authorizing preliminary approval to issue County of San Bernardino
Single Family Home Mortgage Revenue Bonds 2000, in an aggregate amount not to exceed
$50,000,000.
Agreement No. Agreement No.
Adelanto 95-53-(a)-A-4 Montclair 95-42-A-4
Town of Apple Valley 95-31-A-4 Needles 95-43-A-4
Barstow 95-32-A-4 Ontario 95-44-A-4
Big Bear Lake 95-33-A-4 Rancho Cucamonga 95-45-A-4
Chino 95-34-A-4 Redlands 95-46-A-4
Chino Hills 95-35-A-4 Rialto 95-47-A-4
Colton 95-36-A-4 San Bernardino 95-48-A-4
Fontana 95-37-A-4 Twentynine Palms 95-49-A-4
Grand Terrace 95-38-A-4 Upland 95-50-A-4
Hesperia 95-39-A-4 Victorville 95-51-A-4
Highland 95-40-A-4 Yucaipa 95-52-A-4
Loma Linda 95-41-A-4 Town of Yucca Valley 95-53-A-4
BACKGROUND INFORMATION: On November 16, 1999, the Board of Supervisors, authorized
the County to schedule a legal advertised public hearing date to consider the proposed issuance
of Single Family Home Mortgage Revenue Bonds in an amount not to exceed $50,000,000. The
proceeds of this proposed bond issue would be used by lenders throughout the County to finance
home mortgage loans at lower-than-market interest rates for the benefit of first-time homebuyers.
California Debt Limit Allocation (CDLAC) procedures require that a public hearing be held prior to
CDLAC's allocation meeting.
Record of Action of the Board of Supervisors
cc: ECD-Laurin
ECD-Williams w/agreements
Cities clo Eco(J.Williams)w/ A PROVED BOARD OF SUPERVISORS
Agreements COUNTY OF SAN BER ' RDINO
Bond Counsel c/o ECD (J. Wms. MOTIONOND; A AYE MOVE AYE
w/legal services agreement& 1. 3 4 5
10 of each resolution
Auditor/Controller Wagreements RLE SPROA K H OARD
SBD w/agreements
County Counsel-Blakemore �—
File w/agreements DATED: December,7;1
Rev 07/97 IW "
ITEM 046
PUBLIC HEARING AUTHORIZING COUNTY OF SAN BERNARDINO SINGLE FAMILY HOME
MORTGAGE REVENUE BONDS —COUNTYWIDE
December 7, 1999
Page 2 of 3
Beginning in 1980, the County approved its first Single Family Home Mortgage Revenue Bond
(SFHMRB) issue that provided below-market interest-rate financing for over 400 first-time
homebuyers. Subsequent to the 1980 financing, the County has issued such bonds in 1982,
1983, 1984, 1985, 1989, 1990, 1995, 1996, 1997, 1998 and 1999. These bond funds are
obtained from sale of the tax-exempt bonds and involve an application process to CDLAC, which
must approve the County's request.
In 1995, the County commissioned a feasibility study conducted by Empire Economics, an
economic-real estate consultant, to determine the demand for affordable mortgage financing in
this County. Based on a $1.5 billion demand as documented by the study, the County is now
preparing to obtain an allocation for an Year 2000 SFHMRB issue in the amount of $50,000,000
that can be combined with the 1999 allocation in an effort to meet the demands of this program.
In May of 1999, the County issued its $11,014,151 of tax-exempt bonds allocated by CDLAC that
are currently in escrow to be combined with any new bond funds that are allocated to the County
by the CDLAC in the year 2000. The balance of 1997 and 1998 bond allocation remaining is
already committed for loans expected to close by the end of 1999,
The County's cities, listed above, have previously entered into Cooperative Agreements with the
County for use of these funds in their jurisdiction. To approve the extension of the Cooperative
Agreement date from December 31, 1999, to December 31, 2000, the cities will execute a letter
authorizing the extension. The Cooperative Agreements allow for the assignment of the cities'
allocations to the County and CDLAC requires that written authorization from the cities
accompany the application requesting bond allocation.
Approval of Recommendation #1 will allow the legally advertised public hearing to be conducted
for issuance of the bonds. Approval of Recommendation #2 will approve adoption of the
Resolution permitting the County to submit a new allocation request to the State in an amount not
to exceed $50,000,000, retain necessary Bond Counsel and Investment Banker professional
services, continue preparation and processing of the proposed bond issuance for subsequent
consideration by the Board of Supervisors and will authorize the extension of the Cooperative
Agreements with the participating cities from December 31, 1999, to December 31, 2000.
Approval of Recommendation #3 will approve adoption of the resolution that will authorize
preliminary approval to issue County of San Bernardino Single Family Home Mortgage Revenue
Bonds 2000.
The Department of Economic and Community Development will return to the Board of
Supervisors upon receipt of notification of an allocation from the State and request the Board to
adopt a final Authorizing Resolution to issue the bonds,
FINANCIAL DATA: The fee to CDLAC for the application is $500. In addition, there is a
performance deposit of one-half of one percent (1/2 of 1%) of the allocation requested. The
performance deposit is placed on deposit but is not forwarded to CDLAC unless the allocation is
unused. Both application fee and performance deposit will be provided by the Department's
Housing Trust Fund (ECD-NPQ). This action has no impact on the County General Fund or the
Community Development Block Grant or HOME Programs.
REVIEW BY OTHERS: Deputy County Counsel Michelle D. Blakemore reviewed these actions
and resolutions on November 23, 1999. The two resolutions as well as the Bond Counsel
Services Agreement were prepared by Bond Counsel Preston Gates & Ellis LLP.
12/7/99 Iw#46
PUBLIC HEARING AUTHORIZING COUNTY OF SAN BERNARDINO SINGLE FAMILY HOME
MORTGAGE REVENUE BONDS—COUNTYWIDE
December 7, 1999
Page 3 of 3
SUPERVISORIAL DISTRICT (S): All
PRESENTER: Thomas R. Laurin, Director, 388-0808.
"Testimony is taken.
On call of the Chairman, no further testimony is presented and the public hearing is
closed.
12/7/99 Iw#46
COUNTY OF SAN BERNARDINO
RESOLUTION NO. 99-279
RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN
BERNARDINO APPROVING AND AUTHORIZING APPLICATION TO THE
CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE TO PERMIT THE
ISSUANCE OF AN AMOUNT NOT TO EXCEED $50,000,000 OF QUALIFIED
MORTGAGE BONDS; APPROVING BOND COUNSEL AND INVESTMENT
BANKER; AND APPROVING AND AUTHORIZING THE UPDATING OF THE
COOPERATIVE AGREEMENTS BETWEEN THE COUNTY OF SAN
BERNARDINO AND VARIOUS CITIES
On Tuesday, December 7, 1999, on motion of Supervisor Aguiar, duly seconded by
Supervisor Davis, and carried, the following resolution is adopted.
RESOLVED, by the Board of Supervisors (the "Board") of the County of San Bernardino
(the "County")that:
WHEREAS, there is a shortage in the County of San Bernardino (the "County") of
decent, safe and sanitary housing particularly of housing afforded by persons in the lower end of
the purchasing spectrum, and a consequent need to encourage the construction of homes
affordable by such persons and otherwise to increase the housing supply in the County for such
persons; and
WHEREAS, the Board of Supervisors of the County has adopted Ordinance No. 2496 on
November 17, 1980, declaring its intent to engage in a home mortgage finance program (the
"Program") pursuant to Chapters I through 5 of Part 5 of Division 31 of the Health and Safety
Code of the State of California (the "Act") and to issue bonds and mortgage credit certificates
pursuant to the Act in furtherance of the Program,, and
WHEREAS, County's Department of Economic and Community Development (the
"Department")has requested cities within the boundary of the County of San Bernardino that are
interested in participating in the Program (the "Cities") express such interest by finding and
determining that it is in the best interest of such Cities to adopt the Program and to consent to the
operation of the Program by the County within the geographic boundaries of the Cities pursuant
to the Act and the Department expect such Cities to participate in the Program; and
WHEREAS, it is anticipated that the Participating Cities will agree with the County,
pursuant to the Act, to cooperate in the Program and will agree that the County shall exercise
powers to finance home mortgages pursuant to the Act with respect to property located in the
geographic boundaries of such Participating Cities;
WHEREAS, Section 146 of the Internal Revenue Code of 1986 (the "Code") limits the
amount of qualified mortgage bonds that may be issued in any calendar year by entities within a
RESOLUTION NO. 99-'279
December 7, 1999
state and authorizes the legislature of such state to provide the method of allocating authority to
issue qualified mortgage bonds within such state; and
WHEREAS, Chapter 11.8 of Division I of Title 2 of the Government Code of the State
of California governs the allocation in the State of California (the "State") of the state ceiling
established by Section 146 of the Code among governmental units having the authority to issue
qualified mortgage bonds; and
WHEREAS, Section 8869.85 of the Government Code requires a local agency to file an
application for a portion of the state ceiling with or upon the direction of the California Debt
Limit Allocation Committee ("CDLAC") prior to the issuance of qualified mortgage bonds or
mortgage credit certificates; and
WHERE-AS, it is expected that various Cities will determine to assign to the County
pursuant to Section 8869.85(d) of the Government Code any portion of the State ceiling for
private activity bonds which will be allocated to each of them on or prior to December 31, 2000
by CDLAC for qualified mortgage bonds; and
NOW, THEREFORE, BE IT ORDERED by the Board of Supervisors of the County of
San Bernardino as follows:
Section 1. Each city listed on Attachment A hereto (the "Cities") has entered into a
Cooperative Agreement with the County (collectively, the "1995 Agreements"). The 1995
Agreements provided for the assignment of any single family mortgage revenue bond allocation
for 1995. For 1999, all of the cities approved and executed letters providing for the extension of
the 1995 Agreements (collectively, the 1995 Agreements and the extension are hereinafter the
"Agreements") and the assignment of single family mortgage revenue bond allocation for 1999.
In order to make such Agreements applicable to the 2000 single family mortgage revenue bond
allocation, the Chairman of the Board of Supervisors (the "Chairman"), or the Director of the
Department of Economic and Community Development (the "Director"), or the Deputy Director
of the Department of Economic and Community Development, Housing Development and
Finance Division, (the "Deputy Director"), is hereby authorized and directed, for and in the name
and on behalf of the County, to take the necessary steps and make the necessary additions to or
changes in the Agreements deemed necessary or advisable in order to make the Agreements
applicable to revenue bond allocation in 2000.
Section 2. The Chairman, or the Director, or the Deputy Director, is hereby authorized and
directed, for and in the name and on behalf of the County, to submit an application, and such
other documents as may be required, to CDLAC pursuant to Government Code Section 8869.85
for the maximum allocation permitted to a local agency for qualified mortgage bonds.
2
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RESOLUTION NO. 99-279
December 7, 1999
Section 3. The Chairman, or the Director, or the Deputy Director, is hereby authorized and
directed, for and in the name and on behalf of the County, to accept the assignment by the Cities
of any allocation for qualified mortgage bonds ,vhich the Cities receive on or before December
31, 2000 from CDLAC pursuant to Section 146 of the Code, Section 8869.85 of the Government
Code and Section 4 of the Agreements.
Section 4. An amount up to one-half percent (1/2%) of the requested allocation is hereby
authorized to be placed on deposit, and the Director, or the Deputy Director, on behalf of the
County, is authorized to certify to CDLAC that such funds are available.
Section S. Preston Gates & Ellis LLP is hereby appointed as bond counsel ("Bond Counsel")
for the County in connection with the application, issuance, sale and delivery of the Bonds. The
Chairman, or the Director, or the Deputy Director are hereby authorized and directed, for and in
the name and on behalf of the County, to execute the Professional Services Agreement for Legal
Services relating to the Single Family Mortgage Revenue Bonds Issue of 2000.
Section 6 Kinsell, Newcomb & De Dios, Inc. and Samuel A. Ramirez & Co., Inc., are
hereby appointed as the managing investment banker and the co-managing investment banker
(collectively, the "Investment Bankers") for the County in connection with the issuance, sale and
delivery of the Bonds. The Chairman, or the Director, or the Deputy Director, are hereby
authorized and directed, for and in the name and on behalf of the County, to the extend necessary
to select additional co-managers in connection with the issuance, sale and delivery of the Bonds.
Section 7. Officers and employees of the County are hereby authorized and directed,jointly
and severally, for and in the name and on behalf of the County, to do any and all things
necessary or advisable in order to consummate the issuance of the mortgage credit certificates
and the issuance, sale and delivery of the qualified mortgage bonds and otherwise to effectuate
the purposes of this resolution, and all actions previously taken by such officers and employees
in connection with the establishment of the Program and the issuance of the mortgage credit
certificates and the issuance, sale and delivery of the qualified mortgage bonds, including the
submission of applications to CDLAC and the acceptance of deposits from lenders, are hereby
ratified and approved.
Section 8. This Resolution shall take effect immediately upon its adoption.
3
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RESOLUTION NO. 99-279
December 7, 1999
The foregoing resolution was passed and adopted by the Board of Supervisors on
December 7, 1999, by the following vote:
AYES: SUPERVISORS: Davis, Hansberger, Aguiar, Eaves, Mikels
NOES: SUPERVISORS: None
ABSENT: SUPERVISORS: None
STATE OF CALIFORNIA }
}ss
COUNTY OF SAN BERNARDINO)
I, EARLENE SPROAT, Clerk of the Board of Supervisors of the County of San Bernardino,
California, hereby certify the foregoing to be a full, true and correct copy of the record of the
action as the same appears in the Official Minutes at its meeting of December 7, 1999, Item 46,
lw.
EARLENE S ROAT, Clerk of the - oard of
Supervi or o an Bernardi County
B :
Dep[
4
j:\pnRsanbern\sfOO\bonds\WG063822.002
RESOLUTION NO. 99-279
December 7, 1999
ATTACHMENT "A"
List of Cities (two Towns) that entered into Cooperative Agreements with the County of San
Bernardino relative to the County's Single Family Home Mortgage Revenue Bond Program per
Agreement Numbers, also listed below.
Agreement No. Agreement No.
Adelanto 95-53-(a) Montclair 95-42
Town of Apple Valley 95-31 Needles 95-43
Barstow 95-32 Ontario 95-44
Big Bear Lake 95-33 Rancho Cucamonga 95-45
Chino 95-34 Redlands 95-46
Chino Hills 95-35 Rialto 95-47
Colton 95-36 San Bernardino 95-48
Fontana 95-37 Twentynine Palms 95-49
Grand Terrace 95-38 Upland 95-50
Hesperia 95-39 Victorville 95-51
Highland 95-40 Yucaipa 95-52
5
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COUNTY OF SAN BERNARDINO
RESOLUTION NO. 99-280
RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN
BERNARDINO AUTHORIZING PRELIMINARY APPROVAL OF THE ISSUE OF COUNTY
OF SAN BERNARDINO SINGLE FAMILY HOME MORTGAGE REVENUE BONDS 2000,
IN AN AGGREGATE AMOUNT NOT TO EXCEED$50,000,000
On Tuesday, December 7, 1999, on motion of Supervisor Aguiar, duly seconded by
Supervisor Davis,and carried, the following resolution is adopted.
RESOLVED,by the Board of Supervisors (the "Board") of the County of San Bernardino
(the "County")that:
WHEREAS, there is a shortage in the County of San Bernardino (the "County") and in
certain cities within the County (the "Participating Cities") of decent, safe and sanitary housing,
particularly of housing afforded by persons in the lower end of the purchasing spectrum, and a
consequent need to encourage the construction of homes affordable by such persons and
otherwise to increase the housing supply in the County for such persons; and
WHEREAS, the Board of Supervisors of the County has adopted Ordinance No. 2496 on
November 17, 1980, declaring its intent to engage in a home mortgage finance program (the
"Program") pursuant to Chapters I through 5 of Part 5 of Division 31 of the Health and Safety
Code of the State of California (the "Act") and to issue indebtedness pursuant to the Act in
furtherance of the Program; and
WHEREAS, the Act authorizes cities and counties to incur indebtedness for the purpose
of financing home mortgages authorized by the Act, and the Act provides a completed additional
and alternative method for doing the things authorized thereby;
WHEREAS, the County proposes to undertake the issuance of qualified mortgage bonds
in an amount not to exceed $50,000,000 pursuant to the Act for the purpose of financing home
mortgages authorized by the Act;
WHEREAS, Section 147(f) of the Internal Revenue Code of 1986 (the "Code") requires
that, prior to issuance, qualified mortgage bonds be approved by the applicable elected
representatives of the governmental unit issuing such qualified mortgage bonds and the
governmental unit having jurisdiction over the area in which the facilities with respect to which
financing is to be provided from the net proceeds of such qualified mortgage bonds is or is to be
located, after a public hearing held following reasonable public notice; and
WHEREAS, the Board, the applicable elected representative of the County, has caused a
notice of public hearing with respect to the approval of the Bonds to be published on or before
the 23rd day of November 1999, or a date not less than fourteen days prior to the date of the
hearing in The San Bernardino County Sun, which is a newspaper of general circulation in the
County;
RESOLUTION NO. 99-280
December 7, 1999
Page 2 of 3
WHEREAS, said public hearing was held before this Board on December 7,1999, and an
opportunity was provided for interested persons to present arguments for and against the
issuance of the Bonds; and
WHEREAS, all acts, conditions and things required by the Act and the Code, and by all
other laws of the State of California, to exist, to have happened and to have been performed
precedent to and in connection with this authorization of the issuance of mortgage revenue bonds
have happened, and have been performed in regular and due time, form and manner as required
by the laws of the State of California and the Board is now duly authorized and empowered,
pursuant to the Act and the Code to approve the issuance of mortgage revenue bonds.
NOW, THEREFORE, BE IT ORDERED by the Board of Supervisors of the County of
San Bernardino as follows:
Section 1. The foregoing recitals are true and correct.
Section 2. The Board of Supervisors hereby preliminarily approves the issuance of
bonds of the County pursuant to the Act in a principal amount of not to exceed $50,000,000, for
the purpose of assisting persons of low and moderate income in the financing the purchase single
family residences.
Section 3. The Board of Supervisors hereby determines that when in its sole
discretion it makes a final determination to issue bonds, then it will take all action necessary or
advisable in connection with the issuance and sale of the bonds.
Section 4. The bonds, when issued, shall be special obligations of the County
payable solely from the trust estates to be defined in the indenture authorizing the bonds, and
shall not constitute an indebtedness of the County or a loan of credit thereof within the meaning
of any constitutional or statutory provisions.
Section 5. The issuance and sale of the bonds shall be upon such terms and
conditions as shall be determined by the County and shall be subject to completion of
proceedings for issuance of the bonds by the County.
Section 6 This Resolution shall take effect immediately upon its adoption.
The foregoing resolution was passed and adopted by the Board of Supervisors on
December 7, 1999,by the following vote:
WAW0063822-003
t
RESOLUTION NO. 99-280
December 7, 1999
Page 3 of 3
AYES: SUPERVISORS: Davis, Hansberger, Aguiar, Eaves, Mikels
NOES: SUPERVISORS: None
ABSENT: SUPERVISORS: None
STATE OF CALIFORNIA )
)ss
COUNTY OF SAN BERNARDINO)
I, EARLENE SPROAT, Clerk of the Board of Supervisors of the County of San Bernardino,
California, hereby certify the foregoing to be a full, true and correct copy of the record of the
action as the same appears in the Official Minutes at its meeting of December 7, 1999, Item 46,
Iw.
EA ENE
' ROAT, Clerk of the Board of
Supervisors f an Berea thio County
By
U y
WAW0063822.003