1996 AGN NOV 05 I28 - Laserfiche WebLink

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AGENDA REPORT CITY OF COLTON For City Council Meeting of November S, 1996 October 31, 1996 TO: MAYOR FULP, CITY COUNCIL AND ITY MANAGER FROM: Julie Hayward Biggs, City Atto SUBJECT: SBIAA Loan Approval Attached is a resolution prepared on behalf of the SBIAA approving a $3,000,000 loan which falls due on June 30, 1997. The provisions of this Resolution include automatic expulsion from the SBIAA if the loan payment falls due and Colton is unable to meet its obligation of $500,000 toward the total loan amount by September 30, 1997. As now structured, the County of San Bernardino has committed $1,000,000 toward the loan and the City of San Bernardino has committed $2,000,000 toward the loan. It is hoped that the SBIAA will be able to repay the loan from the County and San Bernardino without recourse to the other SBIAA members. If that is not the case, however, demand on the City of Colton for its share of the loan may made by the SBIAA. If the City is unable to contribute its share, it will be deemed to be immediately expelled from the SBIAA. This Resolution relieves the City of a continuing obligation to assist in carrying the SBIAA as provided under the terms of the Joint Powers Association. Rather, as indicated, the risk to the City is that the City may be expelled from the SBIAA if it is unable to carry its proportionate share of the loan repayment. The County and San Bernardino, of course, have considerable discretion with regard to further advances to the SBIAA, and it may be that the City's share will not be required. Nevertheless, the City should be aware of the risk of expulsion that does exist. Concurrence: .- Malik Dantala Freeman, Interim City Manager ITEM NO. 28