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City of Colton <br />AGENDA REPORT <br />FOR COUNCIL MEETING OF SEPTEMBER 21, 1999 <br />TO: HONORABLE MAYOR AND CITY COU <br />APPROVAL: HENRY T. GARCIA, CITY MANAGE <br />'1 <br />FROM: AL HOLLIMAN, FINANCE DIRECTO <br />SUBJECT: $10,000 DRAW REQUEST FROM THE SAN BERNARDINO <br />INTERNATIONAL AIRPORT AUTHORITY. <br />DATE: SEPTEMBER 9, 1999 <br />BACKGROUND: <br />The City of Colton is a member of the Joint Powers Authority (JPA) which <br />supports the San Bernardino International Airport Authority (SBIAA). Per the <br />terms of the Joint Powers Agreement, the member agencies must cover any <br />operating deficits based on a predetermined formula. Because of a bankruptcy <br />by one of the airport tenants, Santa Barbara Aerospace (SBA), the SBIAA has <br />issued "draws" to the JPA members. Colton's share is $10,000. <br />DISCUSSION/ANALYSIS: <br />The purpose of the JPA is to provide financial support for the SBIAA until such <br />time that the SBIAA obtains permanent financing. It is the intent of the SBIAA <br />and JPA agreement to repay all member agencies, in full, once the financing is <br />obtained. <br />The SBIAA is acquiring and operating the former Norton Air Force Base. In <br />recognition of the economic development opportunities associated with an <br />"international" airport the aforementioned local entitles formed the JPA with the <br />intention of providing the "gap" funding. <br />One of the obstacles to receiving permanent private financing for the SBIAA has <br />been "clear" title to the related property. The SBIAA is working with the Air Force <br />to appropriately transfer the ownership. Based upon discussions with SBIAA <br />staff, there is a very reasonable likelihood that the title matter and financing (a <br />lease/leaseback arrangement) will occur within the next six months. <br />The formula for financial support calls for all member agencies to pay equal <br />amounts, except the City of San Bernardino who pays "double" or two shares <br />worth of the total. The total amount needed as a result of the SBA bankruptcy is <br />$60,000. The City of San Bernardino will pay $20,000 and all other members will <br />pay $10,000 each. <br />Item #6 <br />