Resolution 1982- 77 City of Gilroy and Gilroy Industrial Development Authority
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RESOLUTION NO. 82-77
A RESOLUTION OF ESTABLISHMENT OF POLICIES
RELATING TO APPLICATIONS AND FEES
INDUSTRIAL DEVELOPMENT AUTHORITY
OF THE CITY OF GILROY
RESOLVED, by the Board of Directors of the Industrial
Development Authority of the City of Gilroy, California, that
WHEREAS, this Authority is authorized to establish reasonable
priorities and criteria for the acceptance by this Authority of
applications of companies for financing authorized by the California
Industrial Development Financing Act;
WHEREAS, said Act authorizes this Authority as a separate
enterprise and the establishment of fees sufficient to pay all costs.
NOW, THEREFORE, tT IS ORDERED that the following policies shall
govern the acceptability of applications of companies for financing and
the further processing of such applications:
1. Applications.
A company or compa~ies may apply for financing by filing in the
office of the Secretary of the Authority an application the form of
which is on file in the office of said Secretary, entitled "Application
for Industrial Revenue Bond Financing", with such variations in said
form as may be approved by the Board of Directors of the Authority. A
single application may be filed on behalf of one or more companies. A
single application can only encompass projects involving facilities
that are substantially related to one another and that are to be
processed and financed contemporaneously. An application may be
amended or supplemented at any time to, for example, include companies
not organized or identifiable at the time of the filing of the original
application. Each application, including all amendments or
supplements, must be executed by at least a single company. The
Authority may, as appropriate, require that the application, or any
particular amendment or supplement, be also executed by one or more
other companies. Each company proposing to enter into a project
agreement with the Authority must execute an application, or amendment
or supplement. Financing will only be provided companies entering into
project agreements.
2. Fees.
Fees commensurate with the direct expenses of the Authority are
hereby established as follows:
RESOLUTION NO. 82 - 77
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follows:
(a) Application fees. The application fees shall be as
(l) Filing fee. A fee of two hundred fifty dollars
($250.00) shall be payable on behalf of each company for which
financing is desired. The fee shall be due upon the filing of the
original application. In the event that the original application does
not identify each company, the fee with respect to each company for
which the fee has not previously been paid shall be due upon the filing
of an amendment or supplement identifying such company. The filing fee
may not be included in project costs and financed by an issue of bonds.
(2) Processing fee. A fee of one thousand dollars
($l,OOO.OO) shall be due and payable upon the preliminary undertaking
of each project. In the event that more than one project is included
in a single application, as amended or supplemented, a fee of one
thousand dollars ($l,OOO.OO) shall be due and payable upon the
preliminary undertaking of all projects pursuant to the application.
The processing fee may not be included in project costs and financed by
an issue of bonds. ..
(b) Administration fees. The administration fees shall be
as follows:
(l) Bond fees. Fees estimated to be sufficient to pay
those administration expenses of the Authority which relate to
administration of the project agreements, indentures and bonds shall be
due and payable to or on behalf of the Authority as and when the same
become due and payable by the Authority.
(2) Project fee. A fee of one-half of one percent
(l/2 of 1%) of the principal amount of bonds authorized by the
Authority to be issued, less the application fees, shall be due and
payable within ten (lO) days after delivery of each issue of bonds.
The project fee may be included in project costs and financed by the
bond issue. Different arragements with respect to the amount and
payment of the Project Fee may be made at the time of acceptance by the
Board of Directors of an application, with the approval of such Board
of Directors.
(c) Limitation. No fees established hereby shall exceed
the maximum fees which may be charged and collected by the Authority
without causing an issue of bonds to become "arbitrage bonds" within
the meaning of Section l03(c) of the Internal Revenue Code of 1954, as
amended, and temporary, proposed or final regulations promulgated
thereunder. The Authority may reduce fees hereunder in connection with
a particular issue of bonds in order to establish its reasonable
expectations that bonds of such issue are not such "arbitrage bonds".
(d) Adjustment. Fees shall be adjusted from time to time
by the Board of Directors of the Authority in accordance with the costs
of providing the alternative method of financing the acquisition of
facilities which is authorized by the California Industrial Development
Financing Act.
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(e) California Industrial Development Financing Advisory
Commission fees.
Fees have been established by the California Industrial
Development Financing Advisory Commission commensurate with its own
direct expenses. The regulations of the Commission and its
interpretations thereof control. Generally, such fees are as follows:
(l) Minimum fee. A minimum fee of one thousand two
hundred fifty dollars ($l,250.00) for each company under an application.
(2) General fee. A general fee of one-eighth of one
percent (l/8 of l%) of the amount of bonds issued, less the minimum fee.
The minimum fee is due at the time an application is
received by said Commission. The general fee is due within ten (lO)
days after delivery of each issue of bonds. The Authority will act as
the transmitting agency to said Commission with respect to applications
and Commission fees. The Authority reserves the right not to transmit
an application to said Commission until the project or projects
thereunder have been preliminarily undertaken by the Authority and the
application fees with respect to the project or projects have been
paid. All fees of said Commission are in addition to the fees of the
Authority.
3. Disposition of Fees.
(a) Administration. The Treasurer of the Authority shall
be the custodian of all fees and other amounts received by the
Authority to fund its direct expenses, shall deposit, invest and
reinvest such fees and other amounts as provided by Title 5,
Division 2, Part l, Chapter 4 (commencing with Section 53600),
Government Code, shall pay such direct expenses from sums on deposit as
authorized by the Board of Directors of the Authority and shall, after
receipt thereof by the Authority, transmit to said Commission the fees
of said Commission.
(b) Compensation to City. Direct expenses of the
Authority, without limitation, include (i) compensation to the City for
the use of employees and other personnel in an amount equal to the
direct expenses of the City resulting from such use of employees and
personnel, (ii) compensation to the City for the use of City services,
products, machines and other equipment in an amount equal to the
internal accounting charges established by the City, applicable to all
City departments, which is estimated by the City to be sufficient to
compensate the City for the use of such services, products, machines
and other equipment, and (iii) reimbursement to the City for materials
and supplies of the City used by the Authority. Payment of such direct
expenses shall be authorized from time to time by the Board of
Directors of the Authority upon submission of vouchers or other
statements.
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(c) Accounts. An operating expense account and a
contingency account are hereby established. All fees and other amounts
received by the Authority to fund its direct expenses shall be credited
to the operating expense account. By order of the Board of Directors
of the Authority amounts shall be transferred from the operating
expense account to the contingency account from time to time in such
sums as are estimated to be sufficient to pay all direct expenses that
the Authority may incur when the amount in the operating expense
account is insufficient. Without limitation, amounts to pay indenture
trustees and attorneys in the event the amount paid by a company as
administration fees is insufficient shall be considered in estimating
the amount to be tranferred to the contingency account.
4. Other Priorities and Criteria.
Companies and projects shall meet such additional priorities and
criteria as this Board shall establish from time to time, including at
the time of consideration of an application.
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I HEREBY CERTIFY the foregoing resolution was introduced at a
meeting of the Industrial Oevelopment Authority of the City of Gilroy
held on May 3 .' 1982, by Director LINK who
moved its adoption and passage, which motion was carried after being
duly seconded, and passed by the fOllowing vote:
AYES: Oirectors
ALBERT, GAGE, HUGHAN, LINK, TAYLOR, VALDEZ
and GOODRICH
None
NOES: Directors
ABSENT: Directors
None
SECONDED: Director
TAYLOR
APPROVED:
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Chairman
ATTEST:
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RESOLUTION NO. 82- 77
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