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Resolution 1982- 77 City of Gilroy and Gilroy Industrial Development Authority 9~J.3A~.J70a . W,:GAL:Sb 04/13/82' 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 .~ . . 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. -2- .. . . (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. -3- .. ., "'! .~, . . (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. * * * * * 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: ~Aft.,./~ Chairman ATTEST: /d~~c~~tf-~ RESOLUTION NO. 82- 77 -4-