Resolution 1983-31
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RESOLUTION NO. 83- 31
A RESOLUTION OF ESTABLISHMENT OF POLICIES
RELATING TO APPLICATIONS AND FEES
RBSOLVED, by the City Council of the City of Gilroy, California,
that
WHEREAS, this City is authorized to establish reasonable
priorities and criteria for the acceptance by this City of applications
of companies for financing authorized by the Economic Development
Financing Law of the City;
WHEREAS, said Law authorizes a separate enterprise of the City
and the establishment of fees sufficient to pay all costs;
NOW, THEREFORE, IT 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 companies may apply for financing by filing in the
office of the Secretary of the City an application the form of which is
on file in the office of said City Clerk, entitled "Application for
Industrial Revenue Bond Financing", with such variations in said form
as may be approved by the Council. 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'City may, as appropriate,
require that the application, or any particular amendment or
supplement, be also executed by one or more other companies. Each
RESOLUTION NO. 83 - 31
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(b) Administration fees. Each company under a project
agreement shall be obligated to the City to pay, pursuant to such
project agreement, administration fees estimated to be sufficient to
pay those administration expenses of the City which relate to
administration of the project agreements, indentures and bonds.
(c) Limitation. No fees established hereby shall exceed
the maximum fees which may be charged and collected by the City 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 City 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 Council in accordance with the costs of providing the
alternative method of financing the acquisition of facilities which is
authorized by the Economic Development Financing Law of the City.
3. Disposition of Fees.
(a) Administration. The City Treasurer shall be the
custodian of all fees and other amounts received by the City to fund
its direct expenses, shall deposit, invest and reinvest such fees
andother amounts as provided by Title 5, Division 2, Part 1, Chapter 4
(commencing with Section 53600), Government Code, and shall pay such
direct expenses from sums on deposit as authorized by the Council.
(b) Compensation to Cit~. Direct expenses of the City
under the Economic Development Financing Law of the City, 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,
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company proposing to enter into a project agreement with the City 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 City are
hereby established as follows:
(a) Application fees. The application fees shall be as
follows:
(1) 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
($1,000.00) 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 ($1,000.00) 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.
(3) Project fee. A fee of one-quarter of one percent
(1/4 of 1%) of the principal amount of bonds authorized by the City to
be issued, less the filing and processing fees, shall be due and
payable within ten (10) days after delivery of each issue of bonds.
The project fee may be included in project costs and financed by the
bond issue.
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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 under the Economic Development Financing
Law of the City. Transfer of sums for such direct expenses shall be
authorized from time to time by the Council upon submission of vouchers
or other statements.
(c) Accounts. An operating expense account and a
contingency account are hereby established. All fees and other amounts
received by the City to fund its direct expenses shall be credited to
the operating expense account. By order of the Council amounts shall
be transferred from the operating expense account to the contingency
account from time to time in such sums as ar~ estimated to be
sufficient to pay all direct expenses that the City 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 Council shall establish from time to time, including
at the time of consideration of an application.
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I hereby certify that the foregoing resolution was duly and
regularly adopted and passed by the City Council of the City of Gilroy,
California, at a regular meeting thereof held on the 4th day
of _.AE.ril
thereof:
, 1983, by the fOllowing vote of the members
AYES, and in favor thereof, Councilmembers: ALBERT, GAGE, HUGHAN,
LINK, TAYLOR, VALDEZ and GOODRICH.
NOES, Councilmembers: None
ABSENT, Councilmembers: None
Ay
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Clerk of the
APPROVED:
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