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AGENDA ITEM REVIEW FORM |
7.L.
Regular City Council Meeting
- Meeting Date:
- 09/13/2023
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Motion
Order
Order
ITEM:
Discussion and possible action on any and all matters regarding Order No. 2023-09. An Order of the Mayor and City Council of the City of San Luis, Arizona, voluntarily withdrawing from the Greater Yuma Port Authority, repealing conflicting provisions, and providing for severability. (Jenny Torres, Acting City Manager)
SUMMARY:
The City of San Luis is a Member of the Greater Yuma Port Authority. Order Number 2023-09 withdraws the City of San Luis as a voting member of the Greater Yuma Port Authority (GYPA) as authorized by the GYPA 4th amended bylaws Section 5.5: It states:
"Any Member may at any time voluntarily withdraw from membership and shall be entitled to repayment without interest of the Member's capital contribution, payable over a three-year term[.]"
Background
On August 23, 2000, the City of San Luis, approved the Intergovernmental Agreement for the Joint Operation of the Greater Yuma Port Authority. Pursuant to this agreement, the Arizona non-profit corporation Greater Yuma Port Authority, Inc. was created. The initial members were the City of San Luis, the City of Somerton, Yuma County, and the Cocopah Indian Tribe.
The City of San Luis paid an initial capital contribution of $100,000.00. Each budget year since then, the City has paid an additional capital contribution. GYPA was founded with the purposes of 1) constructing, operating, and maintaining an international port of entry in coordination with Federal agencies; 2) establishing and maintaining a foreign trade zone or expansion zone; 3) acquiring land in an economically depressed area and encouraging businesses to locate there; 4) providing employment opportunities for low-income residents, and improving economic conditions in the area; and 5) improving the flow of transportation in and around the area.
GYPA developed subdivisions collectively known as the Gary Magrino Industrial Park.
This year, the development was completed, and GYPA secured a buyer and sold the last of the land in the Industrial Park. The corporation operates pursuant to its Articles of Incorporation and its Bylaws. The most current set is the Fourth Amended and Restated Bylaws of the Greater Yuma Port Authority, Inc., as adopted in 2017.
Current members of GYPA are the City of San Luis, the City of Yuma, Yuma County, and the Cocopah Indian Tribe. Section 5.5 of the Fourth Amended and Restated Bylaws allows a member to withdraw and receive back all of their contributions over a period of three years without interest. This sum is more than $1,137,000 that San Luis alone has contributed. (Please see the fiscal impact for further explanation).
Approving the proposed form of Order will initiate the withdrawal process and a return of the contributions that San Luis has made through the years.
"Any Member may at any time voluntarily withdraw from membership and shall be entitled to repayment without interest of the Member's capital contribution, payable over a three-year term[.]"
Background
On August 23, 2000, the City of San Luis, approved the Intergovernmental Agreement for the Joint Operation of the Greater Yuma Port Authority. Pursuant to this agreement, the Arizona non-profit corporation Greater Yuma Port Authority, Inc. was created. The initial members were the City of San Luis, the City of Somerton, Yuma County, and the Cocopah Indian Tribe.
The City of San Luis paid an initial capital contribution of $100,000.00. Each budget year since then, the City has paid an additional capital contribution. GYPA was founded with the purposes of 1) constructing, operating, and maintaining an international port of entry in coordination with Federal agencies; 2) establishing and maintaining a foreign trade zone or expansion zone; 3) acquiring land in an economically depressed area and encouraging businesses to locate there; 4) providing employment opportunities for low-income residents, and improving economic conditions in the area; and 5) improving the flow of transportation in and around the area.
GYPA developed subdivisions collectively known as the Gary Magrino Industrial Park.
This year, the development was completed, and GYPA secured a buyer and sold the last of the land in the Industrial Park. The corporation operates pursuant to its Articles of Incorporation and its Bylaws. The most current set is the Fourth Amended and Restated Bylaws of the Greater Yuma Port Authority, Inc., as adopted in 2017.
Current members of GYPA are the City of San Luis, the City of Yuma, Yuma County, and the Cocopah Indian Tribe. Section 5.5 of the Fourth Amended and Restated Bylaws allows a member to withdraw and receive back all of their contributions over a period of three years without interest. This sum is more than $1,137,000 that San Luis alone has contributed. (Please see the fiscal impact for further explanation).
Approving the proposed form of Order will initiate the withdrawal process and a return of the contributions that San Luis has made through the years.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE ORDER NO. 2023-09.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- See fiscal impact statement
- CITY/STATE/FEDERAL FUNDS:
- See fiscal impact statement
- TOTAL:
- See fiscal impact statement
- BUDGETED AMOUNT:
- See fiscal impact statement
- AVAILABLE AMOUNT TO TRANSFER:
- See fiscal impact statement
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- See fiscal impact statement
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
The city has contributed $835,000.00, which includes the initial $100,000.00 contribution and contributions from 2009 to the present. Before 2009, the city did not have financial records in the New World System. Staff is in the process of researching the contributions from 2001 through 2008. From the records compiled at the time of writing this agenda item, there is an additional $302,500.00 documented. Thus far, there are $1,137,000.00 documented.