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HomeMy WebLinkAboutResolution 2016-106 N.C.S. 07/11/2016Resolution No. 2016-106 N.C.S. of the City of Petaluma, California RESOLUTION OF THE CITY COUNCIL APPROVING A LOAN IN A PRINCIPAL AMOUNT NOT -TO -EXCEED $3,025,000 FROM THE WASTEWATER UTILITY FUND TO THE PETALUMA PUBLIC FINANCING AUTHORITY FOR PURCHASE OF VEHICLES AND A LEASE FROM THE PETALUMA PUBLIC FINANCING AUTHORITY TO THE CITY FOR ACQUISITION AND USE OF VEHICLES AND EQUIPMENT WHEREAS, the City Police and Fire Departments are in need of critical vehicles and equipment to perform public safety services for the City; and WHEREAS, adequate funding does not currently exist in in the Vehicle and Equipment Replacement Fund for the purchase of such vehicles and emergency equipment; and WHEREAS, the City's Wastewater Utility Fund has a projected undesignated reserve balance of $30.4 million as of June 30, 2016; and WHEREAS, it is the policy of the City Council that interfund loans are repaid in fifteen (15) years or less, and that interest should be paid on such loans; and WHEREAS, on May 16, 2016, the City Council adopted Resolution No. 2016-073 N.C.S. approving an interfund loan from the Wastewater Utility Fund to augment the Vehicle and Equipment Replacement Fund for purchase of critical public safety vehicles and equipment, and specifying that such loan shall be formalized pursuant to a promissory note, be in a principal amount not to exceed $3,025,000 unless authorized by the City Council, bear interest at the rate of 1.25% per annum, accruing annually, with the first loan payment, including interest, to be made during Fiscal Year 2016/2017 and every year thereafter, in eight (8) equal installments, such that the entire principal and interest shall be repaid on or before June 30, 2025, unless extended by the City Council; and WHEREAS, Article XVI, Section 18 of the California Constitution, commonly referred to as the Constitutional Debt Limit, prohibits committing future year General Fund revenues of the City unless approved by 2/3 of the City's voters; and WHEREAS, the Constitutional Debt Limit only applies to General Fund revenues, and does not apply to special funds such as the City's Wastewater Utility Fund; and WHEREAS, the Marks -Roos Local Bond Pooling Act of 1985 ("the Bond Act"), Government Code Section 6584 and following, authorizes the creation of financing authorities Resolution No. 2016-106 N.C.S. Page 1 pursuant to the Bond Act and the Joint Exercise of Powers Law, Government Code Section 6500 and following; and WHEREAS, by Resolution No. 96-131 N.C.S. adopted May 20, 1996, the City Council approved the execution of a joint exercise of powers agreement ("JPA") with the former Petaluma Community Development Commission ("PCDC") pursuant to Government Code section 6500 and following creating the Petaluma Public Financing Authority ("Authority") so that the Authority could provide financing of all or a part of the cost of public capital improvements for the parties through the Bond Act and any other financing procedure legally available to the parties; and WHEREAS, pursuant to the JPA, the JPA parties delegated to the Authority the power and duty to acquire, by lease, lease -purchase, installment sale agreements, or otherwise, public Capital Improvements necessary or convenient for the operation of the parties; and WHEREAS, pursuant to the JPA, the members of the City Council constitute the Authority Board and the City Finance Director is appointed the Treasurer of the Authority; and WHEREAS, by Resolution No. 2016-01 adopted March 7, 016, the Authority designated and appointed the City Manager to serve as Executive Director of the Authority; and WHEREAS, by Resolution No. 2012-119 N.C.S. adopted August 6, 2012, the City Council elected to form a Successor Agency ("Agency") to the former PCDC pursuant to AB - 1484 to assume responsibility of the liabilities and obligations of the former PCDC and declared the members of the City Council to be the Agency governing board; and WHEREAS, by Resolution No. 2012-01 the Agency adopted administrative, governance and operating rules for the Agency and designated administrative officers of the Agency; and WHEREAS, by virtue of assuming the obligations of the former PCDC, the Agency has also succeeded the former PCDC as party to the JPA with the City creating the Authority; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Petaluma as follows: 1. Recitals Made Findings. The above recitals are declared to be true and correct and findings of the City Council. 2. Approval of Financing Instruments. The City Council hereby approves of each of the following documents which are made a part of this resolution by reference and required for issuance of a loan in a principal amount not -to -exceed $3,025,000 from Resolution No. 2016-106 N.C.S. Page 2 the City Wastewater Utility Fund to the Petaluma Public Financing Authority for purchase and lease of vehicles and equipment: a. Promissory note for interfund loan issued by the Petaluma Public Financing Authority to the City evidencing the obligation of the Authority to repay to the City for the benefit of its Wastewater Utility Fund principal and interest payments on a loan in a principal amount not -to -exceed $3,025,000 for purchase of vehicles and equipment. b. Lease agreement between the Petaluma Public Finance Authority as lessor and the City as lessee leasing vehicles and equipment to the City subject to an annually renewing obligation to make annual lease payments to the Authority. 3. Official Actions. The Mayor, City Manager, Finance Director, City Clerk and City Attorney and/or their delegees or designees, are authorized and directed, on behalf of the City, to do any and all things and take any and all actions including execution and delivery of any and all documents necessary or advisable in order to consummate the loan and lease obligations authorized herein substantially in accordance with the exhibits to this resolution, including any final changes deemed advisable by such officers authorized hereby. 4. Effective Date. This resolution will take effect immediately upon its passage. Under the power and authority conferred upon this Council by the Charter of said City. REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to Council of the City of Petaluma at a Regular meeting on the 11th day of July, 2016, fo by the following vote: llzqllkl-- Assistant Attorney AYES: Albertson, Mayor Glass, Healy, Kearney NOES: None ABSENT: Barrett, Vice Mayor King, Miller ABSTAIN: None ftaLQ ATTEST: Rayor City Clerk Resolution No. 2016-106 N.C.S. Page 3