HomeMy WebLinkAboutResolution 2016-073 N.C.S. 05/16/2016Resolution No. 2016 -073 N.C.S.
of the City of Petaluma, California
AUTHORIZING THE ESTABLISHMENT OF AN INTERFUND LOAN FROM
THE WASTEWATER UTILITY TO THE VEHICLE AND EQUIPMENT
REPLACEMENT FUND FOR THE PURCHASE OF NEEDED
VEHICLES AND EMERGENCY EQUIPMENT
WHEREAS, the 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 the Vehicle and Equipment
Fund for the purchase of such vehicles and emergency equipment; and
WHEREAS, it is the policy of the City Council that interfund loans greater than one
year may be approved, provided that such loans are repaid in fifteen (15) years or less, and that
interest should be paid on such loans; and
NOW, THEREFORE, BE IT RESOLVED that the City Council hereby approves an
interfund loan from the Wastewater Utility to the Vehicle and Equipment Replacement Fund.
1. The interfund loan shall be formalized pursuant to a Promissory Note, attached and
incorporated herein as Exhibit A.
2. The loan amount shall not exceed $3,025,000 unless authorized by the City
Council.
3. Interest shall be charged at the rate of 1.25% per annum, and shall accrue annually.
4. The first loan payment, including interest, shall be made during FY 16 -17, and
every year thereafter, in 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.
Resolution No. 2016 -073 N.C.S. Page 1
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5. Payment of the full amount of principal advanced and any interest otherwise
unpaid shall be made no later than June 30, 2025, unless extended by the City
Council.
6. The City Manager and Finance Director /City Treasurer are hereby authorized to
execute the Promissory Note and any associated documents that may be
subsequently needed.
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 ro ed 's to
Council of the City of Petaluma at a Regular meeting on the 16th day of May, 2016, j f rm
by the following vote: s = ✓
City Attorney
AYES: Albertson, Barrett, Mayor Glass, Healy, Kearney, Vice Mayor King, Miller
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
City Clerk \Ij Mayor
Resolution No. 2016 -073 N.C.S. Page 2
Exhibit A
CITY OF PETALUMA, CA
PROMISSORY NOTE FOR INTERFUND LOAN
This Promissory Note (Note) for an interfund loan is executed as of May 16, 2016, by the City
Treasurer of the City of Petaluma, acting as custodian of the funds of the City of Petaluma, and
the City Manager of the City, acting for the City Council in implementation of the directives and
authority of Resolution Number 2016 -073 N.C.S., adopted on May 16, 2016.
1. The Treasurer shall transfer to the Vehicle Equipment and Replacement Fund, from
the Wastewater Enterprise Fund, the amount of $3,025,000 for the purchase of
necessary critical emergency vehicles and equipment.
2. Interest shall accrue annually, compounding monthly, beginning July], 2016, on
the principal sum at the rate of 1.25% per annum.
3. Payment of principal and all interest accrued shall begin on June 30, 2017, and
shall be made in 8 equal annual installments such that the entire principal and
accrued interest shall be fully repaid on or before June 30, 2025.
4. The full sum of the interfund loan including all principal and interest otherwise
remaining unpaid pursuant to this Promissory Note is due and payable no later
than June 30, 2025. The full sum or any partial payment of principal may be
prepaid with no penalty.
5. This Note is subject to the terms of the City of Petaluma Resolution Number 2016-
073 N.C.S.
Executed as of the date first above written
CITY OF PETALUMA, CA
By:
City Treasurer
By:
City Manager
Approved as to form this day of 2016.
By:
City Attorney
Resolution No. 2016 -073 N.C.S. Page 3