Resolution No. 6717
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RESOLUTION NO. 6717
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING (1) THE
EXECUTION OF A REDEVELOPMENT REVOLVING FUND
LOAN AGREEMENT NO. 2 BETWEEN THE CITY OF VERNON
AND THE REDEVELOPMENT AGENCY OF THE CITY OF
VERNON FOR CMD RECONSTRUCTION; (2) THE TRANSFER
OF FUNDS FROM THE GENERAL FUND TO THE
REDEVELOPMENT REVOLVING FUND; AND (3) THE
PAYMENT OF MONIES IN THE REDEVELOPMENT
REVOLVING FUND TO THE VERNON REDEVELOPMENT
AGENCY FOR THECMD RECONSTRUCTION
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WHEREAS, the City of Vernon ("City") by Resolution No.
on March 6, 1990, established the city Redevelopment Revolving
Fund as authorized by Health and Safety Code section 33620; and
WHEREAS, Health and Safety Code Sections 33620 and 33623
authorize the legislative body of the community (City) to pay money
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into the Redevelopment Revolving Fund for "Any expenses necessary or
incidental to carrying out of a redevelopment plan which has been
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adopted by the legislative body" (City); and
WHEREAS, Health and Safety Code section 33623 requires
that the legislative body (City Council) approve a resolution by a
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two-thirds
payment
monies
from
vote
for
of
such
the
the
Redevelopment Revolving Fund to the Redevelopment Agency of the City
("Agency") upon such terms and conditions as the legiSlative body
may prescribe; and
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WHEREAS, Health and Safety Code section 33030 defines a
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blighted area as
one which is "characterized by the existence of
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inadequate public improvements, parking facilities, or utilities";
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and
WHEREAS, the sewers located in the Central Manufacturing
1 District (CMD) were constructed by private contractors prior to
2 annexation to the City and (i) were not constructed to City
3 standards, (ii) were installed at a shallower depth than the water
4 system, (iii) used vitrified clay pipe which recent inspection has
5 shown is of mixed sizes, is cracked throughout, has had several
6 failures, and is vulnerable to clogging, (iv) is subject to complete
7 failure in case of an earthquake, and (v) is clearly inadequate; and
8 WHEREAS, the Acting Director of Community Services has
9 recommended the reconstruction of the sewer and related public works
10 and street improvements in that portion of the Central Manufacturing
11 District which is located in Subarea G of the Redevelopment Project
12 Area (hereinafter the "CMD Reconstruction"); and
13 WHEREAS, the cost for the first phase of the CMD
14 Reconstruction is estimated at $1,500,000.00; and
15 WHEREAS, the Revolving Fund Loan Agreement No. 2 between
16 the City and the Agency (hereinafter the "Agreement") appropriately
17 establishes the terms and conditions applicable to the advance of
18 monies to the Agency for the CMD Reconstruction.
19 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
20 CITY OF VERNON AS FOLLOWS:
21 SECTION 1: The City Council of the City of Vernon hereby
22 finds and determines that the recitals contained hereinabove are
23 true and correct.
24 SECTION 2: The City Council hereby approves the CMD
25 Reconstruction subject to the terms and conditions of the Agreement.
26 SECTION 3: The City Council hereby approves and
27 authorizes the transfer of funds from the City's General Fund to the
28 City's Redevelopment Revolving Fund, in the sum of One Million Five
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1 Hundred Thousand Dollars ($1,500,000.00), to be utilized by the
2 Agency for the CMD Reconstruction.
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SECTION 4:
The City council hereby approves the
4 Agreement, a copy of which has been presented to the city council
5 concurrently with this resolution and the City Council hereby orders
6 said Agreement to be received and filed by the City Clerk.
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SECTION 5: The City Council hereby authorizes the Mayor
8 and the City Clerk to execute said Agreement for, and on behalf of,
9 the City of Vernon.
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SECTION 6: The City Clerk of the City of Vernon shall
11 certify to the passage of this resolution and thereupon and
12 thereafter the same shall be in full force and effect.
13 APPROVED AND ADOPTED this 21st day of November, 1995.
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EONIS C. MALe
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ATTE~
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19 BRUCE V. MALKENHORST,
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2 STATE OF CALIFORNIA
3 COUNTY OF LOS ANGELES
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4 I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
5 hereby certify that the foregoing Resolution, being Resolution No.
6 6717, was duly adopted by the City Council of the City of Vernon at
7 a regular meeting of the City Council duly held on Tuesday,
8 November 21, 1995, and thereafter was duly signed by the Mayor of
9 the City of Vernon.
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BRUCE V. MALKENHORST,
12 (SEAL)
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EXECUTION COPY
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REDEVELOPMENT REVOLVING FUND LOAN AGREEMENT NO. 2
4 THIS AGREEMENT is made, entered into and executed in
5 duplicate originals, either copy of which may be considered and
6 used as the original hereof for all purposes this 21st day of
7 November, 1995.
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9 BY AND BETWEEN
THE REDEVELOPMENT AGENCY
OF THE CITY OF VERNON,
A Public Body, Corporate and
politic duly created and
established pursuant to the
Community Development Act
of the state of California,
(hereinafter referred to as
"AGENCY" )
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14 AND
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THE CITY OF VERNON, a
Municipal corporation,
(hereinafter referred to as
"CITY")
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Both parties being located at 4305 Santa Fe Avenue,
Vernon, California 90058-0805.
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RECITALS
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WHEREAS, the AGENCY has determined that the
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reconstruction of sewers and related public works and street
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improvements located in that portion of the Central ManUfacturing
Drstrict (CMD) shown as Subarea G of the Redevelopment Project
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Area (hereinafter "CMD Reconstruction") is necessary and desirable
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for the elimination of blight and for redevelopment purposes; and
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WHEREAS, at this time, the necessary funds are not
otherwise available to the AGENCY for the purpose of said sewer
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reconstruction; and
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1 WHEREAS, by Resolution No. 5724 the CITY established the
2 Redevelopment Revolving Fund pursuant to the provisions of Health
3 and Safety Code section 33620, et sea.; and
4 WHEREAS, the CITY deems it advisable to loan to the
5 AGENCY funds ,necessary to perform the CMD Reconstruction as shown
6 on Exhibit "A" which is attached hereto and made a part hereof by
7 reference, subject to the terms and conditions contained in this
8 Agreement; and
9 WHEREAS, such funds as may be loaned to ~he AGENCY
10 through the Redevelopment Revolving Fund, as approved from time to
11 time by the City council, shall be repaid to the CITY if and when
12 tax increment revenues shall be available to the AGENCY.
13 NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
14 SECTION 1: The foregoing recitals are true and correct
15 and constitute valid consideration for this Agreement.
16 SECTION 2: The CITY agrees to transfer the sum of One
17 Million Five Hundred Thousand Dollars ($1,500,000.00) into the
18 Redevelopment Revolving Fund from the General Fund and further
19 agrees that the AGENCY may withdraw said funds and utilize them to
20 pay for the CMD Reconstruction, subject to the terms of this
21 Agreement.
22 SECTION 3: All sums which are withdrawn by the AGENCY
23 from the CITY Redevelopment Revolving Fund for the CMD
24 Reconstruction shall bear interest at a rate per annum equal to
25 ten percent (10%). Such interest payable on the sums so advanced
26 shall accrue and be added to the principal amount of the loan, and
27 all such amounts shall bear interest at said rate and shall
28 compound annually until repaid by the AGENCY to the CITY. All
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1 ~aYments of tax increment revenues received by AGENCY pursuant to
2 Health and Safety Code Section 33670, may be used in whole or in
3 part for the repaYment of the obligations of the AGENCY as
4 evidenced by this Agreement, which said revenues shall first be
5 applied to the accrued and unpaid interest on the lo~n, and any
6 additional amounts of tax increment revenues thereafter remaining
7 shall be applied to the outstanding principal balance thereof.
8 SECTION 4: The loan from the CITY to the AGENCY as
9 hereby approved may be repaid from time to time, in whole or in
10 part, at the option of the AGENCY, solely from the tax increment
-11 revenues, if any, if and when tax increment revenues shall be
12 available and paid to the AGENCY for such purpose pursuant to
13 Health and safety Code Section 33670(b).
14 SECTION 5: The AGENCY and the CITY hereby agree that
15 any repayment obligation of the AGENCY with respect to the loan as
16 may hereafter be funded by the CITY from time to time shall at all
17 times be subordinated to any and all other outstanding, or as
18 hereafter may be outstanding, bonds, notes or other forms of
19 indebtedness payable in whole or in part from the tax increment
20 revenues of the AGENCY and shall not constitute a prior lien as to
21 either the tax increment revenues received by the AGENCY or any
22 other legally available funds of the AGENCY.
23 SECTION 6: The CITY and the AGENCY hereby acknowledge
24 and agree that the amounts which may hereafter be advanced by the
25 CITY to the AGENCY for the CMD Reconstruction pursuant to this
26 Agreement shall be considered as an indebtedness of the AGENCY as
27 the same is intended for purposes of the filing of a Statement of
28 Indebtedness with the County of Los Angeles pursuant to Health and
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1 Safety Code section 33675. The repayment obligation of the AGENCY
2 hereunder shall be made from the legally available tax increment
3 revenues of the AGENCY and any other funds of the AGENCY, if any,
4 and at the option of the AGENCY, legally available therefor.
5 SECTION 7: The sums advanced pursuant to this Agreement
6 shall be utilized by the AGENCY solely for the CMD Reconstruction
7 and necessary expenses and costs incidental thereto.
8 SECTION 8: The CITY and the AGENCY hereby agree to
9 execute any and all ancillary documents as may reasonably be
10 requested by any bondholder or other purchaser of bonds, notes or
11 other forms of indebtedness of the AGENCY entitled to receive the
12 tax increment revenues of the AGENCY for the repayment of any
13 other indebtedness of the AGENCY for which the tax increment
14 revenues of the AGENCY have been or as may be hereafter be pledged
15 therefor.
16 SECTION 9: This Agreement shall take effect from and
17 after the date of adoption and approval by the CITY and the AGENCY
18 pursuant to official action of the governing bodies thereof and
19 shall be effective for a duration not to exceed the time as
20 necessary to repay fully the CITY the principal amount of the
21 advances from the Redevelopment Revolving Fund for the
22 construction of the CMD Reconstruction, together with interest
23 thereon as evidenced by this Agreement but in no event shall such
24 repayment obligation extend for a duration of time in excess of
25 that provided in any Redevelopment Plan hereafter adopted.
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1 IN WITNESS WHEREOF, the parties hereto have executed
2 this Agreement or caused this Agreement to be executed by their
3 respective officers, duly authorized, as of this date, month and
4 year first above written.
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ATTEST: ~
BY: '~..A.
BRUCE V. MALKENHORST, City Clerk
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APPROVED AS TO FORM:
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BY:D~~I~~
DAVID B. BREARLEY, C1ty Att ney
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ATTEST:
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BRUCE V. MALKENHORST, Secretary
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24 BY: \) ~ ~, ~ .A n__Jo/,
DAVID B. BREARLEY, ~~ -c~nsel
APPROVED AS TO FORM:
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CITY OF VERNON
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BY:, . ~ c--' '
EON~ May~
REDEVELOPMENT AGENCY OF THE
CITY OF VERNON
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