Resolution No. 6820
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RESOLUTION NO. 6820
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION
OF A LOAN AGREEMENT FOR INITIAL OPERATING COSTS
BY AND BETWEEN THE CITY OF VERNON, CALIFORNIA
AND THE SOUTHEAST CITIES TRANSPORTATION
AUTHORITY
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WHEREAS, the Southeast cities Transportation Authority
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("SECTA") was created pursuant to Government Code SS6500, et seq.
and is engaged in activities necessary or appropriate to carry out
the intent of the Joint Powers Agreement formally effective
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February 13, 1992; and
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WHEREAS, SECTA does not have a source of funding at this
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time and requires funding in order to meet the initial operating
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costs of SECTA; and
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WHEREAS, the City of Vernon wishes to loan money to
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SECTA, subject to the terms and conditions set forth in the Loan
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Agreement for Initial Operating Costs submitted concurrently
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herewith, for costs incurred from July 1, 1996 through
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December 31, 1996, in order to permit SECTA to operate and meet
its responsibilities; and
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WHEREAS, SECTA anticipates receiving funding in the
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future and is willing to use a portion of such funding to
reimburse the City of Vernon for any funds advanced by Vernon
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pursuant to this Agreement.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
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CITY OF VERNON AS FOLLOWS:
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SECTION 1: The City Council of the City of Vernon does
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hereby find and determine that the recitals contained hereinabove
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are true and correct.
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SECTION 2: The City Council of the City of Vernon hereby
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approves the Loan Agreement for Initial operating Costs, a copy of
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which has been presented to the City Council concurrently with
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this resolution, and the City Council hereby orders said Agreement
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to be received and filed by the City Clerk.
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SECTION 3: The City Council of the City of Vernon hereby
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authorizes the Mayor and the City Clerk to execute said Agreement
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for, and on behalf of, the City of Vernon.
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SECTION 4: The city Clerk of the City of Vernon shall
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certify to the passage of this resolution and thereupon and
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thereafter the same shall be in full force and effect.
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APPROVED AND ADOPTED this 9th day of July, 1996.
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....-- 'LE::NIS C. MAL URG, May r
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ATTE~ c-/::/>4
~ ~ ~?z,~i(~
BRUCE V. MALKENHORST, city Clerk
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...
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STATE OF CALIFORNIA
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ss
COUNTY OF LOS ANGELES
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4 I, BRUCE V. MALKENHORST, City Clerk of the City of
5 Vernon, do hereby certify that the foregoing Resolution, being
6 Resolution No. 6820, was duly adopted by the City Council of the
7 City of Vernon at an adjourned regular meeting of the city Council
8 duly held on Tuesday, Julv 9, 1996, and thereafter was duly signed
9 by the Mayor of the City of Vernon.
fr ~ /Ji~
BRUCE V. MALKENHORST, City Clerk
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OFFICE OF THE
CITY' ADMINISTRATOR
INTER-DEPARTMENT MEMORANDUM
DATE: August 1, 1996
TO: Martha Valenzuela, Finance Office Manager
FROM: Gloria J. Orosco, Chief Deputy City Clerk.
RE: SECTA LOAN
Martha:
At the .direction of Bruce Malkerihorst, City Administrator, I am
advising you to prepare a check in the amount of $3,000 payable to
Mr. Albert-.Robles and charged to 1021-5962. This check is an
advance on the loan to the Southeast Cities Transportation Authority
(SECTA) for Initial Operating Costs as was approved by our City
Council on July 9, 1996.
I am attaching hereto a copy of the Agreement with SECTA .(not fully
executed) and the resolution approving same for your records and
future reference. It is also necessary for you to set up an account
or tracking system for these monthly payments/loans as the agreement
calls for an interest rate of 10% per annum (refer to Section 3 of
the agreement).
Martha, the agreement calls for the submission of "statements"
monthly by SECTA; however, in the future it may still be necessary
for us to prepare these "last minute" checks if so directed by Mr.
Malkenhorst.
/gJ o
:CAdmMemo
1 EXECUTION COPY
2 LOAN AGREEMENT FOR INITIAL OPERATING COSTS
BY AND BETWEEN THE CITY OF VERNON, CALIFORNIA AND
3 THE SOUTHEAST CITIES TRANSPORTATION AUTHORITY
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, as of this 3rd day
7 of July, 1996,
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BY AND BETWEEN THE CITY OF VERNON, hereinafter
9 referred to as the "City,"
4305 Santa Fe Avenue
10 Vernon, California, 90058
11 AND THE SOUTHEAST CITIES
TRANSPORTATION AUTHORITY, a
12 Joint Powers Authority,
hereinafter referred to as
13 "SECTA,"
11330 Bullis Road
14 Lynwood, CA 90262
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16 RECITALS
17 WHEREAS, SECTA was created pursuant to Government Code
18 §§6500, et sea. and is engaged in activities necessary or
19 appropriate to carry out the intent of the Joint Powers Agreement
20 formally effective February 13, 1992; and
21 WHEREAS, SECTA does not have a source of funding at this
22 ..time and requires funding in order to meet the initial operating
23 costs of SECTA; and
- 24 WHEREAS, the City is willing to loan money to SECTA,
25 subject to the terms and conditions set forth in the Loan
26 Agreement for Initial Operating Costs submitted concurrently.
27 herewith, for costs incurred from July 1, 1996 through
28 December 31, 1996, in order to permit SECTA to operate and meet
1 its responsibilities; and
2 WHEREAS, SECTA anticipates receiving funding in the
3 future and is willing to use a portion of .such funding to
4 reimburse the City for any funds advanced by City pursuant. to this
5 Agreement.
6 NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS
~ SET FORTH HEREIN:
8 SECTION l: The foregoing recitals are true and correct
9 and constitute valid consideration for this Agreement.-
10 SECTION 2: The City hereby establishes the Loan Fund
11 which shall be used to pay the administrative costs of SECTA.
12 -City agrees to advance to the Loan Fund, and to loan to SECTA each
13 month, subject to appropriation by the City Council of the City on
14 a subordinated basis of legally available funds, an amount of
15 funds of the City equal to the administrative costs of SECTA as
16 such costs are shown on verified statements submitted monthly by
17 SECTA to the City. Such statements are to be submitted
18 substantially in the form of Attachment "A" attached hereto and
19 incorporated herein by this reference as though fully set forth at
20 length. Notwithstanding any provision hereof to the contrary, the
21 City shall not be required to advance. to SECTA more than the sum
22 of ..One Hundred Thousand Dollars ($100,000) for such administrative
23 costs and expenses associated with SECTA activities.
_ 24 SECTION 3: The sums as may be advanced to SECTA from the
25 Loan Fund in each month shall bear interest at a rate of interest
26 per annum equal to ten percent (10%). Such interest payable on
27 the sums so advanced shall accrue and be added to the principal
28 amount of the Loan-until repaid by SECTA to the City.
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1 All payments by SECTA to City of administrative costs
2 paid pursuant to a settlement shall first be obligated to
3 discharge the amounts due pursuant to this Loan Agreement.
4 SECTION 4: Sums advanced pursuant to the Loan shall be
5 deposited with SECTA and used in accordance with the laws
6 governing SECTA's operations.
7 SECTION 5: SECTA's obligation to repay this Loan is
8 subject to the settlement of the litigation identified as City of
9 .South Gate, et al. vs. City of Los Angeles, et al., LASC No. BC
10 129447.
11 SECTION 6: City and SECTA hereby agree to execute any
12 and all ancillary documents as may reasonably be requested or
13 required to enable the full implementation of this Loan Agreement.
14 This Loan Agreement shall take effect from and after the date of
15 adoption and approval by the City and SECTA pursuant to official
16 action of the governing bodies thereof and shall be effective for
17 a duration not to exceed the term provided for herein.
18 IN WITNESS WHEREOF, the parties hereto have executed this
19 Agreement or caused this Agreement to be executed by their
20 respective officers, duly authorized, as of the date, month and
21 year first written above.
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1 CITY OF VERNON
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3 EONIS C. MALB , Mayo
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4 ATTEST:
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BRUCE V. MALKENHORST, City Clerk
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7 APPROVED AS TO FORM:
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F
9 DAVID B. BREARLE , City Att rney
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THE SOUTHEAST CITIES
11 TRANSPORTATION AUTHORITY
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BY: ~-1 `
13 RA L PEREZ, Chairman
14 ATTE/ST
HtLARIO GONZALES, SECRETARY
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APPROVED AS TO FORM:
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18 David. B. Brearley, Legal Couns
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1 ATTACHMENT A
2 Administrative Cost for
SECTA
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Description of services or overhead:
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6 General disposition of services provided:
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Amount approved under this Attachment A:
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Total cost incurred for Fiscal year:
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I, , the of SECTA declare that the
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foregoing is a true and correct statement of administrative costs
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for_the above-stated services or overhead of SECTA.
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Date:
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By:
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Attachments:
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NOTE: In accordance with Section 2 of-the Loan Agreement, not
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more than the aggregate of One Hundred Thousand Dollars
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($100,000) of costs may be incurred.
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Attachment A
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Page 1 of 1
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1 ~ 3 ~~`I EX CUTION COPY
2 ~ L N AGREEMENT FOR INITIAL. OPERATING COSTS
BY AN BETWEEN THE CITY OF VERNON, CALIFORNIA AND
3 b THE SOUTHEAST CITIES TRANSPORTATION AUTHORITY
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, as of this 3rd day
7 of July, 1996,
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BY AND BETWEEN THE CITY OF VERNON, hereinafter
9 referred to as the "City,"
4305 Santa Fe Avenue
10 Vernon, California, 90058
11 AND THE SOUTHEAST CITIES
TRANSPORTATION AUTHORITY, a
12 Joint Powers Authority,
hereinafter referred to as
13 "SECTA,"
11330 Bullis Road
14 Lynwood, CA 90262
15
16 RECITALS
17 WHEREAS, SECTA was created pursuant to Government Code
18 §§6500, et sea. and is engaged in activities necessary or
19 appropriate to carry out the intent of the Joint Powers Agreement
20 formally effective February 13, 1992; and
21 WHEREAS, SECTA does not have a source of funding at this
22 time and requires funding in-order to meet the initial operating
23 costs of SECTA; and
24 WHEREAS, the City is willing to loan money to SECTA,
25 subject to the terms .and conditions set forth in the Loan
26 Agreement for Initial Operating Costs submitted concurrently
27 herewith, .for costs incurred from July 1, 1996 through
28 December 31, 1996, in order to permit SECTA to operate and meet