Resolution No. 72331
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RESOLUTION NO. 7233
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON AMENDING THE PROGRAM GUIDELINES FOR
THE CITY OF VERNON INFRASTRUCTURE LOAN PROGRAM
(COMMUNITY DEVELOPMENT BLOCK GRANT NO. 95-
EDBG-390) AS SUBMITTED TO THE STATE DEPARTMENT
OF HOUSING AND COMMUNITY DEVELOPMENT TO
INCLUDE FUNDING OF EQUIPMENT AND MACHINERY
PURCHASES
WHEREAS, the City of Vernon submitted Program Guidelines
for the City of Vernon Infrastructure Loan Program ("Guidelines")
to the State of California, Department of Housing and Community
Development ("State") under Community Development Block Grant
(CDBG) No. 95-EDBG-390, and said Guidelines were approved by the
State; and
WHEREAS, the City Council of the City of Vernon by
adoption of Resolution No. 7152, amended the Guidelines to delete
the requirement for City matching funds for sewer improvement
projects and provide instead that matching funds for such projects
should come from the business owner requesting a loan; and
WHEREAS, the Guidelines, as amended and approved by the
State, provide funding for infrastructure projects only, and do
not provide funding for the purchase of machinery or equipment;
and
WHEREAS, the City desires to amend the Guidelines to
provide funding for the purchase of machinery or equipment by
businesses located in the City of Vernon, consistent with
applicable law.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF VERNON AS FOLLOWS:
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SECTION 1: The City Council of the City of Vernon
hereby finds and determines that the recitals contained
hereinabove are true and correct.
SECTION 2: The Guidelines are amended in their entirety
so that the term "Infrastructure Loan Program" wherever it appears
is changed to read "Infrastructure and Equipment Loan Program."
SECTION 3: The last sentence of Section 1.0 of the
Guidelines is amended to read as follows:
"This program provides an incentive for businesses to
expand or relocate in the City by reducing the costs of
off -site infrastructure improvements as well as offering
them financing opportunities for equipment purchases
that will result in the creation of jobs for the Target
Income Group."
SECTION 4: The last sentence of Section 2.0 of the
Guidelines is amended to read as follows:
"The City can offer the business a below market interest
rate loan, ranging from $20,000 to $200,000, for public
or private infrastructure improvements as well as
purchase and installation of equipment and machinery."
SECTION 5: The following sentence is added to the first
paragraph of Section 2.4 of the Guidelines, immediately following
the words " . . . a full 24 months":
"Loans for private infrastructure or equipment purchases
will not be forgiven."
SECTION 6: The following paragraph is added to Section
2.4 of the Guidelines, at the end thereof:
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"Loans for the financing of equipment may also be
approved by the City if the assistance will result in
job creation. Equipment loans can be used to finance
items such as the following:
"(1) On -site machinery and equipment.
"(2) Furniture and miscellaneous appliances."
SECTION 7: Section 3.2 of the Guidelines is amended by
adding subsection (4) thereto, to read as follows:
"(4) Private Equipment Financing Loans -- For
acquisition and purchase of privately owned
equipment and machinery. CDBG funds will cover no
more than 49% of the project cost, including
equipment cost/installation. The City may
contribute some matching loan funds upon Council
approval."
SECTION 8: In all other respects, the Guidelines, as
submitted to and approved by the State, shall remain in full force
and effect.
SECTION 9: The City Clerk shall send a certified copy
of this resolution to the State of California, Department of
Housing and Community Development, addressed as follows:
William Andrews
Economic Development Representative
State of California
Department of Housing & Community Development
State Community Block Grant Program
Room 390-2
P. O. Box 952054
Sacramento CA 94252-2054.
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SECTION 10: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 17th day of November, 1998.
EONIS C. MALBURG, Mayor
ATTEST•
BRUCE V. MALKENHORST, City Clerk
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STATE OF CALIFORNIA )
)ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, City Clerk of the City of
Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 7233, was duly adopted by the City Council of the
City of Vernon at a regular meeting of the City Council duly held
on Tuesday, November 17, 1998, and thereafter was duly signed by
the Mayor of the City of Vernon.
BRUCE V. MALKENHORST, City Clerk
(SEAL)
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SUPPORTING
DOCUMENTS
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro-Tem
Wm. 'BILL' DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL McCORMICK
Councilman
BRUCE V MALKENHORST
City Administrator / City Clerk
FAX (323) 581-7924
DAVID B. BREARLEY
City Attorney
FAX: (626) 330-5818
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 588-2761
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
Mr. William Andrews
Economic Development
State of California
Department of Housing
State Community Block
Room 390-2
P.O. Box 952054
November 24, 1998
Representative
& Community Development
Grant Program
Sacramento, CA 94252-2054
Dear Mr. Andrews:
KENNETH J. DeDARIO
Director of Municipal Utilities
FAX: (323) 583-1983
DAVE TELFORD
Fire Chief
FAX: (323) 581-1385
BRUCE W. OLSON
Police Chief
FAX: (323) 583-5236
Transmitted herewith is a certified copy of Resolution No. 7235
and a copy of the Loan Application being submitted by D/K
Environmental for funding of on -site improvements in the amount
of $73,018.00 in accordance with the 95-EDBG 390 Vern9p X
Infrastructure Loan Program as amended by
If you should have any questions, please refer them to Mr. Chris
Romero at Ext. 324.
Very truly yours,
CITY 'F VERNON
tm
G is J. o co
Chief Deputy City Clerk
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Enclosures
CERTIFICATE
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES) ss
CITY OF VERNON )
I, Gloria J. Orosco, Chief Deputy City Clerk of the City of
Vernon, County of Los Angeles, State of California, do hereby
certify that the attached is a true and correct copy of:
RESOLUTION NO. 7233 - A Resolution of the
City Council of the City of Vernon Amending
the Program Guidelines for the City of Vernon
Infrastructure Loan Program (Community
Development Block Grant No. 95-EDBG-390) As
Submitted to the State Department of Housing
and Community Development to Include Funding
of Equipment and Machinery Purchases
The original of same has been retained in the office of the
City Clerk of the City of Vernon, said offices being in the City
of Vernon, County of Los Angeles, State of California.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
the Official Seal of the City of Vernon, County of Los Angeles,
State of California, on this 24th day of November, 1998.
A
. Oro oeputy ity Clerk
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro-Tem
Wm. "BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL McCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator / City Clerk
FAX (323) 581-7924
DAVID B. BREARLEY
City Attorney
FAX: (626) 330-5818
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 588-2761
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
November 24, 1998
Mr. William Andrews
Economic Development Representative
State of California
Department of Housing & Community Development
State Community Block Grant Program
Room 390-2
P.O. Box 952054
Sacramento, CA 94252-2054
Dear Mr. Andrews:
KENNETH J. DeDARIO
Director of Municipal Utilities
FAX: (323) 583-1983
DAVE TELFORD
Fire Chief
FAX: (323) 581-1385
BRUCE W. OLSON
Police Chief
FAX: (323) 583-5236
Transmitted herewith is a certified copy of Resolution No. 7233
which was approved by the Vernon City Council on November 17,
1998.
If you should have any questions, please refer them to Mr. Chris
Romero at Ext. 324.
Very truly yours,
CIT OF VERNON
�
Gloria J. Orosco
Chief Deputy City Clerk
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