Resolution No. 77031
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RESOLUTION NO. 7703
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF AN
AMENDMENT NO. ONE TO CDBG INFRASTRUCTURE LOAN
AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND
SANDBERG FAMILY LLC
WHEREAS, on May 4, 1999, the City Council of the City of
Vernon adopted Resolution No. 7322 approving a CDBG Infrastructure Loan
Agreement ("Agreement") with Sandberg Family LLC ("Sandberg") in
connection with a Community Development Block Grant ("CDBG") loan for
the purpose of helping to finance public infrastructure improvements
for the development known as the Alcoa Project; and
WHEREAS, the CDBG loan is secured by a standby letter of
credit and is subject to the personal guarantee signed by William H.
Sandberg who was the Managing Member of Sandberg at the time the
Agreement was executed; and
WHEREAS, the City was recently informed that William H.
Sandberg died on November 9, 1999, which had the effect of
extinguishing the personal guarantee he had previously executed on
May 4, 1999; and
WHEREAS, the off -site improvements to the subject property are
completed and the invoices reviewed by City staff; and
WHEREAS, on December 5, 2000, the City Council of the City of
Vernon approved Resolution No. 7658 approving Escrow Loan Instructions
dated November 2, 2000; and
WHEREAS, the City Attorney has determined that a new personal
guarantee is required to put the City in the same security position
and
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WHEREAS, the City of Vernon desires to amend the Agreement to
permit John A. Sandberg, who is now the Managing Member of Sandberg,
to execute a personal guarantee to secure the CDBG loan; and
WHEREAS, by letter dated February 1, 2001, Bruce V.
Malkenhorst, City Administrator/City Clerk, has recommended that the
Agreement with Sandberg be amended to replace William H. Sandberg with
John A. Sandberg as the personal guarantor; and
WHEREAS, these amendments require that the escrow instructions
be amended to reflect a new guarantor.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF VERNON AS FOLLOWS:
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 City Council of the City of Vernon hereby
approves the Amendment No. One to CDBG Infrastructure Loan Agreement
with Sandberg, a copy of which is attached hereto as Exhibit "A" and
made a part hereof.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the Mayor and the City Clerk to execute said Amendment for,
and on behalf of, the City of Vernon.
SECTION 4: The City Council of the City of Vernon hereby
directs the City Clerk, or his designee, to send one fully executed
Amendment to:
Sandberg Family LLC
Attn: John A. Sandberg, Manager
5685 Alcoa Avenue
Vernon, CA 90058
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SECTION 5: 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 7th day of February, 2001.
ATTEST:
BRUCE V. MALKENHORST, City Clerk
- Ti-atir2�'
EONIS C. MALB G, May r
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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.
7703, was duly adopted by the City Council of the City of Vernon at a
regular meeting of the City Council duly held on Wednesday, February 7,
2001, and thereafter was duly signed by the Mayor of the City of
Vernon
BRUCE V. MALKENHORST, City Clerk
(SEAL)
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EXHIBIT
10
I AMENDMENT NO. ONE TO CDBG
21 INFRASTRUCTURE LOAN AGREEMENT
BETWEEN THE CITY OF VERNON AND SANDBERG FAMILY LLC
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4 THIS AMENDMENT NO. ONE TO CDBG INFRASTRUCTURE LOAN AGREEMENT
5 (the "Amendment") is made, entered into and executed in duplicate
6 originals, either copy of which may be considered and used as the
7 original hereof for all purposes, as of this day of February,
8 2001.
9 BY AND BETWEEN
THE CITY OF VERNON, a municipal
10 corporation (hereinafter referred to
as the "City") -
1� 4305 Santa Fe Avenue
12 Vernon, California 90058-0805
13 AND SANDBERG FAMILY.LLC
14 (hereinafter referred to as the
"Borrower")
15 5685 Alcoa Avenue
Vernon, California 90058
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I? RECTT l' S
18 WHEREAS, the City and Borrower are parties to a CDBG
19 Infrastructure Loan Agreement dated May 4, 1999 (hereinafter referred
20 to as the "Agreement") with respect to a Community Development Block
21 Grant (hereinafter referred to as "CDBG") loan for the purpose of
22 helping to finance public infrastructure improvements for the
23 development known as the Alcoa Project (hereinafter referred to as the
24 "Project") and
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WHEREAS, pursuant to Section 1.b. of the Agreement, the loan
26 is secured by a standby letter of credit and is subject to a personal
27 guarantee by William H. Sandberg; and
28 WHEREAS, at the time the Agreement was executed, William
I H. Sandberg was the Managing Member of the Borrower; and
2 WHEREAS, William H. Sandberg, the guarantor, died on
3 November 9, 1999, which had the effect of extinguishing the personal
4 guarantee, which he had previously executed on May 4, 1999; and
5 WHEREAS, the off -site improvements to the subject property
6 have recently been completed and the invoices reviewed by the City,s
7 staff; and
g WHEREAS, in order to ensure the security of the loan, the
9 City is requiring a new personal guarantee to be signed by a principal
}p of the Borrower; and
11 WHEREAS, John A. Sandberg has replaced William H. Sandberg
12 as the Managing Member of the Borrower; and
13 WHEREAS, the Agreement must be amended to permit John A.
14 Sandberg to execute a personal guarantee to secure this loan; and
15 WHEREAS, the date of the personal guarantee will also
16 change; and
17 WHEREAS, in accordance with Section 6 of the Agreement, the
18 City may require Borrower to execute other documents as may be
19 required by the City in its sole discretion; and
20 WHEREAS, Section B of Attachment F indicates that
21 "amendments shall be in writing and executed by the City and the
22Borrower;" and
23 WHEREAS, the City and Borrower desire to amend the Agreement
24 to replace William H. Sandberg with John A. Sandberg, as the personal
25 guarantor.
26 NOW, THEREFORE, IN CONSIDERATION OF THESE MUTUAL COVENANTS,
27 THE PARTIES HERETO AGREE AS FOLLOWS:
2g SECTION 1: Line 9 of Section l.b. of the Agreement entitled
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I "Loan Repayment,- is hereby amended to read as follows:
2 "...guarantee by John A. Sandberg. The interest
3 rate on the Loan...ss
4 SECTION 2: Section 3.a. of the Agreement entitled "Loan
5 Agreement's is hereby amended to read as follows:
6 The borrower shall have executed and deposited in
7 escrow this Loan Agreement, Amendment No. One to
the CDBG-Infrastructure Loan Agreement and the
9 Note• The Note shall be dated as of the date of
10 the Agreement.
11 SECTION 3: Section 3.b. of the Agreement entitled
12 "Security," is hereby amended to read as follows:
13 "The Borrower shall have deposited in escrow the
14 standby letter of credit duly executed and dated
15 as of the date of this Agreement and the personal
16 guarantee duly executed and dated on or about the
17 date of Amendment No. One."
18 SEMON 4: In all other respects, the terms and conditions
19 of the CDBG Infrastructure Loan Agreement shall be renewed in its
20 entirety.
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IN WITNESS WHEREOF, City and Borrower have executed this
Amendment as of the date first hereinabove set forth.
CITY OF VERNON
By:
ATTEST: LEONIS C. MALBURG, Mayor
BRUCE V. ii�NHORS`T, City Clerk
APPROVED AS TO FORM:
EDUARDO OLIVO, City Attorney
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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
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
April 10, 2001
Sandberg Family LLC
Attn: John A. Sandberg, Manager
5685 Alcoa Avenue
Vernon, CA 90058
EDUARDO OLPJO
City Attorney
FAX: (562) 927-8722
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 588-2761
KENNETH J. DeDARIO
Director of Municipal Utilities
FAX: (323) 583-1983
Re: Amendment One to CDBG Infrastructure Loan Agreement
Dear Mr. Sandberg:
STEVEN E. PARKER
Fire Chief
FAX: (323) 581-1385
BRUCE W. OLSON
Police Chief
FAX: (323) 583-5236
Transmitted herewith is an original copy of an executed Amendment One to
a CDBG Infrastructure Loan Agreement approved by the Vernon City Council
at their meeting held February 7, 2001.
If you have any questions, please call Christopher Romero at 323/583-
8811 ext. 324.
;Ve ruly yours
lo is J. rosco
Chief Dep ty City Clerk
GJO:ng
CC: Christo her Romero
Agreement File No. 01-019