Resolution No. 91731
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WIM
RESOLUTION NO. 9173
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A
LOAN AGREEMENT BY AND BETWEEN THE CITY OF VERNON
AND THE REDEVELOPMENT AGENCY OF THE CITY OF VERNON
WHEREAS, pursuant to Health and Safety Code Section 33600,
the Redevelopment Agency of the City of Vernon (the "Agency") may
expend any funds received from any public or private source for the
Agency's activities, powers and duties; and
WHEREAS, pursuant to Health and Safety Code Section 33603,
the Agency may invest any money held in reserves or sinking funds, or
any money not required for immediate disbursement, in property or
securities in which savings banks may legally invest money subject to
their control; and
WHEREAS, the City is in the process of developing a natural
gas -fired combined cycle power plant located within City limits
officially named the Vernon Power Plant (the "VPP Project") for the
purpose of installing additional generating capacity that will yield
an efficient, cost-effective, and reliable source of electric
generation to the City; and
WHEREAS, the City and the Agency believe that a loan from
the Agency to the City would be an investment in the community served
by the Agency's Redevelopment Plan; and
WHEREAS, the City desires to use the investment funds loaned
by the Agency to develop the VPP Project provided that such funds as
may be loaned to the City for such purposes shall be repaid to the
28 I l Agency; and
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WHEREAS, the City deems it advisable to approve and
authorize the execution of a Loan Agreement establishing the amounts,
terms and conditions applicable to the loan of up to Thirty Million
Dollars and No Cents ($30,000,000.00) from the Agency to the City for
investment purposes regarding the development of the VPP Project,
provided that such funds shall be repaid to the Agency, with interest.
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 Loan Agreement, in substantially the same form as the
copy which is attached hereto as Exhibit A and incorporated by
reference.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the Mayor to execute said Agreement for, and on behalf of,
the City of Vernon and the Acting City Clerk is hereby authorized to
attest thereto.
SECTION 4: The City Council of the City of Vernon hereby
authorizes the Acting City Clerk, or his designee, to make whatever
nonsubstantive, administrative and/or text changes, upon advice of
counsel, to the Agreement.
SECTION 5: The City Council of the City of Vernon hereby
directs the Acting City Clerk, or his designee, to send an executed
Agreement to:
Redevelopment Agency of the City of Vernon
Attn: Acting Executive Director
4305 Santa Fe Avenue
Vernon, CA 90058
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SECTION 6: The City Council of the City of Vernon hereby
establishes the City of Vernon Revolving Fund to be kept in the
Itreasury of the City wherein the Agency agrees to advance sums from
time to time as necessary for investment purposes. All funds
appropriated to the City of Vernon Revolving Fund shall be authorized
and approved by a duly adopted resolution of the City Council and the
Agency and documented in a revolving loan agreement duly executed by
the City and the Agency.
SECTION 7: The sums as may be advanced to the City by the
Agency to the City of Vernon Revolving Fund from time to time shall
bear interest at the rate of interest per annum equal to five percent
(50). Such interest payable on the sums so advanced shall accrue and
be added to the principal amount of the advance, and all such amounts
shall bear interest at said rate and shall compound annually until
paid by he City to the Agency.
SECTION 8: The City Council of the City of Vernon hereby
authorizes the Acting City Clerk, or his designee, to execute any
documents or take any action deemed necessary to implement and carry
out the purposes of the Agreement.
SECTION 9: The Acting 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 22nd day of November, 2006.
f' ZEONIS C. MALtURG, Ayor
ATTEST
BRUCE V. MALKENHORST, JR.
Acting City Clerk
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of
Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 9173, was duly adopted by the City Council of the City
of Vernon at a special meeting of the City Council duly held on
Wednesday, November 22, 2006, and thereafter was duly signed by the
Mayor of the City of Vernon.
(SEAL)
BFVU E V. MALKENHORST, JR.
Acting City Clerk
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EXHIBIT
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LOAN AGREEMENT
THIS AGREEMENT is made, entered into and executed in
duplicate originals, either copy of which may be considered and used as
the original hereof for all purposes, as of this 22nd day of November,
2006, in the City of Vernon, County of Los Angeles, California
BY AND BETWEEN
F0�
RECITALS
CITY OF VERNON, a municipal
corporation (hereinafter
referred to as the "City")
4305 Santa Fe Avenue
Vernon, CA 90058
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")
4305 Santa Fe Avenue
Vernon, CA 90058
WHEREAS, pursuant to Health and Safety Code Section 33600,
the Agency may expend any funds received from any public or private
source for the Agency's activities, powers and duties; and
WHEREAS, pursuant to Health and Safety Code Section 33603,
the Agency may invest any money held in reserves or sinking funds, or
any money not required for immediate disbursement, in property or
securities in which savings banks may legally invest money subject to
their control; and
WHEREAS, the City is in the process of developing a natural
gas -fired combined cycle power plant located within City limits
officially named the Vernon Power Plant (the "VPP Project") for the
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purpose of installing additional generating capacity that will yield an
efficient, cost-effective, and reliable source of electric generation
to the City; and
WHEREAS, Agency deems it advisable to loan City funds
necessary for the City to develop the VPP Project provided that such
funds as may be loaned to the City for such purposes shall be repaid to
the Agency; and
WHEREAS, the City and the Agency believe that such loan is
an investment in the community served by the Agency's Redevelopment
Plan.
NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS SET
FORTH HEREIN:
SECTION 1: The foregoing recitals are true and correct and
constitute valid consideration for this Agreement.
SECTION 2: The City hereby establishes the City of Vernon
Loan Fund and the Agency agrees to advance such sums to the City of
Vernon Loan Fund of no more than Thirty Million Dollars ($30,000,000)
for the VPP Project (the "Loan").
SECTION 3: All sums loaned to the City from the Agency
shall bear interest at the rate of interest per annum equal to five
percent (5%). Such interest payable on the sums so loaned shall accrue
and be added to the principal amount of the Loan, and all such amounts
shall bear interest at said rate and shall compound annually until
repaid by the City to the Agency.
SECTION 4: Each Loan from the Agency to the City shall be
approved by resolution of the City and the Agency, and repaid within
one (1) year.
SECTION 5: Sums loaned pursuant to the Loan shall be
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deposited in the City of Vernon Loan Fund for withdrawal by the City.
SECTION 6: The City and the Agency hereby acknowledge and
agree that all amounts which may hereafter be advanced by the Agency to
the City in the form of the Loan pursuant to this Agreement shall be
considered an investment of the Agency. The repayment obligation of
the City hereunder shall be made from the legally available revenues of
the City and any other funds of the City, if any, and at the option of
the City, legally available therefore.
SECTION 7: The City and the Agency hereby agree to execute
any and all ancillary documents as may be reasonably be requested for
the investment and repayment of the investment.
SECTION 8: This Agreement shall take effect from and after
the date of adoption and approval by the City and the Agency pursuant
to official action of the governing bodies thereof and shall be
effective for a duration not to exceed the time necessary to repay
fully the Agency the principal amount of any advances under the Loan,
together with interest thereon as evidenced by this Agreement, but in
no event shall such repayment obligation extend for a duration of time
in excess of that provided in any Redevelopment Plan hereafter adopted.
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IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by and through their authorized officers on
the date, month and year first written above.
ATTEST:
BRUCE V. MALKENHORST, JR.
Acting City Clerk
APPROVED AS TO FORM:
ERIC T. FRESCH, City Attorney
ATTEST:
BY:
BRUCE V. MALKENHORST, JR.
Acting Secretary
APPROVED AS TO FORM:
BY:
Jeff Harrison for Karns &
Karabian, Legal Counsel
CITY OF VERNON
LEONIS C. MALBURG, Mayor
REDEVELOPMENT AGENCY OF THE
CITY OF VERNON
BY:
LEONIS C. MALBURG, Chairman
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