Resolution No. 2011-203RESOLUTION NO. 2011-203
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE CITY
ADMINISTRATOR TO IMPLEMENT A REPAYMENT PLAN FOR
CURRENT AND LONG-TERM OBLIGATIONS OWED BY THE GAS
FUND, GENERAL FUND AND WATER FUND TO THE LIGHT &
POWER FUND
WHEREAS, the City's Light & Power fund gas advanced funds to
the City's Gas Fund, General Fund and Water Fund; and
WHEREAS, the City shall by this resolution adopt a plan of
repayment (the "Repayment Plan") of the current and long term
obligations of the Gas, General and Water Funds to the Light & Power
fund; and
WHEREAS, the City shall authorize the City Administrator to
implement he Repayment Plan over the next fifteen months.
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
authorizes the City Administrator to implement the following Repayment
Plan upon the adoption of this Resolution:
(a) The Gas Fund shall be merged into the Light &
Power Fund and all assets of the Gas Fund shall
become a part of the Light & Power Fund.
(b) The General Fund shall sell over the
next fifteen months its real estate assets and
remit all the proceeds of which to the Light &
Power Fund, until all current and long term
obligations have been fully repaid to the Light &
Power Fund.
(c) The Water Fund shall over the next fifteen months
remit amounts sufficient to retire all current and
long term obligations owed to the Light & Power
Fund.
SECTION 3: The City Council of the City of Vernon hereby
instructs the City Administrator or his authorized designees to
undertake whatever actions are necessary to fulfill and carry out the
intent and purpose of this Resolution.
SECTION 4: The City Clerk of the City of Vernon shall
certify to the passage, approval and adoption of this Resolution, and
the City Clerk of the City of Vernon shall cause this resolution and
the City Clerk's certification to be entered in the File of
Resolutions of the Council of this City.
APPROVED AND ADOPTED this 15th day of December, 2011.
Name: William J. Davis
Title--ta r / Mayor Pro-Tem
2
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, Willard G. Yamaguchi, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution
No. 2011-203, was duly passed, approved and adopted by the City Council
of the City of Vernon at a special meeting of the City Council duly
held on Thursday, December 15, 2011, and thereafter was duly signed by
the Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this /) day of DeceM*, 2011, at Vernon, California.
(SEAL)
- 3 -
RECEIVED
DEC 15 2011
CITY CLERK'S OFFICE
DATE:
TO:
FROM
RE:
Background
STAFF REPORT
FINANCE DEPARTMENT
December 14, 2011
n `z
Management Plan to Retire Obligations
Honorable Mayor and City Council
Rory Burnett, Director of Finance
RECEIVED
DEC 14 2011
CITY ADMINISTRATION
In our efforts to complete the Light and Power audited financial report for fiscal year
ended June 30, 2011, our auditors, Macias Gini & O'Connell, have recommended the
City develop and draft a management plan to retire obligations owed by the General
Fund, Gas Fund and Water Fund to the Light and Power Fund. The attached
management plan will assist the Light and Power Department in issuing bonds.
Recommendation
I recommend the City Council approve the attached management plan to retire
obligations.
RESOLUTION NO. 2012-03
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON MODIFYING RESOLUTION NO. 2011-203
WHEREAS, the City Council adopted Resolution No. 2011-203
(the "Prior Resolution") which among other things, authorized a merger
of the Gas Fund into the Light and Power Fund; and
WHEREAS, the City Council has determined to clarify
Section 2(a) of the Prior Resolution as provided in this Resolution
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: Section 2(a) of the Prior Resolution is hereby
amended in its entirety to read as follows:
"The Gas Fund shall be merged into the Light and Power Fund
for accounting and financial reporting purposes. Such merger shall
not affect the operations of the Gas Department or the Light and Power
Department nor alter the obligations of the Light and Power Fund to
bondholders or other creditors."
SECTION 3: Save and except as modified and supplemented by
this Resolution, the Prior Resolution shall remain in full force and
effect.
SECTION 4: The City Council hereby authorizes the City
Administrator or his authorized designees to undertake whatever
actions are necessary or convenient to fulfill and carry out the
intent and purpose of this Resolution.
SECTION 5: The City Clerk of the City of Vernon shall
certify to the passage, approval and adoption of this Resolution, and
the City Clerk of the City of Vernon shall cause this Resolution and
the City Clerk's certification to be entered in the File of
Resolutions of the Council of this City.
APPROVED AND ADOPTED this 3r6 day of January, 2012.
Name: $/WII I 'AM 1 DAVIS
Title: $iap�Mayor Pro-Tem
2
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, Willard G. Yamaguchi, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution
No. 2012-03, was duly passed, approved and adopted by the City Council
of the City of Vernon at a regular meeting of the City Council duly
held on Tuesday, January 3, 2012, and thereafter was duly signed by the
Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this 3 day of January, 2012, at Vernon, California.
�'
Wil and G. a uc i City Clerk
(SEAL)
_3-
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: January 5, 2012
TO: Rory Burnett, Finance Director/City Treasurer
Masami Higa, Assistant Finance Director
Alex Kung, Senior Accounting Manager
Joaquin Leon, Deputy City Treasurer
Mark Whitworth, City Administrator/Fire Chief
FROM: Willard Yamaguchi, City Clerk Vq
RE: Resolution No. 2012-03 — A Resolution of the City Council of the City of Vernon
Modifying Resolution No. 2011-203
Transmitted herewith is a copy of Resolution No. 2012-03 referenced above, which was approved by City
Council on January 3, 2012.
Thank you.
WY:dj
Attachment
c: Resolution No. 2012-03
Muro, Evangelina
From: Muro, Evangelina
Sent: Tuesday, January 03, 2012 2:08 PM
To: Enomoto, Kristen
Subject: Scanned document from Muro, Evangelina (emuro@ci.vernon.ca.us)
Attachments: Resolution No. 2012-03.PDF
Resolution No.
2012-03.PDF (19...
Per your request attached is a copy of the executed resolution.
DEC 2 9 2011
CITY CLERK'S OFFICE STAFF REPORT
FINANCE DEPARTMENT
DATE: December 29, 2011
TO: Honorable City Council
FROM: Rory Burnett, Director of Finance IZ�Z,/Ak
ec1`7� Rbt-C AVED
c-2a/a -e3
DEC 2 9 20I1
CITY ADMINISTRATION
M W'K6
RE: Resolution Clarifying and Modifying Resolution No. 2011-203
Background
On December 15, 2011 the City Council adopted Resolution 2011-203 which authorized
a repayment plan for interfund advances between the Light & Power Fund and the Gas
Fund.
In efforts to clarify and amend Resolution 2011-203, the merger of the Gas Fund and
the Light & Power Fund shall be for accounting and financial reporting purposes. The
merger will not affect the operations of the Gas Department nor the Light & Power
Department or change the obligations of the Light & Power Fund to bondholders or
creditors.
Recommendation
recommend the City Council approve the proposed attached Resolution.