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HomeMy WebLinkAbout4894_CCv0001.pdf RESOLUTION NO. 4894 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS APPROVING A CERTAIN LOAN AGREEMENT BY AND BETWEEN THE SAN BERNARDINO REGIONAL AIRPORT AUTHORITY AND THE CITY OF REDLANDS WHEREAS, the City of Redlands (the "City") is a municipal corporation, duly created and existing pursuant to the Constitution and the laws of the State of California; and WHEREAS, the San Bernardino Regional Airport Authority (the "Authority") has been created by the legislative bodies of its member jurisdictions (the "Members") pursuant to a certain agreement entitled "Joint Exercise Of Powers Agreement Creating An Agency To Be Known As The San Bernardino Regional Airport Authority" (the "JPA Agreement") in accordance with Section 6500, et sect. , of the California Government Code; and WHEREAS, the Authority was created primarily for the purposes of acquiring, operating, repairing, maintaining and administering the aviation related portions of the Norton Air Force Base as a public airport; and WHEREAS, Section 3 of the JPA Agreement and Government Code Section 6508 provide that the Authority has the powers to make and enter into contracts and to incur long-term and short-term debts, liabilities or obligations, which are not debts, liabilities or obligations of its Members; and - 1 - WHEREAS, Section 5 of the JPA Agreement and Government Code Section 6504 provide that the Members may make contributions from their treasuries for the purposes set forth therein, make payments of public funds to defray the cost of such purposes, and make advances of public funds for such purposes, such advances or payments to be repaid as provided therein; and WHEREAS, in accordance with Section 11 of the JPA Agreement, the City and the Authority desire to enter into a .certain Loan Agreement, pursuant to which, the City would loan sums to the Authority for the purpose of paying the necessary annual budgeted expenditures of the Authority; and WHEREAS, on July 1, 1992 , the Commission of the Authority authorized execution of the Loan Agreements with each of its Members; and WHEREAS, the City Council of the City, at this time, deems it appropriate to approve the Loan Agreement. NOW THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF REDLANDS AS FOLLOWS. Section 1. The City Council hereby approves the Loan Agreement, as set forth in Exhibit "A" attached hereto and incorporated herein by reference as though fully set forth at length herein. 2 - Section 2. The City Council hereby authorizes the Mayor of the City to execute the Loan Agreement as set forth in Exhibit "A" with any non-substantive changes as may be directed by counsel for the City. Section 3_. This Resolution shall take effect upon its adoption. The foregoing resolution is hereby approved this 21st day of � .1111 , 1992 . Mayor of he Q�ityf-of ` Redlands.,' (SEAL) `'�-- ..-•.'.,. . City �lerk STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) SS CITY OF REDLANDS ) I, Lorrie Poyzer, City Clerk of the City of Redlands, California, hereby certify under penalty of penury that the attached is a full, true and correct copy of Resolution No. 4894 as regularly passed and adopted by the City Council of the City of Redlands on the 21st day of July, 1992, as appears on record in my office; that since the adoption date said resolution has not been amended, modified or repealed, and that it is presently valid and an existing lave of the City of Redlands, California. WITNESS my hand and the official seal of the City of Redlands this 22nd day of R ly, 1992. Lorrie P zer, City ej City off edlands, C ifo nia IDAN AGREEMENT This Agreement is made on the 21st day of July , 1992 , by and between the San Bernardino Regional Airport Authority (the "Authority") and the City of Redlands (the "City") . RECITALS 1. The Joint Exercise of Powers Agreement Creating An ' Agency To Be Known As The San Bernardino Regional Airport Authority (the "JPA Agreement") governs the operations of the Authority. 2 . Section 3 of the JPA Agreement and Government Code Section 6508 provide that the Authority has the powers to make and enter into contracts and to incur long-term and short-term debts, liabilities or obligations, which are not debts, liabilities or obligations of the City, County of San Bernardino, City of Colton, City of Loma Linda, City of Highland and City of San Bernardino (collectively, the "Members") . 3. Section 5 of the JPA Agreement and Government Code Section 6504 provide that the Members may make contributions from their treasuries for the purposes set forth therein, make payments of public funds to defray the cost of such purposes, and make advances of public funds for such purposes, such advances or payments to be repaid as provided therein. -1- 4 . In accordance with Section 11 of the JPA Agreement, the Members desire to loan to the Authority the total sum of Fifty- Two Thousand Five Hundred Dollars ($52 , 500) of which the City, the County of San Bernardino, City of Loma Linda, City of Highland and City of Colton shall each loan the Authority the sum of Seven Thousand Five Hundred Dollars ($7 , 500) and the City of San Bernardino shall loan the Authority the sum of Fifteen Thousand Dollars ($15, 000) , for the purpose of paying the necessary annual budgeted expenditures of the Authority (the "Member Loans") . NOW, THEREFORE, the Authority and the City agree hereby as follows: Section 1 . Within seven (7) days of the date of this Agreement, the City shall loan to the Authority the sum of Seven Thousand Five Hundred Dollars ($7 , 500) (the "Redlands Loan") . During the term of this Redlands Loan and any extensions hereto, such Redlands Loan shall bear interest at a rate per annum equal to the rate of interest announced by the Local Agency Investment Fund (LAIF) and in effect as of the date of this Agreement. Such rate of interest shall be in effect until the first anniversary date of this Agreement, and the rate of interest shall then be reestablished as of the first anniversary date, and as of each subsequent anniversary date thereafter, based upon the LAIF rate of interest then in effect as of each such anniversary date for the subsequent 1-year period. -2- Section 2 . Except as provided in Section 4 below, principal and interest on the Redlands Loan and the other Member Loans shall be due and payable five (5) years from the date of this Loan Agreement . The Authority shall pay accrued and unpaid interest prior to any payments of principal if and to the extent determined by the Authority, and the Authority may prepay all or portions of the Redlands Loan and the other Member Loans without penalty on the same proportionate basis without priority of payments to any one Member over that of any other Member or Members. Section 3 . The Redlands Loan and the other Member Loans shall be subordinated to all other obligations of the Authority regardless of when in time such other obligations may be incurred by the Authority and shall be repaid proportionately to each Member from the first legally available surplus operating revenues of the Airport Facility as may be determined by the Authority or from the proceeds of any municipal bond financing to the extent legally available and as may be determined by the Authority. Section 4 . The Authority may at its sole discretion extend the maturity date of the Redlands Loan made pursuant to this Agreement and the other Member Loans for an additional period of time not to exceed five (5) years in the event the Authority finds and determines that there are insufficient funds to repay all the -3- Member Loans as of any maturity date. The terms of the Redlands Loan shall not be extended unless the term of the other Member Loans are simultaneously extended for an identical period of time. Section 5. The Authority and the City acknowledge and agree that identical loans to that of the Redlands Loan have been made by each of the Members to the Authority in the amounts as referred to in the recitals as the "Member Loans" . None of the Member Loans shall have priority of any one over another either as to the payment of principal or, interest and all payments or prepayments of principal or interest shall be made on a proportionate basis as to each of the Member Loans. -4- IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed and attested by their proper officers thereunto duly authorized, their official seals to be hereto affixed, as of the date first above written. SAN BERNARDINO REGIONAL AIRPORT AUTHORITY B . Title: President (SEAL) ATTEST: Secretary CITY OF REDLANDS, CALIFORNIA (SEAL) ATTEST: City Clerk CSBo14412U)OCA25 7!14592 3:255 -5-