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HomeMy WebLinkAboutCC RESO 2008-51RESOLUTION NO. 2008 — 51 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY REQUESTING SANDAG TO PROVIDE ADVANCED FUNDING THROUGH DEBT FINANCING IN THE AMOUNT OF $4,500,000 FOR THE NATIONAL CITY STREET RESURFACING PROGRAM, AUTHORIZING THE CITY MANAGER TO EXECUTE A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NATIONAL CITY AND SANDAG TO MEMORIALIZE THE TERM OF THE ADVANCED FUNDING, AND RESCINDING RESOLUTION NO. 2008-23 WHEREAS, SANDAG, acting as the San Diego County Regional Transportation Commission, is responsible for the administration of the TransNet program (Proposition A; November 1987 and November 2004); and WHEREAS, to accelerate the implementation of sales tax funded projects, SANDAG has established debt financing programs to provide advanced funding for eligible projects under the TransNet program; and WHEREAS, the following project being implemented by the City of National City has been approved by SANDAG through the 2008 TransNet Program of Projects, and would benefit from the availability of advance funding: NATIONAL CITY STREET RESURFACING PROGRAM, which requires an amount of $4,500,000 (Four Million Five Hundred Thousand Dollars) in debt financing. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of National City as follows: 1. That the City Manager is hereby authorized to request advance funding from SANDAG through its debt financing program in an amount not to exceed $4,500,000 (Four Million Five Hundred Thousand Dollars). 2. That the City Manager is hereby authorized to execute the Memorandum of Understanding between the City and SANDAG regarding the TransNet Commercial Paper Program, and any other necessary documents relating to the receipt of said funds from SANDAG. 3. That the City of National City will be responsible for paying its proportionate share of the annual interest and administrative costs of the commercial paper based on the ratio of the amount of financing provided to the City of National City to the total commercial paper outstanding for each fiscal year. 4. That SANDAG will deduct said interest and administrative costs from the City of National City monthly TransNet Sales tax allocations prior to making any other sales tax payments for other City of National City projects. 5. That the City of National City will repay to SANDAG the principal amount borrowed according to the schedule set forth in Attachment "A". If paid from future sales tax revenues, these principal payments will be deducted by SANDAG from City of National City's monthly TransNet sales tax allocations prior to making any other sales payments for other City of National City's projects. Resolution No. 2008 — 51 April 1, 2008 Page 2 6. That the first priority use of the City of National City's annual allocation of TransNet revenues shall be payment of any required costs of debt financing. BE IT FURTHER RESOLVED that Resolution No. 2008-23 is hereby rescinded. PASSED and ADOPTED this 1st day of April, 2008. ATTEST: 1, Mi ael R. Dall. , City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney Ron Morrison, Mayor Resolution No. 2008 — 51 National City $4.5M Commercial Paper Capacity Analysis FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Beginning Balance (est) 174,062 442,624 818,686 1,305,248 Allocations 1,258,000 1,312,000 1,379,000 1,449,000 1,515,000 CP Proceeds 4,500,000 CP Principal Repayment (900,000) (900,000) (900,000) (900,000) (900,000) CP Interest/Other Fees (183,938) (143,438) (102,938) (62,438) (21,938) CP Disbursement (4,500,000) Ending Balance $174,062 $442,624 $818,686 $1,305,248 $1,898,310 Notes: 1. Assumes no other project expenditures from the TransNet program through FY 2013. 2. Estimated revenues based on January 2008 projections for the next 5 years, updated on an annual basis. 3. As of February 2008, the beginning balance for FY 2009 estimated to be $61,682. SANDAG anticipates NC will reduce the remaining payments for FY 2008 to reduce the balance to zero; therefore, the beginning balance is shown as zero for purposes of this analysis. 02/05/2008 ATTACHMENT "A" Passed and adopted by the Council of the City of National City, Califomia, on April 1, 2008 by the following vote, to -wit: Ayes: Councilmembers Morrison, Natividad, Parra, Ungab, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California A /r City I rk of the ity ofational City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2008-51 of the City of National City, Califomia, passed and adopted by the Council of said City on April 1, 2008. City Clerk of the City of National City, California By: Deputy