HomeMy WebLinkAboutCC RESO 2010-233RESOLUTION NO. 2010 — 233
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
REQUESTING SANDAG, ACTING AS THE SAN DIEGO COUNTY
REGIONAL TRANSPORTATION COMMISSION, TO PROVIDE ADVANCED
FUNDING THROUGH DEBT FINANCING AND REFINANCE THE VARIABLE
RATE COMMERCIAL PAPER OF $3,366,000 INTO FIXED RATE BONDS
WHEREAS, San Diego Association of Governments, acting as the San Diego
County Regional Transportation Commission (SANDAG), is responsible for the administration of
programs under the TransNet Extension Ordinance (Proposition A, November 2004), which sets
forth permitted uses for revenues from a % cent transactions and use tax in San Diego County
(TransNet Extension Program); and
WHEREAS, to accelerate the implementation of TransNet tax funded projects,
SANDAG has established a debt financing program to provide advanced funding for eligible
projects under the TransNet Extension program; and
WHEREAS, SANDAG requires that an agency receiving proceeds from the
TransNet debt financing program shall be responsible for its proportionate share of the ongoing
interest and related administrative costs from the date debt is issued until the final principal and
interest amounts of the loan applicable bonds are fully repaid; and
WHEREAS, on April 1, 2008, Resolution No. 2008-51 authorized the City to
receive advanced funding of $4.5 Million of the City's share of TransNet funding. The City
agreed to pay its proportionate share of the annual interest and administrative costs of the
commercial paper program; and
WHEREAS, in July 2010, SANDAG notified member agencies of its intent to
issue long term bonds. The bond issue provides an opportunity for the City to refinance its
current balance of variable rate commercial paper of $3,366,000 to a fixed bond rate from fiscal
year 2011-2020; and
WHEREAS, the following project being implemented by the City of National City
has been approved or are being submitted by SANDAG through the TransNet Extension
Program of Projects in the 2010 Regional Transportation improvement Program, and would
benefit from the availability of advance funding:
REFINANCE VARIABLE RATE COMMERCIAL PAPER IN THE AMOUNT OF $3,366,000 FOR
USE ON CITY STREET RESURFACING PROJECTS
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 the TransNet debt financing program in an amount not to
exceed $3,366,000.
2. That the City Manager is hereby authorized to execute any necessary documents
relating to the receipt of said funds from SANDAG, including but not limited to a
Memorandum of Agreement (MOA) in substantially the same form as attached to
this Resolution (Attachment 1).
Resolution No. 2010 — 233
Page 2
3. That the City of National City will be responsible for paying its proportionate
share of bond issuance costs and the annual interest and administrative costs of
the TransNet debt financing program based on the ratio of the amount of
financing provided to the City of National City compared to the total debt
outstanding for each fiscal year.
4. That SANDAG will deduct said bond issuance costs and interest and
administrative costs from the monthly TransNet tax allocations for the City of
National City prior to remitting any remaining TransNet tax proceeds for projects
of the City of National City.
5. That the City of National City will repay to SANDAG the principal amount
borrowed according to the Payment Schedule that will be attached to the
proposed MOA.
6. That the first priority use of the City of National City's annual allocation of
TransNet revenues shall be payment of the principal amount borrowed according
to the Payment Schedule and any issuance costs, administrative costs and
interest due. The City of National City agrees not to subordinate SANDAG's lien
on the TransNet revenues to any other claim upon these funds.
BE IT FURTHER RESOLVED that the City of National City agrees to indemnify,
hold harmless, and defend SANDAG, the San Diego County Regional Transportation
Commission, and all officers and employees thereof against all causes of action or claims
related to projects financed through funding provided under the MOA.
PASSED and ADOPTED this 5th day of October, 2010.
17/1/L——
n Morrison, Mayor
ATTEST:
io% Michael Ft. Dalla, City Clerk
AP; OVED AS TO FORM:
C :udia G. Silva
City Attorney
Passed and adopted by the Council of the City of National City, California, on October
5, 2010 by the following vote, to -wit:
Ayes: Councilmembers Morrison, Sotelo-Solis, Van Deventer, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
/J
City erk of the City o National City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2010-233 of the City of National City, California, passed and
adopted by the Council of said City on October 5, 2010.
City Clerk of the City of National City, California
By:
Deputy