HomeMy WebLinkAbout2024-056 - Resolution RESOLUTION NO. 2024-056
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO CUCAMONGA, CALIFORNIA, MODIFYING AN
APPROVED INTERFUND LOAN FROM CAPITAL RESERVE
FUND 025 TO STREET LIGHTING MAINTENANCE DISTRICT
NOS. 1, 2, 3, 4, 5, 6, 7,AND 8 (FUNDS 151 TO 158)
WHEREAS, On February 9, 2016, the City received a final system valuation from
Southern California Edison ("SCE")for the purchase of 15,299 LS-1 Streetlights ("Streetlights") in
the City of Rancho Cucamonga ("City"); and
WHEREAS, on June 15, 2016, the City Council found it to be in the best interest of the
City to move forward with the purchase of the Streetlights and authorized the City Manager to
sign the Purchase and Sale Agreement between the City and SCE, and to cover all associated
costs, through an Interfund Loan from Capital Reserve Fund 025 ("City Infrastructure Reserve")
to Street Lighting Maintenance District Nos. 1, -2, 3, 4, 5, 6, 7, and 8 (Funds 151 to 158) (each a
"District" and collectively the "Districts"); and
WHEREAS, on August 3, 2016, the City Council adopted Resolution No. 16-121
authorizing an interfund loan from the City Infrastructure Reserve to the Districts in an amount not
to exceed $9,660,284 for the purchase of the Streetlights from SCE; and
WHEREAS, on May 26, 2017, the CPUC approved the purchase and sale of the
Streetlights between the City and SCE; and
WHEREAS, on July 19, 2017, the City Council approved the Annual Engineer's Reports
of the Districts for Fiscal Year 2017/18 that described the improvements and services to each
District, including the acquisition by the City of the Streetlights and the installation of Light Emitting
Diode (LED) street lighting specially benefiting the properties within the Districts to be added as
improvements, and that there would be no increase in the special benefit to the properties within
the Districts as a result of the acquisition; and
WHEREAS, on August 16, 2017, the City Council adopted Resolution 17-083 amending
an interfund loan from the City Infrastructure Reserve to the Districts to increase from $9,660,284
to $14,400,340 in order to fund the purchase and acquisition of SCE owned streetlights;
installation of LED lighting to streetlights, intersections, and bridges; installation of LED Smart
Lighting; and other one-time costs necessary to inventory the streetlights;
WHEREAS, the Districts' funding source is expected to be insufficient to repay the
outstanding principal balances of $3,415,834 to Street Lighting Maintenance District No. 1,
$3,481,246 to Street Lighting Maintenance District No. 2, $129,797 to Street Lighting
Maintenance District No. 4, $296,195 to Street Lighting Maintenance District No. 5, and $942,244
to Street Lighting Maintenance District No. 7 from the Capital Infrastructure Reserve, for a total
interfund loan receivable of$8,265,316, under the existing terms of the interfund loan.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA,
HEREBY RESOLVES, to amend Resolution No. 16-121 as follows:
1. The requirement for the Interfund Loan to become fully due and payable under the
existing term is hereby removed.
Resolution No. 2024-056 — Page 1 of 3
2. The accrual of interest on the principal of the Interfund Loan is suspended, and the
loans are placed into abeyance.
3. The Districts will be evaluated annually during the budget process to determine their
financial capabilities, and when financial conditions improve, the City Council may
reinstate the repayment by formal action.
Resolution No. 2024-056— Page 2 of 3
PASSED, APPROVED, and ADOPTED this 191h day of June, 2024.
F r
L. ennis Michael, Ma or
ATTEST:
ice C. Reynolds, Cit lerk
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss
CITY OF RANCHO CUCAMONGA )
I, Janice C. Reynolds, City Clerk of the City of Rancho Cucamonga, do hereby certify
that the foregoing Resolution was duly passed, approved, and adopted by the City Council of
the City of Rancho Cucamonga, at a Regular Meeting of said Council held on the 1911 day of
June, 2024.
AYES: Hutchison, Kennedy, Michael, Scott, Stickler
NOES: None
ABSENT: None
ABSTAINED: None
Executed this 201h day of June, 2024, at Rancho Cucamonga, California.
ice C. Reynolds, Cit Clerk
Resolution No. 2024-056 — Page 3 of 3