HomeMy WebLinkAbout16-121 - Resolutions RESOLUTION NO. 16-121
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO CUCAMONGA, CALIFORNIA, AUTHORIZING AN
INTERFUND LOAN FROM CAPITAL RESERVE FUND 025 TO
STREET LIGHTING MAINTENANCE DISTRICT NOS. 1, 2, 3, 4, 5,
6, 7 AND 8 (FUND NOS. 151 THROUGH 158) IN AN AMOUNT NOT
TO EXCEED $9,660,284 FOR THE PURCHASE OF 15,299
STREETLIGHTS FROM SOUTHERN CALIFORNIA EDISON
WHEREAS, On February 9, 2016, the City received a final system valuation from Southern
California Edison for the purchase of 15,299 LS-1 Streetlights ("Streetlights") in the City of Rancho
Cucamonga ("City"); and
WHEREAS, the final system valuation provided by Southern California Edison ("SCE")had a
not to exceed Purchase Price of$9,660,284 for the aforementioned Streetlights; 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 (Fund Nos. 151 through 158) (each a
"District" and collectively the "Districts"); and
WHEREAS, on July 20, 2016, the City Council approved the Annual Engineer's Reports of
the Districts for Fiscal Year 2016/17 that described the improvements and services to each District,
including the acquisition by the City of the Streetlights 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.
NOW, THEREFORE, the City Council of the City of Rancho Cucamonga, hereby resolves
as follows:
1. The City is hereby authorized to utilize funds from the City Infrastructure Reserve for an
Interfund Loan to the Districts for the Purchase Price of$9,660,284 to purchase and acquire
the Streetlights from SCE.
2. The Interfund Loan is conditioned upon obtaining CPUC approval to consummate the
purchase and sale of the Streetlights between the City and SCE.
3. The total Interfund Loan will be proportionately allocated to each of the Districts based on
the number of Streetlights within the boundaries of each District.
4. There are eight (8) phases for the acquisition of the Streetlights.
5. The Interfund Loan shall commence at the time the acquisition is complete for each phase
which is concurrent with when payments are due to SCE.
6. Commencing on the date of the Interfund Loans, principal shall accrue simple interest at the
rate of one (1) percent per annum.
Resolution No. 16-121 — Page 1 of 3
7. Commencing on February 28, 2017, or the last day of the month subsequent to when the
payment is due to SCE for the first phase, payments of principal and interest shall be made
monthly on the last day of each calendar month.
8. The Interfund Loan to the Districts shall be fully due and payable on January 31, 2037, or
within 20 years from when the payment is due to SCE for the first phase, whichever comes
first.
9. After the closing date for the final phase of acquisition, if the number of Streetlights that have
been transferred to the City does not equal 15,299 then the City and SCE will amend the
Purchase Price, as appropriate, using the average price per streetlight determined upon the
initial systems valuation, and the proportionate allocation of the Interfund Loan to the
Districts will be adjusted accordingly.
10. Outstanding principal may be prepaid in whole or in part by any District without penalty at the
City Manager's discretion.
11. The source of repayment for the Interfund Loan shall be a portion of the cost reduction in
utility payments made to SCE as a result of transitioning the Streetlights from SCE's LS-1
tariff to SCE's lower LS-2 tariff.
12. Amortization schedules for the Interfund Loan reflecting the aforementioned terms are on file
with the City's Finance Department.
Resolution No. 16-121 — Page 2 of 3
•
PASSED, APPROVED, AND ADOPTED this 3rd day of August 2016.
AYES: Alexander, Kennedy, Michael, Spagnolo, Williams
NOES: None
ABSENT: None
ABSTAINED: None
10-,
L. Dennis Michael, Mayo
ATTEST:
ice Reynolds, City erk
((((((////// I, JANICE C. REYNOLDS, CITY CLERK of the City of Rancho Cucamonga,
California, do hereby certify that the foregoing Resolution was duly passed, approved and adopted
by the City Council of the City of Rancho Cucamonga, California, at a Regular Meeting of said City
Council held on the 3'd day of August 2016.
Executed this 4th day of August 2016, at Rancho Cucamonga, California.
ie C. Reynolds, CA
C/ rk
Resolution No. 16-121 — Page 3 of 3