HomeMy WebLinkAbout2015-06-30; City Council; Resolution 2015-178Exhibit 12
1 RESOLUTION NO. 2015-178
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA ("CITY"), DISCONTINUING
^ INTEREST ACCRUAL ON ADVANCE BETWEEN THE CITY
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AND THE CARLSBAD PUBLIC FINANCING AUTHORITY
("AUTHORITY")
WHEREAS, on November 21, 2006, the City and the Authority entered into an
Advance Repayment Agreement (attached herein as Exhibit 12-A) for the eventual
repayment of advances with interest to the City; and
WHEREAS, the City has consulted with its financial reporting audit firm (Mayer
6 WHEREAS, the City has agreed to advance (and has advanced) funds to the
7 Authority from time to time for the purpose of designing, constructing, maintaining and
operating a municipal Golf Course; and
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Hoffman McCann) regarding the likelihood of the advance repayment occurring within a
15 reasonable period of time with continued interest accrual on the advance; and
16 WHEREAS, a determination is made that repayment of the advance with
17 continued interest accrual is highly unlikely; and
WHEREAS, it is recommended that the City forego the continued accrual of
interest on the advance between the City and the Authority effective retroactively to July
1, 2014.
NOW, THEREFORE, IT IS AGREED by and between the City Council ofthe City
of Carisbad, California, and the Carisbad Public Financing Authority as follows:
1. The City Council of the City of Carlsbad approves discontinuance of the
25 accrual of interest on the advance between the City and the Authority, effective
26 retroactively to July 1, 2014.
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PASSED, APPROVED AND ADOPTED at a Joint Special Meeting ofthe City of Carlsbad City
Council, Carlsbad Municipal Water District Board, CaHsbad Public Financing Authority,
Community Development Commission and City of Carlsbad as Successor Agency to the
Redevelopment Agency on the 30* day of June, 2015, by the following vote to wit:
AYES:
NOES:
ABSENT:
Council/Board/Commission Members Hall, Blackburn, Schumacher, Wood and
Packard.
None.
None.
MATT HAI-L, Mayor/President/Chairman
ATTEST:
WBARA ENGLESON(:^itv Cler ity Clerk/Secretary
(SEAL)
$\^..''>mts^,^
Exhibit 12-A
GOLF COURSE ADVANCE REPAYMENT AGREEMENT
This Advance Repayment Agreement entered into between the City
Council of the Cily of Carlsbad, California ("City"), and the Carlsbad Public
Financing Authority, a public entity and joint powers authority ("Authority") on
November 21,2006, and shall be retroactive to March 31,1997.
The City has agreed to advance (and has advanced) funds to the
Authority from time to time for the purpose of designing, constructing, maintaining
and operating a municipal Golf Course. The Municipal Golf Course consists of
an 18-hole golf course as well as related facilities including a driving range.
Clubhouse, pro shop and maintenance facilities. The City and Authority desire to
make provisions for the eventual repayment of the Advances with Interest to the
City.
Now, therefore, it is agreed by and between the parties to this Agreement
as follows:
1. The Authority is obligated to reimburse the City the full principal and all
accrued interest on the existing Advances and any subsequent
Advances to be made by the City to the Authority for the purpose of
designing, constructing, maintaining and operating an 18-hole
municipal Golf Course.
Exhibit 12-A
Interest shall accrue on all Advances from the date of the Advance to
the date repaid to the City al an average annual rate of return earned
on the City's pooled funds as detennined by the City Treasurer for
each fiscal year. Interest shall be compounded annually.
Repayment shall be made from available funds in the Authority's
accounts as determined annually by the Authority Treasurer after
providing for operating, capital and resen/e needs of the Municipal Golf
Course or as othenvise required under covenants for any debt issued
>for, or secured by, the Municipal Golf Course.
Clauae A." Lewis'
President of the Board - CPFA Mayor - City of Carisbad
Attest: Attest:
Lorraine M. Wood cZJ Lorraine M. Wood ^ ^ Sj
Secretary - CPFA
(Seal)
- CO = UJ
- isi:-.
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City Clerk - City of Carlsbad