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HomeMy WebLinkAbout1981-05-19; City Council; 6520-1; Acceptance of loan for street light conversion— CITY OF CARLSBAD _ ^ Initial: AGENDA BILL NO. 6520 - Supplement No. 1 Dept. Hd. DATE: May 19. 1981 C. DEPARTMENT: Utilities & Maintenance C. Mgr. Subject: ACCEPTANCE OF LOAN FROM STATE OF CALIFORNIA FOR CONVERSION OF STREET LIGHTS Statement of the Matter The State of California Energy Commission has approved a loan to the City of Carlsbad in the amount of $381,500 for the conversion of 1820 city-owned street lights to high pressure sodium vapor. These funds will be made available after July 1, 1981 with the first payment of $50,226.92 :due in December 1982, and due semi-annually thereafter for five years. The interest is stated as 7-3/4% simple interest on the unpaid balance. Fiscal Impact The loan is to be repaid and the amortization schedule is set up for the repayments to be made from the cost of energy savings realized from converting the street lights from mercury vapor to high pressure sodium vapor. These payments will be incorporated into the costs of the Street Light Improvement District and the annual levy will be set by Council in the manner set forth in the Street Lighting Act of 1919. Exhibits A. Letter from the California Energy Commission with Loan Agreement and Promissory Note. B. Resolution No. Recommendation Approve Resolution No. fr^T'eiA authorizing the Mayor to execute the Loan Agreement and Promissory Note on behalf of the City for a loan of $381,500 from the California Energy Commission. APHBOVED STAfE OF CALIFORNIA—THE RESOURCES AGENCY EDMUND G. BROWN JR., Governor CALIFORNIA ENERGY COMMISSION 1111 HOWE AVENUE SACRAMENTO, CALIFORNIA 95825 April 27, 1981 City of Carlsbad 1200 Elm Avenue Carlsbad, California 92008 Attention: Robert Miller Engineering Tech. Dear Mr. Miller: You will be pleased to learn that your Energy Conservation Assistance Loan Application has been approved for the purpose of: Energy Conservation Measure/Streetlighting The Loan amount is $ 381,500.00 at 7. 75percent per annum, and is to be re- paid in 10 semi-annual installments of $ 50,226.92- Payments are to be made from energy savings. Please note that the figures shown in the attached amortization schedule are approximations based upon information available at the time this loan was made. The final payment may vary from those shown, or the Promissory Note redrawn because: A. The law requires payments to begin no later than December 22 following the fiscal year in which the project is completed. Shown in the amortization schedule is the estimated project completion date. B. Loan funds were assumed to have been advanced on the estimated date shown. If the funds are advanced on a different date, or if funds are advanced on a construction progress basis, the payments will vary from those shown. C. The payment amount was calculated to amortize an amount which is: 1. The loan amount shown, and 2. The accrued interest from the estimated project start date through 06/22/81 (six months before the assumed firsjt payment due date). Enclosed are 4 (four) copies of the Loan Agreement, Promissory Note and Invoice(s). Please have all copies signed with original signatures. Retain 1 (one) copy and return 3 (three) signed copies of the Loan Agreement and Promissory Note to this office. CECLO-4 (10/80) The invoice form must be signed with original signatures on each copy. When payment is desired, complete 4 (four) copies of invoice, retaining 1 (one) and sending 3 (three to: California Energy Commission Loan Office, M.S. 57 1111 Howe Avenue Sacramento, California 95822 The original invoice may be for up to 10% of the amount of the loan in advance. All subsequent invoices shall be on a progress payment basis and be accompanied by billings to substantiate the invoice. According to the following loan disbursement schedule, which has been determined appropriate for your loan, your loan disbursement schedule will be as follows: Disbursement of total amount of loan in not more thanio seperate payments as required ducing the course of the approved project in order to finance con- struction progress, with supporting documentation. Interest will start at the time each check is drawn by the State Controller's Office. Receipt of check can normally be expected within two to four weeks after submission of invoice. Please also attach a copy of a resolution of your governing body authorizing the signer to enter into and obligate your organization to this Loan Agreement and Promissory Note, (and Deed of Trust if applicable). Annually, at the completion of each fiscal year, but not later than October 31, each institution must prepare and submit to the California Energy Commission an Annual Energy Savings Report. This report must show the computed cost of energy saved as a result of the project completed with loan funds. Also, a copy of the Energy Audit Report and Technical Audit Report (if applicable) must be submitted to the California Energy Commission at completion of the project. Should you have any questions, please do not hesitate to call me at (916) 920-7215. Thank you for your cooperation. Sincerely, JOHN L. TITUS Loan Officer Enclosures CECLO-4a (10/80) 04/13/81 CALIFORNIA ENERGY COMMISSION PAGE 1 tNERGY CONSERVATION ASSISTANCE LOANS LOAN AMORTIZATION SCHEDULE LOAN NUMBER ORGANIZATION LOAN AMOUNT ANMUAL INTEREST RATE NUMBER OF SEMIANNUAL PAYMENTS ESTIMATED LOAN START DATE ESTIMATED PROJECT COMPLETION DATE ASSUMED FIRST PAYMENT DATE 119-000 CITY OF CARLSBAD 381t500.00 7.75 10 07/06/81 10/06/81 12/22/B2 DATE TRANSACTION AMOUNT INTEREST PRINCIPAL BALANCE 07/06/81 06/22/82 12/22/82 Q6/22/R3 12/22/83 06/22/84 12/22/84 06/22/85 12/22/85 06/22/86 12/22/86 06/22/87 LOAN ADV AMORTIZA PAYMENT PAYMENT PAYMENT PAYMENT PAYMENT PAYMENT PAYMENT PAYMENT PAYMENT PAYMENT ANCE TION NO. NO. NO. NO. NO. NO. NO. NO. MO . NO. DATE 01 G2 03 04 05 06 07 08 09 10 381,500. 00 50,226.92 50,226.92 50,226.92 50,226.92 50,226.92 50,226.92 50,226.92 50,226.92 50,226.92 50,226.91 28,432.20 15,884.87 14,554.12 13,171.80 11,735.91 10,244.38 3,695 .06 7»C!85.7Q 5,413.98 3,677.48 1,873.69 34,342.05 35,672.80 37,G55.12 38,491.01 39,982.54 41,531.86 43,141 .22 44,812.94 46,549.44 48,353.22 381,500.00 409,932.20 375,590.15 339,917.35 302,862.23 264,371.22 224,388.68 182,856.82 139,715.60 94,902.66 48,353.22 O.QO LOAN NO: 119-000 LOAN AMOUNT: $38i»soo.oo ENERGY CONSERVATION ASSISTANCE LOAN AGREEMENT THIS AGREEMENT IS MADE AND ENTERED INTO THIS 13 DAY OF APRIL 1981, IN THE STATE OF CALIFORNIA BY AND BETWEEN THE STATE OF CALIFORNIA* CALIFORNIA ENERGY COMMISSION* HEREINAFTER "COMMISSION"* AND CITY Op CARLSBAD HEREINAFTER "BORROWER". 1. AUTHORITY A. PURSUANT TO THE PURPOSES AUTHORIZED BY THE ENERGY CONSERVATION ACT, SECTION 25410* ET SFQ, OF THE CALIFORNIA PUBLIC RESOURCES CODE, THE COMMISSION HAS APPROVED BORROWER'S LOAN APPLICATION DATED __MaX£ti_JLv.:Laaj WHICH IS NOT ATTACHED BUT IS EXPRESSLY INCORPORATED BY REFERENCE HEREIN. B. SUBJECT TO THE TERMS* COVENANTS AND CONDITIONS CONTAINED HEREIN* AND THE ATTACHED LOAN APPROVAL REQUEST TO THE EXTENT IT MODIFIES BORROWER'S LOAN APPLICATION, THE COMMISSION SHALL MAKE A LOAN TO BORROWER IN THE AMOUNT OF THRF.E HUNDRED EIGHTY-ONE THOUSAND FIVE HUNDRED AND OG/10D DOLLARS ($381*500.00* EVIDENCED BY A PROMISSORY NOTE LOAN NO. 119-000 ATTACHED HERETO AS EXHIBIT A. 2. GENERAL TERMS A. THE BORROWER AGREES TO INDEMNIFY* DEFEND AND SAVE HARMLESS THE STATE, ITS OFFICERS, AGENTS AND EMPLOYEES FROM ANY AND ALL CLAIMS AMD LOSSES ACCRUING OR RESULTING TO BORROWER AND TO ANY AND ALL CONTRACTORS* SUBCONTRACTORS, MATERIALKEN* LABORERS AND ANY OTHER PERSON* FIRM OR CORPORATION FURNISHING OR SUPPLYING WORK, SERVICES, MATERIALS OR SUPPLIES IN CONNECTION WITH THE PERFORMANCE OF THIS AGREEMENT* AND FROM ANY AND ALL CLAIMS AND LOSSES ACCRUING OR RESULTING TO ANY PERSON, FIRM OR CORPORATION WHO MAY BE INJURED OR DAMAGED BY THE BORROWER IN THE PERFORMANCE OF THIS CONTRACT. B. THE BORROWER* AND THE AGENTS AND EMPLOYEES OF BORROWER* IN THE PERFORMANCE OF THIS AGREEMENT* SHALL ACT IN AN INDEPENDENT CAPACITY AND MOT AS OFFICERS OH EMPLOYEES OR AGENTS OF STATE OF CALIFORNIA. C. WITHOUT THE WRITTEN CONSENT OF THE COMMISSION, THE AGREEMENT IS NOT ASSIGNABLE OR TRANSFERRABLE 3Y BORROWER EITHER IN WHOLE OR IN PART. D. TIME IS OF THE ESSENCE IN THIS AGREEMENT. E. NO ALTERATION OR VARIATION OF THE TERMS OF THIS AGREEMENT SHALL BE VALID UNLESS MADE IN WRITING AND SIGNED BY THE PARTIES HERETO* ANQ NO ORAL UNDERSTANDING OR AGREEMENT NOT INCORPORATED ' HEREIN* SHALL BE BINDING ON ANY OF THE PARTIES HERETO.4 3. PURPOSE THE BORROWER AGREES TO EXPEND ALL FUNDS ADVANCED PURSUANT TC THIS AGREEMENT ONLY FOR THE PURPOSES AND IN THE AMOUNTS SET FORTH IN BORROWER'S APPROVED APPLICATION, IN THE EVENT THAT THE COMMISSION DETERMINES THAT FUNDS HAVE BEEN EXPENDED FOR PURPOSES OTHER THAN THOSE SPECIFIED* THE FULL AMOUNT OF THE LOAN, INCLUDING PRINCIPAL AND INTEREST, SHALL BE IMMEDIATELY DUE AND PAYABLE. 4. LOAN DISBURSEMENT SCHEDULE A. THE COMMISSION AGREES TO DISBURSE FJNDS TO THE BORROWER UPON THE PROPER EXECUTION OF THE ATTACHED PROMISSORY NOTE AND THE APPROPRIATE SECURITY INSTRUMENTS, AND REQUIRED SUPPLEMENTAL DOCUMENTS. B. LOAN FUNDS SHALL SE DISBURSED BASED ON INVOICES SUBMITTED BY BORROWER IN A FORM APPROVED BY COMMISSION AT SUCH TIMES AND IN SUCH AMOUNTS AS DETERMINED APPROPRIATE BY COMMISSION IN ORDER TO ACCOMPLISH THE PURPOSE OF THE LOAN. 5. INTEREST THE LOAN HEREIN SHALL BEAR SIMPLE INTEREST AT THE RATE SET FORTH IN THE ATTACHED PROMISSORY NOTE ON THE PRINCIPAL BALANCE OF LOAN FUNDS DISBURSED TO THE BORROWER. PAYMENT OF SAID INTEREST SHALL BE DUE AT THE TIME OF REPAYMENT OF THE LOAN TO THE COMMISSION AND SHALL ACCRUE FROM THE TIME OF DISBURSAL. TO THE BORROWER UNTIL RECEIPT OF REPAYMENT TO THE COMMISSION. 6. TERM A. THE EFFECTIVE DATE OF THIS AGREEMENT SHALL BE THE DATE OF ITS EXECUTION BY THE COMMISSION. B. THE BORROWER AGREES TO COMPLETE PERFORMANCE OF ITS OBLIGATIONS UNDER THIS AGREEMENT WITHIN THE PERIOD STATED IN THE BORROWER'S APPROVED LOAN APPLICATION. 7. REPAYMENT ALL FUNDS ADVANCED HEREUNDER, TOGETHER JITH ALL INTEREST PAYABLE THEREON, SHALL BE REPAID TO THE COMMISSION NO LATER THAN THE DATE SPECIFIED IN THE PROMISSORY NOTE. 8. PREPAYMENT BORROWER SHALL HAVE THE RIGHT TO PREPAY AT ANY TIME ALL OR ANY PART OF THE AMOUNT OF THIS LOAN WITHOUT PENALTY. 9. PROMISSORY MOTE IN ORDER TO EVIDENCE ITS DEBT TO THE COMMISSION HEREUNDER, THE BORROWER AGREES TO, CONTEMPORANEOUSLY WITH THE EXECUTION OF THIS AGREEMENT, EXECUTE AND DELIVER TC THE COMMISSION A PROMISSORY NOTF. 10. SECURITY (APPLIES ONLY TO NONGOVERNMENTAL BORROWERS) THE COMMISSION MAY MORE. IF REQUIRED (1) BORROWER AGREES TO BE IMPROVED UNDE ATTACHED PROMISSORY STATE OF CALIFORNIA BORROWER SHALL ALSO INSURANCE POLICY FG COMMISSION'S INTERF THATt AS PART OF IT COMMISSION* IT -HAS AND A CURRENT -MARKE SUPPORTED BY AVAILA LICENSED APPRAISER. REQUIRE SECURITY FOR A LOAN OF $10,000 OR BY THE COMMISSION: TO EXECUTE A DEED OF TRUST ON THE PROPERTY R THE TERMS OF T-US AGREEMENT TO SECURE THE NOTE, WITH SAID DEED OF TRUST NAMING THE , CALIFORNIA ENERGY COMMISSION AS BENEFICIARY? OBTAIN AND DELIVER A STANDARD CLTA TITLE R THE SECURED PROPERTY, INSURING THE ST AS LENDER. <2> BORROWER FURTHER AGREES S LOAN APPLICATION AND AT THE REQUEST OF THE SUBMITTED A CUPRifiiT PRELIMINARY TITLE REPORT T VALUE APPRAISAL OF SAID PROPERTY WITH VALUES ELE MARKET DATA WHICH HAS BEEN PREPARED BY A B. FOR ALL NONGOVERNMENTAL LOANS THE BORROWER AGREES THAT IN THE EVENT THAT IT SELLS, TRANSFERS, MORTGAGES, DISPOSES OR FURTHER ENCUMBERS THE SAID PROPERTY, OR ANY PART THEREOF, WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMMISSION* THEN THE COMMISSION SHALL HAVE THE RIGHT, AT ITS OPTION, TO DECLARE THE ENTIRE BALANCE OF THE UNPAID PRINCIPAL WITH UNPAID INTEREST DUE THEREON, IMMEDIATELY DUE AND PAYABLE. CONSENT TC ONE SUCH TRANSACTION SHALL NOT BE DEEMED TO BE A WAIVER OF THE RIGHT TO REQUIRE CONSENT TO FUTURE OR SUCCESSIVE TRANSACTIONS. 11. ACCOUNTS A. IF REQUESTED BY THE COMMISSION, THE BORROWER AGREES TO DEPOSIT ALL FUNDS RECEIVED U?\iDER THIS AGREEMENT IN A SEGREGATED ACCOUNT IN AN INSTITUTION k'HOSE DEPOSITS ARE INSURED BY THE FEDERAL OR THE STATE GOVERNMENTS. B. THE BORROL'ER FURTHER AGREES TO ESTABLISH ON ITS BOOKS AN ENERGY CONSERVATION LOAN ACCOUNT WHICH SHALL BE MAINTAINED AS LONG AS THE LOAN OBLIGATION REMAINS UNSATISFIED. C. THE BORROWER FURTHER AGREES TO MAINTAIN RECORDS THAT ACCURATELY AND FULLY SHOW THE DATE, AMOUNT, PURPOSE, AND PAYEE OF ALL EXPENDITURES DRAWN ON SAID ACCOUNT. D.' THE BORROWER FURTHER AGREES TO UTILIZE A VOUCHER SYSTEM BY WHICH ALL EXPENDITURES FROM SAID ACCOUNT WILL BE AUTHORIZED AND AUTHENTICATED. E. THE BORROWER FURTHER AGREES TO ALLOW THE COMMISSION OR ANY OTHER AGENCY OF THE STATE, CM WRITTEN REOJEST, TO HAVE REASONABLE ACCESS TO AND THE RIGHT OF INSPECTING ALL RECORDS THAT PERTAIN TO SAID ACCOUNT AND AGREES TO SUBMIT TO AN INDEPENDENT AUDIT, IF THIS SHOULD BE REQUESTED BY THE COMMISSION, AT THE EXPENSE OF THE BORROWER. C3> 12i BUDGET THE BORROWER AGREES TO ANNUALLY BUDGET AN AMOUNT AT LEAST SUFFICIENT TO MAKE THE SEMI-ANNUAL PAYMENTS REQUIRED UN'DER THIS AGREE"!! ..T, WHICH AMOUNT IS INTENDED TO BE OBTAINED BY SAVINGS IN ENERGY COSTS. THE LACK OF SUFFICIENT SAVINGS IN ENERGY COSTS TO MAKE PAYMENTS SHALL NOT EXCUSE BORROWER FROM ITS OBLIGATION UNDER THIS AGREEMENT. IF BORROWER IS A COUNTY, CITY, TOWN, TOWNSHIP, BOARD OF EDUCATION OR SCHOOL DISTRICT, BORROWER AGREES THAT THE AMOUNT OF THE SEMI-ANNUAL LOAN REPAYMENT SHALL NOT BE RAISED BY THE LEVY OF ADDITIONAL TAXES AND SHALL NOT DE A CHARGE AGAINST BORROWER'S GENERAL FUND, BUT SHALL BE DERIVED FROM SAVINC-S IN ENERGY COSTS RESULTING FROM THE SUBJECT ENERGY CONSERVATION PROJECT, OR FROM SPECIAL FUND REVENUES RESERVED TO THE AGENCY OR DEPARTMENT OF WHICH THi SUBJECT PROJECT IS TO BECOME A PART. 13. DEFAULT A. IN THE EVENT THE BORROWER, FOR ANY REASON, IS UNABLE TO PROCEED WITH THE PURPOSE OF THIS AGREEMENT, THE COMMISSION MAY DECLARE THIS AGREEMENT TO HAVE ET.EN BREACHED AND BE RELEASED FROK ANY FURTHER PERFORMANCE HEREUNDER. B. IN THE EVEMT OF ANY DEFAULT OR BREACH OF THE AGREEMENT BY THE BORROWER, THE COMMISSION, WITHOUT LIMITING ANY OF ITS OTHER LEGAL RIGHTS OR REMEDIES, MAY DECLARE THE PROMISSORY NOTE EVIDENCING THE LOAN TO BE DUE AND PAYABLE* 14. REPORTING WITHIN TEN DAYS AFTER THE COMMISSION'S WRITTEN REQUEST, THE BORROWER SHALL SUBMIT A STATUS REPORT ON! ITS ACTIVITIES TO DATE PURSUANT TO THIS AGREEMENT IN SUCH FORMAT AS DETERMINED BY THE COMMISSION AND AS OFTEN AS REASONABLY REQUIRED BY THE COMMISSION. 15. FAIR EMPLOYMENT PRACTICES THE ATTACHED FAIR EMPLOYMENT PRACTICES ADDENDUM IS EXPRESSLY MADE A PART OF THIS AGREEMENT. REFERENCE TO THE "THE CONTRACTOR" IN THE ADDENDUM SHALL BE CONSIDERED AS REFERENCE TO "THE BORROWER" UNDER THIS AGREEMENT. IN 'WITNESS WHEREOF* THIS AGREEMENT HAS BEEN EXECUTED BY THE PARTIES HERETO, UPON THE DATE FIRST ABOVE WRITTEN. STATE OF CALIFORNIA - ENERGY COMMISSION IZED SIGNATURES BORROWER (IF OTHER THAN AN INDIVIDUAL* STATE WHETHER A CORPOB-AJION* PARTNERSHIP* ETC.) ( AUT HGR I ZF.D SIGNATURE) TITLE AMOUNT ENCUMBERED | APPROPRIATIOJ | CHAPTER ENERGY CONSERVATION | //^, C/ ASSISTAMCE ACCOUNT | 110 CCG- STATUTES 1979 j | FISCAL YEAR LINE ITEM ALLOTMENT j LOAN NC. I 903-M-CO |i __'_• I HEREBY CERTIFY UPON MY OyN PERSONAL KNOWLEDGE THAT BUDGETED FUNDS ARE AVAILABLE FOR THE PERIOD AND PURPOSE OF THE EXPENDITURE STATED ABOVE. SIGNATURE OF ACCOUNTING OFFICER DATE I HEREBY CERTIFY THAT ALL CONDITIONS FOR EXEMPTIONS SET FORTH IN STATE ADMINISTRATIVE MANUAL SECTION 12 Q<? HAVE BEEN COMPLIED WITH AND THIS DOCUMENT IS EXEMPT FROM REVIEW BY THE DEPARTMENT OF FINANCE. SIGNATURE OF OFFICER BEHALF OF THI AGENCY DATE C5) LOAN LOAN AMOUNT 119-000 $-381»500.00 PROHISSCRY NOTE 1. FOR VALUE RECEIVED, THE UNDERSIGNED (HEREINAFTER REFERRED TO AS THE "BORROWER") PROMISES TO PAY TC THE ORDER OF THE STATE OF CALIFORNIA, CALIFORNIA ENERGY COMMISSION (HEREINAFTER REFERRED TO AS THE "COMMISSION")t AT ITS PRINCIPAL PLACE OF BUSINESS IN SACRAMENTO, CALIFORNIA* OR AT SUCH OTHER PLACE AS THE COMMISSION MAY DESIGNATE, THE PRINCIPAL SUM OF THREE HUNDRED EIGHTY-ONE THOUSAND FIVE HUNDRED AMD OD/1CO DOLLARS ($381,500.03> OR SUCH LESSER AMOUNT AS SHALL EQUAL THE AGGREGATE AMOUNT DISBURSED TO THE BORROWER BY THE COMMISSION AS EVIDENCED BY THE ATTACHED DETAIL LIST, TOGETHER WITH INTEREST CN THE UNPAID PRINCIPAL COMPUTED FROM THE DATE EACH DISBURSEMENT TO THE BORROWER UNTIL REPAID BY THE BORROWER AT THE INTEREST RATE OF SEVEN AND THREE-QUARTER PERCENT (7.75) PER ANNUM* PRINCIPAL AND INTEREST TO BE DUE AND PAYABLE IN TEN (10) SEMI-ANNUAL INSTALLMENTS OF FIFTY THOUSAND TUO HUNDRED TWENTY-SIX AMD 92/100 DOLLARS ($50,226.92) EACH, BEGINNING ON OR BEFORE DECEMBER 22 OF THE FISCAL YEAR FOLLOWING THE YEAR IN WHICH THE PROJECT IS COMPLETED OR ON DECEMBER 22, 1985, WHICHEVER IS THE FIRST TO OCCUR, AND CONTINUING THEREAFTER UNTIL SAID PRINCIPAL AND INTEREST HAVE BEEN PAID IN FULL. 2. PAYMENT OF ANY INSTALLMENT SHALL BE FIRST APPLIED TO ACCRUED INTEREST TO THE DATE OF DISBURSAL TO THE BORROWER AF*D THE BALANCE, IF AhY, TO PRINCIPAL. THE BORROWER HAY PREPAY THIS NOTE IN FULL OR IN PART, WITHOUT PENALTY, BUT ANY SUCH PREPAYMENT SHCLL BE FIRST APPLIED TO PRINCIPAL AND THE BALANCE, IF ANY, TO ACCRUED INTEREST. 3. IF ANY INSTALLMENT IS NOT PAID UITHIN 3C DAYS AFTER ITS DUE DATE, THE COMMISSION* fiT ITS OPTION MAY REQUIRE THE BORROWER TO PAY A LATE CHARGE EQUAL TO 5% OF THE AMOUNT OF THE INSTALLMENT, OR IP, WHICHEVER IS GREATER. 4. FOR NON-GOVERNMENTAL BORROWERS OF A LOAN OF 510,000 OR MORE, THE INDEBTEDNESS EVIDENCED BY THIS NOTE IS ^ADE PURSUANT TO A LOAN AGREEMENT BETWEEN THE BORROWER AND THE COMMISSION AND IS SECURED BY A DEED OF TRUST. 5. ON THE OCCURRENCE OF ANY EVENT OF DEFAULT, THE COMMISSION, AT ITS SOLE ELECTION, MAY DECLARE ALL OR ANY PORTION OF THE PRINCIPAL AND ACCRUED INTEREST ON THIS NOTE TO BE IMMEDIATELY DUE AND PAYABLE AND MAY PROCEED AT ONCE WITHOUT FURTHER NOTICE TO ENFORCE THIS NOTE ACCORDING TO LAW. EACH OF DEFAULT THE FOLLOWING OCCURRENCES SHALL CONSTITUTE AN EVENT OF FAILURE OF THE BORROWER TO REPAY DUE UNDER THE TERMS OF THIS NOTE' ANY PRINCIPAL OR INTEREST WHEN TERMINATION OF SAID LOAN AGREEMENT ^URSUANT TO OR BREACH BY THE BORROWER OF ANY TERMS OF SAID THE TERMS THEREOF LOAN AGREEMENT; C. FAILURE OF THE BORROWER TO UNDERTAKE: IN A TIMELY WAY THE EXPRESS AMD IMPLIED ACTIVITIES FQP WHICH SAID LOAN AGREEMENT HAS BEEN EXECUTED OR A SUBSTANTIAL DEDUCTION BY THE BORROWER IN THE SCOPE OF SAID ACTIVITIES; D. OCCURRENCE OF (1J THE BORROWER'S BECOMING INSOLVENT OR BANKRUPT OR BEING UNABLE OR ADMITTING IN WRITING ITS INABILITY TO PAY ITS DEBTS AS THEY MATURE OR MAKING A GEMERAL ASSIGNMENT FOR THE BENEFIT OF OR ENTERING INTO ANY COMPOSITION OR ARRANGEMENT WITH CREDITORS; (2> PROCEEDINGS FOR THE APPOINTMENT OF A RECEIVER* TRUSTEE, OR LIQUIDATOR OF THE ASSETS OF THE BORROWER OR A SUBSTANTIAL PART THEREOF* BEING AUTHORIZED OR INSTITUTED BY OR AGAINST THE BORROWER; OR (3) PROCEEDINGS UNDER ANY BANKRUPTCY, REORGANIZATION. READJUSTMENT OF DE3T, INSOLVENCY, DISSOLUTION, LIQUIDATION OR OTHER SIMILAR LAW OR ANY JURISDICTION BEING AUTHORIZED OR.INSTITUTED AGAINST THE BORROWER. NO DELAY OR FAILURE OF COMMISSION IN TH£ EXERCISE OF ANY RIGHT OR REMEDY HFREUNDER OR UNDER ANY OTHER AGREEMENT* WHICH SECURES OR IS RELATED HERETO* SHALL AFFECT ANY SUCH RIGHT OR REMEDY, AND NO SINGLE OR PARTIAL EXERCISE OF ANY SUCH ^IGHT OR REMEDY SHALL PRECLUDE ANY FURTHER EXERCISE THEREOF* AND NO ACTION TAKEN OR OMITTED BY COMMISSION SHALL BE DEEMED A WAIVER OF ANY SUCH RIGHT OR REMEDY. ANY NOTICE TO THE BORROWER PROVIDED FOR IN THIS NOTE SHALL BE GIVEN BY MAILING SUCH NOTICE BY CERTIFIED MAIL ADDRESSED TO THE BORROWER AT THE ADDRESS STATED IN THE LOAN AGREEMENT, OR TO SUCH OTHER ADDRESS AS THE BORROWER HAY DESIGNATE 8Y NOTICE TO THE COMMISSION. ANY NOTICE TO THE COMMISSION SHALL BE GIVEN BY HAILING SUCH NOTICE BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE COMMISSION AT THE ADDRESS STATED IN THE LOAJ* AGREEMENT* OR AT SUCH OTHER ADDRESS AS MAY HAVE BEEN DESIGNATED BY NOTICE TO THE BORROWER. IF SUIT IS BROUGHT TO COLLECT THIS NOTE, THE COMMISSION SHALL BE ENTITLED TO COLLECT ALL REASONABLE COSTS AMD EXPENSES OF SAID'SUIT, INCLUDING REASONABLE ATTORNEY'S FEES. 10. THIS NOTE SHALL BE BINDING UPON THE BORROWER AND ITS SUCCESSORS AND ASSIGNS AND UPON THE COMMISSION AND ITS SUCCESSORS AND ASSIGNS. 11. THIS NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA. BORROWER T IT L E LOAN J: 119-000 LOAN AMOUNT: $38i»500.oo PAGE 1 PROMISSORY NOTE DETAIL TYPE ECM FACILITY NO. 01 THE PRINCIPAL SUM OF FOR: CONVERT 1820 STREET LIGHTS TO HISH PRESSURE SODIUM FAIR EMPLOYMENT PRACTICES ADDENDUM 1. In the performance of this contract, the Contractor will not discriminate against any employee or applicant for employment because of race, color, religion, ancestry, sex*, age*, national origin, or physical handicap*. The Contractor will take affirmative action to ensure that appli- cants are employed, and that employees are treated during employment, without regard to their race, color, religion, ancestry, sex*, age*, national origin, or physical handicap*. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of com- pensation; and selection for training, including apprenticeship. The Contractor shall post in conspicuous places, available to employees and applicants for employment, notices to be pro- vided by the State setting forth the provisions of this Fair Employment Practices section. 2. The Contractor will permit access to his records of employment, employment advertisements, application forms, and other pertinent data and records by the State Fair Employment Practices Commission, or any other agency of the State of California designated by the awarding authority, for the purposes of investigation to ascertain compliance with the Fair Employment Practices section of this contract. 3. Remedies for Willful Violation: (a) The State may determine a willful violation of the Fair Employment Practices pro- vision to have occurred upon receipt of a final judgment having that effect from a court in an action to which Contractor was a party, or upon receipt of a written notice from the Fair Employment Practices Commission that it has investigated and deter- mined that the Contractor has violated the Fair Employment Practices Act and has issued an order, under Labor Code Section 1426, which has become final, or obtained an injunction under Labor Code Section 1429. (b) For willful violation of this Fair Employment Practices provision, the State shall have the right to terminate this contract either in whole or in part, and any loss or damage sustained by the State in securing the goods or services hereunder shall be borne and paid for by the Contractor and by his surety under the performance bond, if any, and the State may deduct from any moneys due or that thereafter may become due to the Contractor, the difference between the price named in the contract and the actual cost thereof to the State. *See Labor Code Sections 1411 - 1432.5 for further details. .OIJ1-7SO IJ-74 100M D OSP STD. 3 (R6V. 11/74) RESOLUTION NO. 65221 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ACCEPTING A LOAN FOR 3 THE CONVERSION OF CITY STREET LIGHTS. 4 5 WHEREAS, the State of California has authorized a loan to the City in the 6 amount of three hundred eighty one thousand five hundred dollars ($381,500) 7 for the conversion of mercury vapor street lights to high pressure sodium; 8 and 9 WHEREAS, the City of Carlsbad owns and operates 1820 street lights that 10 could be converted to high pressure sodium vapor at considerable energy 11 saving; and 12 WHEREAS, the City Council supports efforts to reduce the consumption of 13 energy provided from non-renewable natural resources; 14 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 15 Carlsbad as follows: 16 1. That the above recitations are true and correct. 17 2. The Mayor be authorized to execute an agreement and a promissory 18 note on behalf of the City with the State of California in the amount of 19 $381,500 for the conversion of city-owned street lights. 20 PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City 21 Council held on the 19th day of May 1981, by the following 22 vote, to wit: 23 XX 24 XX • 25 XX 26 XX 27 XX 28 XX 1 2 3 4 5 6 7 8 9 AYES: Council Members Packard, Casler, Anear & Kulchin NOTES:. None ABSENT: Council Member Lewis RONALD C. PACKARD, Mayor ATTEST: Qj^jUL: .--JTVi:—;iSni t-rrMl/n AMYL. RAUTENKRAN2, 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 (SEAL) 28