2017/08/08 City Council Resolution 2017-098RESOLUTION NO. 2017-098
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROHNERT PARK AUTHORIZING AND DIRECTING THE CITY
MANAGER AND FINANCE DIRECTOR TO ARRANGE CERTAIN
INTER -FUND LOANS TO THE WATER FUND, TO USE THE PROCEEDS
THEREOF AND RETAINED EARNINGS IN THE WATER FUND TO
PREPAY THE CITY'S OBLIGATIONS UNDER ITS 2005 INSTALLMENT
PURCHASE AGREEMENT WITH THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY, AND TO TAKE ALL
OTHER ACTION NECESSARY IN CONNECTION THEREWITH
WHEREAS, in order to finance improvements to its water system in 2005, the City
entered into an installment purchase agreement (the "2005 Installment Purchase Agreement")
with the California Statewide Communities Development Authority ("CSCDA") pursuant to
which the City agreed to make certain payments from the net revenues of the water system (the
"2005 Installment Payments"); and
WHEREAS, CSCDA issued bonds (the "2005 Bonds") secured and payable in part from
the 2005 Installment Payments and made a portion of the proceeds from the sale of the 2005
Bonds available for the construction of the aforesaid water system improvements; and
WHEREAS, the remaining 2005 Installment Payments (and the corresponding
outstanding 2005 Bonds) are in an aggregate principal amount of $3,285,000, are payable on
each March 15 and September 15 through September 15, 2030 and bear interest at annual rates
of 4.00% through 4.50%; and
WHEREAS, since such interest rates exceed the rates of return currently available for
the investment of balances in various funds held by the City, it will be to the advantage of the
City for the City to arrange for certain inter -fund loans to the City's Water Fund and to use the
proceeds of such loans and use retained earnings in the Water Fund to pay off the remaining
2005 Installment Payments (resulting in the redemption of the 2005 Bonds);
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert
Park that the City Manager and the Finance Director are authorized and directed to:
1. Cause inter -fund loans to be made to the Water Fund from the various
funds, in the respective maximum amounts and on the terms set forth in
Attachments 1 through 4 hereto;
2. Apply the proceeds of such loans together with retained earnings in the
Water Fund in an amount sufficient to prepay the City's obligations under
the 2005 Installment Purchase Agreement to such prepayment; and
3. Take any and all steps necessary to effect such prepayment at the earliest
date reasonably practical.
BE IT FURTHER RESOLVED that any actions heretofore taken by either the City
Manager or the Finance Director to effect such prepayment are ratified and confirmed.
DULY AND REGULARLY ADOPTED this 8th day of August, 2017.
ATTEST:
Yyl
kJAiiiie M. Buergler, City Clerk F t
11
Attachments 1-4
AHANOTU: Te BELFORTE: iT- CALLINAN WSTAFFORD: A 1 e MACKENZIE: P
AYES: (5) NOES: (0 ) ABSENT:( ) ABSTAIN:( )
2
2017-098
ATTACHMENT I
INTER -FUND LOAN TERM SHEET
$1,000,000 Inter -Fund Loan from the University District Specific Plan
Maintenance Annuity Fund to the Water Fund
Purpose The Inter -Fund Loan proceeds shall be used exclusively for the purpose
of prepaying the Rohnert Park CSCDA Water Revenue Bonds (Series
2005).
Borrower City Water Fund #511
Lender City UDSP Maintenance Annuity Fund #151
Amount Up to $1,000,000
Interest The equivalent to a fixed annual rate of 3.0% or the Sonoma County
Investment Pool, calculated semi-annually, whichever is greater.
Payments Semi-annual payments to begin on the next semi-annual interval
(April 1, October 1), following prepayment of the CSCDA Bonds.
Payments are due within 30 days of the due date. Payments not received
on time will continue to accrue interest on the remaining principal
balance.
Payment
Calculation The annual sum of the payments shall be based on a 12 -Year
Term Loan compounded semi-annually at an annual interest rate of 3.0%.
Maturity The Inter -Fund Loan will be repaid in full no later than July 31, 2022
or may be renewed, as needed, for up to two additional five year
periods.
Prepayment Borrower has the right to prepay part or the entire outstanding Inter -Fund
Loan amount at any time without penalty.
Security Net Revenues of the Water Fund (being total revenues less maintenance
and operation expenses)
ATTACHMENT 2
INTER -FUND LOAN TERM SHEET
$1,200,000 Inter -Fund Loan from the
Vehicle Replacement Fund to the Water Fund
Purpose The Inter -Fund Loan proceeds shall be used exclusively for the purpose
of prepaying the Rohnert Park CSCDA Water Revenue Bonds (Series
2005).
Borrower City Water Fund #511
Lender City Vehicle Replacement #620
Amount Up to $1,200,000
Interest The equivalent to a fixed annual rate of 3.0% or the Sonoma County
Investment Pool, calculated semi-annually, whichever is greater.
Payments Semi-annual payments to begin on the next semi-annual interval
(April 1, October 1), following prepayment of the CSCDA Bonds.
Payments are due within 30 days of the due date. Payments not received
on time will continue to accrue interest on the remaining principal
balance.
Payment
Calculation The annual sum of the payments shall be based on a 12 -Year
Term Loan compounded semi-annually at an annual interest rate of 3.0%.
Maturity The Inter -Fund Loan will be repaid in full no later than July 31, 2022
or may be renewed, as needed, for up to two additional five year
periods.
Prepayment Borrower has the right to prepay part or the entire outstanding Inter -Fund
Loan amount at any time without penalty.
Security Net Revenues of the Water Fund (being total revenues less maintenance
and operation expenses)
ATTACHMENT 3
INTER -FUND LOAN TERM SHEET
$500,000 Inter -Fund Loan from the Spreckels Endowment Permanent Fund
to the Water Fund
Purpose The Inter -Fund Loan proceeds shall be used exclusively for the purpose
of prepaying the Rohnert Park CSCDA Water Revenue Bonds (Series
2005).
Borrower City Water Fund #511 (Water Fund)
Lender Spreckels Endowment Permanent Fund #431
Amount Up to $500,000
Interest The equivalent to a fixed annual rate of 3.0% or the Sonoma County
Investment Pool, calculated semi-annually, whichever is greater.
Payments Semi-annual payments to begin on the next semi-annual interval
(April 1, October 1), following prepayment of the CSCDA Bonds.
Payments are due within 30 days of the due date. Payments not received
on time will continue to accrue interest on the remaining principal
balance.
Payment
Calculation The annual sum of the payments shall be based on a 12 -Year
Term Loan compounded semi-annually at an annual interest rate of 3.0%.
Maturity The Inter -Fund Loan will be repaid in full no later than July 31, 2022
or may be renewed, as needed, for up to two additional five year
periods.
Prepayment Borrower has the right to prepay part or the entire outstanding Inter -Fund
Loan amount at any time without penalty.
Security Net Revenues of the Water Fund (being total revenues less maintenance
and operation expenses)
ATTACHMENT 4
INTER -FUND LOAN TERM SHEET
$300,000 Inter -Fund Loan from the Spreckels Donation Permanent Fund to
the Water Fund
Purpose The Inter -Fund Loan proceeds shall be used exclusively for the purpose
of prepaying the Rohnert Park CSCDA Water Revenue Bonds (Series
2005).
Borrower City Water Fund #511 (Water Fund)
Lender Spreckels Donation Permanent Fund #430
Amount Up to $300,000
Interest The equivalent to a fixed annual rate of 3.0% or the Sonoma County
Investment Pool, calculated semi-annually, whichever is greater.
Payments Semi-annual payments to begin on the next semi-annual interval
(April 1, October 1), following prepayment of the CSCDA Bonds.
Payments are due within 30 days of the due date. Payments not received
on time will continue to accrue interest on the remaining principal
balance.
Payment
Calculation The annual sum of the payments shall be based on a 12 -Year
Term Loan compounded semi-annually at an annual interest rate of 3.0%.
Maturity The Inter -Fund Loan will be repaid in full no later than July 31, 2022
or may be renewed, as needed, for up to two additional five year
periods.
Prepayment Borrower has the right to prepay part or the entire outstanding Inter -Fund
Loan amount at any time without penalty.
Security Net Revenues of the Water Fund (being total revenues less maintenance
and operation expenses)