Resolution Number 17-12-05-09RESOLUTION NO. 17-12-05-09
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN JUAN CAPISTRANO AUTHORIZING THE
CAPISTRANO CIRCULATION FEE PROGRAM FUND'S
INVESTMENT IN A PROMISSORY NOTE ISSUED BY THE
MEASURE M FUND AND AUTHORIZING EXECUTION OF
THE SAME BY THE MEASURE M FUND
WHEREAS, the Capistrano Villas Streets Pavement Rehabilitation Project
(CIP 18101) was approved by the City Council on October 3, 2017; and,
WHEREAS, the City recently completed the competitive bidding process for
construction services relating to the Capistrano Villas Streets Pavement Rehabilitation
Project (CIP 18101) and awarded construction for the Project to the lowest responsive
bidder; and,
WHEREAS, the amount of the costs of construction as proposed by the lowest
responsive bidder resulted in total Project costs exceeding the amount budgeted for the
Project by $436,277; and,
WHEREAS, the City Council authorized on December 5, 2017 a $436,277
increase in the amount authorized for the Project and appropriated $436,277 from the
Measure M Fund to provide the funding for this increase in Project costs; and,
WHEREAS, all funds held in the Measure M Fund have already been
appropriated for this Project and other projects, and the Measure M Fund does not have
the cash to pay for this increase in Project costs; and,
WHEREAS, timing for the use of money held in the CCFP Fund allows for a
temporary one year loan to the Measure M Fund to provide the cash inflow to the
Measure M Fund that is needed to pay for the increase in the costs of CIP 18101 ; and,
WHEREAS, in Fiscal Year 2018-19, the Measure M Fund will have the cash to
repay the CCFP Fund as a result of receipt of the Fiscal Year 2018-19 Measure M
allocation of funds distributed by the Orange County Transportation Authority; and,
WHEREAS, the CCFP Fund desires to invest in the Promissory Note
accompanying this Resolution, by advancing to the Measure M Fund the principal
amount thereof; and,
WHEREAS, such advance is to be used by the Measure M Fund to pay the costs
of CIP 18101; and,
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WHEREAS, the City Council desires to authorize the CCFP Fund's investment in
the Promissory Note and the performance of such acts by or on behalf of the City as
may be necessary or desirable to effect such investment.
WHEREAS, the average interest rate currently being earned by the investments
in the City's treasury is approximately 1.5% per annum .
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San
Juan Capistrano does hereby resolve as follows.
SECTION 1. The investment by the Capistrano Circulation Fee Program Fund
("CCFP Fund") in the Promissory Note is hereby authorized and approved in the
amount of $436,277, the maturity date of which shall not be later than June 30, 2019,
and the interest rate on the Promissory Note shall be 1.5% per annum.
SECTION 2. The City Council hereby finds and determines that the CCFP Fund
has money in its treasury that is not required for the immediate needs of the CCFP
Fund in an amount at least equal to the maximum principal amount of the Promissory
Note specified in Section 1.
SECTION 3. The City Council hereby finds and determines that the investment
of such money in the Promissory Note, as provided herein, is wise and expedient.
SECTION 4. The officers and employees of the CCFP Fund, and each of them
is, hereby authorized and directed, for and in the name of the City, to do any and all
things and to execute and deliver any and all documents which they or any of them
deem necessary or advisable in order to consummate the investment of money in the
CCFP Fund treasury in the Promissory Note and otherwise to carry out, give effect to,
and comply with the terms and intent of this Resolution.
SECTION 5. The officers and employees of the CCFP Fund and Measure M
Fund, and each of them is, hereby authorized and directed, for and on behalf of the
Measure M Fund, to do any and all things and to execute and deliver to the CCFP Fund
on behalf of the Measure M Fund the Promissory Note specified in Section 1, and any
and all other documents which they or any of them deem necessary or advisable in
order to consummate the investment of money in the CCFP Fund in the Promissory
Note and to otherwise carry out, give effect to, and comply with the terms and intent of
this Resolution.
SECTION 6. All actions heretofore taken by the officers and employees of the
CCFP Fund and Measure M Fund with respect to the investment of money in the CCFP
Fund in the Promissory Note are hereby approved , confirmed, and ratified.
SECTION 7. This Resolution shall take effect immediately upon its adoption.
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PASSED, APPROVED, AND ADOPTED this 5th day of December 2017 .
J ~cLz..
SERGIO FARIAS, MAYOR
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss .
COUNTY OF SAN JUAN CAPISTRANO)
I, Maria Morris, appointed City Clerk of the City of San Juan Capistrano, do hereby
certify that the foregoing Resolution No. 17-12-05-09 was duly adopted by the
City Council of the City of San Juan Capistrano at a Regular meeting thereof, held the
5th day/ f December 2017, by the following vote:
AYES : C: UNCIL MEMBERS: Ferguson, Reeve, Maryott and Mayor Farias
NOES : C 1 UNCIL MEMBERS: None
ABS ENT: NCl n EM!'!ERS: Patterson
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