HomeMy WebLinkAbout79-19 - Processing Loans from the City to Redevelopment Agencyti
RESOLUTION NO. 79-19
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COSTA MESA, CALIFORNIA, AUTHORIZING THE STAFF
TO PROCESS LOANS AND OBTAIN APPROVAL BY RATIFI-
CATION FOR LOANS TO THE COSTA MESA REDEVELOPMENT
AGENCY WITHIN THE APPROVED LINE -OF -CREDIT.
WHEREAS, the City Council of the City of Costa Mesa, California,
had received a request from the Costa Mesa Redevelopment Agency dated
December 6, 1978, for the granting of a line -of -credit in the amount of
two million dollars ($2,000,000.00); and
WHEREAS, the City Council had approved at their meeting of Decem-
ber 18, 1978, the granting of a line -of -credit in the maximum amount of
two million dollars ($2,000,000.00) to the Costa Mesa Redevelopment
Agency; and
WHEREAS, the City Council desires to set forth a special, precise
procedure by which various loans may be expeditiously processed in order
to avoid costly delays which may otherwise occur under the usual and
customary procedure;
NOW, THEREFORE, BE IT RESOLVED that the following special procedure
be approved and that the staffs of the City and the Agency be directed
to follow the procedure in processing all loans from the City to the
Agency within the limits of the approved line -of -credit:
1. The Executive Director of the Agency shall originate a request
for a loan in an amount determined by him in accordance with a
plan of property acquisitions previously approved by the
Agency's Board of Directors.
2. The Executive Director shall submit the request to the City
Manager for approval.
3. If the City Manager approves the request, he shall transmit
the request to the Finance Director for processing.
4. Upon receipt of the loan request approved by the City Manager,
the Finance Director shall prepare the necessary promissory
note, issue a warrant on the next available warrant resolu-
tion, and request that the City Manager place on the agenda of
the first available Council meeting, a request for loan
ratification.
5. The Executive Director shall place on the agenda of the first
available meeting of the Agency's Board of Directors, a
request for loan ratification. He shall also have the appli-
cable promissory note received from the Finance Director,
executed by the Chairman of the Board and the Clerk of the
Agency, and then transmit the note to the Finance Director for
safekeeping.
6. Interest on loans granted under the approved line -of -credit
shall accrue at a rate equal to the weighted average rate of
interest earned by the City on its cash investments for the
period immediately preceding the effective date of the loan.
7. Interest on outstanding loan balances shall be paid to the
City quarterly on March 31, June 30, September 30, and Decem-
ber 31, of each year.
8. The due date of all loans granted under the approved line -of -
credit shall not be later than July 1, 1982.
PASSED AND ADOPTED this 20th day of February, 1979.
Mayor of the My of Costa Mersa
ATTEST:
-city Clerk of the City of Costa sa
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF COSTA MESA }
I, EILEEN P. PHINNEY, City Clerk and ex -officio Clerk of the City
Council of the City of Costa Mesa, hereby certify that the above and
foregoing Resolution No. 79-19 was duly and regularly passed and
adopted by the said City Council at a regular meeting thereof, held on
the 20th day of February, 1979.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
Seal of the City of Costa Mesa this 21st day of February, 1979.
City Clerk and ex -officio Clerk of t
City Council of the City of Costa M