HomeMy WebLinkAbout21409 - RESOLUTIONS - 9/7/2005 RESOLUTION NO. 21409
' A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM SPRINGS, CALIFORNIA,
APPROVING A LOAN FROM THE CITY'S
DIVERSION FUND, A SPECIAL REVENUE
FUND, TO THE CITY'S GENERAL FUND IN
THE AMOUNT OF $1,260,000.00. A5161.
WHEREAS, on September 7, 2005, the City of Palm Springs entered into a
Sublease of Business Lease PSL-236 ("Sublease") and a Memorandum of
Understanding ("MOU") with United Condominiums Corporation, a California
Corporation ("Lessor") and
WHEREAS, the terms of the MOU require that the City compensate Lessor for a
portion of the economic value of the sublease, as well as for sunken design and
legal costs; and
WHEREAS, the City's Diversion Facility Fund is a Special Revenue Fund of the
City's Recycling Fund (Fund 125) and is intended to be used to develop a solid
waste diversion facility in the City of Palm Springs; and
WHEREAS, the City has executed a "Promissory Note" in the amount of ONE
MILLION TWO HUNDRED SIXTY THOUSAND DOLLARS ($1,260,000) with the
Diversion Facility Fund; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm
Springs that a loan for ONE MILLION TWO HUNDRED SIXTY THOUSAND
DOLLARS ($1,260,000) from the City's Diversion Facility Fund to the City of
Palm Springs for the purpose of entering the Sublease and MOU is hereby
accepted in the form of an Agreement and Promissory Note, as on file in the
Office of the City Clerk, and shall be amortized over a twenty year period, due
and payable in ten years, and shall accrue compound interest at the rate of 5%
per annum and be repayable from the City's General Fund.
ADOPTED THIS 7th day of September, 2005.
David H. Ready, City MaP r
ATTEST:
�4
es Thompson, City Clerk
t,/
Resolution No. 21409
Page 2
CERTIFICATION
STATE OF CALIFORNIA ) '
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. 21409 is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on September 7, 2005, by the
following vote:
AYES: Members Foat, Pougnet and Mayor Pro Tern McCulloch
NOES: None
ABSENT: Councilmember Mills and Mayor Oden
ABSTAIN: None
J� es Thompson, City Clerk
ity of Palm Springs, California