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RESOLUTION NO. 2011- 37
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH AUTHORIZING A LOAN FROM THE CITY'S
WATER FUND TO THE CITY'S GENERAL FUND FOR THE PURPOSE OF FUNDING
ENERGY CONSERVATION MEASURES
WHEREAS, on June 6, 2011, the City Council of the City of Hunting Beach (the"City") adopted
a plan for Energy Conservation Measures; and
The City has determined that it is more cost effective to loan funds from the Water Fund to the
General Fund to pay for Energy Conservation Measures rather than secure third party financing; and
The City has determined that there are sufficient unencumbered Water funds available in such
that the City will not violate City Council policy on reserve fund balances or investments;
NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as
follows:
1. That the City of Huntington Beach supports a commitment to sustainable practices
through energy efficiency, and provides leadership and guidance in promoting, facilitating, and instituting
such practices in the community.
2. That the City of Huntington Beach supports and endorses the Southern California Edison
Orange County Cities Energy Leader Partnership as an effective method to help meet community
economic and environmental goals.
3. That the City of Huntington Beach formally adopts the 2011 Huntington Beach Energy
Action plan thereby achieving Gold Partner Status within Southern California Edison's Orange County
Cities Energy Leader Local Government Partnership.
4. Agree to a loan from the Water Fund to the General Fund in the amount of$1,675,000,
as evidenced by an Interfund Loan Agreement dated June 6, 2011, the form of which is attached to this
resolution.
Resolution No. 2011-37
PASSED AND ADOPTED by the City of Huntington Beach at a regular meeting thereof held on
the 6"' day of June, 2011.
REVI AND APPROVED:
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C�M ager Mayor
INITCAND APPROVED:
a-"�.
Director of Finance�P3 V
APPROVED AS TO FORM:
ity Atto6ey
Resolution No. 2011-37
INTERFUND LOAN AGREEMENT
BY AND BETWEEN
THE CITY OF HUNTINGTON BEACH
WATER FUND AND GENERAL.FUND
The following is an interfund loan agreement by and between the Water Fund(Fund 506) and the General
Fund (Fund 100). The Water Fund is loaning the General Fund $1,675,000 in accordance with
Resolution No2011-3-hf the City of Huntington Beach as of June 6,2011.
Amount of loan: $1,675,000
Variable Interest Rate: Based on City Treasurer's annual return on investments
Term: 10 annual payments starting on September 30, 2012 and paid on September 301' of each
subsequent year with final payment due on September 30,2021.
Payment Schedule:
Pint# Date Payment
1 9/30/2012 200,000
2 9/30/2013 200,000
3 9/30/2014 200,000
4 9/30/2015 200,000
5 9/30/2016 200,000
6 9/30/2017 200,000
7 9/30/2018 200,000
8 9/30/2019 200,000
9 9/30/2020 200,000
10 9/30/2021 185,138.62
Final payment is estimated and is subject to change due to variable interest rate. Amortization schedule
as detailed in Exhibit A attached hereto and incorporated herein by reference.
The loan and the interest shall be payable from energy savings realized in the General Fund from the
AECGM Efficiency Project,but is not limited to these savings. The General Fund may prepay additional
amounts or repay the entire loan to the Water Fund before the scheduled payments are due with no
prepayment penalties.
This Agreement was approved by a resolution of the City Council at its meeting held on June 60',2011
AC EDGED:
red ilson Lori Ann Farrell
City Manager Director of Finance
Approved as to form:
Je ifer McGrath
City Attorney
Resolution No. 2011-37
Exhibit A 5/27/2011 3:36 PM Page 1
Interfund Loan from Water Fund (506)to General Fund (100)for Energy Efficiency Project
Compound Period: Annual
Estimated Nominal Annual Rate: 3.000%
Actual interest rate applied to the loan will be equal to the City Treasurer's
annual return on investments.
CASH FLOW DATA
Event Date Amount Number Period End Date
1 Loan 6/6/2011 1,675,000.00 1
2 Payment 9/30/2012 200,000.00 9 Annual 9/30/2020
3 Payment 9/30/2021 185,138.62 1
The first 9 payments will will be$200,000 and the final payment will be
adjusted based on the remaining balance after the actual interest rate
is applied over the term of the loan.
AMORTIZATION SCHEDULE-Normal Amortization
Date Payment Interest Principal Balance
Loan 6/6/2011 1,675,000.00
1 9/30/2012 200,000.00 69,676.79 130,323.21 1,544,676.79
2 9/30/2013 200,000.00 46,340.30 153,659.70 1,391,017.09
3 9/30/2014 200,000.00 41,730.51 158,269.49 1,232,747.60
4 9/30/2015 200,000.00 36,982.43 163,017.57 1,069,730.03
5 9/30/2016 200,000.00 32,091.90 167,908.10 901,821.93
6 9/30/2017 200,000.00 27,054.66 172,945.34 728,876.59
7 9/30/2018 200,000.00 21,866.30 178,133.70 550,742.89
8 9/30/2019 200,000.00 16,522.29 183,477.71 367,265.18
9 9/30/2020 200,000.00 11,017.96 188,982.04 178,283.14
10 9/30/2021 185,138.62 10,857.43 178,283.14 0.00
Grand Totals 1,985,138.62 314,140.57 1,675,000.00
Res. No. 2011-37
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH
I, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of
Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby
certify that the whole number of members of the City Council of the City of
Huntington Beach is seven; that the foregoing resolution was passed and adopted
by the affirmative vote of at least a majority of all the members of said City Council
at a regular meeting thereof held on June 6, 2011 by the following vote:
AYES: Shaw, Harper, Hansen, Carchio, Bohr, Dwyer, Boardman
NOES: None
ABSENT: None
ABSTAIN: None
y Clerk and ex-officlvClerk of the
City Council of the City of
Huntington Beach, California