HomeMy WebLinkAboutCity Council - 2011-62 RESOLUTION NO. 2011-62
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 ENERGY
EFFICIENCY INTERNAL SERVICE FUND FOR THE PURPOSE OF FUNDING ENERGY
CONSERVATION MEASURES
WHEREAS, on June 6, 2011, the City Council of the City of Huntington 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 Energy Efficiency Internal Service 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 promotion,
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. That the City of Huntington Beach agrees to amend the interfund loan agreement
by and between the Water Fund to the General Fund approved on June 6, 2011, by creating an
interfund loan agreement by and between the Water Fund to the Energy Efficiency Internal
Service Fund in the amount of $1,675,000, as evidenced by the Amended Interfund Loan
Agreement dated September 6, 2011,the form of which is attached to this resolution.
PASSED AND ADOPTED by the City of Huntington Beach at a regular meeting thereof
held on the 6t'day of September, 2011.
1 1-3 050/69496
Resolution No. 2011-62
NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby
resolve as follows:
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 6 t h day of September , 20 11 .
a
Mayor
REVIE APPROVED: APPROVED AS TO FORM:
City n er y Attorney
INITI TED AND APPROVE
Director of Finance
1 1-3 0 5 0/6 94 96
Resolution No. 2011-62
INTERFUND LOAN AGREEMENT
BY AND BETWEEN
THE CITY OF HUNTINGTON BEACH
WATER FUND AND ENERGY EFFICIENCY INTERNAL SERVICE FUND
The following amends the interfund loan agreement by and between the Water Fund(Fund 506)and the General
Fund (Fund 100) approved on June 6, 2011. The Water Fund is loaning the Energy Efficiency Internal Service
Fund (Fund 556) $1,675,000 in accordance with Resolution No.2011-6af the City of Huntington Beach as of
September 6,2011.
Amount of loan: $1,675,000
Loan date: June 6, 2011
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 30th of each subsequent year
with final payment due on September 30,2021.
Payment Schedule:
Pmt# 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 rates. Amortization schedule as
detailed in Exhibit A attached hereto and incorporated herein by reference.
The General Fund will make lease payments to the Energy Efficiency Internal Service Fund based on the
payment schedule above and subject to the City Treasurer's annual return on investments. Lease payments to
the Energy Efficiency Internal Service Fund from the General Fund shall be payable from energy savings
realized in the General Fund from the AECOM Efficiency Project, but is not limited to these savings. The
Energy Efficiency Internal Service Fund shall make the loan payments to the Water Fund. Additional loan
repayments may be made or the entire loan may be repaid to the Water Fund before the scheduled payments are
due with no prepayment penalties.
This reement was approved by a resolution of the City Council at its meeting held on September 6th, 2011.
AC EDGED:
F lson Lori Ann Farrell
City anager Director of Finance
Approvedas to form:
2,f '20i1
Jennifer McGrath
City Attorney
Resolution No. 2011-62
Exhibit A
Interfund Loan from Water Fund (506)to Energy Efficiency Fund (556)for Energy Efficiency Project
Amortization Table
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 66,698.96 133,301.04 1,541,698.96
2 9/30/2013 200,000.00 46,250.97 153,749.03 1,387,949.93
3 9/30/2014 200,000.00 41,638.50 158,361.50 1,229,588.43
4 9/30/2015 200,000.00 36,887.65 163,112.35 1,066,476.08
5 9/30/2016 200,000.00 31,994.28 168,005.72 898,470.36
6 9/30/2017 200,000.00 26,954.11 173,045.89 725,424.47
7 9/30/2018 200,000.00 21,762.73 178,237.27 547,187.20
8 9/30/2019 200,000.00 16,415.62 183,584.38 363,602.82
9 9/30/2020 200,000.00 10,908.08 189,091.92 174,510.90
10 9/30/2021 185,138.62 10,627.72 174,510.90 0.00
Grand Totals 1,985,138.62 310,138.62 1,675,000.00
Res. No. 2011-62
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 September 6, 2011 by the following vote:
AYES: Shaw, Harper, Hansen, Carchio, Bohr, Dwyer, Boardman
NOES: None
ABSENT: None
ABSTAIN: None
Ci Clerk and ex-officioreof the
City Council of the City of
Huntington Beach, California