CC RESOLUTION 3425RESOLUTION NO. 3425
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL
SEGUNDO, CALIFORNIA, ESTABLISHING A SCHEDULE OF
PAYMENTS AND INTEREST TO THE GENERAL CONTINGENCY
RESERVE FUND AND THE VOTERS' TRUST ACCOUNT IN
CONNECTION WITH EXPENDITURES FOR CONSTRUCTION OF
THE EL SEGUNDO SENIOR CITIZENS' HOUSING PROJECT.
WHEREAS, the El Segundo City Council has determined there is a
need for subsidized housing for the elderly and handicapped in E1
Segundo and has sponsored the construction of the E1 Segundo Senior
Citizens' Housing Project to meet that need; and
WHEREAS, voters of the City of E1 Segundo, on November 8, 1983,
approved Ordinance No. 1056 authorizing expenditure of $2,345,538 from
the Voters' Trust Account plus interest accrued thereto, for construc-
I' tion of the Senior Citizens' Housing Project; and
WHEREAS, the City Council's ballot argument favoring expenditure
of the money from the Voters' Trust Account contemplated construction,
initially, of a 57 -unit project expandable to 97 units, with reim-
bursement of the Voters' Trust Account for the cost of construction
within seventeen (17) years; and
WHEREAS, analysis subsequent to November 8, 1983, revealed a need
for more than 57 units and that ultimate costs of the project would be
reduced by constructing all 97 units at one time; and
WHEREAS, the City Council approved a loan of $1,750,000 from the
General Emergency Contingency Reserve Fund to supplement the Voters'
Trust Account funds in order to construct the 97 -unit project; and
WHEREAS, the City Council and the Senior Housing Board have agreed
that rents in the Project should be maintained at a level approxi-
mately 50 to 60 percent (50 -60 %) of market rates in El Segundo for
comparable units in order to assist financialy needy seniors in.
meeting their housing needs; and
WHEREAS, after analysis and study of alternative plans for repay-
ment of the loan from the General Emergency Contingency Reserve Fund
and reimbursement of the Voters' Trust Account, the City Council finds
the goals of low -cost housing for seniors and fiscal integrity can be
met by adoption of a phased repayment plan;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL SEGUNDO DOES
RESOLVE AS FOLLOWS:
SECTION 1. The Senior Housing Board will repay the $1,750,000
Iloan (or such lesser amount of the loan that is ultimately used for
construction of the Project) to the General Emergency Contingency
Reserve Fund over twenty (20) years at eight percent (8 %) interest.
Advance payments of principal may be made without penalty. Should the
City's average interest income to its General Fund in any Fiscal Year
fall below eight percent (8 %), the difference in the interest income
computed at eight percent (80) and the actual average interest rate
shall be applied to the principal of the loan.
SECTION 2. Reimbursement of the $2,345,538 from the Voters' Trust
Account shall be made after the loan from the General Emergency
Contingency Reserve Fund is repaid. Such reimbursement shall be on
Isterms mutually agreeable to the City Council and the Senior Housing
9 (SEAL)
Board at that time.
SECTION 3. The Senior Housing Board shall enter into an agreement
in writing with the City which obligates the Senior Housing Board to
perform the requirements of Sections 1 and 2 above. The Mayor is
hereby authorized to sign the agreement on behalf of the City and the
City Clerk is hereby authorized to attest the agreement.
SECTION 4. The City Clerk shall certify to the passage and
adoption of this resolution; shall enter the same in the book of
original resolutions of said city; and shall make a minute of the
passage and adoption thereof in the records of the proceedings of the
City Council of said city, in the minutes of the meeting at which the
same is passed and adopted.
PASSED, APPROVED and ADOPTED this 7th day of October
1986.
Res. #3425
•
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO )
I, Ronald L. Hart, City Clerk of the City of El Segundo,
California, DO HEREBY CERTIFY that the whole number of members of
the City Council of the said City is five; that the foregoing
resolution, being Resolution No. 3425 was duly passed and adopted
by the said City Council, approved and signed by the Mayor of
said City, and attested by the City Clerk of said City, all at a
regular meeting of the said Council held on the 7th day of
October, 1986, and that the same was so passed and adopted by the
following vote:
AYES: Councilmembers Anderson, Jacobson, Schuldt,
West, and Mayor Siadek
NOES: None
ABSENT: None
WITNESS MY HAND AND THE OFFICIAL SEAL OF SAID CITY
this 21st day of October, 1986.
City Clerk of the
City of E1 Segundo, California
(SEAL)