HomeMy WebLinkAboutCC Reso 2022-40 - Approving Internal Loan for UVFD Refinance Lovers Lane Mortgage RESOLUTION 2022-40
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING AN INTERNAL
LOAN FOR THE UKIAH VALLEY FIRE DISTRICT TO REFINANCE THE LOVERS LANE
MORTGAGE
WHEREAS:
1. On March 13, 2013, the Ukiah Valley Fire District entered into a loan agreement with the Savings
Bank of Mendocino County for the purchase of the Fire Station Property located at 141 Lovers
Lane, Ukiah, California in the amount of$350,000.
2. On April 1, 2023, a final balloon payment will be due in the amount of$255,187.63.
3. The City Council has determined that financing the balance due by an internal loan from the
General Fund 100 is in the best interest of both the City of Ukiah ("City") and the Ukiah Valley
Fire District ("District"); and
4. The City and the District have entered an Amended and Restated Agreement for Shared
Management of Fire Departments, effective July 1, 2017, under which the City provides
administrative and financial services to the District, including the receipt and accounting for District
revenue and expenses; and
5. As part of providing these accounting and financial services the City has established District
funds, including District Fund Nos. 915 and 918; and
6. Under the internal loan, the Ukiah Valley Fire District will make monthly payments, with seventy
percent (70%) paid from Fund 915 Ukiah Valley Fire District fund, and thirty percent (30%) paid
from Fund 918 Ukiah Valley Fire District Mitigation Fees, pursuant to the terms set forth in the
Amortization Schedule, attached hereto as Exhibit A; provided the City Council appropriates funds
each year to make the payments, and provided that the Ukiah Valley Fire District Board of
Directors also appropriates funds each year and approves this arrangement;
NOW, THEREFORE, BE IT RESOLVED that:
1. The City Council of the City of Ukiah hereby approves the internal loan of $255,187.63 to the
Ukiah Valley Fire District for the final mortgage payment of the Fire Station Property located at
141 Lovers Lane, Ukiah, California.
2. Upon District's Board of Directors approving this internal loan and the terms of this resolution and
the final payment being issued to the Savings Bank of Mendocino County, the Ukiah Valley Fire
District will be obligated and directed to compensate the City's General Fund No. 100 in one
hundred and twenty (120) monthly principal and interest payments of two thousand four hundred
and sixty-six dollars and seventy cents ($2,466.70) per month which includes an interest rate of
three and twenty-two thousandths percent (3.022%) per annum. Payments shall be made in
monthly transfers from the Ukiah Valley Fire District Funds 915 and 918 to the General Fund.
Transfers shall be treated as expenditures Funds 915 and 918 in the Ukiah Valley Fire District's
budget, and revenue to the General Fund in the City's budgets and financial statements.
3. The Ukiah Valley Fire District will also have the option to pay off the remainder of the loan at any
time regardless of the terms of the Amortization Schedule.
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PASSED AND ADOPTED this 151h day of June, 2022, by the following roll call vote:
AYES: Councilmembers Orozco, Rodin, Duenas, and Mayor Brown
NOES: None
ABSENT: Councilmember Crane
ABSTAIN: None
11
O. Brown, Mayor
ATTEST:
Kristine Lawler, City Clerk
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