HomeMy WebLinkAboutResolutions - No. 2010-110RESOLUTION NO. 2010-110
A RESOLUTION OF THE LODI CITY COUNCIL
AUTHORIZING AND APPROVING THE EXECUTION
AND DELIVERY OF A LOAN AGREEMENT TO
FARMERS & MERCHANTS BANK OF CENTRAL
CALIFORNIA AND THE BORROWING OF FUNDS
THEREUNDER
WHEREAS, Farmers & Merchants Bank of Central California (the "Bank) has
offered to provide a revolving line of credit to the City of Lodi (the "City") in the amount of
three million dollars ($3,000,000) to be available through June 30, 2011, pursuant to a
loan agreement between the City and the Bank (the "Loan Agreement"), which is on file
in the City Clerk's Office and incorporated herein by reference; and
WHEREAS, Government Code Sections 53850 et. seq. authorize the City to
borrow money by the issuance of temporary notes under the Loan Agreement; and
WHEREAS, in order to make best use of the credit facility provided by the Bank,
it is desirable to delegate to the Deputy City Manager the authority to make borrowings
under the line of credit.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lodi as
follows:
1. Recitals. The City Council hereby finds and determines that the foregoing
recitals are true and correct.
2. Approval of Loan Agreement. The proposed form of the Loan Agreement
between the Bank and the City, including the form of promissory notes to be delivered by
the City thereunder, as presented to this meeting, is hereby approved in substantially
final form. The City Manager of the City of Lodi is hereby authorized, for and on behalf of
the City Council, to execute and deliver to the Bank the Loan Agreement in substantially
said form, with such changes therein as such officer, with the advice of the City Attorney,
may require or approve, such approval to be conclusively evidenced by the execution
and delivery thereof.
3. Delegation of Authority to Make Borrowings under Loan Agreement. The City
Council hereby authorizes the Deputy City Manager of the City, for and on behalf cf the
City Council, to execute and deliver to the Bank promissory notes representing
borrowings under the Loan Agreement; provided that such additional borrowings are
made in conformance with the terms, conditions, and limitations of the Loan Agreement
and the temporary borrowing provisions of Government Code Sections 53850 et. seq.,
all as determined by the Deputy City Manager. Such promissory notes shall be issued in
substantially the form attached to the Loan Agreement as Exhibit B, with interest
thereon, determined in accordance with the provisions of the Loan Agreement, with such
changes therein as such officer, with the advice of the City Attorney, may require or
approve, such approval to be conclusively evidenced by the execution and delivery
thereof.
4. Authorization to Execute Documents. City officials and staff are hereby
authorized and directed, jointly and severally, to do any and all things and to execute
and deliver any and all documents that they may deem necessary or advisable in order
to proceed with the borrowings authorized hereby and otherwise carry out, give effect to,
and comply with the terms and intent of this Resolution. Such actions already taken by
such officials and staff are hereby ratified, confirmed, and approved.
Dated: July 7, 2010
I hereby certify that Resolution No. 2010-110 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held July 7, 2010 by the following
vote:
AYES: COUNCIL MEMBERS— Hansen, Johnson, Mounce, and
Mayor Katzakian
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Hitchcock
ABSTAIN: COUNCIL MEMBERS— None
2010-110