HomeMy WebLinkAbout14 - Green AcresLl
January 25, 2000
CITY COUNCIL AGENDA
ITEM NO. 14
TO: Mayor and Members of the City Council
FROM: Public Works Department
SUBJECT: AMENDMENT TO THE GREEN ACRES PROJECT LOAN AGREEMENT
WITH THE BLUFFS HOMEOWNERS ASSOCIATION
RECOMMENDATIONS:
Accept a $100,000 lump sum pre - payment from the Bluffs Homeowners
Association.
Approve an amendment to the loan agreement stipulating a five -year payment
schedule for the remaining $45,000 and authorize the City Manager to execute the
amendment.
DISCUSSION:
On September 27, 1999 the City Council approved a $145,000 ten -year loan agreement
with the Bluffs Homeowners Association for their efforts to convert the existing irrigation
system to accept reclaimed water. On December 22, 1999, the City received a letter
indicating the Bluffs' desire to refund $100,000 and refinance the remaining $45,000 over
a ten year period. Staff felt it was appropriate to reduce the term of the agreement since
cost savings from the reclaimed water would allow them to pay back the loan within a five -
year period. After discussions with the Bluffs, they agreed to a five -year term, pending
Council approval.
Attached for Council consideration is the proposed amendment to the loan agreement.
The amended loan would be for five years with the same annual interest rate of 6.4 %.
Respectfully subm' e
PUBLIC WORKS DEPART ENT
Don Webb, Director
By: /
Michael J. Sinacori, P.E.
Utilities Engineer
Attachments: Draft Amendment to Loan Agreement with the Bluffs Homeowners Association
December 22, 1999 letter from the Bluffs Homeowners Association
F:1 UsersVPBIMSharedl COUNCILVFy99- OOUanuary- 25VBluffs - GAP Loan Amendment.doc
AMENDMENT TO LOAN AGREEMENT
WITH •
BLUFFS HOMEOWNERS ASSOCIATION
FOR
GREEN ACRES END -USER RETROFIT WORK
THIS AMENDMENT is made and entered into as of the day of January,
2000, by and between the CITY OF NEWPORT BEACH, a Municipal Corporation and
Charter City, referred to as "CITY ", and the Bluffs Homeowner Association, a private
Corporation hereinafter referred to as "THE BLUFFS."
RECITALS
A. The Orange County Water District (OCWD) has developed a conservation
program to provide reclaimed water to various areas served by OCWD in Orange
County. This program is called the Green Acres Project (GAP). The City has
agreed to participate in GAP to help conserve the available water supplies and
has committed to provide GAP water to some users in the City.
B. On September 27, 1999 the CITY approved a loan for $145,000.00 to be paid
back over a 10 -year period based on the terms and conditions set forth in the
Agreement.
C. On December 22, 1999 THE BLUFFS submitted a written request to the CITY to •
allow a $100,000.00 pre - payment of the loan.
D. The CITY desires to accept the $100,000.00 pre - payment and will agree to new
five -year terms and conditions as set forth in amended sections below.
E. The CITY'S acceptance and receipt of the $100,000.00 pre - payment results in an
outstanding loan principle of $45,000.00.
NOW, THEREFORE, it is mutually agreed by and between the
undersigned parties that the following section of the Agreement shall be amended as
follows:
3.0.3 The reimbursement period shall be 5 years.
3.0.4 Loan payments shall be $10,799.35 per year, and shall be made in
accordance with the "Revised Reimbursement Amortization Schedule"
shown in Exhibit "A."
Except as expressly modified herein, all other provisions, terms, and covenants set forth
in AGREEMENT shall remain the same and shall be in full force and effect. •
1
IN WITNESS WHEREOF, the parties have executed this Amendment on the date first
written above.
APPROVED AS TO FORM: CITY OF NEWPORT BEACH
A municipal corporation
Robert Burnham, Esq.
City Attorney
ATTEST:
LaVonne Harkless
City Clerk
11
fAusers \cat\shared\nnary\bluffs loan contract - revised.doc
•
Homer Bludau
City Manager
The Bluffs Homeowners Association
A private corporation
Carlyle "Cork" Levinson,
President
Chuck Currier, Secretary
2
EXHIBIT "A" 0
REVISED REIMBURSEMENT AMORTIZATION SCHEDULE
City of Newport Beach
Green Acres Reclaimed Water Project
Bluffs Homeowners Association Retrofits
Loan Principal.
$45,000.00
Required Pmt:
$10,799.35
Interest Rate:
6.400%
Est. Total Pmts:
$53,996.73
Term (Years):
5.00
Est. Total Int.
$8,996.73
Payment
Remaining
Cumulative
Payment
Payment Number
Amount
Principal
Interest
Principal
Interest
Date
1
$10,799.35
$7,919.35
$2,880.00
$37,080.65
$2,880.00
10!0112000
2
$10,799.35
$8,426.18
$2,373.16
$28,654.47
$5,253.16
10/0112001
3
$10,799.35
$8,965.46
$1,833.89
$19,689.01
$7,087.05
10/0112002
4
$10,799.35
$9,539.25
$1,260.10
$10,149.76
$8,347.14
10/0112003
5
$10,799.35
$10,149.76
$649.58
$0.00
$8,996.73
10/0112004
•
•
THE BLUFFS HOMEOWNERS
COMMUNITY ASSOCIATION
December 22, 1999
Mr. Michael Sinacori, P.E.
City of Newport Beach
Public Works Department
3300 Newport Blvd.
P.O. Box 1768
Newport Beach, Calif. 92658 -8915
Mr. Sinacori:
P.O. Box 8167 • Newport Beach, California 92658 -8167
Telephone (714) 759 -1200
Fax (714) 759 -6620
Via Fax and Mail DEC 2 3 1999
The Board of Directors for this Association would like to pay down by $100,000 the loan
amount received for the installation of the Green Acres Reclaimed Water Project within our
Common Area. The original loan amount received for this project was $145,000, subject to
a ten year payback under an installment agreement signed by all parries involved. Our
Board of Directors would like to finance all of this retrofit, except for $45,000, from our
own funds. We would like to accomplish this payback prior to our year end of December
31, 1999.
• In consideration of this pay down, we are requesting that the remaining balance of $45,000
be amortized over the agreed upon ten year payback period, and requests that your office
establish a new "Reimbursement Amortization Schedule" for the ten year period of time.
We would like to once again thank you and your staff for all of the assistance with this
project. We anticipate being "on- line" with the reclaimed water as of the first week of
January, 2000, and look forward to working with the City departments as this long -
anticipated project becomes a reality.
On Behalf of the Board of Directors,
Kevin R. Shannon
General Manager
2414 Vista Del Oro • Newport Beach, California