HomeMy WebLinkAboutSupplemental Information Received after Posting of Agenda -Robin Roberts
From: Robert Goldberg <rgoldberg @live.com>
Sent: Sunday, February 26, 2017 9:54 PM
To: Sandra Massa - Lavitt; Ellery Deaton; Thomas Moore; Schelly Sustarsic; Mike Varipapa
Cc: Robin Roberts; Jill Ingram
Subject: Questions & Comments for Council Meeting 2/27/17
Attachments: Climatec.no prepayment penalty mentioned.pdf, Animal Contract.2010.pdf; Animal
Control Cost Increase.2016.xls; 2.27.17.Questions & Comments.doc
Dear Council,
Please find attached a set of questions and comments (see attached Word doc) related to Monday's agenda
items. The other attachments are referenced in questions and comments.
Thank for your consideration in advance,
Robert Goldberg
LEASE WITH OPTION TO PURCHASE #13 -030
This LEASE WITH OPTION TO PURCHASE da_ed as of 1, 2014
(this "Lease ") is by and between MUNICIPAL FINANCE CORPORATION, a
corporation duly organized and existing under the laws of the State of
California (the 11 Lessor") as lessor and CITY OF SEAL BEACH, a
municipal corporation duly organized and existing under the laws of
the State of California (the "City ") as lessee.
RECITALS:
WHEREAS, the City deems it essential for the City to acquire the
property described herein for its own public purposes; and
WHEREAS, it is intended that this Lease be treated a_s a tax-
exempt obligation of the City for federal income tax purposes; and
WHEREAS, the City and the Lessor agree to mutually cooperate now
and hereafter, to the extent possible, in order to sustain the intent
of this Lease and the bargain of both parties hereto.
WITNESSETH:
NOW, THEREFORE, in consideration of the mutual covenants
hereinafter set forth, the parties hereto agree as follows:
SECTION 1. Lease. The Lessor hereby leases to the City, and
the City hereby leases and hires from the Lessor all property (the
"Property ") described in the schedule (the "Schedule ") executed by the
parties concurrently herewith and made a part hereof.
SECTION 2. Term. The terms and conditions of this Lease shall
become effective upon the authorized execution of this Lease by the
parties hereto. The rental term of the Property leased hereunder
commences and terminates on the dates specified in the Schedule unless
the term of this Lease is extended as provided in this Section. T_f on
the scheduled date of termination of this Lease the Rental Payments
shall not be fully paid, or provision therefor made, or if such Rental
Payments shall have been abated at any time and for any reason, then
the term of this Lease shall be extended until the date upon which all
such Rental Payments shall be fully paid, except that the term of this
Lease shall in no event extend beyond the date that corresponds to the
end of the useful life of the Property.
SECTION 3A. Representations, Covenants and Warranties of the
City. The City represents, covenants and warrants to the Lessor that:
(a) The City is a municipal corporation and political
subdivision, duly organized and existing under the Constitution and
SECTION 28. Personal Property. The Property is and shall at
all times be and remain personal property notwithstanding that the
Property or any part thereof may now be or hereafter become in any
manner affixed or attached to or imbedded in, or permanently resting
upon, real property or any building thereon, or attached in any manner
to what is permanent by means of cement, plaster, nails, bolts, screws
or otherwise.
SECTION 29. Purchase Option. If the City is not in default of
any term, condition or payment specified hereunder, the c_ ,�'ray
exercise notions to nrenav this Lease and purchase not less than all
bf the Property in "as -is" and "where -is" condition on the specified
dates and for the specified amounts set forth in the Schedule. The
purchase option price specified for a particular date is in addition
to the Rental Payment due on the same date.
SECTION 30. Release of Liens. Upon the City either making all
of the Rental Payments scheduled herein or making a purchase option
payment, the Lessor, its successors or assigns shall cause (i) legal
title to the Property to be transferred to the City and (ii) the
release of all liens, encumbrances or security interests on the
Property created pursuant to the Lessor's rights under this Lease.
SECTION 31. Tax Covenants.
(a) Generally. The City shall not take any action or permit to be
taken any action within its control which would cause or which, with
the passage of time if not cured would cause, the interest components
of the Rental Payments to become includable in gross income for
federal income tax purposes.
(b) Private Activity Bond Limitation. The City shall assure that
the Lease Proceeds are not so used as to cause this Lease to satisfy
the private business tests of Section 141(b) of the Internal Revenue
Code of 1986, as amended (the "Code "), or the private loan financing
test of Section 141(c) of the Code.
(c) No Arbitrage. The City will not take any action or omit to
take any action which action or omission, if reasonably expected on
the date of this Lease, would have caused this Lease to be an
"arbitrage bond" within the meaning of Section 148(a) of the Code.
(d) Federal Guarantee Prohibition. The Rental Payments are not
directly guaranteed or indirectly guaranteed in whole or in part by
the United States or any agency or instrumentality of the United
States so as to cause the Rental Payments to be "federally guaranteed"
within the meaning of Section 149(b) of the Code.
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Questions & Comments for 2/27/17
Item B: Demands of Treasury
Page 11, Top: Check #115680 to McCormick & Asso for $4800 related to the Tot Lot.
What is this for?
D. Strategic Plan
Page B: Secure Funding for pier repairs
Has SCE agreed to pay for the cost of installing a new transformer?
How much has the CJPIA agreed to pay us for repairs?
Will CJPIA pay to replace the restaurant?
Page C: Hire an oil revenue recovery consultant. Staff is now stating that "Research continues,
challenges are occurring with locating additional pipeline auditors." However, the public has
presented the names of three consultants to the City, one of which is a former Operations
Manager at the Long Beach Oil & Gas Department.
Has staff fully evaluated these three consultants and ruled them out as not qualified?
G. Fleet Replacement
We are buying two Tacoma's from HB Toyota, but one for Police is priced at $33,358 and the
other for Marine Safety at $36,120.
Why are they priced differently?
J. Animal Services Contract
This contract expired almost 8 months ago.
Why was this contract not renewed before its expiration?
The P paragraph on the 1s` page states that the proposed increase for FY 16 -17 from $150,657
to $158,190 is "in keeping with the original Agreement to adjust costs based on ...CPI."
However, this statement is not consistent with the following facts:
1) The original Agreement signed in 2010 had no provisions for increases based on CPI (see
attachment).
2) The proposed increase for FY 16 -17 represents a 5% increase from FY 15 -16, unrelated
to any measurement of inflation.