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1 RESOLUTION NO. / JJ. f t J'
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2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN AGREEMENT WITH OMNITRANS PROVIDING FOR AN ADVANCE-
3 MENT OF FUNDS AND REPAYMENT OF FUNDS.
4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
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SECTION 1. The Mayor of the City of San Bernardino is
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authorized and directed to execute on behalf of said City an
agreement with omnitrans providing for an advancement of funds
and repayment of funds, a copy of which is attached hereto, marked
Exhibit "An and incorporated herein by reference as fully as
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though set forth at length.
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I HEREBY CERTIFY that the foregoing resolution was duly
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adopted by the Mayor and Common Council of the City of San
Bernardino <4~ d'~.f.tJN~~Ay//~~meeting thereof, held
on the / /- day ~ ~' 1977, by the following
vote, to wit:
AYES: COuncilmen ~~,~~ ~~~_
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NAYS: 0"",,/~/L...__.J ~.A7~~"'./-L
ABSENT: C~/.--//.~ ~~~.
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The foregoing resolution is hereby approved L~~day
9u~t- , 1977.
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of
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ernard1no
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AGREEMENT
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(money advance to Omnitrans)
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THIS AGREEMENT is made and entered into this~L'day of
~ ,1977, at San Bernardino, California, by and be-
~ ~," OF SAN ""ASO,"O, a municipal corporatioo, here-
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inafter called "City", and OMNITRANS, a joint powers authority,
hereinafter called "Omnitrans".
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WHEREAS, on January 21, 1977, City did advance to Omnitrans
the sum of three hundred fifty thousand dollars ($350,000.00) for
the purpose of providing operating funds pursuant to the Council's
action on December 20, 1976; and
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WHEREAS, said cash advance was to be repaid by Omnitrans to
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City together with accrued interest thereon at the rate of five
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percent (5%) per annum on or before April 20, 1977; and
WHEREAS, said sum was advanced to Omnitrans in anticipation!
that Omnitrans would receive funds from entitlement of Federal
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18 grants based upon filed applications and requests for funds in a
19 sum more than sufficient to repay the advance; and
20 WHEREAS, Omnitrans has not repaid the aforesaid sum of
21 three hundred fifty thousand dollars ($350,000.00) plus accrued
22 interest; and
23 WHEREAS, Omnitrans has not as yet received any funds from
24 its applications, requests and entitlemeribs bU~ expects8~id funds
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25 in the near future; and
26 WHEREAS, Omnitrans is presently experien.qing ~. shortage of
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27 funds for use as operating capital which,said shortage wiJ"l be
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Transit Act grants or otherwise; and
WHEREAS, City has available certain funds in the amount of
two hundred fifty thousand dollars ($250,000.00) which it is will-
ing to further advance to Omnitrans for use for paying operating
expenses and which said funds Omnitrans desires and agrees to
repay to City upon the terms and conditions set forth herein; and
WHEREAS, the advance of the original three hundred fifty
thousand dollars ($350,000.00) advanced on January 21, 1977,
together with the additional two hundred fifty thousand dollars
($250,000.00) advance provided for herein are made with the
express understanding and agreement that said sums, together with
accrued interest thereon, are payable on or before September 30,
1977, and that in the event Omnitrans does not receive sufficient
funds to liquidate its aforesaid indebtedness on or before said
date, to wit: September 30, 1977, it will borrow the funds from
other sources and pay its total obligation to City on said due
date.
NOW, THEREFORE, it is agreed as follows:
1. City shall forthwith advance and pay to Omnitrans an
additional sum of two hundred fifty thousand dollars ($250,000.00)
in lawful money of the United States of America.
2. Omnitrans shall repay the said sum of two hundred fifty
thousand dollars ($250,000.00) additionally advanced by City to-
gether with the three hundred fifty thousand dollars ($350,000.00)
advanced on January 21, 1977, for a total of six hundred thousand
dollars ($600,000.00) to City, and hereby promises to pay 1n law-
ful money of United States of America, to the order of the City
of San Bernardino, a municipal corporation, at San Bernardino,
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1 California, the principal sum of six hundred thousand dollars
2 ($600,000.00) with interest in lawful money from the dates of
3 advancement of the funds by City to the date of payment at the
4 rate of five percent (5%) per annum with interest payable together
5 with the principal on or before September 30, 1977.
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3. In the event omnitrans fails to pay the total of said
7 sum of six hundred thousand dollars ($600,000.00) plus accrued
8 interest on or before September 30, 1977, then the rate of interes
9 shall, after September 30, 1977, increase to that rate per annum
10 established by the Bank of America, NT & SA of San Bernardino,
11 California, as their "prime rate" and said "prime rate" of interes
12 shall be adjusted to reflect at all times during the period after
13 September 30, 1977, the "prime rate" being charged by the said Ban
14 of America, NT & SA. Notwithstanding the foregoing, in the event
15 it becomes necessary for City to file a legal action to collect
16 any funds due, then City shall be entitled to the legal rate of
17 interest provided by law for judgments from the date of filing of
18 the lawsuit.
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4. It is understood by the parties hereto that with res-
20 pect to the payment of the said sum by omnitrans to City that
21 time is of the essence and City is making this advance with the
22 understanding that omnitrans will promptly pay the obligation and
23 accrued interest on or before the aforesaid date of September
24 30, 1977. Furthermore, City makes this advance to omnitrans in
25 reliance upon omnitrans' express representation to City that it
26 will have adequate sums available to repay and reimburse City
27 promptly in accordance with the terms of this agreement.
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5. In the event of commencement of suit to enforce payment
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1 ;of the obligation of Omnitrans pursuant to this agreement, Omni-
2 trans agrees to pay such additional sums and attorney's fees and
3 costs as the court may adjudge reasonable.
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6. Omnitrans agrees to, and shall, hold City, its elective
5 and appointive boards, commissions, officers, agents and employees
6 harmless from any losses from this transaction.
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7. Omnitrans' obligations to City hereunder shall be non-
8 assignable.
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8. All notices herein required shall be in writing and
10 delivered in person or sent by certified mail, postage prepaid,
11 addressed as follows:
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City of San Bernardino
300 North "0" Street
San Bernardino, CA 92418
Omnitrans
183 South "G" Street
San Bernardino, CA
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14 IN WITNESS WHEREOF, the parties hereto have executed this
15 agreement on the date first hereinabove written.
16 CITY OF SAN BERNARDINO
ATTEST:
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By
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OMNITRANS
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Title;lrA., t-4..M.-;._
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Approved as to form:
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y rney
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