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HomeMy WebLinkAbout2008/12/16 Item 10 CITY COUNCIL AGENDA STATEMENT ~(ft- CITYOF ~ - (HULA VISTA DECEMBER 16, 2008 ItemW- ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A.l'\f INTERFUND LOAN FROM THE TRANSPORTATION DEVELOPMENT IMPACT FEE FUND TO THE PUBLIC FACILITIES IMP ACT FEE FUND AND APPROPRIATING FUNDS THEREFOR CITY COUNCIL AUTHORIZE THE FINANCE DIRECTOR/TREASURER. TO PURSUE DEBT REFUNDINGIRESTRUCTURING OPTIONS FOR CITY OF CHULA VISTA'S OUTSTANDING DEBT OBLIGATIONS SUBMITTED BY: DIRECTOR OF FINANCE/TREASURER/71;( REVIEWED BY: INTERIM CITY MAl'iAGER s-r DEPUTY CITY MANAGER W SUMMARY 4/STHS VOTE: YES ~ NO D The downturn in housing development activity for the past several years has led to cash flow issues in the Public Facilities Development Impact Fee Funds (PFDIF). In order to avoid significant impacts to the General Fund reserves, it is necessary at this time to request an interfund loan from the Transportation Development Impact Fee Fund (TDIF) for the purpose of funding the annual debt service obligations of the PFDIF. . ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that an interfund loan from the . Transportation DIF to the Public Facilities DIF is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change to the. environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the actions proposed are not subject to CEQA 10-1 . Item Page 2 of 6 RECOMMENDATION That the City Council approve the resolution and the necessary appropriations for an interfund loan from the Transportation Development Impact Fee Fund to the Public Facilities Development Impact Fee Fund to fund the outstanding debt obligations for fiscal year 2008-09. That the City Council request that the Director of Finance/Treasurer pursue refunding/restructuring options for City debt with the objective of creating cash flow savings in order to meet debt service obligations over the next few years. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION Beginning in 1990, the City began an extensive capital outlay program for public facilities which was to be funded fully or partially from Public Facilities Development Impact Fees (PFDIF). The fees to fund these projects were initially established by Ordinance 2320 in August of 1989. The objective of the development impact fees are to fund public facilities and related capital needs that are projected to be impacted by future growth. Various updates to the fees have occurred over the last 20 years. The PFDIF has expended $80 million constructing public facilities on a pay-as-you-go basis using available cash in the PFDIF fund. These expenditures funded several major projects including five ftre stations and three recreation facilities. In addition, the PFDIF partially funded renovation of the Civic Center complex, South Chula Vista Library, and the new Police Facility using cash on hand. Three projects, the Corporation Yard, Police Facility and Civic Center, were partially finallced through the issuance of Certificates of Participation (COP) for a total of $128.7 million (principal only) over a long-term period using a combination of funding from the PFDIF and General Fund. However because these debt obligations are backed by the full faith and credit of the General Fund, the General Fund is ultimately responsible for the payment of all debt obligations even though, as a practical matter, a certain percentage of the payments are dependent on the fees collected by the PFDIF fund. Due to the significant housing meltdoWn and number of foreclosures experienced Within the City of Chula Vista, the development of new housing has essentially come to a halt. This has created a cash deficit in the PFDIF fund of$4.2 million as of the end offtscal year 2007-08. Due to the severity of the housing crisis, it is clear that the PFDIF fund will be unable to meet its annual debt obligations for the next few years. In order to avoid an impact to the General Fund, we are recommending an interfund loan from the TDIF to the PFDIF fund for $5.2 million to make the debt service payments scheduled for the cun-ent fiscal year 2008-09. This will provide the City an opportunity to work through a restructuring of the PFDIF debt obligations with the objective of creating cash flow savings to meet debt obligations over the next few years. . PFDIF Overview Following the adoption of development impact fees to fund major street improvements in its eastern territories, tb.e City undertook an in-house study of other public facilities and related capital needs that were projected to be impacted by future growth. The result of that study was 10-2 Item_ Page30f6 the adoption of Ordinance 2320 in August 1989 that established a series of "supplemental" impact fees. Over the next 20 years, the fee would be updated to include additional facilities such as tire stations and recreation facilities. PFDIF Financed Facilities Beginning in 2000, the City embarked on an unprecedented capital facilities construction program. During this time the City funded $67 million in public facilities on a pay-as-you-go- basis using available cash in the PFDIF fund. During that same time, the City issued $128.7 . million in Certificates of Participation (COP) to fund projects such as the Corporation Yard, construction of a new Police Facility and the remodel and expansion of the Civic Center Complex. Facillities Financed on a Long-Term Basis Public Works Yd Police Facility Civic Center] Civic Center 11 Total :~J'~~~~~~~J~~ f['5~1~f~~)~ f~~~0~?~~,t~~~;~;~?9'~~!1~:i~iP]~;~ [;~~~fW~@~~-~~:~~lg~~?t~S~c.'jRrnf~~ ,li€,]$~~fi~~~QY{~!.~ U'JL1~.kqm~n5 '&~l~~~Jt5i ~~~1tu~I}ti-~~ !0~gJ~8.f~~i~~ :;i"[erQll;l' i.GeneraLEund ::'$%8ESIF-.\t$.;i iD€}btSvc:?R.r!11~ 2000 COP 5.14% 23,730,000 16,710,000 20 yrs 764,028 1,099,456 1,863,484 2002 COP 4.93% 60,145,000 55,420,000 30yrs 2,190,364 1,722,224 3,912,578 2004 COP 4.65% 26,692,417 24,992,417 30 yrs 308,791 1,406,715 1,715,506 2006 COP 4.32% 18,155;.000 17,265,000 30 rs 121,698 984,647 1,106,345 $128,722,417 $114,387,417 $3,384,871 $5,213,042 $8,597,913 Public Works Yard 2000 Certificates of Participation $23.7 million The City acquired the Corporation Yard from San Diego Gas & Electric Company in 1998. The financing was approved to fund the improvements to the site and encompassed an aggregate 128,554 sq. ft. of space. It consisted of buildings and spaces essential to many City operations such as a new 42, I 00 sq. ft. maintenance facility building, a 11,400 sq. ft. warehouse btlilding, a 42,300 sq ft administration building, 9,070 sq. ft. of bus washing/fueling buildings and 31,000 sq. ft. of space in an enlarged shops building. The annual debt obligations are split between the PFDlF fund (59%) and the General Fund (41 %). The General Fund share of the project costs are for the proportionate share of the costs. which have no nexus to growth. The final payment is due in 2020-21 (12 years remaining). Police Facility 2002 Certificates of Particioation $60.1 million The construction ofthe new Police Facility involved the acquisition of the commercial site at the corner of Fourth Avenue and F Street, relocation of the commercial tenants, demolition of the site, and construction and furnishing of a mlllti-story 150,000 sq. ft. Police Headquarters with an adjoining multi-story parking structure. The project also included landscaping and some off-site improvements to the adjacent property. Funding this project involved General Fund, PFDlF and RDA sources. The annual debt obligations are split between the PFDlF fund (44%) and the General Fund (56%). The General Fund share of the project costs are for the proportionate share 'of the costs which have no nexus to gro\Vth. The final payment is due in 2032-33 (24 years remairiing). 10-3 Item Page 4 of6 Civic Center - 2004 Certificates of ParticiDation Phase I $26.7 million. 2006 Certificates of ParticiDation Phase II $18.2 million On 711 0/200 1, the City Council approved the Civic Center Master Plan recognizing that the existing Civic Center Complex could no longer accommodate the city staff required to service the current population or future population growth. It was determined that modernization and retrofitting of all of the Civic Center Complex buildings were going to be required in order to meet current building code requirements and to accommodate current and emerging technology needs. The Civic Center project had three construction phases, which included the demolition and reconstruction of the City Hall building (18,300 sq. ft.), the renovation of the Public Services building (30,562 sq. ft.) and finally the renovation of the former Police Facility (52,160 sq. ft.). Once the three phases were complete, two other buildings, the Community Development Building and the Legislative Building were demolished for additional off street parking. The annual debt obligations are split between the PFDIF fund and the General Fund (Phase 1.- 82%11 8%, Phase II - 89%/11 % respectively). The General Fund share of the project costs are for . the proportionate share ofthe costs which have no nexus to growth. The final payment is due in 2035-36 (27 years remaining). Debt RestructuringlRefunding Proposal The total annual debt obligations are split between the General Fund ($3.4 million) and the PFDIF fund ($5.2 million). In order for the PFDIF to meet its share of the debt obligations, a total of 597 building permits are needed based on a residential/single family fee of $8,735. Due to the halt in new development and the current deficit in the PFDIF fund, the annual debt obligations must be met by the General Fund which would add $5.2 million to both the current year gap of$4.0 million and next fiscal year's estimated gapof$20 million. To avoid additional impacts to the General Fund, staff is recommending an interfund loan from the TDIF fund to the PFDIF fund of $5.2 million to cover the current year debt obligations. The terms of the loan are for a period of 13 years. The first 3 years of payments would be defeITed with the loan being fully amortized over the final 10 years. The interest rate applied would be based on the City's pooled interest rate (currently 3.80%). A 13-year amortization schedule is included in the Fiscal Impact Section of Report. Additionally, the Finance Department is currently prepming a Request for Proposal to select a Financing Team that will include a Financial Advisor and Underwriting firm. The financing team under the direction of the Finance Director will look at restructuring and/or refunding options for the $114.4 million in outstanding COP debt (as of June 30, 2008) with the primary goal of improving short term cash flow needs in order to meet debt obligations for the next four years. This assumes that new development will not pick up until 2012-13. The refunding and/or restructuring of the debt would provide the City with the time to formulate a funding plan in order to continue meeting the PFDIF share of the debt obligations on a long-term basis. This timeframe also coincides with. the final General Fund payment of the 1994 Pension Obligation Bonds ($2.6 million annual payments), which would provide some additional alternatives. 10-4 Item. Page 5 of 6 After 2012-13, if development does not return to the levels necessary to service the debt then the General Fund would need to begin making the annual debt payments to the TDIF fund of all or part of the approximate $710,000 of the scheduled PFDIF payment. Any payments made from the General Fund would be recorded as a loan to the PFD1F fund in anticipation that the General Fund would be repaid at some point in the future with interest. Due to the current interest rate environment and the uncertainty surrounding the municipal credit market, the refunding and/or restmcturing ~vill likely be costly in ihe long mn resulting in additional costs of issuance, higher interest rates and increased PFDIF fees. Approving the interfund loan from the TDIF wotild provide funding for the current year debt payments due fi.om the PFDIF fund and would also provide the Finance Department an opportunity to work through the various financing options. . Pending the uncertainty in the market, we anticipate bringing a refunding proposal back to the City Council by" the end of the current fiscal year. TDIF Cash Flows The City's Transportation Development Impact Fee (TDIF) program was established on January 12, 1988 by Ordinance 2251. Since its inception, the program has been updated several times to reflect new land use approvals, proposed changes to the General Plan, and updated project cost estimates. New development placed demands on the existing transportation infrastructure, which can be mitigated by upgrading existing and/or constructing new transportation facilities. Chula Vista's TDIF program functions as a system to distribute the cost of constmcting infrastructure facilities in an equitable marmer among new development in Eastern ChiIla Vista. The proceeds from the fee are used to construct new transportation improvements or expand existing facilities. The cash flow forecast based on cash on hand and anticipated expenditures and fee revenues are included as Attachment A. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and the Public Financing Authority members and has found a conflict exists with Council and Authority member Castaneda who has holdings within 500 feet of the boundaries of the property, which is the subject of this action. FISCAL IMPACT General Fund Approving an interfund loan would alleviate the General Fund of having to step in and pay the PFDIF debt obligation of $5.2 million and avoid a significant impact to the General Fund reserves in the current fiscal year. In the event that the PFDIF fund is unable to repay the TDIF over the 13-year payment schedule beginning in fiscal year 2012-13, the General Fund would be obligated to step in and make all or part of the annual payment of approximately $710,000. Transportation Development Impact Fee (TDIF) The interfund loan of $5.2 inillion would reduce the cash balance in the TDIF fund by the same amount. The funds would be paid back from the PFDIF over 13 years beginning in fiscal year 2012-13 at an interest rate of 3.80% (based on the pooled fund rate). Based on the schedule of 10-5 Item Page 6 of6 projects and anticipated timeframes for completion, the interfund loan should not delay or prevent any TDIF projects from being constructed as planned (See Cash Flow Attachment A). If the PFDIF fund is unable to pay the interfund loan back to the TDIF fund in a timely manner, . then the General Fund would be obligated to pay the outstanding balance. City of Chula Vista TDIF Loan to PFDIF Schedule of Loan Pavments ii~f~.~~!~i~~~~,m~.!'Ililii;~it~ii~lli~1ti!tit 01/01/2010 - - - - 01101/2011 - - - - 01/01/2012 - - - - 01/01/2013 437,145.77 3.80% 220,994.48 51,755.04 709,895.29 01/01/2014 453,757.31 3.80% 202,416.24 53,721.73 709,895.28 01/01/2015 471,000.08 3.80% 183,132.04 55,763.16 709,895.28 01/01/2016 488,898.09 3.80% 163,115.04 57,882.16 709,895.29 01/01/2017 507,476.22 3.80% 142,337.39 60,081.68 709,895.29 01/01/2018 526,760.32 3.80% 120,770.19 62,364.78 709,895.29 01/01/2019 546,777.21 3.80% 98,383.43 64,734.64 709,895.28 01/01/2020 567,554.74 3.80% 75,145.98 67,194.56 709,895.28 01101/2021 589,121.82 3.80% 51,025.51 69,747.95 709,895.28 01/01/2022 611,508.44 3.80% 25,988.46 72,398.38 709,895.28 $ 5,200,000.00 $ 1,283,308.76 $ 615,644.08 $ 7,098,952.84 Compounded Interest reflects cost of deferred interest payments in first three years Public Facilities Development Impact Fee (PFDIF) Based on a 13-year interfund loan schedule, the anticipated costs to the PFDIF fund is $1.9 million in interest. The additional costs would be incorporated into the next PFDIF fee update. The Finance Department will review the refunding and restructuring options of the outstanding COPs with the objective of providing long-term cash flow relief. Staff will return in the near future with a staff report outlining the various options and costs for City Council consideration. ATTACHMENTS Attachment A - TDIF Cash Flows Prepared by: Maria Kachadoorian, Director of Finance/Treasurer 10-6 TDIF Cash Flow Estimates Attachment A '2QO !2Q09~:iQo~20,1 ORf2}2019::20l1!;r;{i20l1~201,t~ 202 it2013tt92013~20~~4k !14Q14:;20~ 5~~015iW~2016;2017~20 17.:2018~2018'f20 19 2019~2020"< ;202Q;2021"'11202:1~2022: !eginnlng Cash Balance'- July 1 Note 24,041,958 13,318,224 9,975,599 7,292,855 5,285,453 4,390,589 3,918,151 3,275,508 3,325,068 3,378,178 2.717,460 2,772,642 2,831,433 3,678,311 li'VENUES',il':;"'k~~;jf..,r~~ nvestment Earnings 240,420 133,182 99,756 72,929 52,855 43,906 39,182 32,755 33,251 33,782 27,175 27,726 26,314 36,783 :teimbursements 1 0 1,400,000 fDlF Fees 2 70,000' 0 0 237,545 240,600 243,656 248,749 251,804 254,860 259,952 263,008 266,064 266,064 266,064 _oan Repayments from PFOlFIGF 0 0 0 0 710,000 710,000 710,000 710,000 710,000 710,000 710,000 710,000 710,000 710,000 TOTAL EST. REVENUES 310,420 1,533,182 99,756 310,473 1,003,455 997,562 997,930. 994,559 998,111 1,003,734 1,000,183 1,003,790 1,004,378 1,012,847 ~XRENDJTUiESY,_"",~,,,;;;,~~.~ Jperating Expenses 802,022 401,011 400,000 350,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 150,000 150,000 fransfer Out to WTDIF 180,000 Loan to PFDIF 5,200,000 ::;IP Expenditures: G1S-Orthophotography/Topograph 4 0 10,850 C1P Mngmt & Equipment Purchase 5 30,000 0 0 15,000 Interim SR125 F<icility Ph 1 74,874 50,000 50,000 South Circulation Network 16,865 Otay Lakes Rd Wdng (E H To Canyon) 6 37,570 1,100,000 Otay Lakes R~ad Widening (E H St to 1,500,000 1,500,000 2,000,000 1,500,000 Teleg.Cnyn) Ramp Widening EH St & N 1805 7 100,000 Rock Mtn Rd Heritage - la Media 8 0 226,765 0 OlR & E H 5t Pdstm & Traf Stud 0 -.tteritage Road Bridge Reconstruc 9 100,000 100,000 100,000 100,000 407,923 500,000 500,000 d9/0rage Ave/1805 Jnter 0 0 198 East Orange Ave ExtentJon _ 10 1,250,000 0 0 -'Jviilow St Bridge Widening 800,000 1,000,000 0 Traffic Count Stations 95,871 100,000 Transportation Planning Program 100,000 100,000, 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 Traffic Management Center 11 1,875 500,000 500,000 1805Corrdr Improv N Arteril Ops 50,000 5R125 Corridr and Arterial Ops 99,841 Trans Dev Impact Fund Update 12 70,000 55,000 142,500 162,450 185,193 East H 51. Buena Vista to Olay Lakes Rd 500,000 500,000 1,000,000 Tra"nsportation Demand Mgt 1,000,000 500,000 500,000 TOTAL EST. EXPENDITURES 10,508,718 4,643,626 2,650,000 2,207,500 1,807,923 1,400,000 1,562,450 900,000 . 900,000 1,585,193 900,000 900,000 150,000 150,000 Contingencies (5%) 13 525,436 232,181 132,500 110,375 90,396 70,000 78,123 45,000 45,000 79,260 45,000 45,000 7,500 7,500 TOTAL EST, EXPENDITURES $11,034,154 $4,875,807 $2,782,500 $2,317,875 $1,898,319 $1,470,000 $1,640,573 $945,000 $945,000 $1,664,453 $945,000 $945,000 $157,500 $157,500 ~P~YEARiENDj~Sf.':CASRrBATI'ANC~~ $13,318,224 $9,975,599 $7,292,855 $5,285,453 $4,390,589 $3,918,151 $3,275,508 $3,325,068 $3,378,178 $2,717,460 $2,772,642 $2,831,433 $3,678,311 $4,533,657 Notes: 1- Reimbursement to the TDIF fund from other Transportation Programs (re: 5TM351/328) 2 _ Assumes 2% index increase each year, with every third year an additional 2% for theTOlF update. Calculat~d at 300 building permits beginning in FY 12 (low Density + 1 Regional Cmmercial. Assumes that 97% ot projects built by developer and 3% wiJl be paid by TDIF cash_ 3 - Interfund loan from TDIF \0 PFOlF to be paid over 13 year term with interest. 4 -TDlF share 31% (based on original appropriation) 5- TOlF sllare approx. 25% of total 6 - Previous appropriation $900,000 7 - Nearing completion, potential for additional savings in FY10 8- Amount shown is only for portion of preliminary engineering (per 2005 TDlF update, cost estimate at $28M to be reviewed in the next TDIF Fee update)' 9- Amount shown i;> only for pn:ilimin<l:ry ellgineering (per 2005 update, cost estimate at $6.2M to be reviewed in next TDlF update) 10 -Nearing completion, potential for additional savings in FY10 11 -Do not anticipate beginning any work until 2020 (per 2005 TDIF update, cost estimated at $3.5M) 12- Program update occurs every three years 13 -Contingencies approximateiy 5% oftolai expenditures RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN INTERFUND LOA,,\! FROM THE TRANSPORTATION DEVELOPMENT IMPACT FEE FUND TO THE PUBLIC FACILITIES IMP ACT FEE FUND AND APPROPRIATING FUNDS THEREFOR WHEREAS, beginning in 1990, the City began an extensive capital outlay program for public facilities that was to be funded fully or partially from Public Facilities Development Impact Fees (PFDIF); and; WHEREAS, the fees to fund these projects' were initially established by Ordinance No. 2320 in August 1989; and WHEREAS, the objective of the development impact fees are to fund public facilities and related capital needs that are projected to be impacted by future growth; and . WHEREAS, the PFDIF has expended $80 million constructing public facilities on a pay- as-you-go basis using available cash in the PFDIF fund; and WHEREAS, these expenditures funded several major projects, including five fire stations and three recreation facilities; and WHEREAS, in addition, the PFDIF partially funded renovation of the Civic Center complex, South Chula Vista Library, and the new Police Facility using cash on hand; and WHEREAS, three projects (the Corporation Yard, Police Facility and Civic Center) were partially financed through the issuance of Certificates of Participation (COP) for a total of $128.7 million (principal only) over a long-term period using a combination of PFDIF funds and General Fund; and WHEREAS, because these debt obligations are backed by the full faith and credit of the General Fund, the General Fund is ultimately responsible for the payment of all debt obligations, even though, as a practical matter, a certain percentage of the payments are dependent on the fees collected by the PFDIF fund; and WHEREAS, due to the significant housing meltdown and number of foreclosures experienced within' the Ciry of Chula Vista, the development of new housing has essentially come to a halt; and WHEREAS, this has created a cash deficit in the PFDIF fund of $4.2 million as of the end of Fiscal Year 2007/2008; and )'\Allornev1RESQLL,IONS\Fl;""A:-'"CBApproving interfund loan from TOlF fund 10 PFIF fund 12-16-08.doc '. . '.' 10--8 Resolution No. 2008- Page 2 WHEREAS, due to the severity of the housing crisis, it is clear that the PFDIF fund will be unable to meet its annual debt obligations for the next few years; and WHEREAS, in order to avoid an impact to the General Fund, we are recommending an interfund loan from the TDIF to the PFDIF fund for $5.2 million to make the debt service payments scheduled for the current Fiscal Year 2008/2009; and WHEREAS, this will provide the City an opportunity to work through a restructuring of the PFDIF debt obligations with the objective of creating cash flow savings to meet debt obligations over the next few years; and WHEREAS, approving an interfund loan would alleviate the General Fund of having to step in and pay the PFDIF debt obligation of $5.2 million and avoid a significant impact to the General Fund reserves in the current fiscal year; and WHEREAS, in the event that the PFID fund is unable to repay the TDIF over the thirteen-year payment schedule beginning in Fiscal Year 2012/2013, the General Fund would 'be obligated to step in and. make the annual payment of approximately $710,000; and WHEREAS, the interfund loan of $5.2 million would reduce the cash balance in the TDIF fund by the same amount; and WHEREAS, the funds would be paid back from the PFDIF over thirteen years beginning in Fiscal Year 2012/2013 at an interest rate of3.80% (based on the pooled fund rate); and WHEREAS, based on the schedule of projects and anticipated timeframes for completion, the interfund loan should not delay or prevent any TDIF projects from being constructed as planned; and WHEREAS, if the PFDIF fund is unable to pay the interfund loan back to the TDIF fund in a timely man'ner, then the General Fund would be obligated to pay the outstanding balance; and WHEREAS, based on a thirteen-year interfund loan schedule, the anticipated costs to the PFDIF fund is $1.9 million in interest; and WHEREAS, the additional costs would be incorporated into the next PFDIF fee update; and WHEREAS, the Finance Department will review the refunding and restructuring options of the outstanding COPs with the objective of providing long-term cash flow relief; and WHEREAS, staff will return in the near future with a staff report outlining the various options and costs for City Council consideration. J:\AlIomeyIRESOLUTIONS\FINANCE\Approving inlerfund loan from TDlF fund 10 PF"lF fund 12-16-08.doc 10--9 Resolution No. 2008- Page 3 NOW, THEREFORE BE IT RESOLVED by the City Council of the City ofChula Vista that it approves an interfund loan from the Transportation Development Impact Fee fund to the Public Facilities Impact Fee fund in the amount of $5.2 million and appropriates funds therefor. Presented by Approved as to form by Maria Kachadoorian Director of Finance J J:\Allomey\RESOLVT10NS\FTNA~CE\Approving inlerfund loan from TDlF fund to PF, fOd~ 2i 108.00':