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future generations. T ne Santa Monica Mountains Conservancy and the two Districts found and
<br />determined that there is a need to expand, enhance, and restore these resources and that doing
<br />so would be to their mutual advantage and the public benefit. This led them to coordinate their
<br />power and authority and expertise in the context of a JPA to facilitate the acquisition,
<br />development, and conservation of such lands and resources with special emphasis on recreation
<br />and conservation projects, protection and conservation of watersheds, and the development of
<br />river parkways.
<br />Since its formation, the MRCA has remained dedicated to the preservation and management of
<br />local open space and parkland, watershed lands, trails, and wildlife habitat. It now manages
<br />and provides ranger services for over 69,000 acres of public lands and parks that it owns and
<br />those owned by the Santa Monica Mountains Conservancy or other agencies.
<br />In its operations, the MRCA actively uses lines of credit to fund necessary expenditures, as a
<br />large number of its activities are undertaken pursuant to reimbursable grants awarded to the
<br />MRCA - that is, the MRCA must pay vendors and then request reimbursement from grantor
<br />agencies, rather than having cash advanced at the time of the grant award.
<br />The two Zions lines are expiring, and MRCA proposes to replace them with 3 lines of credit with
<br />BBVA USA: an operating line in the amount of $2,000,000 (up from $1,000,000) for temporary,
<br />short-term cash flow deficits; a $3,000,000 capital line to finance, on a tax-exempt basis, grant -
<br />funded land acquisition and construction projects for open space and park and recreation
<br />facilities (which may include such projects to be located within the boundaries of the District);
<br />and a new working capital projects line of $3,000,000, to finance grant -funded projects for the
<br />benefit of the public that do not qualify for tax-exempt funding, such as recreational programs
<br />and maintenance of open space and park and recreation facilities, as well as incurring
<br />preliminary expenditures and conducting feasibility activities for proposed open space and park
<br />and recreation facilities (which may include such programs, maintenance activities, and projects
<br />to be offered, undertaken, or located within the boundaries of the District).
<br />Repayments on the MRCA promissory notes will be primarily secured by a pledge of the MRCA's
<br />general fund revenues, as well as grant funds relating to each project financed, and a deed of
<br />trust on a parcel of real property of the MRCA. Similar to the existing, expiring credit facility, the
<br />MRCA promissory notes and the Revolving Credit Agreement with BBVA USA will be an
<br />obligation of the MRCA and are not an obligation of the District or any other member agency of
<br />the MRCA. As noted above, the member agencies of the MRCA are the District, the Rancho
<br />Simi Recreation and Park District, and the Santa Monica Mountains Conservancy.
<br />Since 2006, the MRCA lines of credit have facilitated, and if the new lines of credit are approved,
<br />will continue to facilitate the more efficient delivery of open space and park and recreation
<br />facilities and services to the constituents of the District. Draws on the revolving lines of credit
<br />assist the MRCA during periods of uneven receipt of operating revenues or grant funding for
<br />projects, thereby providing for more efficient project administration and helping to avert
<br />disruptions in open space and park services.
<br />As the District is a member agency of the MRCA, adoption by the Board of Directors of the
<br />attached Resolution, after a public hearing, will facilitate the proposed Revolving Credit
<br />HILLCREST CENTER 403 WEST HILLCREST DRIVE, THOUSAND OAKS, CALIFORNIA 91360-4223
<br />(805) 495-6471 FAX: (805) 497-3199 E-MAIL:parks@crpd.org
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