HomeMy WebLinkAboutCC AG PKT 2008-06-09 #L
AGENDA STAFF REPORT
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DATE: June 9,2008
TO: Honorable Mayor and City Council
THRU: David Carmany, City Manager
FROM: Vince Mastrosimone, Director of Public Works
SUBJECT: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SEAL BEACH AUTHORIZING THE CITY TO BORROW MONEY
FROM THE STATE WATER RESOURCES CONTROL BOARD
FOR CERTAIN SEWER IMPROVEMENTS
SUMMARY OF REQUEST:
The City Council is asked to introduce for first reading the ordinance authorizing
the City to borrow money from the State Water Resources Control Board for
certain sewer improvements. .
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BACKGROUND:
On the February 11, 2008 City Council Meeting, staff introduced four financing
options to fund the 10-Year Sewer System Master Plan Capital Improvement
Projects. The Master plan outlined a total of over $15 million in capital projects.
Projects include upsizing existing sewer pipes, rehabilitating pump stations,
replacing broken pipes and appurtenances.
Of the four financing options, Council directed staff to pursue the low/no interest
loan with the State Revolving Fund Loan Program administered through the
State Water Resources Control Board. The program has two options, either a
100% (zero match) loan at an approximate interest rate of 2.5% or a 16.6%
match with a 0% interest rate. Staff will pursue the 0% interest rate with a 16.6%
match.
The program requires a resolution of the City Council authorizing staff to file an
application for a State Revolving Fund Loan.
FINANCIAL IMPACT:
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Participating in the State Revolving Fund Loan Program will not impact the
Ger.1eral Fund. The loans will be paid off by the Sewer Capital Fun~.
This loan application will be for $10,000,000. The funds will be drawn down over
a period of years and as needed to support the various sewer projects.
Agenda Item L
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RECOMMENDATION:
It is recommended City Council introduce Ordinance No. 1574 authorizing
the City to borrow money from the State Water Resources Control Board, State
Revolving Fund Lo gram, for certain sewer improvements.
NOTED AND APPROVED:
C;;-.;.I'-
David carma~Y!City Manager
Vi ce Mastrosimone
Director of Public Works
Attachments:
A. Ordinance
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ORDINANCE NUMBER 1574
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEAL
BEACH AUTHORIZING THE CITY TO BORROW MONEY FROM
THE STATE WATER RESOURCES CONTROL BOARD FOR
CERTAIN SEWER IMPROVEMENTS
RECITALS:
WHEREAS, the State Water Resources Control Board, created under the
California Water Code, Section 174 et seq. (the "Board"), offers several programs
(the "Programs") pursuant to which entities can apply for a low Interest rate loan in
order to finance improvements to their water and wastewater facilities; and
WHEREAS, the City of Seal Beach (the "City") desires to apply for a loan (the
"Loan") from the Board pursuant to one of the Board's eligible Programs in order to
obtain financing for improvements to its sewer system; and
WHEREAS, the Loan will be paid back from revenues of the sewer system;
and
WHEREAS, the Board offers a program pursuant to which the City can
contribute 16.667 percent of the eligible project costs in exchange for a lower
interest rate (the "Local Match"); and
WHEREAS, the City desires to participate In the Local Match using funds
from the sewer revenues in order to achieve a lower interest rate.
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH
DOES HEREBY ORDAIN AS FOLLOWS:
1. Recitals. The above recitals are all true and correct.
2. Loan. By passage of this Ordinance, the City Council authorizes the City to
enter into the Loan from the Board in order to finance certain sewer
improvements to be paid back from certain sewer revenues.
3. Local Match. By passage of this Ordinance, the City Council authorizes the
City to participate in the Local Match using funds from the sewer revenues in
order to achieve a greater interest rate savings.
4. Authorization. The City Engineer, the Finance Director and the City Manager
are each hereby authorized and directed, for and in the name and on behalf
of the City, to apply for the Loan and the Local Match, and to execute and
deliver any and all documents necessary to enter into the Loan and the Local
Match.
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5. Severability. If for any reason any portion of this Ordinance is found to be
invalid, the balance of this Ordinance shall not be affected.
6. Effective Date. This Ordinance shall be in full force and effect 30 days from
and after the date of its adoption. This Ordinance shall be subject to the
provisions for referendum applicable to the City.
7. Postina and Publication. The City Clerk is directed to cause copies of this
Ordinance to be posted in three prominent places in the City of Seal Beach
and to cause publication once in the Seal Beach Sun, the official newspaper
of the City of Seal Beach, of a notice setting forth the date of adoption, the
title of this Ordinance, and a list of places where copies of this Ordinance are
posted, within 15 days after adoption of this Ordinance.
11245.0001 7BD458v1
Ordinance Number 1574
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PASSED, APPROVED AND ADOPTED by the City Council of the City of
Seal Beach at a meeting thereof held on the day of , 2008.
Mayor
ATTEST:
City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Linda Devine, City Clerk of the City of Seal Beach, Califomia do hereby certify that
the foregoing Ordinance was introduced for first reading at a meeting held on the
9th day of June , 2008 and was passed, approved and adopted by
the City Council at a meeting held on the _day of , 2008 by the
following vote:
AYES: Councilmembers:
. NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
And do hereby further certify that Ordinance Number 1574 has been published
pursuant to the Seal Beach City Charter and Resolution Number 2836.
City Clerk
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