HomeMy WebLinkAboutCC AG PKT 2008-07-14 #CCAGENDA STAFF REPORT
DATE: July 14, 2008
TO: Honorable Mayor and City Council
THRU: David Carmany, City Manager
FROM: Vince Mastrosimone, Director of Public Works
SUBJECT: AUTHORIZE THE CITY TO BORROW MONEY FROM
THE STATE WATER RESOURCES CONTROL BOARD
FOR CERTAIN SEWER IMPROVEMENTS
SUMMARY OF REQUEST:
Waive further reading and Adopt Ordinance No. 1574 authorizing the City to
borrow money from the State Water Resources Control Board for certain sewer
improvements.
• BACKGROUND:
At 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 an ordinance authorizing filing an application for a
State Revolving Fund Loan.
The City Council considered this matter on June 9, 2008 and introduced the
subject ordinance. There is a slight modification of the ordinance as introduced.
The Director of Finance has been deleted as a person authorized to execute
documents on behalf of the City. This is in keeping with internal control policies
of the City. The City Engineer is included due to specific documents in the
• application which require his signature. It is now appropriate to adopt the subject
ordinance.
Agenda Item CC
Page 2
FINANCIAL IMPACT:
Participating in the State Revolving Fund Loan Program will not impact on the
General Fund. The loans will be paid off by the Sewer Capital Fund.
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.
RECOMMENDATION:
It is recommended that the City Council waive further reading and adopt
Ordinance No. 1574 authorizing the City to borrow money from the State Water
Resources Control Board, State Revolving Fund Loan Program, for certain sewer
improvements.
SUBMI BY:
Vince Mastrosimone
Director of Public Works
NOTED AND APPROVED:
~'-=~
David Carma y, City Manager
Attachments:
A. Ordinance
~i
C
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
and
WHEREAS, the Loan will be paid back from revenues of the sewer system;
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.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL
BEACH DOES HEREBY ORDAIN AS FOLLOWS:
1. Recitals. The above recitals are ali 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 Manager and the City Engineer 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. .
5. Severabilitv. 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 foroe 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. Postino 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.
11245.0001780458v1
Ordinance Number 1574
PASSED, APPROVED AND ADOPTED by the City Council of the City of Seal
Beach at a meeting thereof held on the 14th day of Julv , 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, California 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 14th day of Julv , 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
•
•
S7296-1106/866461
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