HomeMy WebLinkAboutCC Res 6046 2010-08-09RESOLUTION NUMBER 6046
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
ESTABLISHING A RESERVE FUND IN CONNECTION WITH ITS
PARTICIPATION IN THE STATE WATER RESOURCES
CONTROL BOARD'S CLEAN WATER STATE REVOLVING
FUND LOAN PROGRAM
WHEREAS, the State Water Resources Control Board, created under the
California Water Code, Section 174 et seq. (the "Board "), offers several Clean
Water State Revolving Fund programs (the "Programs ") pursuant to which
entities can apply for a low interest rate loan in order to finance improvements to
water and wastewater facilities; and
WHEREAS, the City of Seal Beach (the "City ") applied 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 net revenues of the sewer
system (the "Net Revenues ") on a parity basis with the installment payments due
under the Installment Sale Agreement, dated June 1, 2000 by and between the
City and the Seal Beach Public Financing Authority (2000 Sewer System
Financing Project) (the "Installment Sale Agreement ") relating to the City's
outstanding Certificates of Participation (2000 Sewer System Improvement
Project); and
WHEREAS, the Installment Sale Agreement requires the City to establish
and fund a reserve fund for any debt issued on parity with the City's installment
payments due under the Installment Sale Agreement.
NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES
HEREBY RESOLVE AS FOLLOWS:
Section 1. The City Council hereby establishes a "State Water Resources
Control Board Loan - Reserve Fund" (the "Reserve Fund ") to be administered by
the City in connection with the Loan.
Section 2. Upon the start date of the Loan, the City Council hereby
directs the City Manager to transfer to the Reserve Fund an amount equal to the
lesser of: (i) the maximum annual payments to be made with respect to the
Loan, (ii) 125 percent of the average annual payments to be made with respect
to the Loan; or (iii) 10% of the principal amount of the Loan.
PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a
regular meeting held on the 9th day of August , 2010 by the
following vote:
AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
Mayor
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Resolution Number 6046
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Linda Devine, City Clerk of the City of Seal Beach, do hereby certify that the
foregoing resolution is the original copy of Resolution Number 6046 on file in
the office of the City Clerk, passed, approved, and adopted by the City Council at
a regular meeting held on the 9th day of August , 2010.
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