HomeMy WebLinkAboutCC AG PKT 2011-01-10 #M AGENDA STAFF REPORT
DATE: January 10, 2011
TO: Honorable Mayor and City Council
THRU: Patrick P. Importuna, City Manager
FROM: Sean P. Crumby, -P.E., Director of Public Works
SUBJECT: STATE REVOLVING FUND FINANCING PROGRAM
(SEWER CAPITAL FUND)
SUMMARY OF REQUEST:
To dedicate a source of revenue for repayment and establishing a reserve fund
in participation with Clean Water State Revolving Fund Financing Program in
accordance with the State Water Resources Control Board's requirement.
BACKGROUND:
On August 8, 2005, the City Council adopted the 2005 Sewer System Master
Plan Update which identified over $15 million in required Capital Improvement
Projects.
At the February 11, 2008 City Council Meeting, the City Council directed staff to
pursue the low /no interest Financing with the State Revolving Fund Financing
Program administered through the State Water Resources Control Board.
At the July 14, 2008 City Council Meeting, Council adopted Ordinance No. 1574
authorizing the City to borrow money from the State Water Resources Control
Board. Since that time city staff has been working with the state regarding
approval of the financing application.
At the August 9, 2010 City Council Meeting, Council adopted two resolutions;
1. Dedicate a revenue source to repay the Financing Agreement and
2. Establishing a reserve fund for any debt on parity with the City's existing
Certificate of Participation Bond.
Agenda Item M
Page 2
In review of the first resolution, dedicating a revenue source, the State has
requested the City to modify the resolution to reflect the following:
1. Delete the term "Loan" and replace with "Financing"
2. Add project numbers C -06- 5310 -110 and C -06- 5310 -120 to match the
financing agreement
The State has informed the City that the financing agreement is approved
contingent on one remaining item being addressed. The State is requesting
Coastal Commission approval of the project. Staff is currently working with the
Coastal Commission and has submitted an exemption form for the project. The
Coastal Commission is reviewing the submittal.
FINANCIAL IMPACT:
Participating in the State Revolving Fund Financing Program will not impact the
General Fund. The Financing will be paid off by the Sewer Capital Fund.
This Financing application will be for $10,000,000. The Sewer Capital Funds will
be drawn down over a period of years and as needed to support the various
sewer projects.
RECOMMENDATION:
It is recommended City Council adopt Resolution No. 6102 dedicating a source
of revenue for repayment of the Clean Water State Revolving Fund Financing in
accordance with the State Water Resources Control Board's requirements.
SUBMITTED BY: NOTED AND APPROVED:
Sean P. Crumby, P.E. Patrick P. I port4n4, City Manager
Director of Public Works
Prepared by: Michael Ho, City Engineer
Attachments:
A. Resolution No. 6102
RESOLUTION NUMBER 6102
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
DEDICATING A SOURCE OF REVENUES FOR REPAYMENT OF
THE CLEAN WATER STATE REVOLVING FUND FINANCING IN
ACCORDANCE WITH THE STATE WATER RESOURCES
CONTROL BOARD'S REQUIREMENTS
WHEREAS, the State Water Resources Control Board (the "Board "), created
under the California Water Code, Section 174 et seq., offers several Clean
Water State Revolving Fund programs (the "Programs ") pursuant to which
entities can apply for financing for improvements to water and wastewater
facilities; and
WHEREAS, the City of Seal Beach (the "City") applied for one of the Board's
eligible Programs in order to obtain financing for improvements to its sewer
system; and
WHEREAS, such financing will be paid back from net revenues of the sewer
system ( "Net Revenues "); and
WHEREAS, the Board requires the City to dedicate a source of revenues for
repayment of the financing.
THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY
RESOLVE AS FOLLOWS:
Section 1. The City Council of the City of Seal Beach hereby dedicates Net
Revenues to pay any and all Clean Water State Revolving Fund financing on
Project Numbers C -06- 5310 -110 and C -06- 5310 -120 (the "Projects "). This
dedicated source of net revenues shall remain in effect throughout the term of
such financing unless modification or change of such dedication is approved in
writing by the State Water Resources Control Board. The Clean Water State
Revolving Fund financing for the Projects will be secured by a lien upon Net
Revenues on a parity with installment payments due and payable on the City's
$4,230,000 Certificates of Participation (2000 Sewer System Financing Project)
which are currently outstanding in the amount of $3,460,000 (the "2000 COPs "),
unless the 2000 COPs are paid off before maturity. The City expects the 2000
COPs to be paid off in January 2011 if market conditions are favorable.
PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a
regular meeting held on the 10th day of January , 2011 by the following vote:
AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
Mayor
ATTEST:
City Clerk
57296- 1122 \1059193v3.doc
Resolution Number 6102
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 6102 on file in
the office of the City Clerk, passed, approved, and adopted by the Seal Beach
City Council at a regular meeting held on the 10th day of January , 2011.
City Clerk
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