HomeMy WebLinkAboutReso 2006-036 - State Water Resource Board
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RESOLUTION NO. 2006-36
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING AUTHORIZING DESIGNATED CITY OFFICIALS TO
FILE AN APPLICATION FOR FINANCIAL ASSISTANCE FOR A
LOAN/GRANT FROM THE STATE W A TERRESOURCES CONTROL
BOARD, TO ACCEPT AND EXPEND THOSE FUNDS IF THE
APPLICATION IS GRANTED, AND TO DEDICATE THE SOURCE
OF REVENUE FOR REPAYMENT TO THE STATE REVOLVING
LOAN FUND
WHEREAS, the City of Redding (the "City") desires to finance the costs of planning, design, and
construction for the Clear Creek Wastewater Treatment Plant Rehabilitation and Expansion Project (the
"Project"); and
WHEREAS, the City intends to finance the construction and/or reconstruction of the Project or
portions of the Project with moneys ("Project Funds") provided by the State of California, acting by and
through the State Water Resources Control Board (the "Board"); and
WHEREAS, the Board may fund the Project Funds with proceeds from the sale of obligations the
interest upon which is excluded from gross income for federal income tax purposes (the "Obligations"); and
WHEREAS, prior to either the issuance of the Obligations or the approval by the Board of the Project
Funds the City desires to incur certain capital expenditures (the "Expenditures") with respect to the Project
from available moneys of the City; and
WHEREAS, the City has determined that those moneys to be advanced on and after the date hereof
to pay the Expenditures are available only for a temporary period and it is necessary to reimburse the City for
the Expenditures from the proceeds of the Obligations.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redding that the City
Engineer or the Director of Municipal Utilities is hereby authorized and directed to sign and file, for and on
behalf of the City of Redding, a Financial Assistance Application for a loan/grant from the State Water
Resources Control Board in the amount not to exceed seventy one million dollars for the planning, design,
and construction of Clear Creek Wastewater Treatment Plant Rehabilitation and Expansion Project; and
BE IT FURTHER RESOLVED that the City of Redding hereby agrees and further does authorize
the aforementioned representatives or his designee to certify that the City has and will comply with all
applicable state and federal statutory and regulatory requirements related to any federal and state loan/grants
received; and
BE IT FURTHER RESOLVED that the aforementioned representatives or his designee is hereby
authorized to negotiate and execute a loan/grant contract and any amendments or change orders thereto and
certify loan/grant disbursements on behalf of the City; and
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Rescinded by Resolution No~ '2011-14
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BE IT FURTHER RESOLVED as follows:
1.. The City hereby states its intention and reasonably expects to reimburse Expenditures paid
prior to the issuance of the Obligations or the approval by the Board of the Project Funds.
2. The reasonably expected maximum principal amount of the Project Funds is $71,000,000.
3. This resolution is being adopted no later than 60 days after the date on which the City will
expend moneys for the portion of the Project costs to be reimbursed with Project Funds.
4. Each Expenditure by the City will be of a type properly chargeable to a capital account under
general federal income tax principles.
5. To the best of our knowledge, the City is not aware of the previous adoption of official intents
by the City that hav,e been made as a matter of course for the purpose of reimbursing
expenditures and for which tax-exempt obligations have not been issued.
6. This resolution is adopted as official intent of the City in order to comply with Treasury
Regulation S 1.150-2 lmd any other regulations of the Internal Revenue Service relating to the
qualification for reimbursement of Project costs; and
BE IT FURTHER RESOLVED that the City hereby dedicates Wastewater Connection Fees and
Monthly Service Charges as the source of revenue for the payment of any and all State Revolving Fund loans
on the Project (C-06-4971-11O). This dedicated source of revenue shall remain in effect until such loan or
loans are fully discharged, unless modification or change of such dedication is approved in writing by the State
Water Resources Control Board.
I HEREBY CERTIFY that the foregoing resolution was introduced, read, and adopted at a regular
meeting of the City Council on the 7th day of March, 2006, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS: Dickerson, Mathena, Polhmeyer, Stegall and Murray
COUNCIL MEMBERS: None
COUNCIL l\1EMBERS: None
COUNCIL MEMBERS: None
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Attest:
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Form Approved:
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~RICHARD A. DUVERNAY, City Attorney
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