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HomeMy WebLinkAboutReso 2010-108 - State Water Resources Board ... e e RESOLUTION NO. 2010 - 108 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING AUTHORIZING DESIGNATED CITY OFFICIALS TO FILE AN APPLICATION FOR FINANCIAL ASSISTANCE FOR A FINANCIAL AGREEMENT FROM THE STATE WATER RESOURCES CONTROL BOARD, TO ACCEPT AND EXPEND THOSE FUNDS IF THE APPLICATION IS GRANTED, AND TO DEDICATE THE SOURCE OF REVENUE FOR REPAYMENT TO THE CLEAN WATER STATE REVOLVING LOAN FUND WHEREAS, the City of Redding (the "City") desires to finance the costs of constructing and/or reconstructing certain public facilities and improvements relating to its water and wastewater system, including certain treatment facilities, pipelines, and other infrastructure ofthe Boulder Creek Interceptor Sewer Project (the "Project"); and WHEREAS, the City intends to finance the construction and/orreconstruction of the Project or portions of the Project with moneys (the "Project Funds") provided by the State of California, acting by and through the State Water Resources Control Board (the "State Water Board"); and WHEREAS, the State Water 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 State Water 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; and WHEREAS, the City previously adopted Resolution No. 2009-109 on June 16, 2009, associated with the use of Project Funds from the State Water Board and the State now wishes to amend the text within the aforementioned Resolution; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redding that the City Engineer or the Director of Municipal Utilities or the Assistant City Manager is hereby authorized and directed to sign and file, for and on behalf of, the City of Redding, a Financial Assistance Application for a financing agreement from the State Water Resources Control Board for the planning, design, and construction of the Project. ~ (( '"" o ~ BE IT FURTHER RESOLVED that the City of Redding hereby agrees and further does authorize the aforementioned representatives or their designee to certify that the City has and will comply with all applicable state and federal statutory and regulatory requirements related to any financing or financial assistance received from the State Water Resources Control Board. BE IT FURTHER RESOLVED that the aforementioned representatives or their designee City of Redding are hereby authorized to negotiate and execute a financial assistance agreement from the State Water Resources Control Board and any amendments or change orders thereto and certify financing agreement disbursements on behalf of the City. BE IT FURTHER RESOLVED as follows: 1. The City hereby states its intention and reasonably expects to reimburse the Expenditures paid prior to the issuance of the Obligations or the approval by the State Water Board ofthe Project Funds. 2. The reasonably expected maximum principal amount ofthe Project Funds is $13,500,000. 3. This resolution is being adopted no later than 60 days after the date on which the City will expend moneys for the portion ofthe Projects' costs to be reimbursed with the Project Funds. 4. Each City Expenditure 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 have 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 ~ 1.150-2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of the Projects' costs. 7. That Resolution No. 2009-109 is hereby rescinded. BE IT FURTHER RESOLVED that the City hereby dedicates the net revenues of the Wastewater Fund as the source of revenue for the payment of any and all Clean Water State Revolving Fund and/or Water Recycling Funding Program financing on the Project. This dedicated source of revenue 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. e e I HEREBY CERTIFY that the foregoing resolution was introduced, read, and adopted at a regular meeting of the City Council on the 20th day of July, 2010, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: II J i,', ATTEST: C l -r '> ., . I ~ r , ~"}.J,"" ~)'rmp...'.: li;_-,< (" _ _ t '~< h. '" .. ~ ". ,:' ~ ..u . L:; i . PAM~LA MIZE, eK.? :ilefk . ~ .~~ ., _.~..,< c- .::~ '\ , ......... ~ ....... ~\.,,~.;....; \.,....' "".... ""'l-,"",r I ..~j':~' '<'" ,;~ ')1-' .,,;, r\-' '........ \' ,....... "'l., .... ~ ... , " Bosetti, Dickerson, McArthur, Stegall, and Jones None None None FORM APPRO ~