HomeMy WebLinkAboutReso 2011-014 - Rescind prior Reso's
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RESOLUTION NO. 2011 - 14
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF REDDING RESCINDING RESOLUTION
NO. 2006-36 AND RESOLUTION NO. 2008-19 AND
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 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 of 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 (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 Projects from available moneys ofthe 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. 2006-36 on February 22, 2006, and
Resolution No. 2008-19 on February 19,2008, both associated with the use of Project Funds from
the State Water Board, and now wishes to rescind the aforementioned Resolutions;
NOW, THEREFORE, BE IT RESOLVED by the City Council ofthe City of Redding that
the City Engineer or the Director of Public Works 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.
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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
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 of the Project Funds.
2. The reasonably expected maXImum principal amount of the Project Funds IS
$80,000,000.
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 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 ofthe 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 ofthe Internal Revenue Service relating to
the qualification for reimbursement of the Projects' costs.
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7. That Resolution No. 2006-36 and Resolution No. 2008-19 are 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 (C-06-4971-
110/210/220/230/240/250/260). 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.
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I HEREBY CERTIFY that the foregoing resolution was introduced, read, and adopted at a
regular meeting of the City Council on the 18th day of January, 2011, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN :
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
Bosetti, Dickerson, Jones, Sullivan, and McArthur
None
None
None
ATTEST: FORM APPROVED:
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