HomeMy WebLinkAbout7051_CCv0001.pdf RESOLUTION NO. 7051
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS AUTHORIZING
THE MAYOR TO SIGN A FUNDING AGREEMENT, AMENDMENTS AND
CERTIFCATIONS FOR A SAFE DRINKING WATER STATE REVOLVING FUND LOAN;
AUTHORIZING THE CITY ENGINEER TO APPROVE CLAIMS FOR REIMBURSEMENT,
EXECUTE THE BUDGET AND EXPENDITURE SUMMARY, THE CONTRACTOR'S
RELEASE FORM AND THE CERTIFICATION OF PROJECT COMPLETION; AND
DEDICATING REVENUES FROM THE 506403 DEBT SERVICE FUND AS THE SOURCE
OF REVENUE TO REPAY SAID LOAN
WHEREAS, on October 28, 2008, the City of Redlands ("City") made application to the
California Department of Public Health for an Eighteen Million Dollar ($18,000,000) loan under
the Safe Drinking Water State Revolving Fund ("SDWSRF); and
WHEREAS, on March 5, 2009, the City adopted a project budget totaling Eighteen
Million Dollars ($18,000,000); and
WHEREAS, on June 4, 2009, City Council of the City of Redlands approved an
agreement for the design for the Project totaling One Million Six Hundred and Seven Thousand
Eight Hundred Eighty Nine Dollars ($1,607,889); and
WHEREAS, on October 22, 2009, the California Department of Public Health issued a
Notice of Application Acceptance to the City committing Ten Million Four Hundred Seventy Six
Thousand One Hundred Dollars ($10,476,100) in loan funding from the SDWSRF for the
Hinckley Water Treatment Plant Upgrade/Project Number: 3610037-004 ("Project"); and
WHEREAS, as provided in the SDWSRF Procedure Manual-Appendix H memorandum
dated as of September 8, 2010, the Project's total SDWSRF eligible cost increased to Thirteen
Million Six Hundred Sixty Three Thousand Thirty Three Dollars ($13,663,033); and
WHEREAS, on June 6, 2011, City Council of the City of Redlands adopted a revised
Project budget totaling Thirteen Million Sixty Thousand Dollars ($13,060,000); and
WHEREAS, the funding agreement under the SDWSRF provides for a Thirteen Million
Six Hundred Sixty Three Thousand Thirty Three Dollar ($13,663,033) loan with a 20 year
repayment term at a 2.5017 percent interest rate; and
WHEREAS, the remaining casts of the Project are to be funded under the City; and
WHEREAS, prior to the California Department of Public Health issuing a funding
agreement, the City is required to adopt a resolution formally establishing a dedicated source of
revenue to repay the loan; authorizing an officer to execute all funding agreements, amendments
and certifications; designating a person to approve claims for reimbursement; designating a
registered engineer to sign the Budget and Expenditure Summary; designating a registered
I:lcclerk\Resolutions\Res 7000-799917051 Authorizing Signature of Funding Agreement.doc 1
engineer to sign Certification of Project Completion; and designating a person to sign the
Contractor's Release Form; and
WHEREAS, the City is required to establish water rates and charges in amounts
sufficient to generate and maintain net revenues from its 506493 Debt Service Fund equal to at
least 1.2 times annual total debt service;
NOW, THEREFORE, BE 1T RESOLVED, by the City Council of the City of Redlands
as follows:
Section 1. The Mayor of the City of Redlands is hereby authorized to incur
indebtedness on behalf of the City pursuant to the funding agreement.
Section 2. The City Engineer is hereby authorized to approve Claims for
Reimbursement, execute the Budget, Expenditure Summary, the Contractor's Release Form for
the SDWSRF program, and certify that the Project is complete and ready for final inspection;
and
Section 3. The City hereby designates net revenues from its 506403 Debt Service
Fund as the dedicated source of revenue to repay the SDWSRF loan and pledges its 506403 Debt
Service Fund as collateral for the Safe Drinking Water State Revolving Fund. This dedication
and pledge shall remain in full force and effect until such loan is fully discharged, unless
modification or change of such dedication and pledge is approved in writing by the California
Department of Public Health. if for any reason, the source of revenue proves insufficient to
satisfy the debt service of the SDWSRF loan, sufficient funds shall be raised through increased
water rates, user charges or assessments or any other legal means available to meet the loan
obligation and to operate and maintain the Project.
Section 4. The City does hereby covenant to establish water rates and charges in
amounts sufficient to generate and maintain net revenues from its 506403 Debt Service Fund
equal to at least 1.2 times annual total debt service.
Section 5. The authority granted hereunder shall be deemed retroactive. All acts
authorized hereunder and performed prior to the date of this Resolution are hereby ratified and
affirmed. The California Department of Public Health is authorized to rely upon this Resolution
until written notice to the contrary, executed by the undersigned, is received by the California
Department of Public Health. The California Department of Public Health shall be entitled to act
in reliance upon the matters contained herein, notwithstanding anything to the contrary contained
in the formation documents of the City or in any other document.
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ADOPTED, SIGNED AND APPROVED this 21"day of June, 2011
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Pete Aguilar, Mayor
ATTEST:
Sari Irwin, City elerk
1, Sam Irwin, City Clerk of the City of Redlands, hereby certify that the foregoing resolution was
adopted by the City Council at a regular meeting thereof held on the 21st day of June, 2011 by
the following vote:
AYES: Councilmembers Bean, Foster, Gardner; Mayor Aguilar
NOES: None
ABSTAIN: None
ABSENT: Councilmember Harrison
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City Cler
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