HomeMy WebLinkAboutReso - CC - 115-2002RESOLUTION NO. 115-2002
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME
APPROVING A STATE REVOLVING FUND LOAN FOR
WASTEWATER TREATMENT FACILITY IMPROVEMENTS AND
ACCOMPANYING DOCUMENTS AND AUTHORIZING THE ESTABLISHMENT OF
A CAPITAL RESERVE FUND IN CONNECTION THEREWITH
WHEREAS, the City of Burlingame ("City") pursuant to Resolution Nos. 59-2002 and
60-2002 adopted on May 20, 2002, authorized the City's application to the State Water
Resources Control Board (the "Board") for financial assistance for the City's Wastewater
Treatment Facility Improvement Project, City Project No. 9948 (the "Project") and the dedication
of sewer system use charges to repayment of a State Revolving Fund Loan; and
WHEREAS, there has been submitted, and is on file with the City Clerk, the proposed
form of State Loan and Installment Payment Agreement, by and between the City and the Board;
and
WHEREAS, in connection with the Agreement, the Board has required the City to
reserve a portion of its funds for future expansion, major repair or replacement costs of the City's
Wastewater System,
NOW THEREFORE, the City Council of the City of Burlingame hereby finds,
determines, declares and resolves as follows:
1. All of the recitals set forth above are true and correct, and the City Council so finds
and determines.
2. The proposed form of Installment Sale Agreement (the "Agreement"), by and between
the City and the State Water Resources Control Board, on file with the City Clerk, is hereby
approved. The City Manager and the Finance Director/Treasurer, jointly and severally, are
hereby authorized and directed, for and in the name and on behalf of the City, to execute and
deliver an installment sale agreement in substantially said form, with such changes therein as
such officer may require or approve, such approval to be conclusively evidenced by the execution
and delivery thereof; provided, however, that: (i) the tern of the Agreement shall end no later
than July 1, 2026; and (ii) the maximum principal amount of the Agreement shall not exceed
$11,000,000.
3. In connection with the Agreement, the City hereby pledges all Net Revenues (as such
term is defined in the Agreement) to repayment of the Agreement, provided that such Net
Revenues may additionally secure other obligations of the City on a parity or subordinate basis to
the Agreement. This pledge shall remain in effect until the Agreement is fully discharged unless
modification or changes to such pledge have been approved in writing by the Board.
4. A Wastewater System Capital Reserve Fund (the "Capital Reserve Fund") is hereby
established in connection with the Agreement, and the City hereby covenants for the benefit of
the Board to maintain such fund until the obligations of the City under the Agreement have been
discharged. The funding and use of the Capital Reserve Fund shall be subject to the following
provisions:
(a) Amounts in the Capital Reserve Fund shall be available for the expansion,
repair or replacement of any capital improvements of the City's Wastewater System,
including but not limited to costs for planning, design or construction of capital
improvements.
(b) Commencing in the fiscal year following completion of the Project, the
City shall deposit for a period of ten years from Net Revenues (as defined in the
Agreement), an annual amount equal to one-half of one percent (0.5%) of the final
principal amount of the Agreement. The deposit to the Capital Reserve Fund shall be
made on a subordinate basis to the payment of debt service on, or other contractual
requirements with respect to, obligations of the City payable from Net Revenues (as
defined in the Agreement).
(c) All earnings on amounts in the Capital Reserve Fund shall be deposited in
such fund.
(d) In the event of an expenditure from the Capital Reserve Fund, the City
shall, solely from Net Revenues, replenish such fund in an annual amount equal to ten
percent (10%) of the expenditure. The replenishment of the Capital Reserve Fund shall
be made on a subordinate basis to the payment of debt service on, or other contractual
requirements with respect to, obligations of the City payable from Net Revenues (as
defined in the Agreement).
(e) The City Manager and Finance Director/Treasurer, jointly and severally,
are hereby authorized to prepare and submit to the State Water Resources Control Board,
Division of Clean Water Programs, a report on the Capital Reserve Fund activities and
fund status beginning five (5) years after the completion of construction of the Project and
updated reports every five (5) years thereafter until the Agreement is discharged.
This Resolution shall take effect from and after its adoption and approval.
Mayor
I, ANN T. MUSSO, City Clerk of the City of Burlingame, do hereby certify that
the foregoing resolution was introduced at a regular meeting of the City Council held on the
21stday ofOctober , 2002, and adopted thereafter by the following vote:
AYES: COUNCILMEMBER: BAYLOCK, COFFEY, GALLIGAN, JANNEY, O'MANONY
NOES: COUNCILMEMBER: NONE
ABSENT: COUNCILMEMBER: NONE
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