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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 a4A& I )'�� tty Clerk C:\Documents and Settings\dmortensen\Local Settings\Temporary Intemet Files\OLK2C\wastewaterreserve.res.wpd