Resolutions Required by the State Water Resources Control Board as Part of the DWSRF Application to Construct Improvements at Well #16 and Well #14.

Meeting Date: January 17, 2017

Note from TheGardeningSnail..This Page may have been produced by running a PDF Image File through a program which converts Image to Text. My apologies for any Textual Gremlins that may have crept in during the Process. I also may have broken up some of the longer paragraphs.

STAFF REPORT

AGENDA ITEM: Resolutions Required by the State Water Resources Control Board as Part of the DWSRF Application to Construct Improvements at Well #16 and Well #14.

MEETING DATE: January 17, 2017

PREPARED BY: Alfonso Manrique, Alternate City Engineer

REVIEWED BY: Odi Ortiz, Interim City Manager

clip_image001

RECOMMENDATION:

City Council to adopt three resolutions required by the State Water Resources Control Board (SWRCB) as part of the Drinking Water State Revolving Fund (DWSRF) Application.

BACKGROUND:

The City is applying to the SWRCB DWSRF to fund the construction of the Well #16 and #14 Arsenic and TCP Removal Treatment System Improvements. The SWRCB requires that the applicant’s Governing Board adopt three resolutions. The resolutions are as follows:

•• A Resolution authorizing the Interim City Manager to sign and file a financial assistance application to the DWSRF for the planning, design and construction of the Well #16 and #14 Arsenic and TCP Removal Treatment System Improvements.

•• A Resolution authorizing the Interim City Manager to sign the financing agreement, amendments, and certifications for funding, to approve claims for reimbursement, to execute budget and expenditure summary, to sign final release form and to sign certification of the project completion, and pledging and dedicating net water revenues to pay DWSRF financing.

•• A Resolution stating the Council’s intention to be reimbursed for expenditures incurred ahead of the approval of the disbursement of DWSRF construction funds.

DISCUSSION:

The adoption of these three resolutions is a requirement to complete the applications. These three resolutions are needed to complete the application.

Once the application is submitted and deemed complete, the SWRCB will begin drafting a financing agreement which may take up to twelve months to complete. SWRCB staff have not indicated whether how much of the project will be grant funded. However, the City is no longer considered a Disadvantaged Community and it is likely that it will be all loans. The City will pay the DWSRF loan using net revenues from the water fund.

Page 1of 2

FISCAL IMPACT:

The adoption of these Resolutions has no immediate Fiscal Impact. The funding agreement, once approved, will contain the financial impact on the water fund.

ATTACHMENTS:

1. Resolution 2017 – titled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON AUTHORIZING THE INTERIM CITY MANAGER TO SIGN FINANCING AGREEMENT, AMENDMEND, AND CERTIFICATIONS FOR FUNDING UNDER THE DRINKING WATER STATE REVOLVING FUND (DWSRF); AUTHORIZING CITY MANAGER TO APPROVE CLAIMS FOR REIMBURSEMENT,· AUTHORIZING CITY MANAGER TO EXECUTE BUDGET AND EXPENDITURE SUMMARY; AUTHORIZING INTERIM CITY MANAGER TO SIGN THE FINAL RELEASE FORM AND CITY MANAGER TO SIGN THE CERTIFICATION OF PROJECT COMPLETION; AND PLEDGING AND DEDICATING NET WATER REVENUES FROM TO PAYMENT OF DWSRF FINANCING. "

2. Resolution 2017 – titled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON STATING ITS INTENTION TO BE REIMBURSED FOR EXPENDITURES INCURRED AHEAD OF THE APPROVAL OF THE DISBURSEMENT OF DWSRF CONSTRUCTION FUNDS FROM THE STATE WATERRESOURCES CONTROL BOARD. "

3. Resolution 2017- titled: "RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON AUTHORIZING THE INTERIM CITY MANAGER TO SIGN AND FILE A FINANCIAL ASSISTANCE APPLICATION TO THE STATE DRINKING WATER STATE REVOLVING FUND (DWSRF) FOR THE PLANNING DESIGN AND CONSTRUCTION OF THE WELL #16 AND #14 ARSENIC AND TCP REMOVAL TREATMENT SYSTEM IMPROVEMENTS."

RESOLUTION NO. 2017-_

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON AUTHORIZING THE INTERIM CITY MANAGER TO SIGN FINANCING AGREEMENT,

AMENDMENT, AND CERTIFICATIONS FOR FUNDING UNDER THE DRINKING WATER STATE REVOLVING FUND (DWSRF); AUTHORIZING INTERIM CITY MANAGER TO APPROVE CLAIMS FOR REIMBURSEMENT; AUTHORIZING INTERIM CITY MANAGER TO EXECUTE BUDGET AND EXPENDITURE SUMMARY; AUTHORIZING INTERIM CITY MANAGER TO SIGN THE FINAL RELEASE FORM AND INTERIM CITY MANAGER TO SIGN THE CERTIFICATION OF PROJECT COMPLETION; AND PLEDGING AND DEDICATING NET WATER REVENUES TOWARDS PAYMENT OF DWSRF FINANCING

WHEREAS, the City of Livingston Well #16 and Well #14 produce water with a TCP concentration in excess of the recommended maximum contaminant level (MCL) of 5 ng/1; and

WHEREAS, the City of Livingston Well #16 also produces arsenic in excess of the MCL of 10 ug/1; and

WHEREAS, the City of Livingston is seeking financing from the State Water Resources Control Board to construct arsenic and TCP removal treatment improvements at Well #16 and Well #14 ("Project").

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Livingston hereby resolves as follows:

1. The Interim City Manager is hereby authorized and directed to sign and file, for and on behalf of the City of Livingston a financial assistance application for a financing agreement from the State Water Resources Control Board for the Project;

2. The Interim City Manager or designee is hereby authorized to sign the DWSRF program financing agreement for the Project and any amendments thereto, and provide the assurances, certifications and commitments required therefore;

3. The Interim City Manager or designee is hereby authorized to represent the City of Livingston in carrying out the City of Livingston’s responsibilities under the financing agreement, including approving and submitting disbursement requests (including Claims for Reimbursement) or other required documentation, compliance with applicable state and federal laws, and making any other necessary certifications;

4. The City of Livingston does hereby dedicate and pledge its net water revenues and its water enterprise fund to payment of the DWSRF financing for the Project.

The City of Livingston commits to collecting such revenues and maintaining such fund(s) throughout the term of such financing and until the City of Livingston has satisfied its repayment obligation there under unless modification or change is approved in writing by the State Water Resources Control Board.

So long as the financing agreement(s) are outstanding, the City of Livingston pledge hereunder shall constitute a lien in favor of the State Water Resources Control Board on the foregoing fund(s) and revenue(s) without any further action necessary. So long as the financing agreement(s) are outstanding, the City of Livingston commits to maintaining the fund(s) and revenue(s) at levels sufficient to meet its obligations under the financing agreement(s).

If for any reason, the said source of revenues proves insufficient to satisfy the debt service of the DWSRF obligation, sufficient funds shall be raised through increased water rates, user charges, or assessments or any other legal means available to meet the DWSRF obligation and to operate and maintain the project; and

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 State Water Resources Control Board is authorized to rely upon this Resolution until written notice to the contrary, executed by each of the undersigned, is received by the State Water Resources Control Board.

The State Water Resources Control Board 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 of Livingston or in any other document.

Passed and adopted this 17th day of January, 2017, by the following vote:

AYES:

NOES:

ABSENT:

Jim Soria, Mayor of the City of Livingston

ATTEST:

I, hereby certify that the foregoing resolution was regularly introduced, passed and adopted at a Regular Meeting of the City Council of the City of Livingston this 17th day of January, 2017.

Betty Cota, Deputy City Clerk of the City of Livingston

RESOLUTION NO. 2017-_

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON STATING ITS INTENTION TO BE REIMBURSED FOR EXPENDITURES INCURRED AHEAD OF THE APPROVAL OF THE DISBURSEMENT OF DWSRF CONSTRUCTION

FUNDS FROM THE STATE WATER RESOURCES CONTROL BOARD

WHEREAS, the City of Livingston (the "Agency") desires to finance the costs of constructing and/or reconstructing certain public facilities and improvements relating to its water system, including certain treatment facilities, pipelines and other infrastructure (the "Project"); and

WHEREAS, the Agency intends to finance the construction and/or reconstruction of the Project or portions of the Project with moneys ("Project Funds") provided by the State of California, acting by and through the State Water Resources Control Board (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 Agency desires to incur certain capital expenditures (the "Expenditures") with respect to the Project from available moneys of the Agency; and

WHEREAS, the Agency 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 Agency for the Expenditures from the proceeds of the Obligations.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Livingston hereby resolves as follows:

clip_image004SECTION 1. The Agency hereby states its intention and reasonably expects to reimburse Expenditures paid prior to the issuance of the Obligations or the approval by the State Water Board of the Project Funds.

SECTION 2. The reasonably expected maximum principal amount of the Project Funds is $4,000,000.

SECTION 3. This resolution is being adopted no later than 60 days after the date on which the Agency will expend moneys for the construction portion of the Project costs to be reimbursed with Project Funds.

SECTION 4. Each Agency expenditure will be of a type properly chargeable to a capital account under general federal income tax principles.

SECTION 5. To the best of our knowledge, this Agency is not aware of the previous adoption of official intents by the Agency 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.

SECTION 6. This resolution is adopted as official intent of the Agency 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 Project costs.

SECTION 7. All the recitals in this Resolution are true and correct and this Agency so finds, determines and represents.

Passed and adopted this 17th day of January, 2017, by the following vote:

AVES:

NOES:

ABSENT:

Jim Soria, Mayor of the City of Livingston

ATIEST:

I, hereby certify that the foregoing resolution was regularly introduced, passed and adopted at a Regular Meeting of the City Council of the City of Livingston this 1th day of January, 2017.

Betty Cota, Deputy City Clerk of the City of Livingston

RESOLUTION NO. 2017-_

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON AUTHORIZING THE CITY MANAGER TO SIGN AND FILE A FINANCIAL ASSISTANCE

APPLICATION TO THE STATE DRINKING WATER STATE REVOLVING FUND (DWSRF) FOR THE CONSTRUCTION OF ARSENIC AND TCP TREATMENT IMPROVEMENTS AT WELL #16 AND #14

WHEREAS, the City of Livingston {City) has the authority to construct, operate and maintain its water system; and

WHEREAS, the City desires to enhance the provision and protection of the drinking water supplied to the consumers of the City of Livingston.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Livingston hereby resolves as follows:

1. The Interim City Manager {the "Authorized Representative") or designee is hereby authorized and directed to sign and file, for and on behalf of the Entity, a Financial Assistance Application for a financing agreement from the State Water Resources Control Board for the construction of arsenic and TCP treatment improvements at Well #16 and #14 {the "Project").

2. This Authorized Representative, or his/her designee, is designated to provide the assurances, certifications, and commitments required for the financial assistance application, including executing a financial assistance agreement from the State Water Resources Control Board and any amendments or changes thereto.

3. The Authorized Representative, or his/her designee, is designated to represent the Entity in carrying out the Entity’s responsibilities under the financing agreement, including certifying disbursement requests on behalf of the Entity and compliance with applicable state and federal laws.

Passed and adopted this 17th day of January, 2017, by the following vote:

AYES:

NOES:

ABSENT:

Jim Soria, Mayor of the City of Livingston

ATIEST:

I,hereby certify that the foregoing resolution was regularly introduced, passed and adopted at a Regular Meeting of the City Council of the City of Livingston this 1th day of January, 2017.

 
 

clip_image008

Betty Cota, Deputy City Clerk of the City of Livingston