Item 23 - Installment Sale Agreement for the Septic to Sewer Island Project

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RESOLUTION NO. 2023-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING A CONSTRUCTION INSTALLMENT SALE AGREEMENT WITH THE CALIFORNIA STATE WATER RESOURCES CONTROL BOARD IN CONNECTION WITH THE FINANCING OF THE SEPTIC TO SEWER ISLAND PROJECT AND AUTHORIZING CERTAIN OTHER RELATED ACTIONS WHEREAS, the City of Santa Ana wishes to finance the costs of certain design and construction improvements to its water delivery infrastructure, specifically the Septic to Sewer Island Project ("Project"); and WHEREAS, the City intends to finance the Project or portions of the Project with funds ("Project Funds") provided by the State of California, acting by and through the State Water Resources Control Board ("State Water Board"); and WHEREAS, the City previously adopted Resolution No. 2019-029 authorizing an application for financial assistance to the State Water Board for the Project and Resolution No. 2019-031 declaring its intention to use a portion of the Project Funds to reimburse certain capital expenditures made prior to the receipt of Project Funds from available moneys of the City in connection with the Project; and WHEREAS, the City and State Water Board now desire to approve a Construction Installment Sale Agreement ("2022 Installment Sale Agreement") for the purpose of providing the terms relating to the distribution and repayment by the City of the Project Funds and relating to the City's payment of certain installment payments; and WHEREAS, under the 2022 Installment Sale Agreement, the installment payments payable by the City will be secured by a pledge of and payable from Net Revenues (as defined in the 2022 Installment Sale Agreement) of the City's Sewer Enterprise, as described in Exhibit B to the 2022 Installment Sale Agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Ana as follows: Section 1. The recitals set forth above are true and correct and adopted as findings in support of this Resolution. Section 2. The City approves the Project Funds in an amount not to exceed $1,529,220 with an interest rate not to exceed 2.60%. Section 3. The 2022 Installment Sale Agreement, a copy of which is attached as Exhibit A, is hereby approved in substantially the form thereof with changes as may be approved by the City Manager or his or her designee (each an "Authorized Representative"). Execution by an Authorized Representative of the 2022 Installment Resolution No. 2023-XXX Page 1 of 3