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HomeMy WebLinkAbout55A - RESO CLEAN WATER CIPREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 18, 2018 CLERK OF COUNCIL USE ONLY: TITLE: APPROVED ADOPT REIMBURSEMENT AND PLEDGED ❑ As Recommended REVENUE AND FUNDS RESOLUTIONS E]Amended E]OOrrdinance on 1 Reading FOR CLEAN WATER AND SAFE DRINKING ❑ Ordinance on 2ntl Reading WATER STATE REVOLVING FUND ❑ Implementing Resolution CAPITAL IMPROVEMENT PROJECTS - [I Set Public Hearing For [NONGENERAL FUND] (STRATEGIC PLAN NO. 6, 1G) CIV MAN GER RECOMMENDED ACTION CONTINUED TO FILE NUMBER Adopt Reimbursement and Pledged Revenue and Funds Resolutions required for participation in the California State Water Resources Control Board, Clean Water State Revolving Fund and Safe Drinking Water State Revolving Fund programs, pledging funds from any financing received through these programs for the four capital improvement projects below and authorizing the reimbursement of expenditures for these projects made prior to the receipt of such financing: 1. Segerstrom (San Lorenzo) Sewer Lift Station 2. Sewer Collection System Improvements 3. Automated Metering Infrastructure 4. Water Distribution System Improvements DISCUSSION The California State Water Resources Control Board (SWRCB) oversees two capital improvement financing programs, known as the Safe Drinking Water State Revolving Fund (SDWSRF) and Clean Water State Revolving Fund (CWSRF), which provide grants and low-cost flexible financing for capital improvements to water and wastewater utilities. On August 2, 2016, Council adopted resolutions and authorized staff to submit various applications for grants and/or low interest loans to the SWRCB for both water and sewer infrastructure projects. With the assistance of a contract consultant, staff has submitted applications for the subject capital projects that are good candidates for SWRCB approval. These projects would benefit from a near-term infusion of cash to shorten their respective project delivery schedules, and accelerate realization of service -level and financial benefits to the City and its enterprise ratepayers. 55A-1 Adopt Reimbursement and Pledged Revenue and Funds Resolutions for State Revolving Fund Capital Improvement Projects September 18, 2018 Page 2 The following projects were selected by staff in accordance with the water and sewer infrastructure master plans: Application Project Name Proiect # and Description 1. San Lorenzo Sewer Lift Station 06-3510; Replace Segerstrom sewer lift station 2. Sewer Collection System Improvements Replace existing mains and associated assets 3. Automated Meter Infrastructure 16-6460; Replace 48,000 meters with smart meters and associated assets 4. Water Distribution System Improvements Replace end -of -useful -life cast iron water mains Stage of Delivery Estimated Cost Finalizing Plans & $4.0 Million Specifications Various, ongoing $9.5 Million Feasibility Study $13.7 Million Complete Various, ongoing $14.6 Million Staff utilized the services of the City's Municipal Consultant, Urban Futures, to evaluate the water and sewer enterprise's ability to accommodate new debt. It was concluded that both enterprises have the financial capacity of incurring the type of financing award offered through the SDWSRF and CWSRF. If the SWRCB elects to award the City low interest loans, staff will return to Council at a future date with a detailed analysis and recommendation on whether to accept or decline any award. The project applications have advanced to the fourth and final step in the SWRCB review process, which is the submission of a financial application and accompanying Reimbursement and Pledged Revenues resolutions. These resolutions are required to meet the State's requirements, regardless of whether or not the City receives this funding as a grant or a low- interest loan. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 - Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy G (develop and implement the City's Capital Improvement Program in coordination with the Community Investment and Deferred Maintenance Plans ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. 55A-2 Adopt Reimbursement and Pledged Revenue and Funds Resolutions for State Revolving Fund Capital Improvement Projects September 18, 2018 Page 3 FISCAL IMPACT There is no fiscal impact associated with this action at this time. Upon notification of financing award, staff will return to Council for approval of further actions and will indicate the fiscal impact of any such awards and associated expenditures at that time. Z,4��►'� �• s . Fuad S. Sweiss, PE, PLS Executive Director Public Works Agency FS/NS/RR Exhibit: 1. Pledge Revenues and Funds Resolution: Segerstrom (San Lorenzo) Sewer Lift Station 2. Reimbursement Resolution: Segerstrom (San Lorenzo) Sewer Lift Station 3. Pledge Revenues and Funds Resolution: Sewer Collection System Improvements 4. Reimbursement Resolution: Sewer Collection System Improvements 5. Pledge Revenues and Funds Resolution: Automated Metering Infrastructure 6. Reimbursement Resolution: Automated Metering Infrastructure 7. Pledge Revenues and Funds Resolution: Water Distribution System Improvements 8. Reimbursement Resolution: Water Distribution System Improvements 55A-3 55A-4 Jmf 8/14/18 RESOLUTION NO. 2018 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA PLEDGING REVENUES AND FUNDS FOR THE REPAYMENT OF FINANCING FROM THE STATE WATER RESOURCES CONTROL BOARD FOR THE SEGERSTROM (SAN LORENZO) SEWER LIFT STATION PROJECT WHEREAS, the City of Santa Ana ("Agency') desires to finance the costs of constructing and/or reconstructing certain public facilities and improvements relating to its water and wastewater system, including specifically the Segerstrom (San Lorenzo) Sewer Lift Station Project ("Project"); and WHEREAS, the City Council of the City of Santa Ana has previously authorized City staff to apply for financing of the construction and/or reconstruction of the Project or portions of the Project with low interest moneys from the State Revolving Fund, 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 requires, as a condition of approval of any financing agreement, the establishment of pledged sources of revenue to repay this financing. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Ana as follows: Section 1. The City of Santa Ana hereby dedicates and pledges the net revenues of the sewer enterprise fund and the sewer enterprise fund to payment of any and all Clean Water State Revolving Fund and/or Water Recycling Funding Program financing for the Segerstrom (San Lorenzo) Sewer Lift Station Project. Section 2. The City commits to collecting such revenues and maintaining such fund(s) throughout the term of such financing and until the City has satisfied its repayment obligation thereunder unless modification or change is approved in writing by the State Water Board. Section 3. So long as the financing agreement(s) are outstanding, the City's pledge hereunder shall constitute a lien in favor of the State Water Board on the foregoing fund(s) and revenue(s) without any further action necessary. Section 4. So long as the financing agreement(s) are outstanding, the City commits to maintaining the fund(s) and revenue(s) at levels sufficient to meet its obligations under the financing agreement(s). EXHIBIT 1--' Resolution No. 20184M Page 1 of 2 55A-5 jmf 8/14/18 Section 5. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this _ day of September, 2018. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: �.Lv* jL ohn M. Funk Assistant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers Councilmembers Councilmembers Councilmembers Miguel A. Pulido Mayor CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2018 -XXX to be the original resolution adopted by the City Council of the City of Santa Ana on 2018. Date: y Clerk of the Council City of Santa Ana Resolution No. 2018-)00( Page 2 of 2 Jmf 8/14/18 RESOLUTION NO. 2018 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING THE REIMBURSEMENT OF FUNDING FOR THE SEGERSTROM (SAN LORENZO) SEWER LIFT STATION PROJECT FROM THE STATE WATER RESOURCES CONTROL BOARD WHEREAS, the City of Santa Ana ("Agency") desires to finance the costs of constructing and/or reconstructing certain public facilities and improvements relating to its water and wastewater system, including specifically the Segerstrom (San Lorenzo) Sewer Lift Station Project ('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 ("Obligations"); and WHEREAS, prior to 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 ("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 by the City Council of the City of Santa Ana as follows: Section 1. The Agency hereby states its intention and reasonably expects to reimburse Expenditures paid pnorto the issuance of the Obligations orthe 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. Resolutlon No. 2018 -XXX EXHIBIT 2 Pagel of 55A-7 jmf 8/14/18 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 Section 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. Section 8. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this _ day of September, 2018. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: Yl/, f/1-yA ohn M. Funk Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Miguel A. Pulido Mayor '• • ResoluUon No. 2018 -XXX Page 2 of 3 jmf 8114118 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2018 -XXX to be the original resolution adopted by the City Council of the City of Santa Ana on 2018. Date: Clerk of the Council City of Santa Ana 55A-9 Resolutbn No. 2018-)00( Page 3 of 3 55A-10 Jmf 8/14/18 RESOLUTION NO. 2018 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA PLEDGING REVENUES AND FUNDS FOR THE REPAYMENT OF FINANCING FROM THE STATE WATER RESOURCES CONTROL BOARD FOR THE SEWER COLLECTION SYSTEM IMPROVEMENTS PROJECT WHEREAS, the City of Santa Ana ("Agency") desires to finance the costs of constructing and/or reconstructing certain public facilities and improvements relating to its water and wastewater system, including specifically the Sewer Collection System Improvements Project ("Project"); and WHEREAS, the City Council of the City of Santa Ana has previously authorized City staff to apply for financing of the construction and/or reconstruction of the Project or portions of the Project with low interest moneys from the State Revolving Fund, 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 requires, as a condition of approval of any financing agreement, the establishment of pledged sources of revenue to repay this financing. NOW;.THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Ana as follows: Section 1. The City of Santa Ana hereby dedicates and pledges the net revenues of the sewer enterprise fund and the sewer enterprise fund to payment of any and all Clean Water State Revolving Fund and/or Water Recycling Funding Program financing for the Sewer Collection System Improvements Project. Section 2. The City commits to collecting such revenues and maintaining such fund(s) throughout the term of such financing and until the City has satisfied its repayment obligation thereunder unless modification or change is approved in writing by the State Water Board. Section 3. So long as the financing agreement(s) are outstanding, the City's pledge hereunder shall constitute a lien in favor of the State Water Board on the foregoing fund(s) and revenue(s) without any further action necessary. Section 4. So long as the financing agreement(s) are outstanding, the City commits to maintaining the fund(s) and revenue(s) at levels sufficient to meet its obligations under the financing agreement(s). Resolution No. 2018-M Page 1 of 2 55A-11 jmf 8/14/18 Section 5. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this _ day of September, 2018. Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: �ir ohn M. Funk .Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2018 -XXX to be the original resolution adopted by the City Council of the City of Santa Ana on 2018. Date: Clerk of the Council City of Santa Ana 55A-12 Resoldon No. 2010 -XXX Page 2 of 2 jmf 8/14/18 RESOLUTION NO. 2018 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING THE REIMBURSEMENT OF FUNDING FOR THE SEWER COLLECTION SYSTEM IMPROVEMENTS PROJECT FROM THE STATE WATER RESOURCES CONTROL BOARD WHEREAS, the City of Santa Ana ("Agency") desires to finance the costs of constructing and/or reconstructing certain public facilities and improvements relating to its water and wastewater system, including specifically the Sewer Collection System Improvements Project ("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 ("Obligations"); and WHEREAS, prior to the issuance of the Obligations orthe approval by the State Water Board of the Project Funds, the Agency desires to incur certain capital expenditures ("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 by the City Council of the City of Santa Ana as follows: Section 1. The Agency hereby states its intention and reasonably expects to reimburse Expenditures paid priorto the issuance of the Obligations orthe approval by the State Water Board of the Project Funds. Section 2. The reasonably expected maximum principal amount of the Project Funds is $9,500,000. 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. EXHIBIT4 ResduUon �Page 1 o 3 55A-13 jmf 8/14/18 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 Section 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. Section 8. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of September, 2018. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: UV ohn M. Funk Assistant City Attorney AYES: Councilmembers NOES: Councjimembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Miguel A. Pulido Mayor 55A-14 ResoluUon No. 2018 -XXX Page 2 of 3 jmf 8/14/18 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2018 -XXX to be the original resolution adopted by the City Council of the City of Santa Ana on 2018. Date: Clerk of the Council City of Santa Ana 55A-15 Resolutlon No. 2018 -XXX Page 3 of 3 55A-16 jmf 8/14/18 RESOLUTION NO. 2018 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA PLEDGING REVENUES AND FUNDS FOR THE REPAYMENT OF FINANCING FROM THE STATE WATER RESOURCES CONTROL BOARD FOR THE AUTOMATED METER INFRASTRUCTURE PROJECT WHEREAS, the City of Santa Ana ("Agency") desires to finance the costs of constructing and/or reconstructing certain public facilities and improvements relating to its water and wastewater system, including specifically the Automated Meter Infrastructure Project ("Project"); and WHEREAS, the City Council of the City of Santa Ana has previously authorized City staff to apply for financing of the construction and/or reconstruction of the Project or portions of the Project with low interest moneys from the State Revolving Fund, 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 requires, as a condition of approval of any financing agreement, the establishment of pledged sources of revenue to repay this financing. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Ana as follows: Section 1. The City of Santa Ana hereby dedicates and pledges the net revenues of the water enterprise fund and the water enterprise fund to payment of any and all Clean Water State Revolving Fund and/or Water Recycling Funding Program financing for the Automated Meter Infrastructure Project. Section 2. The City commits to collecting such revenues and maintaining such fund(s) throughout the term of such financing and until the City has satisfied its repayment obligation thereunder unless modification or change is approved in writing by the State Water Board. Section 3. So long as the financing agreement(s) are outstanding, the City's pledge hereunder shall constitute a lien in favor of the State Water Board on the foregoing fund(s) and revenue(s) without any further action necessary. Section 4. So long as the financing agreement(s) are outstanding, the City commits to maintaining the fund(s) and revenue(s) at levels sufficient to meet its obligations under the financing agreement(s). EXHIBIT 5 ResoMon No. 201&X)0( Page 1 of 2 55A-17 jmf 8/14/18 Section 5. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this _ day of September, 2018. Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: ohn M. Funk Assistant City Attorney AYES: Councilmembers NOES Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2018 -XXX to be the original resolution adopted by the City Council of the City of Santa Ana on 2018. Date: Clerk of the Council City of Santa Ana 55A-18 Resolution No. 2018-)= Page 2 of 2 Jmf 8/14/18 RESOLUTION NO. 2016 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING THE REIMBURSEMENT OF FUNDING FOR THE AUTOMATED METER INFRASTRUCTURE PROJECT FROM THE STATE WATER RESOURCES CONTROL BOARD WHEREAS, the City of Santa Ana ("Agency") desires to finance the costs of constructing and/or reconstructing certain public facilities and improvements relating to its water and wastewater system, including specifically the Automated Meter Infrastructure Project ("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 ("Obligations"); and WHEREAS, prior to 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 ("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 by the City Council of the City of Santa Ana as follows: Section 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 $13,700,000. 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. EXHIBIT 6 Resolution No. 2018-X)0( Page 1 of 3 55A-19 jmf 8/14/18 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 Section 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. Section 8. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this _ day of September, 2018. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: . :F'�G hn M. Funk Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Miguel A. Pulido Mayor 55A-20 Resolution No. 2018 -XXX Page 2 of 3 jmf 8/14/18 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2018 -XXX to be the original resolution adopted by the City Council of the City of Santa Ana on 2018. Date: Clerk of the Council City of Santa Ana 55A-21 Resolution No. 2018-M Page 3 of 3 55A-22 jmf 8/14/18 RESOLUTION NO. 2018 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA PLEDGING REVENUES AND FUNDS FOR THE REPAYMENT OF FINANCING FROM THE STATE WATER RESOURCES CONTROL BOARD FOR THE WATER DISTRIBUTION SYSTEM IMPROVEMENTS PROJECT WHEREAS, the City of Santa Ana ("Agency") desires to finance the costs of constructing and/or reconstructing certain public facilities and improvements relating to its water and wastewater system, including specifically the Water Distribution System Improvements Project ("Project"); and WHEREAS, the City Council of the City of Santa Ana has previously authorized City staff to apply for financing of the construction and/or reconstruction of the Project or portions of the Project with low interest moneys from the State Revolving Fund, 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 requires, as a condition of approval of any financing agreement, the establishment of pledged sources of revenue to repay this financing. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Ana as follows: Section 1. The City of Santa Ana hereby dedicates and pledges the net revenues of the water enterprise fund and the water enterprise fund to payment of any and all Clean Water State Revolving Fund and/or Water Recycling Funding Program financing for the Water Distribution System Improvements Project. Section 2. The City commits to collecting such revenues and maintaining such fund(s) throughout the term of such financing and until the City has satisfied its repayment obligation thereunder unless modification or change is approved in writing by the State Water Board. Section 3. So long as the financing agreement(s) are outstanding, the City's pledge hereunder shall constitute a lien in favor of the State Water Board on the foregoing fund(s) and revenue(s) without any further action necessary. Section 4. So long as the financing agreement(s) are outstanding, the City commits to maintaining the fund(s) and revenue(s) at levels sufficient to meet its obligations under the financing agreement(s). Resolution No. 2018-X)0( Pagel of 2 55A-23 jmf 8/14/18 Section 5. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this _ day of September, 2018. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: % f' hn M. Funk Assistant City Attorney AYES: Councilmembers NOES ABSTAIN: NOT PRESENT: Councilmembers Councilmembers Councilmembers Miguel A. Pulido Mayor CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2018 -XXX to be the original resolution adopted by the City Council of the City of Santa Ana on 2018. Date: Clerk of the Council City of Santa Ana 55A-24 Resolution No. 2018-700( Page 2 of 2 Jmf 8/14/18 RESOLUTION NO. 2018 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING THE REIMBURSEMENT OF FUNDING FOR THE WATER DISTRIBUTION SYSTEM IMPROVEMENTS PROJECT FROM THE STATE WATER RESOURCES CONTROL BOARD . WHEREAS, the City of Santa Ana ("Agency") desires to finance the costs of constructing and/or reconstructing certain public facilities and improvements relating to its water and wastewater system, including specifically the Water Distribution System Improvements Project ('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 federalincome tax purposes ("Obligations"); and WHEREAS, prior to 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 ("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 by the City Council of the City of Santa Ana as follows: Section 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 $14,600,000. 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. Resdutlon No. 2018 -XXX EXHIBIT 8 Pagel of 55A-25 jmf 8/14/18 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 Section 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. Section 8. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this _ day of September, 2018. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By:. hn M. Funk Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Miguel A. Pulido Mayor 55A-26 Resoldon No. 2018 -XXX Page 2 of 3 jmf 8/14/18 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2018 -XXX to be the original resolution adopted by the City Council of the City of Santa Ana on 2018. Date: Clerk of the Council City of Santa Ana 55A-27 Resolution No. 2018 -XXX Page 3 of 3 55A-28