HomeMy WebLinkAbout2022-089 - Approving a Construction Installment Sale AgreementRESOLUTION 2022-089
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
WELL NO. 32 NITRATE TREATMENT AND
REHABILITATION 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 Well No. 32
Nitrate Treatment Rehabilitation 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. 2019-026 authorizing an
application for financial assistance to the State Water Board for the Project and
Resolution No. 2019-027 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 Water 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
$6,249,105 with an interest rate not to exceed 1.10%.
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
Resolution 2022-089
Page 1 of 3
Representative"). Execution by an Authorized Representative of the 2022 Installment
Sale Agreement shall constitute conclusive evidence of such Authorized Representative's
approval of such changes. Each of the Authorized Representatives is hereby authorized,
together or alone, to execute and deliver the 2022 Installment Sale Agreement.
Section 4. The covenants set forth in the 2022 Installment Sale Agreement to
be executed in accordance with Section 3 above are hereby approved, shall be deemed
to be covenants of the legislative body of the City, and shall be complied with by the City.
Section 5. Each Authorized Representative and the other officers and staff of
the City responsible for the fiscal affairs of the City are hereby authorized and directed to
take any actions and execute and deliver any and all documents and certificates as are
necessary to complete the transactions contemplated by the 2022 Installment Sale
Agreement.
Section 6. 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 151h day of November, 2022.
Vicente Sarmiento
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By:
JolM M. Funk
Chief Assistant City Attorney
AYES:
Councilmembers
Hernandez Lopez Mendoza, Penaloza,
Phan
Bacerra Sarmiento (7)
NOES:
Councilmembers
None
(0)
ABSTAIN:
Councilmembers
None
(0)
NOT PRESENT:
Councilmembers
None
(0)
Resolution 2022-089
Page 2 of 3
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2022-
089 to be the original Resolution adopted by the City Council of the City of Santa Ana on
November 15, 2022.
Date: II I I� 2i2 �.. A TL'
;Clerk of the Counc
City of Santa Ana
Resolution 2022-089
Page 3 of 3