HomeMy WebLinkAboutR-11063 authorizing use of Water Fund Unreserved Working Capital for the Water Energy Efficiency projectRESOLUTION NO. 11063 (2019 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING USE OF WATER FUND
UNRESERVED WORKING CAPITAL FOR THE WATER ENERGY
EFFICIENCY PROJECT
WHEREAS, on April 4, 2018, the City Council adopted Resolution 10878, reviewed the
Preliminary Energy Assessment for the Water Energy Efficiency Project (Project) and voted in
favor of proceeding to the Project's Investment Grade Audit; and
WHEREAS, on May 21, 2019, the City Council approved Resolution 11011 authorizing
the Utilities Director to enter into a financing agreement with the Infrastructure Bank (!Bank) to
debt finance the Project; and
WHEREAS, in June 2019, the City Council approved 2019-21 Financial Plan, Capital
Improvement Program, identified a Project budget of $14,300,000; and
WHEREAS, On August 20, 2019, the City Council authorized the use of up to $2 million
including design, equipment acquisition, construction costs and contingencies from Water Fund,
Unreserved Working Capital to fund Emergency Power Supply needs and $1,700,000 is available
to contribute for funding the Project; and
WHEREAS, on November 1, 2019, the City Manager approved an extension and an
amendment to the Work Order to include design for a permanent Water Treatment Plant generator
in response to potential Public Safety Power Shutoff events; and
WHEREAS, the total available budget for the Efficiency Phase of the Project is
$16,000,000; and
WHEREAS, private financing (US Bancorp, and others) is also being considered for the
Project as it may offer the City more favorable financing terms; and
WHEREAS, a balance of approximately $18 million (unaudited financials) is available
from Water Fund, Unreserved Working Capital to fund the Efficiency Phase of the Project and
manage cashflow.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. The Director of Finance and/or the Utilities Director is authorized to execute
and deliver any and all certificates, contracts and other documents necessary or appropriate to
finance the Project.
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Resolution No. 11063 (2019 Series) Page 2
SECTION 2. Environmental Review. Construction of this project is exempt from the
California Environmental Quality Act (CEQA) 15301, Class 1 -Existing Facilities and 15328,
Class 28 -Small Hydroelectric Projects at Existing Facilities. The Community Development
Department issued a Notice of Exemption on January 24, 2019.
Upon motion of Council Member Christianson, seconded by Council Member Stewart, and
on the following roll call vote:
AYES:
NOES:
Council Member Christianson, Gomez, Stewart and Vice Mayor Pease
None
ABSENT: Mayor Harmon
The foregoing resolution was adopted this 19th day ofNovember 2019.
ATTEST:
eresa Purrington
City Clerk
APPROVED AS TO FORM: . ~--) D_ ~ -===. \ ) hristin eDietrick
\..__......--' City Attorney
"
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this '3~ day ofi).c~ h-ev: , ZO \S .
Teresa Purrington
City Clerk
......
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