HomeMy WebLinkAboutr 10455 financing proposal for fin of improve to water rec fac fin docRESOLUTTON NO. r 04s5 (2013 SERIES)
RBSOLUTION OF THE CITY OF SAN LUIS OBISPO APPROVING THE FINANCING
PROPOSAL FOR THE FINANCING OF IMPROVEMENTS TO THE WATER
RECLAMATION FACILITY, AND DIRECTING THE PREPARATION OF
FINANCING DOCUMENTS
WHEREAS, the City of San Luis Obispo (the "City") owns and operates facilities and
property for the collection, treatment and disposal of wastewater within the service area of the
City (the "Wastewater Enterprise"), and is proceeding to finance the acquisition and installation
of improvements to its water reclamation facility, consisting generally of onsite cogeneration of
facilities for the onsite cogeneration of energy, solids management, upgrading and optimizing
aging infrastructure, effrcient lighting, and process system controls (the "Project"); and
\ryHEREAS, in order to provide funds to finance the Project, the City has proposed to
enter into an Installment Sale Agreement with the City of San Luis Obispo Capital Improvement
Board (the "Board") under which the Board agrees to provide financing for the Project and to
sell the completed Project to the City in consideration of the agreement by the City to pay
periodic Installment Payments as the purchase price of the Project; and
WHBREAS, the Installment Payments will be secured by a pledge of and lien on the net
revenues of the Wastewater Enterprise on a parity with the pledge, lien and security interest
which secure certain outstanding obligations of the City; and
WHEREAS, the Board proposes to raise funds for the Project by assigning its rights
under the Installment Sale Agreement, including the right to receive Installment Payments, to
Green Campus Partners LLC or its designee (the "Lender"), which has submitted a proposal to
the City, dated August 23,2013 (the "Financing Proposal"); and
WHEREAS, the City Council wishes at this time to approve the Financing Proposal and
authorize the institution of proceedings to provide financing for the Project in accordance with
the Financing Proposal.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis
Obispo as follows:
SECTION 1. Approval of Financing Proposal. The City Council hereby approves the
financing plan for the Project as described in the recitals of this Resolution and as set forth in the
Financing Proposal. The City Manager or the Director of Finance and Information Technology
are each hereby authorized and directed for and in the name and on behalf of the City to execute
the Financing Proposal in the name and on behalf of the City.
SECTION 2. Institution of Financing Proceedings. The City Council hereby authorizes
and directs the City Manager, the Director of Finance and Information Technology and other
responsible off,rcials of the City, in conjunction with the firm of Jones Hall, A Professional Law
Corporation, as bond counsel to the City, and the firm of Fieldman Rolapp & Associates, as
R 10455
ResolutionNo. 10455 (2013 Series)
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financial advisor to the City, to cause to be prepared all financing documents which are required
to implement the financing plan for the Project pursuant to the Financing Proposal. Such
documentation shall be presented to the City Council for its consideration at a subsequent
meeting of the City Council.
SECTION 3. Effective Date This Resolution shall take effect immediately upon its
passage and adoption.
Upon motion of Vice Mayor Smith, seconded by Council Member Ashbaugh, and on the
following roll call vote:
AYES:
NOES:
ABSENT:
Council Members Ashbaugh, Carpenter and Christianson, Vice Mayor
Smith and Mayor Marx
None
None
the foregoing Resolution was passed and adopted this 3'd day of Septemb er 2073.
Jan Marx
ATTEST
Sheryl , MMC
Interim City Clerk
City Clerk
FORM:
D
City Attorney