HomeMy WebLinkAboutR-11078 authorizing use of Water Fund Unreserved Working Capital to pay off State Revolving Fund Water Reuse Project LoanRESOLUTION NO. 11078 (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING THE USE OF WATER FUND
UNRESERVED WORKING CAPITAL TO PAY OFF THE STATE
REVOLVING FUND WATER REUSE PROJECT LOAN
WHEREAS, on April 4, 2018, the City Council adopted Resolution 10878 and voted to
proceed with the Water Energy Efficiency Project (Project); and
WHEREAS, on May 21, 2019, the City Council approved Resolution 11011 (2019 Series)
authorizing the Utilities Director to enter into a financing agreement with the California
Infrastructure and Economic Development Bank (I Bank) to debt finance the project; and
WHEREAS, I Bank is requiring the City, as a condition of applying for and entering into
a financing agreement, to pay off an existing loan for the Water Reuse Project from the State
Revolving Fund (SRF) which has an estimated balance of $2,465,255.60; and
WHEREAS, I Bank charges a one percent loan origination fee ($143,000); and
WHEREAS, a balance prior to the SRF loan payoff of approximately $16. 7 million
(unaudited financials) is available from the Water Fund, Umeserved Working Capital.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. The Water Fund is authorized to use up to $2,643,000 Water Fund
Umeserved Working Capital to pay off the Water Reuse Project SRF loan and to pay the I Bank
loan origination fee.
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Resolution No. 11078 (2020 Series) Page 2
SECTION 2. Environmental Determination. In compliance with the California
Environmental Quality Act (CEQA), the City Council of the City of San Luis Obispo finds that
the activity funded by the I Bank loan is a project that is exempt under Class 1 (CEQA Guidelines,
§ 15301), Existing Facilities.
Upon motion of Council Member Pease, seconded by Council Member Christianson, and
on the following roll call vote:
AYES:
NOES:
ABSENT:
Council Member Christianson, Pease, Stewart and Vice Mayor Gomez
None
Mayor Harmon
The foregoing resolution was adopted this 21st day of January 2020.
ATTEST:
e~* Teresa Purrington
City Clerk
IN WITNESS WHEREOF, I have herew to set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ~ day of 0CLVHMLit [ , 2020.
esa Purrington
City Clerk
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