HomeMy WebLinkAbout04/16/1991, C-5 - WASTEWATER TREATMENT PLANT AND SEWER MAIN IMPROVEMENTS PROJECTS, DEDICATION OF FUNDS FOR REPAYMENT OF STATE REVOLVING FUND LOANS. I�I����RII��NIIIIIII�IIII�V�u�� III MEETING GATE:
allll City of IUiSap S QBISpQ April 16 1991
COUNCIL AGENDA REPORT ITEM NUMBERe_Z
Meeting of: April 16, 1991
FROM: William T. Hetland(31* Prepared by: John E. Moss
Utilties Director Wastewater Division Manage
SUBJECT:
Wastewater Treatment Plant and Sewer Main Improvements
Projects, Dedication of funds for repayment of State
Revolving Fund Loans.
CAO RECOMMENDATION:
Adopt a resolution dedicating approved sewer fund user
charge revenues for repayment of State Revolving Fund (SRF)
loans.
DISCUSSION:
The City is seeking SRF loan monies to fund the needed
improvements to its wastewater facilities. These
improvements consist of three projects, the Unit 3 plant
improvements, Unit 4 plant improvements and Phase 1
collection system improvements. Total estimated cost for
the three projects is $35 million.
On June 12, 1990, Council approved a revenue program and
rate increases sufficient to cover the cost of repayment of
the SRF loans and continued operating and capital program
expenses for the wastewater program. The State Water
Resources Control Board has approved the City's revenue
program and granted conceptual approval of the projects.
The State now requires the City dedicate, by resolution, the
revenues necessary to fully repay the SRF loans.
The anticipated interest rate for the SRF loans is 3.5% with
repayment over a twenty (20) year period to begin one (1)
year after completion of the project. Separate loans will
be received for each project.
The action being requested here is merely a procedural
requirement of the State. As stated above, Council has
previously approved the funding mechanism (revenue program
and rate increases) as well as the required projects.
FISCAL IMPACT:
There will be no direct fiscal impact as a result of this
action which has not been previously identified and approved
by Council. This action merely insures the State that the
approved revenues will be used to repay the SRF loans.
jll city of san Lacs OBlspo
ON COUNCIL AGENDA REPORT
SRF Loan Repayment, Dedication of Revenues
Meeting of April 16, 1991
Page 2
ALTERNATIVES:
There are no legitimate alternatives to the recommended
action. Failure to approve the recommended action will
result in loss of the required SRF loan funding.
RECOMMENDATION:
Adopt a resolution dedicating approved sewer fund user
charge revenues for repayment of State Revolving Fund (SRF)
loans.
RESOLUTION NO. (1991 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
DEDICATING SEWER FUND USER CHARGE REVENUES FOR REPAYMENT OF
THE STATE REVOLVING FUND LOANS.
WHEREAS, the City of San Luis Obispo has need to complete
improvements to its wastewater facilities in order to attain
compliance with the provisions of its National Pollutants
Discharge Elimination System permit and
WHEREAS, the City is seeking State Revolving Fund (SRF)
loans for completion of the required improvements, and
WHEREAS, on June 12 , 1990 the Council for the City of San
Luis Obispo approved a revenue program and rate increases
sufficient to cover repayment of the SRF loans and continued
operating and capital programs for the City's wastewater program,
and
WHEREAS, the State of California Water Resources Control
Board requires dedication of said revenues for repayment of the
SRF loans.
NOW, THEREFORE, BE IT RESOLVED, the City Council for the
City of San Luis Obispo does hereby dedicate sewer fund user
charge revenues to repayment of any and all SRF loans for SRF
Projects No.s C-06-4031-130, 150 and 160. This dedicated source
of revenue shall remain in effect until such loan or loans are
fully discharged under modification or change of such dedication
is approved in writing by the State Water Resources Control
Board.
Upon motion of seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing resolution was adopted this _ day of
1991. '
Mayor Ron Dunin
ATTEST:
Pam Voges, City Clerk
L�-S-3
Resolution No. {1995 Series')
Approved:
John Dun -, -City Adminisfxative Officer
-
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g _ e , Gty Attorney • '
William Statlei, finance Director