HomeMy WebLinkAboutReso 77-18 Pledge of Revenues for SRF Construction Loan for WRFiN10J SURA I LWJ•;
KrEalvIL11• ;, •
OF THE CITY OF MORRO CALIFORNIA
LEDGE OF FOR •
CONSTRUCTION •. • RECLAMATION
FROM THE STATE WATER QUALITY CONTROLBOARD I
•
HEREAS, the City of Morro Bay ("City") is actively pursuing development of a Water
Reclamation Facility (the "Project") that will provide advanced treated recycled water for indirect
potable reuse to supplement the City's water portfolio; and
WHEREAS, the State of California State Water Resources Control Board (SWRCB) has
State Revolving Fund (SRF) loan funding available for the construction of the Project; and
WHEREAS, it is in the public interest to pursue design and construction loan funding for
the Project; and
WHEREAS, on September 11, 2018 the City Council adopted water and sewer rates
sufficient to fund the project, and
WHEREAS, on August 14, 2018 the City Council adopted Resolution No. 61-18
certifying the Environmental Impact Report and directed staff to proceed with the project, and
WHEREAS, the City's authorized representative is submitting an SRF Loan Application
to the SWRCB to request such funding as necessary to construction efforts for the Water
Reclamation Facility, resulting in a loan agreement with the SWRCB for project financing; and
WHEREAS, the SWRCB requires the City to provide commitment to maintain revenues
and funds to satisfy the repayment obligation for such planning loan agreement to fund planning
and design efforts for the Project.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay
that the City of Morro Bay, as follows:
1. The City of Morro Bay hereby dedicates and pledges Net Revenues of the Water
and Sewer Rates from the City's Water and Sewer Operating Funds (Funds 311
and 321) and Sewer and Water Accumulation Funds (Funds 951 and 952) to
payment of any and all Clean Water State Revolving Fund and/or Water
Recycling Funding Program financing for the Morro Bay Water Reclamation
Facility Project — CWSRF # 8185-210.
2. The City of Morro Bay commits to collecting such revenues and maintaining such
fund(s) throughout the term of such financing and until the City of Morro Bay has
satisfied its repayment obligation thereunder unless modification or change is
approved in writing by the State Water Resources Control Board,
3. So long as the financing agreement(s) are outstanding, the City of Morro Bay's
pledge hereunder shall constitute a lien in favor of the State Water Resources
Control Board on the foregoing fund(s) and revenues(s) without any further
action necessary. So long as the financing agreement(s) are outstanding, the
City of Morro Bay commits to maintaining the funds) and revenues(s) at levels
sufficient to meet its obligations under the financing agreement(s).
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting thereof held on the 25th day of September 2018 by the following vote:
AYES: Irons, Davis, Headding, Makowetski, McPherson
NOES: None
ABSENT: None
ABSTAIN: None
Z.
UPI. IRONS, Mayor
ATTEST:
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NA SWANSON, City Clerk