HomeMy WebLinkAboutRES NO 154-97RESOLUTION NO. ] 5 4 - 9 7
RESOLUTION TO SPECIFY AND DEDICATE
NET REVENUES OF SEWER ENTERPRISE
FUND AS SOURCE FOR REPAYMENT OF
LOAN FROM STATE REVOLVING FUND.
(State Revolving Fund Project No. C-06-4321-110)
WHEREAS, in connection with the planned expansion of Wastewater
Treatment Plant 2 (the "Project") of the municipal sewer system (the "Enterprise") of the
City of Bakersfield (the "City"), the City has applied to the State Water Resources Control
Board ("SWRCB") for a loan (the "SRF Loan") from the State Revolving Fund Loan
Program (the "SRF Loan Program") to pay a portion of the costs and expenses of the
Project; and
WHEREAS, as a condition to receiving any loan pursuant to the SRF Loan
Program, the City must identify and dedicate a source of revenue to repayment of any such
loan; and
WHEREAS, in furtherance of establishing a coordinated program for
repayment of any and all long-term obligations incurred to finance capital improvements
to the Enterprise, including but not limited to any loan from the SRF Loan Program, this
City Council wishes to identify and dedicate the Net Revenues (as defined below) of the
Sewer Enterprise Fund (as defined below).
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of
Bakersfield, as follows:
SECTION 1
The foregoing recitals are true and correct, and this Council hereby expressly so
finds and determines.
SECTION 2
Subject to the qualifications set forth in Section 3 of this resolution, the City hereby
dedicates the Net Revenues of the Sewer Enterprise Fund of the City to repayment of any
and all State Revolving Fund loans, including but not limited to, the SRF Loan, on Project
No. C-06-4321-110. This dedicated source of revenue shall remain in effect until such
loan is or such loans are fully discharged unless modification or change of such dedication
is approved in writing by the SWRCB. As used in this resolution, the following terms shall
have the following meanings:
A. The term "Enterprise" means the City's sewer system.
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The term "Revenues" means all moneys received by the City from the
operation of the Enterprise.
The term "Sewer Enterprise Fund" means the fund by that name established
and administered by the City to receive the Revenues and from which the
Revenues are expended for authorized purposes of the Enterprise.
The term "Net Revenues" means, for any fiscal year of the City, the
Revenues for that fiscal year less amounts expensed from the Sewer
Enterprise Fund for maintenance and operation of the Enterprise.
The term "Parity Obligations" means bonds, loans and any other form of
obligation or indebtedness incurred or issued by the City and secured by the
Net Revenues on a parity with the SRF Loan.
The term "1994 Resolution" means Resolution 196-93, adopted by this City
Council on December 15, 1993, and pursuant to which the Series 1994
Bonds (as defined below) were issued.
The term "Series 1994 Bonds" means the series of sewer revenue bonds
issued pursuant to the 1994 Resolution.
SECTION 3
The dedication of Net Revenues of the Sewer Enterprise Fund provided by Section
2 of this resolution is subject to the qualification that, pursuant to the 1994 Resolution, the
conditions prescribed by Section 2.11 of said 1994 Resolution must be met in order for the
SRF Loan to be a Parity Obligation with the Series 1994 Bonds. If such conditions are not
met, the SRF Loan will be subordinated to the Series 1994 Bonds and to any other Parity
Obligations issued prior to the City entering into the applicable agreement pertaining to
the SRF Loan (the "SRF Loan Agreement'), and the dedication of Net Revenues to the
repayment of said SRF Loan shall be subordinated to the pledge of such Net Revenues
to the Series 1994 Bonds and any Parity Obligations, if any.
SECTION 4
The City has been advised by the administrators of the SRF Loan Program that any
obligations or indebtedness, if any, incurred or issued after the City enters into the SRF
Loan Agreement will be required to be either on a parity with or subordinated to the SRF
Loan and cannot be superior to the SRF Loan.
SECTION 5
This resolution shall take effect immediately upon its adoption.
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I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the
Council of the City of Bakersfield at a regular meeting thereof held on OCT ~' ~ t§q7, by the
following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
COUNCILMEMBER CARSON, DEMOND, SMITH, MCDERMOTT, ROWLES, SULLIVAN, SALVAGGIO
COUNCILMEMBER
COUNCILMEMBER
COUNCILMEMBER
CITY CLERK and Ex Officio Clerl/~f the
Council of the City of Bakersfield
APPROVED OCT 8 1997
OB PRI~
MAYOR of Bakersfield
APPROVED as to form:
JUDY K. SKOUSEN
City Attorney
~' JANICE SCANLAN
Deputy City Attorney
JAN:dlr
S:~COUNCIL~ES~SEWRPLDG.RES
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