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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. -- Page 1 of 3 Pages -- 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. -- Page 2 of 3 Pages -- 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 -- Page 3 of 3 Pages --