HomeMy WebLinkAboutReso 78-2009RESOLUTION NO. 78-2009
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION DECLARING THE CITY'S INTENTION TO
REIMBURSE CAPITAL EXPENDITURES FOR SEWER
COLLECTION AND TREATMENT RELATED
IMPROVEMENTS FROM THE PROCEEDS OF
OBLIGATIONS TO BE ISSUED BY THE CITY.
WHEREAS, the City proposes to undertake certain sewer improvements further
described in Attachment A (collectively "the Project"), to issue debt for such project, and to use
a portion of the proceeds of such debt to reimburse expenditures made for the project prior to the
issuance of debt; and
WHEREAS, United States Income Tax Regulations section 1.150-2 provides generally
that proceeds of tax-exempt debt are not deemed to be expended when such proceeds are used
for reimbursement of expenditures made prior to the date of issuance of such debt unless certain
procedures are followed, one of which is a requirement that (with certain exceptions) prior to the
payment of any such expenditure, the issuer declares an intention to reimburse such expenditure;
and
WHEREAS, it is in the public interest and for the public benefit that the City declares its
official intent to reimburse the expenditures referenced herein.
NOW, THEREFORE, BE IT RESOLVED, the City of South San Francisco hereby
resolves as follows:
The City intends to issue debt obligations (the "Obligations") for the purpose of
paying the costs of the Project, described in detail in Attachment A, which is hereby
incorporated by reference herein.
2. The City hereby declares that it reasonably expects to pay certain costs of the Project
prior to the date of issuance of the Obligations and to use a portion of the proceeds of
the Obligations for reimbursement of expenditures for the Projects that are paid
before the date of issuance of the Obligations.
3. The maximum principal amount of Obligations to be issued for the Project is
$35,000,000 (thirty-five million dollars).
I hereby certify that the foregoing Resolution was regularly introduced and adopted by
the City Council of the City of South San Francisco at a regular meeting held on the 9th day of
September, 2009 by the following vote:
AYES: Councilmembers Pedro Gonzalez Richard A. Garbarino and Kevin Mullin
Vice Mayor Mark Addiego and Ma,, o~Karyl Matsumoto
NOES: None
ABSTAIN: None
ABSENT:
ATTES
City
Attachment A: Description. of the Project
Green Energy
The Project includes replacing the existing WQCP generator with a fuel cell as well as the
addition of solar panels, wind turbines and a hydroelectric plant to eventually make the WQCP
self sufficient for its electricity usage.
Estimated at $2,000,000
Reliability Improvements
The Project includes the rehabilitation or replacement of aging facilities at the WQCP including
digester tanks and the grit removal system.
Estimated at $5,000,000
Recycled Water
The Project includes treating secondary effluent to a tertiary level requiring additional filtration
and disinfection to meet California recycled water standards. Anew 9-mile delivery system
would transport recycled water to customers, and the delivery system would consist of pipelines,
storage tanks, and pump stations.
Estimated at $27,000,000
Other Improvements
The Project includes replacement or rehabilitation of the sanitary sewer conveyance system
including force mains, gravity pipelines and pump stations as outlined in the City of South San
Francisco Five Year Capital Improvement Program Fiscal Year 2009-10 which is available for
review in the City Engineer's Office. The Project also includes a Facility Plan Update and other
studies associated with the Project.
Estimated at $1,000,000
Total Not to Exceed Estimated at $35,000,000