HomeMy WebLinkAbout24146 RESOLUTION NO. 24146
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, APPROVING AN
INSTALLMENT SALE AGREEMENT WITH THE
CALIFORNIA STATE WATER RESOURCES CONTROL
BOARD FOR PUBLICLY OWNED TREATMENT WORKS
(POTW) CONSTRUCTION FINANCING FOR THE WWTP
HEADWORKS AND CLARIFIER UPGRADE PROJECT,
CLEAN WATER STATE REVOLVING FUND LOAN
PROJECT NO. 8122-110 (CP 15-14) AND AUTHORIZING
CERTAIN ACTIONS RELATED THERETO.
WHEREAS, the City of Palm Springs, (the "City"), desires to finance the costs
of constructing and/or reconstructing certain public facilities and improvements relating
to its wastewater system, including certain treatment facilities, pipelines and other
infrastructure, identified as the City of Palm Springs Wastewater Treatment Plant
Upgrade, City Project No. 15-14, (the "Project'); and
WHEREAS, on April 1, 2015, the City Council did adopt Resolution No. 23799,
declaring its intention to finance the construction and/or reconstruction of the Project or
portions of the Project with moneys ("Project Funds") provided by the State of California,
acting by and through the State Water Resources Control Board (the "State Water
Board"); and
WHEREAS, Resolution No. 23799 further declared that the State Water Board
may fund the Project Funds with proceeds from the sale of obligations the interest upon
which is excluded from gross income for federal income tax purposes, (the
"Obligations'), and that prior to either the issuance of the Obligations or the approval by
the State Water Board of the Project Funds, the City desired to incur certain capital
expenditures, (the "Expenditures") with respect to the Project from available moneys of
the City; and
WHEREAS, Resolution No. 23799 further declared that the City had determined
that those moneys to be advanced on and after April 1, 2015, to pay the Expenditures
were available only for a temporary period and it was necessary to reimburse the City
for the Expenditures from the proceeds of the Obligations; and
WHEREAS, by adoption of Resolution No. 23799, the City Council stated its
intention and reasonably expected to reimburse Expenditures paid prior to the issuance
of the Obligations or the approval by the State Water Board of the Project Funds, in an
expected maximum principal amount of$35,000,000; and
WHEREAS, on April 1, 2015, the City Council did also adopt Resolution No.
23800, acknowledging that the State Water Board may fund the Project Funds through
ILI
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its Clean Water State Revolving Fund ("CWSRF"), and that the CWSRF can provide a
very low interest loan to the City for Project Funds necessary to fund the Project; and
WHEREAS, by adoption of Resolution No. 23800, the City Council authorized the
City Manager, (the "Authorized Representative"), or his designee, to sign and file, for
and on behalf of the City, a Financial Assistance Application for a financing agreement
from the State Water Board for the planning, design, and construction of the Project,
and to provide the assurances, certifications, and commitments required for the financial
assistance application, including executing a financial assistance agreement from the
State Water Board and any amendments or changes thereto; and
WHEREAS, the City Manager, as Authorized Representative, has filed the
necessary Financial Assistance Application with the State Water Board, and has
obtained approval of an Installment Sale Agreement for the Project, identified as
CWSRF Project No. 8122-110, with a total approved financing amount of $29,917,266
(the "CWSRF Agreement"); and
WHEREAS, the City Attorney has reviewed the terms and conditions of the draft
CWSRF Agreement, and has prepared a legal opinion as required by the State Water
Board confirming that the execution and delivery of the CWSRF Agreement will not
conflict with or constitute a breach of any City laws or default of and City indebtedness;
and
WHEREAS, on September 21, 2016, the City Council did also adopt Resolution
No. 24096, dedicating and pledging the Net Revenues of the City's Wastewater
Enterprise fund and the Wastewater Enterprise fund to payment of any and all Clean
Water State Revolving Fund financing for the Project; and
WHEREAS, the State Water Board has provided confirmation to the City of its
approval of CWSRF Project No. 8122-110, and has established an eligible start date of
November 14, 2016, for reimbursable construction phase Expenditures; and
WHEREAS, a final form of the CWSRF Agreement will be provided by the State
Water Board on or about January 15, 2017; and
WHEREAS, the City did previously solicit competitive bids for the construction of
the Project, and on August 11, 2016, did receive six bids from qualified contractors, with
the lowest responsive bid received from W. M. Lyles, Co., from Temecula, California, in
the amount of $20,522,737 with a requirement to guarantee the bid price for a period of
120 calendar days; and
WHEREAS, the guaranteed low bid from W. M. Lyles, Co., expires on
December 9, 2016, and it is necessary to award a contract in advance of receipt of the
final form of the CWSRF Agreement, and to proceed with construction of the Project on
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the basis of the State Water Board's express approval and establishment of an eligibility
date of November 14, 2016, for reimbursable construction phase Expenditures; and
WHEREAS, the City Council wishes at this time to confirm its intentions as
stated in the previously adopted Resolution No. 23799 and Resolution No. 23800,
and to authorize the City Manager, as the Authorized Representative to approve the
CWSRF Agreement in a final form submitted by the State Water Board and
approved by the City Attorney; and
WHEREAS, the City Council intends to award a construction contract to W.
M. Lyles, Co., in the amount of $20,522,737 for the Project, to be financed through the
CWSRF Agreement hereby authorized and approved heretofore.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA HEREBY RESOLVES, AS FOLLOWS:
SECTION 1. Recitals. The preceding recitals are all true and correct, and
hereby adopted as findings set forth herein this Resolution.
SECTION 2. Approval of Installment Sale Agreement. The City Council hereby
approves the Installment Sale Agreement with the California State Water Resources
Control Board for Publicly Owned Treatment Works (POTW) Construction
Financing, for "WWTP Headworks and Clarifier Upgrade Project", Clean Water
State Revolving Fund Project No. 8122-110, in substantially the form on file with the
City Clerk, together with any changes therein or additions thereto provided by the
State Water Resources Control Board in the final form of the agreement submitted to
the City for its execution, subject to the review and approval to form by the City
Attorney, and approval by the City Manager.
SECTION 3. Official Action. The City Manager, Assistant City Manager (as the
City's Manager's designated official), the City Clerk, the Finance Director, and any and
all other officers of the City are hereby authorized and directed, for and in the name and
on behalf of the City, to do any and all things and take any and all actions, which they,
or any of them, may deem necessary or advisable to implement the Installment Sale
Agreement. Whenever in this Resolution any officer of the City is directed to execute or
countersign any document or take any action, such execution, countersigning or action
may be taken on behalf of such officer by any person designated by such officer to act
on his or her behalf in the case such officer is absent or unavailable.
SECTION 4. Effective Date. This Resolution shall take effect from and after the
date of approval and adoption thereof.
Resolution No. 24146
Page 4
ADOPTED THIS 7T" DAY OF DECEMBER, 2016
David H. Ready, Esq., P ity Manager
ATTEST:
1 aLe
Kathleen D. Hart, MMC, Interim City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, KATHLEEN D. HART, Interim City Clerk of the City of Palm Springs, hereby
certify that Resolution No. is a full, true and correct copy, and was duly
adopted at an adjourned meeting of the City Council of the City of Palm Springs on
the 7th day of December, 2016 by the following vote:
AYES: Councilmember Foat, Councilmember Kors, Councilmember Roberts,
Mayor Pro Tern Mills, and Mayor Moon
NOES: None
ABSENT: None
ABSTAIN: None
Kathleen D. Hart, MMC, Interim City Clerk