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Home My WebLink AboutRESO 982020190325 KRV 0230001 Resolution No. 9820 Resolution of the Council of the City of Palo Alto Declaring Intention to Reimburse Expenditures Relating to Four Capital Projects at the Regional Water Quality Control Plant from the Proceeds of TaxExempt Debt WHEREAS, the City proposes to undertake the capital projects at the Regional Water incur taxexempt debt to finance the Project, and use a portion of the proceeds of such debt to reimburse expenditures made for the Project prior to the issuance of the debt; WHEREAS, United States Income Tax Regulations section 1.1502 provides generally that proceeds of taxexempt 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 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, the Council of the City of Palo Alto does hereby RESOLVE, as follows: SECTION 1. The City intends to issue one or more series of debt payable from its Wastewater Treatment Fund, including, but not limited to revenue bonds, loans and installment p Project. SECTION 2. The City hereby declares that it reasonably expects (i) to pay certain costs of the Project prior to the date of issuance of the Bonds, and (ii) to use a portion of the proceeds of the Bonds for reimbursement of expenditures for the Project that are paid before the date of issuance of the Bonds. // // (SGY7MKR)RZIPSTI-((''&%''&&( 20190325 KRV 0230001 SECTION 3. The principal amount of the Bonds is not expected to exceed $85,000,000, not including the amount needed to pay for debt service reserve funds, costs of issuance and capitalized interest. INTRODUCED AND PASSED: February 25, 2019 AYES: CORMACK, DUBOIS, FILSETH, FINE, KNISS, KOU, TANAKA NOES: ABSENT: ABSTENTIONS City Clerk Mayor Assistant City Attorney City Manager Jones Hall, A Professional Law Corporation Christopher K. Lynch, Jones Hall, A Professional Law Corporation Bond Counsel Director of Public Works Director of Administrative Services (SGY7MKR)RZIPSTI-((''&%''&&( 3 EXHIBIT A Project Description 1. Primary Sedimentation Tank Replacement (PST) This project is for new protective coatings on each of the four concrete primary sedimentation tanks and replacement of worn rotating parts. The tanks which remove settled solids and grease were installed in 1972. The coating ensures that reinforcing steel bars within the another 30 years. Without recoating, the concrete will lose its structural integrity, gradually spalling and harming pumps, pipes, and treatment systems as a result. In a mild seismic event, weakened concrete could potentially collapse, endangering staff and the treatment system. 2. Laboratory & Environmental Services Building (Lab) This project is for a new building that will consolidate staff and provide a larger updated lab. Currently staff is located in four separate aging buildings that also house industrial pumps. An existing laboratory does not have adequate space for staff, instruments, chemical storage, and microbiology testing. 3. Secondary Treatment Upgrades (STU) The existing Secondary Treatment process has two main components: the Fixed Film Reactors (FFR) and the Activated Sludge (AS) Process. This project includes the reconstruction of the AS process, rehabilitation of the AS Aeration Basins and the elimination of the FFRs. The AS Aeration Basins will be subdivided with concrete walls creating different zones where different pollutants can be treated. A special study was completed in 2017, which proposed a complete Secondary Treatment process upgrade instead of individual rehabilitation projects (e.g. FFR). The project will not only reduce organics and ammonia like the existing processes, but will also reduce total nitrogen, the next pollutant being regulated. 4. Outfall Line (OFL) This project is to construct a new parallel outfall pipe to convey final plant effluent to San Francisco Bay. Installation of a new outfall line is needed to address outfall age (built in 1964), but especially to address the outfall capacity considering all peak wetweather flow, peak tide, and future sea level rise scenarios. The existing system lines are inadequate to pass the Plant's peak wet weather hydraulic flow capacity of 80 million gallons per day under all circumstances of peak tides, peak wetweather flows, and future sea level rise scenarios. 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