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Home My WebLink AboutRESO 9959 161220 jb 6053827A 1 Resolution No. 9959 Resolution of the Council of the City of Palo Alto Revising and Superseding Resolution No. 9667 Establishing Pledged Sources of Revenue for Repayment of Funding Pursuant to the Federal Clean Water Act Amendments RECITALS A. The CITY OF PALO ALTO (the “City”) desires to finance the costs of planning, design, and/or construction of certain public facilities and improvements relating to its wastewater system, including the planning/design of primary sedimentation tanks, fixed film reactors, and the laboratory/environmental service building, and the construction of a sludge treatment and load-out facility (the “Projects”) that were identified in the Regional Water Quality Control Plant’s Long Range Facility Plan. B. The City intends to finance the planning, design, and/or construction of the Projects or portions of the Projects with moneys (“Project Funds”) provided by the State of California, acting by and through the State Water Resources Control Board (the “Water Board”). C. Section 603(d)(1)(C) of the Federal Clean Water Act Amendments require each financing recipient to establish one or more pledged sources of revenue for Clean Water State Revolving Fund (“CWSRF”) financial assistance. D. Revenue will be considered pledged when the City passes a resolution committing a source of funds for repayment. E. On October 17, 2016, the City Council adopted Resolution No. 9631, pledging net revenues of its Wastewater Treatment enterprise fund to repayment of CWSRF financial assistance incurred for the planning, design, and/or construction of the Projects. F. On February 17, 2017, in response to additional direction from the Water Board, the City Council repealed Resolution No. 9631 and adopted Resolution No. 9667, in order to pledge net revenue from both its Wastewater Treatment and Wastewater Collection enterprise funds to repayment of CWSRF financial assistance for the Projects. G. Since 2017, the Water Board changed some of the standard terminology used in the template CWSRF agreements commencing with the 2020 agreements; specifically, the definitions for “Maintenance and Operations Costs” and “Net Revenues” and “Revenues” were modified, and the City now wishes to adopt a revised resolution that includes the updated definitions, while keeping all other terms and provisions of Resolution 9667 in place. Because the pledge of Net Revenues of the City’s Wastewater Treatment and Wastewater Collection enterprise funds to the CWSRF financing for CWSRF Project No. 8104 CWSRF Project No. 8091- 110 will be on a parity basis with the pledge of Net Revenues to certain outstanding obligations, DocuSign Envelope ID: 72A40292-A2BE-4F41-8EFB-2C22A1C39609 161220 jb 6053827A 2 it is the intent of the Water Board and the City that the updated terminology does not result in a substantive change in the scope of the Net Revenues pledged to repayment of the CWSRF financial assistance. NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows: SECTION 1. The City of Palo Alto hereby pledges Net Revenues of its Wastewater Treatment enterprise fund and Wastewater Collection enterprise fund to repayment of any and all CWSRF financing incurred for CWSRF Project No. 8104, including the planning/design of primary sedimentation tanks, fixed film reactors, and laboratory/ environmental service building and CWSRF Project No. 8091-110, including the design and construction of a sludge dewatering and load-out facility. Net Revenues of the City’s Wastewater Treatment enterprise and Wastewater Collection enterprise are defined as follows: "Net Revenues" means, for any Fiscal Year, all Revenues received by the Recipient less the Operations and Maintenance Costs for such Fiscal Year. "Revenues" means, for each Fiscal Year, all gross income and revenue received or receivable by the Recipient from the ownership or operation of the System, determined in accordance with GAAP, including all rates, fees, and charges (including connection fees and charges) as received by the Recipient for the services of the System, and all other income and revenue howsoever derived by the Recipient from the ownership or operation of the System or arising from the System, including all income from the deposit or investment of any money in the Enterprise Fund or any rate stabilization fund of the Recipient or held on the Recipient’s behalf, and any refundable deposits made to establish credit, and advances or contributions in aid of construction. For the avoidance of doubt, the parties intend that this definition be substantially equivalent to the definitions of “Revenues” contained in the Prior SRF Agreements, and the State Water Board hereby agrees that Recipient shall be entitled to treat them as equivalents in connection with the calculation of Revenues and Net Revenues and the issuance of additional System Obligations. "Operations and Maintenance Costs" means the reasonable and necessary costs paid or incurred by the Recipient for maintaining and operating the System, determined in accordance with GAAP, including the cost of supply of water, gas and electric energy under contracts or otherwise, the funding of reasonable reserves, and all reasonable and necessary expenses of management and repair and all other expenses necessary to maintain and preserve the System in good repair and working order, and including all reasonable and necessary administrative costs of the Recipient attributable to the System and to any financing instruments incurred to finance improvements to the System, such as salaries and wages and the necessary contribution to retirement of employees, overhead, insurance, taxes (if any), expenses, compensation and indemnification of any bond trustee, and fees of auditors, accountants, attorneys or engineers, and including all other reasonable and necessary costs of the Recipient or the DocuSign Envelope ID: 72A40292-A2BE-4F41-8EFB-2C22A1C39609 161220 jb 6053827A 3 cost of permits, licenses, and charges required to be paid by it to comply with the terms of any financing instrument related to the System; but excluding, in all cases depreciation, replacement, and obsolescence charges or reserves therefor and amortization of intangibles or other bookkeeping entries of a similar nature." This pledge of Net Revenues shall remain in effect until such financing is fully discharged unless modification or change of such dedication is approved in writing by the Water Board. SECTION 2: The Council’s pledge of the revenues to repay State Revolving Fund financing for the above-referenced Projects does not meet the definition of a project for the purposes of the California Environmental Quality Act, under Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment. Council approved an Initial Study/Mitigated Negative Declaration for the sludge-dewatering and loadout facility project on March 28, 2016 (Staff Report ID# 6424). // // // // // // // // // // // // // // // DocuSign Envelope ID: 72A40292-A2BE-4F41-8EFB-2C22A1C39609 161220 jb 6053827A 4 // SECTION 3: Resolution No. 9667, adopted on February 17, 2017 is hereby repealed and superseded by adoption of this Resolution No. 9959 INTRODUCED AND PASSED: May 17, 2021 AYES: BURT, CORMACK, DUBOIS, FILSETH, KOU, STONE, TANAKA NOES: ABSENT: ABSTENTIONS: ATTEST: _________________________ ______________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________ ______________________________ Special Counsel City Manager ______________________________ Director of Public Works ______________________________ Director of Administrative Services DocuSign Envelope ID: 72A40292-A2BE-4F41-8EFB-2C22A1C39609 Certificate Of Completion Envelope Id: 72A40292A2BE4F418EFB2C22A1C39609 Status: Completed Subject: Please DocuSign: RESO 9959 Establishing Pledged Sources of Revenue for Payment of Funding.docx Source Envelope: Document Pages: 4 Signatures: 6 Envelope Originator: Certificate Pages: 2 Initials: 0 Danielle Kang AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Danielle.Kang@cityofpaloalto.org IP Address: 199.33.32.254 Record Tracking Status: Original 5/24/2021 1:10:45 PM Holder: Danielle Kang Danielle.Kang@cityofpaloalto.org Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp Joan Borger Joan.Borger@CityofPaloAlto.org Special Counsel Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 47.32.175.131 Sent: 5/24/2021 1:13:43 PM Viewed: 5/24/2021 1:24:32 PM Signed: 5/24/2021 1:34:47 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Kiely Nose Kiely.Nose@CityofPaloAlto.org Director, Administrative Services/CFO City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Uploaded Signature Image Using IP Address: 73.71.66.28 Sent: 5/24/2021 1:34:48 PM Viewed: 5/25/2021 9:13:51 AM Signed: 5/25/2021 9:14:02 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Brad Eggleston Brad.Eggleston@CityofPaloAlto.org Director of Public Works City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 5/25/2021 9:14:03 AM Viewed: 5/25/2021 9:28:10 AM Signed: 5/25/2021 9:28:20 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Ed Shikada Ed.Shikada@CityofPaloAlto.org Ed Shikada, City Manager City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 5/25/2021 9:28:22 AM Viewed: 5/25/2021 10:53:51 AM Signed: 5/25/2021 10:55:58 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Signer Events Signature Timestamp Tom DuBois tomforcouncil@gmail.com Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 24.5.55.204 Sent: 5/25/2021 10:55:59 AM Viewed: 5/26/2021 8:01:09 AM Signed: 5/26/2021 8:01:15 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Beth Minor beth.minor@cityofpaloalto.org City Clerk City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 5/26/2021 8:01:16 AM Viewed: 5/26/2021 8:14:30 AM Signed: 5/26/2021 8:14:42 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 5/24/2021 1:13:43 PM Certified Delivered Security Checked 5/26/2021 8:14:30 AM Signing Complete Security Checked 5/26/2021 8:14:42 AM Completed Security Checked 5/26/2021 8:14:42 AM Payment Events Status Timestamps