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HomeMy WebLinkAboutRes - 2016.03 - Reimburse Expenditures Paid Prior to the Approval by the State Water Resources Control BoardRESOLUTION NO. 2016.03 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT DECLARING ITS INTENTION TO REIMBURSE EXPENDITURES PAID PRIOR TO THE APPROVAL BY THE STATE WATER RESOURCES CONTROL BOARD OF A CLEAN WATER STATE REVOLVING FUND AND/OR WATER RECYCLING FUND FINANCIAL ASSISTANCE APPLICATION WHEREAS, East Valley Water District (the "District") has entered into an agreement entitled Framework Agreement for the Construction and Operation of Potential Groundwater Replenishment Facilities By and Between East Valley Water District and San Bernardino Valley Municipal Water District ("Agreement") which is effective as of October 6, 2015; and WHEREAS, the Agreement contemplates the design and construction of public facilities in the form of a wastewater treatment plant and associated and necessary pipelines and infrastructure (the "Project"), which will treat wastewater generated within the District's service area. The Project will produce recycled water for groundwater recharge and other beneficial uses, which will benefit the San Bernardino Basin Area, which is consistent with the policies established by the State Water Resources Control Board Recycled Water Policy adopted in 2009, as well as article X, section 2 of the California Constitution and Water Code section 13576(k). The Project will be known as the Sterling Natural Resource Center; and WHEREAS, pursuant to the Agreement, the District is to finance all work associated with or required by the Project and may make any arrangement that it deems appropriate for such financing without the consent of San Bernardino Valley Municipal Water District which will construct and operate the Project; and WHEREAS, the Environmental Impact Report for the Project was certified and CEQA Findings of Fact, a Statement of Overriding Considerations and a Mitigation Monitoring and Reporting Program for the project were adopted by the lead agency, San Bernardino Valley Municipal Water District on March 15, 2016, and were considered and adopted by the District as a responsible agency on March 23, 2016; and WHEREAS, the District desires and intends 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 (State Water Board); and WHEREAS, 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 WHEREAS, prior to either the issuance of the Obligations or the approval by the State Water Board of the Project Funds, the District has incurred and will continue to incur certain East Valley Water District Resolution 2016.03 Page 1 of3 capital expenditures (the "Expenditures") with respect to the Project from available moneys of the District for which the District will seek reimbursement; and WHEREAS, the District has determined that those moneys advanced prior to and after the date hereof to pay the Expenditures are available only for a temporary period and it is necessary to reimburse the District for the Expenditures from the proceeds of the Obligations. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of East Valley Water District as follows: 1. The District hereby states its intention and reasonably expects to reimburse Expenditures paid prior to the issuance of the Obligations or the approval by the State Water Board of the Project Funds. 2. The reasonably expected maximum principal amount of the Project Funds is 126,000,000. 3. This resolution is being adopted no later than 60 days after the date on which the District will expend moneys for the construction portion of the Project costs to be reimbursed with Project Funds. 4. Each District expenditure will be of a type properly chargeable to a capital account under general federal income tax principles. 5. To the best of our knowledge, this District is not aware of the previous adoption of official intents by the District that have been made as a matter of course for the purpose of reimbursing expenditures and for which tax-exempt obligations have not been issued. 6. This resolution is adopted as official intent of the District in order to comply with Treasury Regulation §1.150-2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of Project costs. 7. All the recitals in this Resolution are true and correct and this District so finds, determines and represents. PASSED, APPROVED and ADOPTED this 23rd day of March, 2016. ROLL CALL: Ayes: Directors: Carrillo, Coats, Morales, Shelton, Smith Noes: None Absent: None n Abstain: None Ronald L. Coats Board President East Valley Water District Resolution 2016.03 Page 2 of 3 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2016.03 adopted by the Board of Directors of East Valley Water District at its Regular Meeting held March 23, 2016. V IA (& Zklo John ora Secretary, Board of Jrectors East Valley Water District Resolution 2016.03 Page 3 of 3