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HomeMy WebLinkAboutRes - 2016.04 - Accelerated Repayment of the Interfund Borrowing and RepaymentRESOLUTION NO. 2016.04 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ("DISTRICT"), SAN BERNARDINO COUNTY, CALIFORNIA, AUTHORIZING ACCELERATED REPAYMENT OF THE INTERFUND BORROWING AND REPAYMENT PREVIOUSLY ESTABLISHED THROUGH RESOLUTION NO. 2010.20 WHEREAS, East Valley Water District is a county water district organized and operating pursuant to California Water Code Section 30000 et seq., and authorized by law to provide water and sewer services to constituents within the District's service area. WHEREAS, pursuant to applicable law, including but not limited to Water Code Sections 31024 and 31027, the District's Board of Directors ("the Board") has established rules and regulations for the provision of water service by the District. WHEREAS, pursuant to applicable law, including but not limited to Water Code Sections 31105, the Board has established rules and regulations for the provision of sewer service by the District. WHEREAS, pursuant to applicable law, including but not limited to Water Code Sections 31007 and 31025, the Board is authorized to adopt such rates for the provision of water service by the District to implement its rules and regulations and to yield an amount sufficient to pay the operating expenses for the District, provided for repairs and depreciation of works owned or operated by the District, pay the interest on any bonded debt, and, so far as possible, provide a fund for the payment of the principal of the bonded debt as it becomes due. WHEREAS, on September 14, 2010, the Board adopted Resolution Number 2010.20, which authorized an interfund loan of money from the sewer fund to the water fund, and a repayment amortization schedule which provided for repayment of all money loaned by fiscal year 2039-40. A copy of said Resolution is attached. WHEREAS, the District wishes to accelerate repayment of said loan and seeks authorization from the Board to do so, BE IT RESOLVED by the Board of Directors of the District,AS FOLLOWS: SECTION 1. The Board does hereby resolve that the interdepartmental loan authorized by Resolution No. 2010.20 be repaid by the District's Water Department to the Sewer Department on an accelerated basis than the repayment schedule set forth in the East Valley Water District Interfund Loan Principal Amortization Schedule attached to Resolution No. 2010.20 as Exhibit A" i SECTION 2. The Board hereby authorizes and directs the District's General Manager to execute any further documents and take such actions relative to this resolution which are necessary and appropriate to carry out the intent hereof and to facilitate the accelerated repayment of said loan. SECTION 3.To the extent that the entirety of said loan is not repaid on accelerated basis,any loan amount not so repaid shall be repaid pursuant to the schedule set forth in the East Valley Water District Interfund Loan Principal Amortization Schedule attached to the Resolution NO. 2010.20 as Exhibit"A". ADOPTED this 24`h day of February 2016. ROLL CALL: Ayes: Directors: Carrillo, Coats, Morales, Shelton, Smith Noes: None Absent:None Abstain: None e Ronald L. Coats President, Board of Directors Attest: John J. Mura, oard Secretary February 24, 2016 1 HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2016.04 adopted by the Board of Directors of East Valley Water District at its Regular Meeting held February 24, 2016. ATTEST: 4 John J. Mura, Board Secretary RESOLUTION NO. 2010.20 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT DOCUMENTING INTERFUND BORROWING AND REPAYMENT WHEREAS, East Valley Water District ("District') is a county water district organized and operating pursuant to California Water Code Section 30000 et seq., and authorized by law to provide water and sewer services to constituents within the District's service area. WHEREAS, pursuant to applicable law, including but not limited to Water Code Sections 31024 and 31027, the District's Board of Directors ("the Board") has established rules and regulations for the provision of water service by the District. WHEREAS, pursuant to applicable law, including but not limited to Water Code Sections 31105, the Board has established rules and regulations for the provision of sewer service by the District. WHEREAS, pursuant to applicable law, including but not limited to Water Code Sections 31007 and 31025, the Board is authorized to adopt such rates for the provision of water service by the District to implement its rules and regulations and to yield an amount sufficient to pay the operating expenses of the District, provide for repairs and depreciation of works owned or operated by the District, pay the interest on any bonded debt, and, so far as possible, provide a fund for the payment of the principal of the bonded debt as it becomes due. WHEREAS, pursuant to applicable law, including but not limited to Water Code Sections 31007 and 31105, the Board is authorized to adopt such rates for the provision of sewer service by the District to implement its rules and regulations and to yield an amount sufficient to pay the operating expenses of the District, provide for repairs and depreciation of works owned or operated by the District, pay the interest on any bonded debt, and, so far as possible, provide a find for the payment of the principal of the bonded debt as it becomes due. WHEREAS, in establishing separate rates for the provision of water and sewer service, it is the intent of the Board that the amount of such rates so adopted not exceed the reasonable anticipated costs for the corresponding services provided by the District in order to avoid qualification as"special taxes" under Government Code Section 50076. WHEREAS, in establishing separate rates for the provision of water and sewer service, it is also the intent of the Board to comply with all of the substantive and procedural prerequisites of Articles XIIIC and XIIID of the California Constitution. WHEREAS, for the reasons set forth in the written and oral reports of District staff presented to the Board concurrently herewith, which are incorporated herein by this reference, it appears that, beginning in 2003, water department capital expenditures have exceeded water net revenues and other financing sources, resulting in borrowing from the sewer department in the amount of approximately $7 million (net of credits for allocated sewer department share of certain 2004 Installment Sale Agreement installment payments)as of June 30, 2010. 1 Resolution 2010.20 WHEREAS, in order to satisfy all applicable legal and constitutional requirements concerning the establishment of the District's water and sewer rates, and to ensure full and complete transparency with respect to the District's management of its fiscal resources. the Board wishes to provide a full accounting of funds generated by, and expended from, the water and sewer departments on an independent enterprise basis. and to formalize its desire that the water department reimburse the sewer department for the funds borrowed over the last seven years with an interdepartmental loan to be paid in accordance with the terms set forth below. NOW, THEREFORE. BE IT RESOLVED that the Board of Directors of the East Valley Water District does hereby resolve and determine that the District's water department shall repay the Districts sewer department for the interdepartmental loan discussed herein in accordance with the amortization schedule attached hereto as Exhibit "A" and incorporated herein by this reference and in any case on a basis subordinate to any existing or future commitments of net water department revenues. including installment payments related to any revenue bonds of the East Valley Water District Financing Authority("EVWDFA Revenue Bonds"). BE IT FURTHER RESOLVED that the Board of Directors of the East Valley Water District does hereby authorize and direct the District's General Manager to execute any further documents and take such actions relative to the Resolution and the repayment schedule set forth herein as are necessary and appropriate to carry out the intent hereof and to facilitate the timely and efficient marketing of the EVWDFA Revenue Bonds (including adjustment of the repayment schedule and principal amount thereof related to the 2004 Installment Sale Agreement prepayment credit), provided repayments shall in any case be subordinate as provided in the amortization schedule attached hereto. ADOPTED this 14t1i day of September, 2010. ROLL CALL: Ayes: Directors: LeVesque, Malmberg, Morales, Sturgeon, Wilson Noes: None Absent: None Abstain: None Georg . Wilson, Prest ent ATTEST: Robert If. Martin, Board Secretary 2 Resolution 2010.20 EAST VALLEY WATER DIST CT Mbit Interfund Loan Principal Amortization Schedule Principal Fiscal Year Amount FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 200,000 FY 2014-15 200,000 FY 2015-16 200,000 FY 2016-17 200,000 FY 2017-18 200,000 FY 2018-19 200,000 FY 2019-20 250,000 FY 2020-21 250,000 FY 2021-22 250,000 FY 2022-23 250,000 FY 2023-24 250,000 FY 2024-25 250,000 FY 2025-26 250,000 FY 2026-27 250,000 FY 2027-28 250,000 FY 2028-29 250,000 FY 2029-30 300,000 FY 2030-31 300,000 FY 2031-32 300,000 FY 2032-33 300,000 FY 2033-34 300,000 FY 2034-35 300,000 FY 2035-36 300,000 FY 2036-37 300,000 FY 2037-38 300,000 FY 2038-39 300,000 FY 2039-40 300,000 7,000,000 EAST VALLEY WATER DISTRICT FINANCING AUTHORITY CERTIFICATION I. Robert Martin. Secretary of the EAST VALLEY WATER DISTRICT FINANCING AUTHORITY. San Bernardino County. California. do hereby certify that the foregoing Resolution No. 2010.03 was duh adopted at a Regular meeting of the Governing Board of'said Authority. held on the 14°i day of September 2010 by the following vote of members of the Authoriq: AYES: Directors: LeVesque, Malmberg, Morales, Sturgeon, Wilson NOES: None ABSENT: None ABSTAIN: None and I further certify that George E. Wilson, as President, and Robert Martin, as Secretary, signed and approved said Resolution No. 2010.03 on the 14 1h day of September 2010. Secretary of the uthority East Valley Water District Financing Authorit DOCSOCG 1423340%1/022497-001 1