HomeMy WebLinkAboutMINUTES - 05162006 - C.35 0 �
TO: BOARD OF SUPERVISORS, AS THE BOARD OF ?�—S 'L Contra
DIRECTORS FOR CONTRA COSTA COUNTY
SANITATION DISTRICT NO. 5 Costa C357
FROM: MAURICE M. SHIU, PUBLIC WORKS DIRECTORo�ta
v County
o �
DATE: May 16, 2006
SUBJECT: ADOPT Resolution 2006/APPROVING and AUTHORIZING the Public Works Director,or designee,
to execute an agreement with Municipal Finance Corporation in the amount of$550,000 for the financing of
wastewater system improvements at Contra Costa County Sanitation District No. 5, Port Costa area.
(District II) (Project#7380-6X9E40)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDED ACTION:
ADOPT Resolution 2006/ Approving and Authorizing the Public Works Director, or designee, to execute an
agreement with Municipal Finance Corporation for the financing of wastewater system improvements at Contra Costa
County Sanitation District No. 5 (SD5)in Port Costa.
FISCAL IMPACT:
There will be no impact to County General Funds. The loan will result in a fiscal gain of$550,000 to SD5 for purposes of
financing the upgrades mandated by the Regional Water Quality Control Board. The loan will be repaid from a portion of
annual assessments imposed on properties within the boundaries of SD5.
REASONS FOR RECOMMENDATIONS AND BACKGROUND:
Contra Costa County Sanitation District No. 5 (SD5)serves the community of Port Costa. The treatment facility was built in
1982 and includes a recirculating sand filter system and hypochlorite disinfection system.
The San Francisco Bay Regional Water Quality Control Board(RWQCB)has mandated that SD5 conduct specific upgrades to
its wastewater treatment facility. Design of the improvements is currently underway and construction is expected to be
completed by November, 2006. SD5 does not have enough capital reserves to fund the necessary upgrades. The citizens of
Port Costa approved substantial increases to their annual per parcel assessment over the past three years. A portion of the
increased sewer assessment funds will be used to repay the proposed construction loan. During the March 15, 2006 SD5
Citizen's Advisory Committee meeting,the members voted unanimously to approve this loan.
CONSEQUENCES OF NEGATIVE ACTION: ,
If this Resolution is not approved and authorized, SD5 will not be able to pay for the wastewater treatment facility upgrades
mandated by the RWQCB. SD5 would then be subject to $57,000 in fines m t RRWQ/CB.
Continued on Attachment: X SIGNATURE:
_RECOMMENDATION OF COUNTY ADMINISTRATOR
_RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS:
^ I hereby certify that this is,a true and correct copy of
UNANIMOUS(ABSENT ')..r,�yc� an action taken and entered on the minutes of the
AYES: NOES: Board of Supervisors on the date shown.
ABSENT: ABSTAIN:
LC:sj /
G:\SpDist\Board Orders\2006-Board Orders\05-16-06 BO SD5 Loan.doc ATTESTED: ( �
Orig.Div:Public Works(Special Districts)
Contact: Lisa Carnahan(313-2191) JOHN CULLEN,CId Ckof the Board of Supervisors
and County Administrator
cc: County Administrator
Auditor-Controller
E.Whan,Eng Services
John Mann,SD5 CAC By � ,Deputy
K.Peterson,CVSD
THE BOARD OF SUPERVISORS, AS THE BOARD OF DIRECTORS FOR SANITATION DISTRICT NO. 5
Adopted this Resolution on May 16, 2006,by the following vote:
AYES: Gioia,Piepho,DeSaulnier,Glover and Uilkema
NOES: None
ABSENT: None
j ABSTAIN: None
RESOLUTION NO. 2006/ g r7
SUBJECT: ADOPT Resolution 2006/ APPROVING and AUTHORIZING Public Works Director,or designee,to
execute an agreement with Municipal Finance Corporation in the amount of$550,000 for the financing of
wastewater system improvements at Contra Costa County Sanitation District No. 5, Port Costa area.
(District II)
The Board of Directors for Sanitation District No. 5 RESOLVES:
1. On May 16,2006,the Board of Directors adopted Resolution No.2006/ to approve borrowing funds from the Lender,
in the maximum principal amount of$550,000 at a 5.10%interest rate. The Board of Directors hereby authorizes and
directs the Public Works Director,or Designee,to execute the loan agreement,and the Clerk of the Board to attest and
affix the seal of the District to the final form of the Loan Agreement for and in the name of the District.
2. On May 16, 2006,the Board adopted Resolution No. 2006/ authorizing and directing,jointly and severally,to take
any and all actions and to execute and deliver any and all documents,agreements and certificates which they may deem
necessary or advisable in order to carry out, give effect to and comply with the terms of this Resolution and the Loan
Agreement. Such actions are hereby ratified, confirmed and approved.
3. The Loan is hereby designated as"qualified tax exempt obligations"within the meaning of Section 265(b)(3)of the
Internal Revenue Code of 1986, as amended(the"Code"). The District,together with all subordinate entities of the
District,do not reasonably expect to issue during the calendar year in which the Loan is issued more than$10,000,000
of obligations which it could designate as "qualified tax-exempt obligations"under Section 265(b)of the Code.
4. This Resolution shall take effect immediately upon its passage.
LC:sj
G:\SpDist\Board Orders\2006-Board Orders\05-16-06 BO S135 Loan.doc
Orig.Dept.:Public Works Department(Special Districts)
Contact: Lisa Carnahan(313-2191)
I hereby certify that this is a true and correct copy
cc: County Administrator of an action taken and entered on the minutes of the
Auditor-ControllerBoard of Supervisors on the date shown.
E.Whan,Eng Services
John Mann,SD5 CAC /6 .20CK.Peterson,CVSD ATTESTED:
JOHN CULLEN,Cler f the Board of Supervisors
Resolution No. 2006/ and County Administrator
By o�,Deputy