HomeMy WebLinkAboutAgenda Report - August 1, 2007 K-03AGENDA ITEM
A% CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDATITLE: Adopt Resolution Declaring the City of Lodi's Intentto Reimburse Certain
Expenditures from Proceeds of Indebtedness for Wastewater Projects
MEETING DATE: August 1,2007
PREPARED BY: Public Works Director
RECOMMENDEDACTION: Adopt a resolution declaring the City of Lodi's intent to reimburse
certain expenditures from proceeds of indebtedness for wastewater
projects.
BACKGROUND INFORMATION: The City of Lodi has entered into the Phase 3 construction project of
the White Slough Water Pollution Control Facility, which is
necessary to meet current and anticipated State of California
regulatory requirements and improve treatment process reliability.
The City is also planning to rehabilitate approximately five (5)miles of the Domestic Outfall Pipeline, a
48 -inch diameter reinforced concrete pipe initially installed during the late 1960's. The Phase 3 project is
underway and the intended financing will be needed to pay for final project costs. Staff anticipates the
initial phases of the pipelines work to commence in 2008. In order to recapture what are deemed as
reimbursable expenses from future bond proceeds, it is necessaryfor the Council to adopt a resolution
declaring this intent.
The resolution does not commit the City to make any expenditures, incur any indebtedness, seek other
financing means, or proceed with the project. The resolution only provides the City with the ability to
seek reimbursements for already incurred and future cost should the City proceed with Certificates of
Participation in the future. This resolution is solely for the purposes of establishing compliancewith the
requirements of Section 1.150-2 of the Treasury Regulations.
FISCAL IMPACT: The City's Financial Advisor, Tom Dunphy, has recommended taking this
step, but he is also assisting the City in looking at alternatives to COP
financing.
FUNDING AVAILABLE: Not applicable.
"A
Richard C. Prima, Jr.
Public Works Director
Prepared by Rebecca Areida, Management Analyst 11
RCPIRAIpmf
cc: Stephen Schwabauer, CityAttomey
Charles Swimley, Water Services Manager
Tom Dunphy
APPROVED:
Blair KiW, City Manager
K:IWPIPROJECTSISEWERIWSWPCRWhiteSloughFinancing\C2007 Financing Reimbursement.doc 712012007
RESOLUTION NO. 2007-164
A RESOLUTION OF THE LODI CITY COUNCIL DECLARING
ITS INTENTTO REIMBURSE CERTAIN EXPENDITURES
FROM PROCEEDS OF INDEBTEDNESS
WHEREAS, the City of Lodi (the "City") owns and operates a wastewater system (the
"System") sewing the City and its inhabitants; and
WHEREAS, the City intends to acquire, install, and construct additions, replacements, and
improvements to the System, including outfall relocation, secondary plant improvements, a treatment
wetland, and other improvements (the "Project"); and
WHEREAS, the City expects to pay certain expenditures (the 'Reimbursement
Expenditures") in connection with the Project prior to the issuance of indebtednessfor the purpose of
financing costs associated with the Project on a long-term basis; and
WHEREAS, the City reasonably expects that debt obligations in an amount not expected to
exceed $28,000,000 will be issued in connection with the Project and that certain of the proceeds of
such debt obligationswill be used to reimburse the Reimbursement Expenditures; and
WHEREAS, proceeds of such debt obligations will be allocated to reimbursement
expenditures no later than 18 months after the later of (i) the date the cost is paid, or (ii) the date the
Project (or each component thereof) is placed in service or abandoned (but in no event more than
three years after the cost is paid).
NOW, THEREFORE, BE IT RESOLVED by the Lodi City Council as follows:
Section -1. The City finds and determines that the foregoing recitals are true and correct
cti n 2. The City hereby declares its official intent to use proceeds of indebtedness to
reimburse itself for Reimbursement Expenditures.
Section 3. This declaration is made solely for purposes of establishing compliance with
the requirements of Section 1.150-2 of the Treasury Regulations. This declaration does not bind the
any' -- -
Section 4. This resolution shall take effect from and after its adoption.
Dated: August 1,2007
hereby certify that Resolution No. 2007-164 was passed and adopted by the City Council of the
City of Lodi in a regular meeting held August 1,2007, by the following vote:
AYES: COUNCIL MEMBERS- Hansen, Hitchcock, Katzakian, Mounce, and
MayorJohnson
NOES: COUNCILMEMBERS- None
ABSENT: COUNCILMEMBERS- None
ABSTAIN: COUNCIL MEMBERS- None r7
K�0—
RANDI JOHL
City Clerk
2007-164
CITY COUNCIL
BOB JOHNSON, Mayor
JOANNE L. MOUNCE
Mayor Pro Tempore
LARRY D. HANSEN
SUSAN HITCHCOCK
PHIL KATZAKIAN
CITY OF LODI
PUBLIC WORKS DEPARTMENT
CITY HALL, 221 WEST PINE STREET
P.O. BOX 3006
LODI. CALIFORNIA 95241-1910
(209) 333-6706
FAX (209) 333-6710
E M A I LepOdi.gov
http:\ www.I I.gov
July 27, 2007
Tom Dunphy, Executive Vice President
LaMont Financial Services
3569 Perada Drive
Walnut Creek, CA 94598
BLAIR KING
City Manager
RANDI JOHL
City Clerk
0. STEVEN SCHWABAUER
City Attorney
RICHARD C. PRIMPS JR.
Public Works Director
SUBJECT: Adopt Resolution Declaring the City of Lodi's intent to Reimburse Certain
Expend itu res from Proceeds of Indebtednessfor Wastewater Projects
Enclosed is a copy of background information on an item on the City Council agenda of
Wednesday, August 1, 2007. The meeting will be held at 7 p.m. in the
City Council Chamber, Carnegie Forum, 305 West Pine Street.
This item is on the regular calendar for Council discussion. You are welcome to attend.
If you wish to write to the City Council, please address your letter to City Council,
City of Lodi, P. O. Box 3006, Lodi, California, 95241-1910. Be sure to allow time for the
mail. Or, you may hand -deliver the letter to City Hall, 221 West Pine Street.
If you wish to address the Council at the Council Meeting, be sure to fill out a speaker's
card (available at the Carnegie Forum immediately prior to the start of the meeting) and
give it to the City Clerk. If you have any questions about communicating with the
Council, please contact Randi Johl, City Clerk, at (209) 333-6702.
If you have any questions about the item itself, please call Rebecca Areida,
Management Analyst, at (209) 333-6800, extension 2658.
Richard C. Prima, Jr.
�pY Public Works Director
RCPlpmf
Enclosure
cc: City Clerk
NG2007 FINANCING REIMBURSEMENT.DOC