Resolution 2868-09 Amended
RESOLUTION FOR FUNDING AGREEMENT WITH CA. D-09EPT. OF PUBLIC HEALTH
PROJECT NO. 910002-004 ARSENIC TREATMENT AT ARROWHEAD WEL
RESOLUTION NO. 2868-09
RESOLUTION OF the South Tahoe Public Utility District (STPUD) Board of Directors
AUTHORIZING the General Manager (GM), Assistant General Manager (AGM) or the Chief Financial Officer
(CFO) TO SIGN FUNDING AGREEMENT AND AMENDMENTS FOR FUNDING UNDER THE SAFE DRINKING
WATER STATE REVOLVING FUND AMERICAN RECOVERY AND REINVESTMENT ACT; AUTHORIZING the
GM, AGM and/or the CFO TO APPROVE CLAIMS FOR REIMBURSEMENT; AUTHORIZING the GM, CFO,
and AGM TO EXECUTE BUDGET AND EXPENDITURE SUMMARY; AUTHORIZING AGM TO SIGN THE
CONTRACTOR'S RELEASE FORM AND AGM TO SIGN THE CERTIFICATION OF PROJECT COMPLETION;
AND DEDICATING REVENUES FROM water service charges AS THE SOURCE OF REVENUE TO REPAY
SAID LOAN.
WHEREAS, on 2/2312009 , the STPUD made application to the California Department of Public
Health for funding under the California Safe Drinking Water State Revolving Fund and the federal AMERICAN
RECOVERY AND REINVESTMENT ACT of 2009 for a project commonly known and described as
Arsenic Treatment for Arrowhead Well (herein the project); and
WHEREAS, on 06/04/2009 , said STPUD Board of Directors adopted a project budget totaling
$1,744,976, and
WHEREAS, it is anticipated that the Funding Agreement under the California Safe Drinking Water State
Revolving Fund and the federal AMERICAN RECOVERY AND REINVESTMENT ACT of 2009 will provide for a
loan in the amount of $ 1,030,600 of which $ 515,300 will be provided as additional subsidization in the
form of principle forgiveness[, and $ 515,300 shall be repaid to the California Department of Public Health
over a 20 year repayment period at a 2.5 percent interest rate].
[ WHEREAS, the remaining $ 714,376 of project costs are to be funded under the STPUD Capital
Reserve Funds, and;
WHEREAS, prior to the California Department of Public Health's issuance of said Funding Agreement,
STPUD Board of Directors is required to pass a resolution [designating a dedicated source of revenue to repay
the non-subsidized principle amount of said loan (if any);] authorizing an officer to execute said Funding
Agreement and amendments, authorizing an officer to execute all certifications and reports required of funding
recipients under the California Safe Drinking Water State Revolving Fund and the federal American Recovery and
Reinvestment Act of 2009; designating a person to approve claims for reimbursement, designating a person
(registered engineer) to sign the Budget and Expenditure Summary, designating a person (registered engineer) to
sign Certification of Project Completion, and designating a person to sign the Contractor's Release Form.
/ [ WHEREAS, prior to the California Department of Public Health issuing said Funding Agreement, STPUD
Board of Directors is required to establish water rates and charges in amounts sufficient to generate net
revenues equal to at least 1 times annual total debt service.
NOW, THEREFORE, BE IT RESOLVED AND ORDERED, that the STPUD General Manager,
~1` Assistant General Manager and/or the Chief Financial Officer is hereby authorized to sign the Safe Drinking
Water State Revolving Fund program Funding Agreement and any amendments thereto; and
BE IT FURTHER RESOLVED AND ORDERED, that the STPUD General Manager, Assistant
General Manager and/or the Chief Financial Officer is hereby authorized to approve Claims for
Reimbursement under the Safe Drinking Water State Revolving Fund program; and
Revised June 11, 2009 Page 1 of 2
Enclosure No. 14
BE IT FURTHER RESOLVED AND ORDERED, that the STPUD General Manager, Assistant
General Manager and/or the Chief Financial Officer is hereby authorized to execute the Budget and
Expenditure Summary for the Safe Drinking Water State Revolving Fund program; and
BE IT FURTHER RESOLVED AND ORDERED, that the STPUD Assistant General Manager is
hereby authorized to sign the Contractor's Release Form for the Safe Drinking Water State Revolving Fund
Program; and
BE IT FURTHER RESOLVED AND ORDERED, that the STPUD Assistant General Manager is
hereby authorized to certify that the project is complete and ready for final inspection; and
BE IT FURTHER RESOLVED AND ORDERED, that the STPUD Chief Financial Officer does
hereby designate revenues from the water service charge revenue as the dedicated source of revenue to
repay this Safe Drinking Water State Revolving Fund loan. This dedication shall remain in full force and effect
until such loan is fully discharged, unless modification or change of such dedication is approved in writing by the
California Department of Public Health. If for any reason, said source of revenues proves insufficient to satisfy
the debt service of the Safe Drinking Water State Revolving Fund loan, sufficient funds shall be raised through
increased water rates, user charges, or assessments or any other legal means available to meet this loan
obligation and to operate and maintain this project.
BE IT FURTHER RESOLVED AND ORDERED, that the project infrastructure investment is an
appropriate use of taxpayer dollars.
BE IT FURTHER RESOLVED AND ORDERED, that the STPUD does hereby covenant to establish
water rates and charges in amounts sufficient to generate net revenues equal to at least 1 times annual total debt
service.
Passed and adopted by the STPUD Board of Directors) on 8/20/2009, by the following vote:
AYES: Directors Mosbacher, Rise, Claudio, Schafer, Jones
NOES: Directors None
EXCUSED- Directors None
.1
resident
Mary Lo Mosbacher
ATTEST:
Kathy 78h;
Jerk of the Bard
Revised June 11, 2009 Page 2 of 2