R-005-26 - Outlining the Agencys Commitment to Reimburse the Clean Water State Revolving Fund for a Loan for the Capital Improvements

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2 4 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. R-05-26 A RESOLUTION OF THE COLTON UTILITY AUTHORITY OUTLINING THE AGENCYS COMMITMENT TO REIMBURSE THE CLEAN WATER STATE REVOLVING FUND FOR A LOAN FOR CAPITAL IMPROVEMENTS WHEREAS, the Colton Utility Authority (the "Agency") desires to finance the costs of constructing and/or reconstructing certain public facilities and improvements relating to its Wastewater Treatment Plant Flare Rehabilitation Project (the "Project"), including a new iron scrubber gas purification system, a new 2.8145 MMBtu/hr flare, and other infrastructure to allow the Agency to meet current and future process needs and comply with the requirements of all applicable SCAQMD; and WHEREAS, the Agency 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 Agency desires to incur certain capital expenditures (the "Expenditures") with respect to the Project from available moneys of the Agency; and WHEREAS, the Agency has determined that those moneys to be advanced on and after the date hereof to pay the Expenditures are available only for a temporary period and it is necessary to reimburse the Agency for the Expenditures from the proceeds of the Obligations. NOW, THEREFORE, THE AGENCY DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS: SECTION 1. The Agency 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. SECTION 2. The reasonably expected maximum principal amount of the Project Funds is $3,921,489. SECTION 3. This resolution is being adopted no later than 60 days after the date on which the Agency will expend monies for the construction portion of the Project costs to be reimbursed with Project Funds. SECTION 4. Each Agency expenditure will be of a type properly chargeable to a capital account under general federal income tax principles.