HomeMy WebLinkAbout7 SRF Resolutions Agenda Item #
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To: Board of Directors
From: Peter Holzmeister
Date: June 25, 2003
Subject: SRF Resolutions
Why this matter is before the Board:
We have applied for a State Revolving Fund loan from the State of California to finance
reconstruction of the Donner Lake water system. We have now received preliminary
approval. Final approval is subject to the District satisfying certain procedures. The two
resolutions attached satisfy part of the procedural requirements. Only the Board can
adopt these resolutions.
History
When the District acquired the Donner Lake water system we said we would apply for a
State Revolving Fund loan to help with the cost of financing. The SRF loan has a
subsidized interest rate, so it is a low cost loan. We applied for the loan and have now
received official notice that the loan will be approved if we meet certain conditions.
New information
Attached for your review is a letter from the California Department of Water Resources
dated June 5, 2003 stating that we are eligible for a loan in the amount of$13,209,357 at
an interest rate of 2.34 percent. The letter goes on to describe various terms and
conditions that we must satisfy before they will sign the funding contract and make
money available. The attached draft resolutions satisfy DWR requirements numbers 1,
2 and 3 from page 2 of the letter.
We will submit a report to the Board describing how we intend to comply with all other
conditions set forth in the letter
Recommendation
I recommend that the Board adopt the resolution Designating District Officials who are
Authorized to Sign Various SRF Documents and the resolution Designating the Revenue
Source that will repay the SRF Loan
06-05-2003 15:67 From-FISCAL SERVICES 9166516828 T-625 P.002 F-460
STATE OF CALIFORNIA-THE RESOURCES AGENCY GRAY DAMS, GOVeMor
DEPARTMENT OF WATER RESOURCES
1416 NINTH STREET, P.O. SOX 942636
SACRAMENTO, CA 94236-0001
(916) 653-5791
JUN 0 5 10a3
Mr. Peter Holzmeister
General Manager
Truckee Donner Public Utility District
Post Office Box 309
Truckee, California 96160
SDWSRF Proiect Funding —Truckee Donner PUD — Project 42910005 05
Dear Mr. Holzmeister :
Your application for funding under the Safe Drinking Water State Revolving Fund
has been reviewed by the Department of Water Resources and the Department of
Health Services. We have determined that project number 2910005-05, as proposed by
the Truckee Donner Public Utility District, is eligible for a construction loan in the
amount of $13,209,357. It is our understanding that the total project is estimated to cost
$13,209,357. The proposed funding is provided in part from a Federal Capitalization
Grant for Drinking Water State Revolving Fund (California) fiscal year 2001, CFDA
number 66.468, award number FS989349-02-0.
This letter serves as our Notice of Application Acceptance. Funds in the amount
of $13,209,357 have been encumbered in the SDWSRF account and will be reserved
for this project provided the terms and conditions as set forth herein are met. In order
to maintain this reservation of funds in the SDWSRF account for your project, it
is essential that you sign this Notice of Application Acceptance at the space
provided and return it within 60 days.
The contract when issued and executed will provide for a 20-year loan at a
2.34 percent interest rate. Once the Truckee Donner Public Utility District begins
drawing loan funds, DHS will invoice you semiannually during construction for interest
accrued on funds disbursed. (Section 116761.65 of the Health and Safety Code
prohibits deferral of interest on loans.) Your semiannual principal and interest payments
will be approximately $415,408 and will normally begin after project completion. An
accumulation of approximately $41,541 semiannually during the first 10 years of the
loan repayment period is required in order to build a loan repayment reserve fund equal
to two semiannual payments.
Please be advised that subsequent to contract execution you may request a
one-time increase in funding. Such request must be based upon competitive bids.
06-05-2003 15:57 From-FISCAL SERVICES 9166516829 T-625 P.003 F-460
Mr, Peter Holzmeister
Page 2
This funding offer is contingent upon your compliance with the following terms
and conditions. Compliance shall be determined at the sole discretion of DHS or its
authorized representative. Items indicated as DWR Requirements must be submitted to
DWR and DHS Requirements must be submitted to your District Office of DHS.
1_ Prior to issuance of the contract for signature by your authorized
representative, the following items must be provided:
DWR Requirements
1. A written designation, by resolution or as otherwise appropriate, of
individual(s) with legal authority to:
a. sign the SDWSRF contract;
b. approve the Claims for Reimbursement;
c. sign the Budget and Expenditure Summary (DWR form 4277), enclosed;
d. sign the Contractor's Release form (DHS form 2352), enclosed; and
e. sign the certification that the project is complete and ready for final
inspection.
Person(s) signing the Budget and Expenditure Summary and certification that
the project is complete and ready for final inspection must be a registered
engineer(s) or person(s) approved by DHS.
2. A written statement, resolution, or ordinance (as appropriate) adopted by the
water system's governing body identifying a source of revenue and
pledging/dedicating such source of revenue for repayment of the loan. When
identifying the source of repayment, the identification should be as specific as
possible, for example if using: assessments provide assessment name, date
or number; user water rates provide account/fund name, number etc.; PUC
authorized surcharge provide identity of PUC order; or provide identity of
accounts receivable as appropriate. The document shall also include a
statement agreeing to increase rates as appropriate whenever necessary to
satisfy debt service over the term of the loan.
3. Provide the identity of your Contract Manager.
4. Truckee Donner Public Utility District shall submit a proposal for providing
adequate security to assure repayment of the loan. Such proposal may
include but is not limited to the Donner Lake Water Assessment District
Number 00-1 and any modifications thereto. State may require a written
06-05-2003 16:56 From-FISCAL SERVICES 9166516828 T-625 P.004 F-460
Mr. Peter Holzmeister
Page 3
opinion from Truckee Donner Public Utility District's bond counsel regarding
the validity of the assessment and/or any modification or change procedures
affecting same. Truckee Donner Public Utility District must receive the
State's written approval of any such proposal.
Note: You are encouraged to commence satisfaction of the above DWR
Reauirements immediately.
DHS Requirements
1. Truckee Donner Public Utility District shall submit a permit amendment
application to the Valley District Office of the Department of Health Services.
2. Truckee Donner Public Utility District shall submit plans and specifications
including a detailed project cost break down for the project, to the Valley
District Office of Department of Health Services no later than December 31 ,
2003.
3. On or before July 18, 2003, Truckee Donner Public Utility District shall
prepare and submit 15 copies of a Proposed Negative Declaration to the
State Clearinghouse (P.O. Box 3044, Sacramento, CA, 95812-3044).
4. On or before July 18, 2003, Truckee Donner Public Utility District shall
prepare and submit 6 copies of a Proposed Negative Declaration to
Department of Health Services, Environmental Review Unit for coordination
with Federal environmental review requirements and approvals.
5. On or before July 18, 2003, Truckee Donner Public Utility District shall
submit cultural resources information to Department of Health Services,
Environmental Review Unit. Such information shall be provided, in the
manner, and to the level of detail specified by Department of Health Services'
Cultural Resources Officer.
6. On or before September 5, 2003, Truckee Donner Public Utility District
shall submit to Department of Health Services, Environmental Review Unit a
resolution from its decision-making body making appropriate CEQA findings
and stating that the Negative Declaration (and any applicable mitigation
monitoring plan) has been certified or adopted.
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Mr. Peter Holzmeister
Page 4
7. On or before September 12, 2003, Truckee Donner Public Utility
District shall file a Notice of Determination with the Nevada County Clerk
and the Governor's Office of Planning and Research and send a copy of
the Notice to Department of Health Services, Environmental Review Unit.
All items under I must be provided before a contract will be issued for
signature by your authorized representative.
11. Prior to final execution of the contract by DWR, the following Items must be
provided:
DWR Requirements
1. The services of a Fiscal Agent must be secured to assist in administering
repayment of the loan. Complete and return to DWR a Fiscal Services
Agreement (DWR form 4280), in triplicate with original signatures on all
copies, enclosed.
2. Complete and sign a Payee Data Record (STD 204), enclosed. This form is
to be returned with the signed contract. DWR will forward it with the final
contract to DHS.
3. Sign and return a Certification Regarding Lobbying form, enclosed.
All items under 11 must be provided before final execution of the contract by
DWR.
Failure to comply with DWR and DHS Requirements I and 11 may result in a
withdrawal of this Notice of Application Acceptance. Should this occur, your project will
be bypassed but will remain on the project priority list. You may submit a new
application for future funding only after receiving another letter of invitation from DHS.
If for any unforeseen reason you are unable to comply with any of the above
requirements, you should contact your District Office of DHS as soon as possible.
. .................... ......... . .. .
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Mr. Peter Holzmeister
Page 5
Ill. Prior to disbursement of funds, the following items must be provided:
DWR Requirements
1. Evidence that a separate checking account or a separate ledger has been
established to account for funds received from the State.
Please indicate the name and address of the financial institution, exact name
of account holder, and the account name and number. You must establish a
ledger within your accounting system in accordance with generally accepted
accounting principles to account for all funds received from the State. The
ledger must identify the project number and SRF contract number. You must
provide documentation showing that the ledger has been established.
(Please note all accounts are subject to audit at any time.)
2. Detailed account information where funds collected to repay the loan are held
before being transferred to your Fiscal Agent.
Please indicate the name and address of the financial institution, exact name
of account holder, and the account name and number. You must establish a
ledger within your accounting system in accordance with generally accepted
accounting principles to account for the receipt of funds collected to repay the
loan. The ledger must identify the project number and SRF contract number.
You must provide documentation showing that the ledger has been
established. (Please note all accounts are subject to audit at any time.)
3. Complete and return to DWR a Security Agreement (Deposit Account) (DWR
form 4279) enclosed, on the two accounts in items 1 and 2 above.
4. A Financing Statement (form UCC-1) will be completed and filed with the
Secretary of State of California by DWR, enclosed. This document is filed to
provide security on items of personal property including the accounts as
referenced in items 1 and 2 above.
All items under Ill must be provided before any disbursement of funds will
be made.
06-05-2003 15:58 From-FISCAL SERVICES 9166516828 T-625 P-007/012 F-460
Mr, Peter Holzmeister
Page 6
IV. General Requirements
DHS Requirements
1. Truckee Donner Public Utility District shall complete all technical and
financial conditions of this Notice of Application Acceptance within a time
frame such that a contract can be issued within 1 year from the signing of this
Notice of Application Acceptance.
2. Truckee Donner Public Utility District shall not initiate additional project
construction until Department of Health Services, Environmental Review Unit
has completed its environmental review of the project and provided any
necessary environmental conditions.
3. Within ten (10) business days of its receipt of same, Truckee Donner Public
Utility District shall provide the Valley District Office of the Department of
Health Services with documentation showing the final resolution of the
eminent domain proceedings concerning the Donner Lake Water Company
public water system and documentation concerning any change of ownership
and/or operation of the water system.
4. Truckee Donner Public Utility District shall implement the following funding
conditions, which are under the statutory authority of, or under the federal
authority delegated to Department of Health Services:
If archaeological features or materials are unearthed during any phase of
project activities, all work in the immediate vicinity of the find shall halt until
Truckee Donner Public Utility District has contacted Department of Health
Services' Cultural Resources Officer (CRO), and the significance of the
resource has been evaluated. Any mitigation measures that may be deemed
necessary must have the approval of the CRO, and shall be implemented by
a qualified archaeologist representing Truckee Donner Public Utility
District prior to the resumption of construction activities. If human remains
are exposed by project-related activity, Truckee Donner Public Utility
District shall comply with California State Health and Safety Code,.Section
7050.5, which states that no further disturbance shall occur until the County
Coroner has made the necessary findings as to origin and disposition
pursuant to California Public Resources Code, Section 5097.98. Truckee
Donner Public Utility District will provide the opportunity for (a) Native
06-05-2003 15:59 From-FISCAL SERVICES 9186516828 T-625 P.0081012 F-480
Mr. Peter Holzmeister
Page 7
American monitor(s) to participate in the identification, evaluation, and
mitigation of effects upon, any Native American human remains or cultural
resources inadvertently exposed during the proposed undertaking.
Consultation with personnel designated by the Native American Heritage
Commission would be acceptable. Should tribal representatives agree to
consult on any such discoveries, the costs incurred will be the responsibility of
Truckee Donner Public Utility District,
5. Truckee Donner Public Utility District shall complete construction of the
project no later than December 31, 2005.
6. Truckee Donner Public Utility District shall complete all technical,
environmental and financial conditions of the NOAA within a time frame such
that a contract can be issued within one year from the signing of the NOAA.
7. Cross-cutting Federal Authorities apply to your project; see enclosed list. In
order to conform with the federally mandated Minority and Women-owned
Business Enterprise good faith effort requirements you must include the
appropriate MBE/WBE "good faith effort" provisions in any bid documents.
(You must meet the `good faith effort" requirements even if you do not utilize
a formal bid process.) In order to demonstrate conformance with the federally
mandated MBE/WBE good faith effort requirements, the Truckee Donner
Public Utility District shall submit the construction bid solicitation package
and the MBFJWBE good faith effort documentation from the construction
contract award, to the DHS-MBE/WBE coordinator.
The United States Environmental Protection Agency has established a good faith
effort process to assure MBEIWBE have the opportunity to compete to participate in
federally funded procurement. This requirement applies to procurement by Drinking
Water State Revolving Fund loan recipients. To comply with this requirement, your
system must:
• Perform the six affirmative steps required to meet the good faith effort
requirements on procurement of construction, equipment, supplies and
services for this project. (You will be required to demonstrate that you
have complied with the six "good faith" steps.)
• Report quarterly on or before January, April, July, and October on the DNS
Quarterly Utilization Report, enclosed.
06-05-2003 15:59 From-FISCAL SERVICES 9166516828 T-625 P.009/012 F-460
Mr. Peter Holzmeister
Page 8
• Have language in all contracts and subcontracts require compliance with the
above requirements.
Enclosed is a copy of the Preliminary Guidance for Loan Recipients and Prime
Contractors in Meeting the Minority Owned Business Enterprise/Women-Owned
Business Enterprise Fair Share Objective. Should you have any questions regarding
MBE/WBE, please contact Nadine Feletto with DHS at (916) 324-3995.
Under the Federal Drinking Water State Revolving Fund Guidelines, the Truckee
Donner Public Utility District is required to comply with the Single Audit Act if your
entity expends $300,000 in federal awards in a year from any federal source. This Act
requires entities to conduct an audit in accordance with the Office of Management and
Budget (OMB) Circular A-133, A copy of the audit is to be submitted to DWR.
Information regarding the Single Audit Act can be found on the Internet at
http://www.whitehouse.clov/omb/circulars/al 33/a133.html.
Note: Pursuant to Government Code Section 8546.7 the contracting parties shall
be subject to the examination and audit of the State or any agent thereof, and the State
Auditor. Parties are also subject to examination and audit of the U.S. Environmental
protection Agency, the Comptroller General of the United States, and Office of the
Inspector General,
This Notice of Application Acceptance is not an authorization to begin
construction. Unless prior written approval from DHS is received, initiation of
construction of this project prior to the execution of a loan contract may result in
this project being ineligible for financing from the SDWSRF. Therefore, if you
plan to start construction early, you should immediately contact your District
Office of DHS.
In order to maintain the reservation of funds in the SDWSRF account for your
project, you must sign this Notice of Application Acceptance at the space provided
below and return it within 60 days of receipt to:
Department of Water Resources
Safe Drinking Water Office
Attention: Jean Green, Room 804
Post Office Box 942836-0001
Sacramento, California 94236-0001
........................
06-05-2003 15:59 From-FISCAL SERVICES 9166516828 T-625 P.010/012 F-460
Mr. Peter Holzmeister
JUN 0 5 2003,
Page 9
Your signature will indicate your acceptance of these terms and conditions and
your intention to proceed with the project. It does not constitute any obligation on your
part to enter into the loan contract. Failure to sign and return this Notice within the
time period, will result in the withdrawal of the Notice and the bypassing of your
project.
The State commends the Truckee Donner Public Utility District for taking
steps to correct the deficiencies that will be remedied by this project in order to provide
safe drinking water to your consumers. For your convenience, a draft copy of a
construction contract is enclosed. If you have any questions regarding this Notice,
please contact Jean Green, DWR Associate Analyst, at (916) 653-9277,
Sincerely, /,/ 1;/eI
Perla Netto-Brown, Chief
Division of Fiscal Services
The terms and conditions set forth in this Notice of Application Acceptance are
acceptable to the Truckee Donner Public Utility District and it is our intention to
continue with this project as proposed.
Signature: Date:
Print Name:
Title:
Address:
Enclosures
cc: Honorable Rick Keene
Member of the Assembly
State Capitol, Room 5160
Sacramento, California 95814
06-05-2003 15:59 From-FISCAL SERVICES 9168516828 T-625 P,011/012 F-460
Honorable Thomas "Rico" 011er
Member of the Senate
State Capitol, Room 5064
Sacramento, California 95814
Mr. Raymond Edward Taylor
Principal Contact Person
Post Office Box 309
Truckee, California 96160
Mr. Gunther Sturm, District Engineer
Valley District
Division of Drinking Water and
Environmental Management
Department of Health Services
415 Knollcrest Drive, Suite 110
Redding, California 96002
Mr, Robin Hook, SDWSRF Program Manager
Division of Drinking Water and
Environmental Management
Department of Health Services
Post Office Box 942732
Sacramento, California 94234-7320
Ms. Sylvia Ortega, Chief
Safe Drinking Water Office, Room 804
Department of Water Resources
Post Office Box 942836
Sacramento, California 94236-0001
Mr. Carl Lischeske, Regional Engineer
Division of Drinking Water and
Environmental Management
Department of Health Services
8455 Jackson Road, Suite 120
Sacramento, California 95826
Ms. Lorri Silva
State Revolving Fund Program
Division of Drinking Water and
Environmental Management
Department of Health Services
06-05-2003 15:59 From-FISCAL SERVICES 9166516828 T-625 P.012/012 F-460
Ms. Susan Wilcox
Environmental Unit
Division of Drinking Water and
Environmental Management
Department of Health Services
Ms, Nadine Feletto
Technical Support Unit
Division of Drinking Water and
Environmental Management
Department of Health Services
k E WINNER
b *I • tility I District
i
r4ii
R sn No. 2003- YYY
Designating the Revenue Source that Will Repay the SRF Loan
WHEREAS the Truckee Donner Public Utility District(District)has become responsible for provision
of water service to the Donner Lake area; and
WHEREAS the existing water system serving Donner Lake is in need of complete replacement;
and
WHEREAS the District has applied for a loan under the terms of the California Safe Drinking
Water State Revolving Fund program (SRF) said loan to be used to rebuild the water system,
and has been found to be eligible for said funding program; and
WHEREAS prior to entering into a funding contract the California Department of Water
Resources requires that the District identify a source of revenue and that the District pledge and
dedicate such source of revenue for repayment of the loan
NOW THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE DISTICT
AS FOLLOWS:
The District pledges and dedicates revenues from the Donner Lake Water Assessment District
no. 00-1 as the revenue source to repay the SRF loan.
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the
District on the day of , 2003 by the following roll call vote:
AYES:
NOES:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
J. Ron Hemig, President
ATTEST:
Peter L. Hoizmeister, District Clerk
t
✓ � I i l ��� III �� i
e
R solu ion No. 2003- XXX
Designating District Officials who are Authorized
to Sign Various SRF Documents
WHEREAS the Truckee Donner Public Utility District (District) has become responsible for
provision of water service to the Donner Lake area; and
WHEREAS the existing water system serving Donner Lake is in need of complete
replacement; and
WHEREAS the District has applied for a loan under the terms of the California Safe
Drinking Water State Revolving Fund program (SRF) said loan to be used to rebuild the
water system, and has been found to be eligible for said funding program; and
WHEREAS prior to entering into a funding contract the California Department of Water
Resources requires that the District make certain designations of individuals with legal
authority to sign certain documents;
NOW THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
DISTICT AS FOLLOWS:
1. The President of the District Board of Directors, J. Ron Hemig, is authorized to sign
the SDWSRF contract
2. The District General Manager, Peter L. Holzmeister, is authorized to approve the
Claims for Reimbursement
3. The District Water System Engineer, Neil Kaufman, is authorized to sign the Budget
and Expenditure Summary (DWR form 4277)
4. The District Water System Manager, Raymond Edward Taylor, in authorized to sign
the Contractor's Release form (DHS form 2352)
5. The District Water System Engineer, Neil Kaufman, is authorized to sign the
certification that the project is complete and ready for final inspection.
Page 1 of 2
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held
within the District on the day of , 2003 by the following roll call vote:
AYES:
NOES:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
J. Ron Hemig, President
ATTEST:
Peter L. Holzmeister, District Clerk
Page 2 of 2