RESOLUTION NO. 2025-08
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES STATING
ITS INTENTION AND EXPECTATION TO REIMBURSE EXPENDITURES
INCURRED BY THE CITY IN THE PLANNING, DESIGN AND CONSTRUCTION OF
THE INDUSTRIAL WASTEWATER SYSTEM PRIOR TO OBLIGATIONS APPROVED
BY THE STATE WATER RESOURCES CONTROL BOARD
WHEREAS, the City of Gonzales ("City") desires to finance the costs of constructing the Industrial Wastewater System, including treatment facilities, pipelines and other infrastructure (the "Project"); and
WHEREAS, the City intends to finance the construction and/or reconstruction of the Project or portions of the Project with monies ("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 City desires to incur certain capital expenditures (the "Expenditures") with respect to the Project from available moneys of the City; and WHEREAS, the City 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 City for the Expenditures from the proceeds of the Obligations.
WHEREAS, upon completion of the Industrial Wastewater (IW) System, the City plans to rehabilitate the existing wastewater treatment plant to improve its treatment performance required under Order No. R3-2020-0020, General Waste Discharge Requirements from the Regional Water Quality Control Board; and WHEREAS, The City issued the IW Treatment Facility (IWTF) for public bid on January 15, 2025 and on February 26, 2025 the City opened the six bids for the IWTF contract. Based on the lowest bid, completing the IW System requires a $6,000,000 SRF Amendment to fully fund the program.
NOW, THEREFORE, THE CITY OF GONZALES CITY COUNCIL DOES
HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS:
SECTION 1. The City 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 $34,884,000.
SECTION 3. This resolution is being adopted no later than 60 days after the date on which the City will expend moneys for the construction portion of the Project costs to be reimbursed with Project Funds.
SECTION 4. Each City expenditure will be of a type properly chargeable to a capital account under general federal income tax principles.
SECTION 5. To the best of our knowledge, this City is not aware of the previous adoption of official intents by the City that have been made as a matter of course for the purpose of reimbursing expenditures and for which tax-exempt obligations have not been issued.
SECTION 6. This resolution is adopted as official intent of the City to comply with Treasury Regulation §1.150-2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of Project costs.
SECTION 7. All the recitals in this Resolution are true and correct and this City so finds, determines and represents.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Gonzales duly held on the 17
th day of March 2025, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
_______________________________
Jose L. Rios, The Honorable Mayor
ATTEST:
______________________________
Mary Villegas, Deputy City Clerk