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RES-2015-248RESOLUTION NO. 2015- 2 4 8 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AUTHORIZING THE PUBLIC UTILITIES GENERAL MANAGER OR DESIGNEE TO SIGN AND FILE AN APPLICATION ON BEHALF OF THE CITY OF ANAHEIM (CITY) TO THE CALIFORNIA STATE WATER RESOURCES CONTROL BOARD (SWRCB) FOR FINANCIAL ASSISTANCE UNDER ITS WATER RECYCLING FUNDING PROGRAM; DESIGNATING THE PUBLIC UTILITIES GENERAL MANAGER OR DESIGNEE TO PROVIDE THE ASSURANCES, CERTIFICATIONS AND COMMITMENTS NEEDED FOR THE APPLICATION; AUTHORIZING THE PUBLIC UTILITIES GENERAL MANAGER OR DESIGNEE TO ACCEPT SUCH FINANCIAL ASSISTANCE AS MAY BE PROVIDED; AUTHORIZING THE PUBLIC UTILITIES GENERAL MANAGER TO ENTER INTO A FINANCING AGREEMENT WITH SWRCB AND CARRY OUT THE CITY'S RESPONSIBILITIES UNDER SUCH AGREEMENT; AND AMENDING THE PUBLIC UTILITIES DEPARTMENT BUDGET FOR FISCAL YEAR 2015/2016 AND SUBSEQUENT FISCAL YEARS AS APPROPRIATE. WHEREAS, on January 17, 2014, Governor Edmund G. Brown Jr. proclaimed a "State of Emergency" due to severe drought following three dry or critically dry years in California; on April 25, 2014, the Governor proclaimed a Continued State of Emergency due to ongoing severe drought conditions; and on September 18 and December 22, 2014, and April 1, 2015, the Governor issued executive orders (Executive Order) increasing enforcement of water conservation, streamlining approvals of conservation projects, and calling on State and local governments to increase their drought responses; and WHEREAS, on May 19, 2015, the City of Anaheim (City of Anaheim or City) adopted Ordinance No. 6332 amending and renaming Chapter 10.18 of Title 10 of the Anaheim Municipal Code, now entitled, "Water Conservation and Water Shortage Contingency Rules and Regulations," and declaring the existence of a "Severe Water Shortage" thereunder; and WHEREAS, among its efforts to address the Severe Water Shortage, the City, through its Public Utilities department, has investigated projects with the potential to increase the use of recycled water in the City while decreasing the use of drinking water for landscape irrigation and other non -potable uses; and WHEREAS, the City has identified a pipeline extension project involving the Groundwater Replenishment System (GWRS) operated by Orange County Water District (OCWD). The proposed project would construct a new pipeline from a GWRS pipeline near the Santa Ana River to the southern portion of the City of Anaheim, thereby providing a source of recycled water for irrigation and other non -potable uses (Anaheim South Project); and WHEREAS, the City has prepared an application to the SWRCB to obtain funding for the Anaheim South Project through the Water Recycling Funding Program (WRFP) in the amount of $11,200,000, to be provided in the form of grants and low-interest loans, with the amount of each depending on availability of funding and funding sources (collectively, Financial Assistance); and WHEREAS, the SWRCB Financial Assistance Application for the WRFP is divided into multiple "packages" requiring general, technical, environmental and financial information and compliance, and the City has attempted to bring as many elements of the Application forward for City Council review and approval at this time as is appropriate; and WHEREAS, City Staff is familiar with the terms, conditions, and limitations of the SWRCB grant and low-interest loan financing, which will be set forth in a financing agreement prepared and required by SWRCB (Financing Agreement); and WHEREAS, the City is willing and able to conform to each of the terms, conditions, and limitations imposed upon the City by the SWRCB Financing Agreement; and WHEREAS, the City remains supportive of the ongoing efforts to apply for and accept such allocation of funds through the SWRCB as may be awarded to the City. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Anaheim as follows: 1. The Public Utilities General Manager or designee is hereby authorized and directed to sign and file, for and on behalf of the City of Anaheim, a Financial Assistance Application for a Financing Agreement from the SWRCB for the planning, design, and construction of the Anaheim South Project (Project). Financial Assistance shall not exceed the amount of ELEVEN MILLION, TWO HUNDRED THOUSAND DOLLARS ($11,200,000.00). 2. The Public Utilities General Manager or designee is designated and authorized to provide the assurances, certifications, and commitments required for the financial assistance application, including executing a financial assistance agreement from the SWRCB and any amendments or changes thereto. 3. The Public Utilities General Manager or designee is designated and authorized to represent the City of Anaheim in carrying out the City's responsibilities under the financing agreement, including certifying disbursement requests on behalf of the City and compliance with applicable state and federal laws. 4. The Public Utilities General Manager or designee is hereby authorized to accept the Financial Assistance for and on behalf of the City of Anaheim. 2 5. The City Council of the City of Anaheim hereby agrees to accept, and by this Resolution authorizes the Public Utilities General Manager to accept, any such Financial Assistance so awarded to the City of Anaheim without further action of the City Council being required. The City Council of the City of Anaheim hereby agrees to comply with each and all of the terms, conditions, and limitations imposed upon the Financial Assistance in the Financing Agreement required by SWRCB; upon review and approval as to form by the City Attorney, and review as to insurance and indemnity issues by the City's Risk Manager, the Public Utilities General Manager or designee is hereby authorized to execute and deliver the Financing Agreement and carry out the City's responsibilities thereunder. 7. The annual budget of the City of Anaheim for Fiscal Year 2015/16, and each subsequent fiscal year during the term of the Project, shall be amended by increasing the appropriations and authorized expenditures in amounts equal to the Financial Assistance received by the City of Anaheim during each fiscal year. THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this 1 st day of September , 2015, by the following vote: AYES: Mayor Tait and Council Members Kring, Murray, Brandman, and Vanderbilt NOES: None ABSTAIN: None ABSENT: None ATTE CITY CLERK 3 MAYOR OF THE CITY OF ANAHEIM