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ITEM: |
CONSENT
CALENDAR |
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5. |
CONSIDER ADOPTION OF
RESOLUTION 2007-01 DECLARING THE OFFICIAL INTENT TO REIMBURSE AQUIFER STORAGE
AND RECOVERY EXPENDITURES FROM THE PROCEEDS OF TAX EXEMPT SECURITIES |
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Meeting
Date: |
January 25, 2007 |
Budgeted: |
Yes |
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From: |
David A.
Berger, |
Program/ |
Water Supply Projects |
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General
Manager |
Line Item No.: 1-2-1.A |
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Prepared
By: |
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Cost Estimate: |
$2,658,000 |
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General Counsel Approval: N/A |
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Committee Recommendation: The Administrative Committee reviewed this item on January 18, 2007 and recommended approval. |
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CEQA Compliance: N/A |
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SUMMARY: Construction of a second well to complete Phase I of the District’s Aquifer Storage and Recovery (ASR) Project is currently underway. District staff has also begun the process of securing funds for the second ASR well through participation in a financing pool. However, it is anticipated that it will take an additional 45 – 90 days to complete the financing process. Resolution 2007-01 (Exhibit 5-A) is a Resolution of the Board of Directors of the Monterey Peninsula Water Management District Declaring the Official Intent to Reimburse Expenditures from the Proceeds of Tax Exempt Securities. Adoption of the Resolution will allow amounts expended for construction of the second ASR well between the date of the adoption of the Resolution and actual receipt of the financing proceeds to be reimbursed to the Mitigation fund from the financing proceeds when they are actually received.
RECOMMENDATION: District staff recommends that the Board adopt Resolution 2007-01, A Resolution of the Board of Directors of the Monterey Peninsula Water Management District Declaring the Official Intent to Reimburse Expenditures from the Proceeds of Tax Exempt Securities. The Administrative Committee considered this matter on January 18, 2007 and voted 2 to 0 to recommend approval. This item will be approved if adopted along with the Consent Calendar.
BACKGROUND: At the time of adoption of the 2005-06 budget, the District’s user fee was increased by 1.2% (to a total of 8.325%) to provide funding for ongoing costs of the ASR Project, as well as completing Phase I of the project. This included funding to pay debt service on amounts anticipated to be borrowed to construct a second ASR well and associated ASR facilities. Ordinance No. 123 increasing the user fee became effective October 14, 2005 and approximately $370,000 of revenues have already been collected due to the increase and placed in the District’s Mitigation Fund, which is currently being used to fund the ASR Project.
5-A Resolution
2007-01
U:\staff\word\boardpacket\2007\2007boardpackets\20070125\ConsentCal\05\item5.doc