ADMINISTRATIVE COMMITTEE
3.	CONSIDER ADOPTION OF RESOLUTION 2015-14 FOR STATE REVOVLING FUND APPLICATION FOR PURE WATER MONTEREY PROJECT
Meeting Date:		July 20, 2015	Budgeted:	N/A
From:		David J. Stoldt, General Manager	Program/	Groundwater Replenishment Project
			Line Item No.:	1-5-1
Prepared By:		David J. Stoldt	Cost Estimate:	N/A
General Counsel Approval: N/A
Committee Recommendation: The Administrative Committee reviewed this item on July 13, 2015 and recommended approval.
CEQA Compliance: N/A

SUMMARY: The Board of Directors of the Monterey Regional Water Pollution Control Agency (“Agency”) has approved its Resolution No. 2014-03 authorizing its General Manager to sign and file, for and on behalf of the Agency, an application to the State Water Board for financing from the State Revolving Fund Loan Program that would support the construction of the Pure Water Monterey Project. The loan application requires an official resolution to be adopted by the Board of Directors of the Agency and the District verifying support of the loan.

Because repayment of any such loan will be made from revenues received by the District from sale of Water to California American Water, the District will want to show that it dedicates and pledges wholesale water sales revenues from the water purchase agreement, and its ability to raise a District Water Supply Charge through the Proposition 218 process as additional support should revenues from the water purchase agreement be insufficient or interrupted, to payment of any and all Clean Water State Revolving Fund and/or Water Recycling Funding Program financing for the Pure Water Monterey Groundwater Replenishment Project.

This Resolution commits the District to collecting such revenues and maintaining such funds throughout the term of such financing and until the repayment obligation thereunder is satisfied unless modification or change is approved in writing by the State Water Resources Control Board. So long as the financing agreements are outstanding, the District’s pledge shall constitute a lien in favor of the State Water Resources Control Board on the foregoing funds and revenues without any further action necessary. So long as the financing agreements are outstanding, the District commits to maintaining funds and revenues at levels sufficient to meet its obligations under the financing agreements.

However, because the application and loan will be made in the Agency’s name, our pledge and commitment will be in support of a similar pledge made by the Agency.

RECOMMENDATION: The General Manager recommends that the Board of Directors approve Resolution 2015-14.

EXHIBIT

3-A Resolution 2015-14

U:\staff\Boardpacket\2015\20150720\ConsentClndr\03\Item 3.docx