Resolution No. _____________________________

Board of Supervisors, County of San Mateo, State of California

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Resolution Authorizing Execution of an Agreement that Provides for a Loan to the Crystal Springs County Sanitation District from the County General Fund

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RESOLVED, by the Board of Supervisors of the County of San Mateo, State of California, that

WHEREAS, the Board of Supervisors is the Governing Board of the Crystal Springs County Sanitation District (District); and

WHEREAS, the Town of Hillsborough (Town), City of San Mateo (City), District, and the County of San Mateo (County) entered into a sanitary sewage agreement dated July 18, 1989, which designated relationships with respect to the use of sewage conveyance and treatment facilities jointly used by the Town, City, District, and County; and

WHEREAS, the agreement specifies that upgrades to jointly used facilities will be shared based on the contributions of flow from the Town, City, District, and County; and

WHEREAS, the agreement also specifies that the Town owns the Crystal Springs/El Cerrito Trunk Sewer and is responsible for any necessary repairs, reconstruction, replacement, enlargement, or improvements to their section of the sewer; and

WHEREAS, the Town completed a capital improvement project on a portion of said sewer and incurred expenses associated with the work through the 2003-04 fiscal year; and

WHEREAS, the District’s share of these improvements is $1,177,573.13 based on prorating flows in accordance with the agreement; and

WHEREAS, the District does not currently have sufficient funding to pay said costs; and

WHEREAS, Section 4764 of the Health and Safety Code of the State of California provides that county sanitation districts may borrow money to guarantee the performance of its contractual obligations; and

WHEREAS, the Director of Public Works has recommended that the District obtain a loan from the General Fund to finance the District’s current obligation pursuant to said four party agreement, with said loan being repaid over a five year period with interest from the revenue of the District; and

WHEREAS, there has been presented to this Board a form of agreement providing for said loan and the repayment thereof; and

WHEREAS, this Board has reviewed and considered said agreement and the recommendation of the Director of Public Works and concurs in the Director’s recommendation.

NOW THEREFORE, IT IS HEREBY DETERMINED AND ORDERED that:

The President of this Board of Supervisors be, and is hereby, authorized and directed to execute said Agreement for and on behalf of both the District and the County and signature of the Clerk of this Board shall attest thereto.

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