RESOLUTION NO. _____________

BOARD OF SUPERVISORS, COUNTY OF SAN MATEO, STATE OF CALIFORNIA

ACTING AS THE GOVERNING BOARD OF THE TEN COUNTY SEWER MAINTENANCE/SANITATION DISTRICTS (DISTRICTS)

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RESOLUTION ESTABLISHING THE “CAPITAL IMPROVEMENT PROGRAM COMPONENT” OF THE ANNUAL REVENUE COLLECTED THROUGH THE SEWER SERVICE CHARGES AS A DEDICATED SOURCE OF REVENUE FOR PAYMENT OF THE FUNDS ACCESSED THROUGH THE “CLEAN WATER STATE REVOLVING FUND FOR CONSTRUCTION OF WASTEWATER TREATMENT FACILITIES” (CWSRF), WHICH WILL BE USED TO FINANCE CAPITAL IMPROVEMENT PROJECTS IN NINE (9) OF THE TEN (10) DISTRICTS.

RESOLVED, by the Board of Supervisors of the County of San Mateo, State of California, acting as the governing board of the County Sewer Maintenance and Sanitation Districts (Districts), that

WHEREAS, this Board of Supervisors did, on May 19, 2009, adopt Resolution No. 070109, which authorized the Director of Public Works to negotiate and execute financial assistance agreement(s) from the State Water Resources Control Board (SWRCB) for Clean Water State Revolving Fund (CWSRF) loans to fund the design and construction of sanitary sewer facilities in the various districts, and certify financing agreement disbursements on behalf of the Districts; and

WHEREAS, each funding recipient is required to establish one or more dedicated sources of revenue for payment of the financing agreement; and

WHEREAS, the CWSRF loan is expected to be in the amount of $11,000,000 at a low interest rate for twenty (20) years, which will be paid in annual installments, commencing upon completion of the projects; and

WHEREAS, this Board of Supervisors adopted Ordinance No. 04382 on August 7, 2007, establishing sewer service rates for five (5) consecutive fiscal years (FY 2007-08 – FY 2011-12) for all of the Districts, except for the Burlingame Hills Sewer Maintenance District (BHSMD) and the Crystal Springs County Sanitation District (CSCSD), for which sewer service rates have been set on a year-to-year basis; and

WHEREAS, this Board of Supervisors adopted Ordinance No. 04466 on April 28, 2009, setting the FY 2009-10 sewer service rates for the BHSMD and CSCSD; and

WHEREAS, the annual sewer service rates set by the above ordinances included funds to implement capital improvement projects (CIP) within nine of the Districts to increase the size of sewer mains where capacity is insufficient or replace sewer mains in poor condition; the tenth district is the Edgewood Sewer Maintenance District, and because its sewer system was recently constructed, capital improvement projects are not necessary in that District; and

WHEREAS, it is prudent and cost effective to obtain a CWSRF loan to pay for the identified CIPs within the nine districts and to realize the effectiveness of economies of scale; and

WHEREAS, the identified CIPs are located in the following districts:

Burlingame Hills Sewer Maintenance District;

Crystal Springs County Sanitation District;

Devonshire County Sanitation District;

Emerald Lake Heights Sewer Maintenance District;

Fair Oaks Sewer Maintenance District;

Harbor Industrial Sewer Maintenance District;

Kensington Square Sewer Maintenance District;

Oak Knoll Sewer Maintenance District;

Scenic Heights County Sanitation District; and

WHEREAS, current and future sewer service rates are sufficient to support repayment of a twenty year (20-year) CWSRF loan and each District has a separate budget and will be financially responsible for the construction cost of the CIPs within the District; and

WHEREAS, portions of the Sewer Service Charges collected in accordance with the sewer service rates are to be dedicated as the sources of revenue for payments required in connection with the CWSRF loan in accordance with the financial assistance agreement(s) to be executed for Project Nos. 7118-110 and 5353-110; and

WHEREAS, the dedicated sources of revenue shall remain in effect until such financing assistance agreement(s) is or are fully discharged unless the SWRCB approves modifications or changes to such dedication in writing; and

NOW THEREFORE, IT IS HEREBY DETERMINED AND ORDERED as follows:

This Board hereby establishes the “Capital Improvements Program Component” of the annual revenue collected through the Sewer Service Charges as a dedicated source of revenue for payment of the funds accessed through the “Clean Water State Revolving Fund For Construction Of Wastewater Treatment Facilities” (CWSRF), which will be used to finance Capital Improvement Projects in nine of the ten Districts.

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