San Bernardino header
File #: 6010   
Type: Consent Status: Passed
File created: 5/13/2022 Department: Public Works-Solid Waste Management
On agenda: 5/24/2022 Final action: 5/24/2022
Subject: Application for Irrevocable Standby Letter of Credit and Standby Letter of Credit Agreement with Wells Fargo Bank for the San Gabriel Valley Water Company
Attachments: 1. APP-PW-Waste 5-24-22 App for Standby Letter of Credit and Agr with Wells Fargo Bank for SGVWC, 2. AGR-PW-Waste 5-24-22 App for Standby Letter of Credit and Agr with Wells Fargo Bank for SGVWC, 3. ADD-COV-PW-Waste 5-24-22 App for Standby Letter of Credit and Agr with Wells Fargo Bank for SGVWC - Agreement.pdf, 4. Item #80 Executed BAI, 5. 22-350 Executed Contract, 6. Executed Application
REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION

May 24, 2022

FROM
BRENDON BIGGS, Director, Department of Public Works - Solid Waste Management

SUBJECT
Title
Application for Irrevocable Standby Letter of Credit and Standby Letter of Credit Agreement with Wells Fargo Bank for the San Gabriel Valley Water Company
End

RECOMMENDATION(S)
Recommendation
1. Approve Application for an Irrevocable Standby Letter of Credit between San Bernardino County and Wells Fargo Bank in favor of the San Gabriel Valley Water Company in the amount of $1,229,400, at a cost of approximately $25,000, effective July 1, 2022 through June 30, 2023.
2. Approve Standby Letter of Credit Agreement between San Bernardino County and Wells Fargo Bank which outlines the details of the Letter of Credit.
(Presenter: Brendon Biggs, Director, 387-7906)
Body

COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.

FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost) as the Department of Public Works - Solid Waste Management Division (SWMD) is funded by fee revenue. SWMD establishes fees that are charged to the public and other agencies for utilization of the County's Waste Disposal System. The Letter of Credit, issued by Wells Fargo Bank, will be in the amount of $1,229,400, which is an increase of $360,600 from last year's Standby Letter of Credit from the Bank of America, N.A. The increased amount is due to an increase in the estimated budget submitted by San Gabriel Valley Water Company (SGVWC) for 2022-23. The estimated budget includes an estimated cost of $305,000 for a carbon change out project, which is not anticipated until 2023-24, but was included in the event the change-out becomes necessary in 2022-23. The SGVMC's F-10 Plant Water Treatmen...

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