REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
May 23, 2023
FROM
BRENDON BIGGS, Director, Department of Public Works - Solid Waste Management
SUBJECT
Title
Application for Irrevocable Standby Letter of Credit with Wells Fargo Bank for the San Gabriel Valley Water Company
End
RECOMMENDATION(S)
Recommendation
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 $1,492,950, at a cost of approximately $30,000, effective July 1, 2023 through June 30, 2024.
(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 financed 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 $1,492,950, which is an increase of $263,550 from last year's Standby Letter of Credit. The increased amount is due to an increase in the estimated budget submitted by San Gabriel Valley Water Company (SGVWC) for 2023-24. The estimated cost for the Letter of Credit is $30,000. Sufficient appropriation has been included in the SWMD 2023-24 Recommended Budget.
BACKGROUND INFORMATION
In accordance with Agreement No. 98-947 (Agreement) between San Bernardino County (County) and SGVWC, the County is required to annually post a Standby Letter of Credit for 125% of that year's operation cost estimate to ensure payment for the operation and maintenance of the F-10 Plant. A Standby...
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