8F Consent 2010 0706 - Laserfiche WebLink

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WPCP Rehabilitation -Agreement 2 July 6, 2010 Analysis Prior to applying for an SRF Loan, there are certain requirements the City must meet, including Council's designation of a City representative to sign agreements with the SWRCB on behalf of the City. The SRF Loan will be used to rehabilitate and upgrade the WPCP, which includes construction or improvements to the headworks, influent pump station, primary clarifiers, primary effluent flow equalization, secondary clarifiers and effluent pump station, the digesters and electrical and instrumentation systems. The cost of the upgrade of the plant is estimated at $46 million. The SRF Loan will finance $40 million, and Water Pollution Control Plant Fund reserves will cover $6 million. Historically, SRF loans have lower interest rates, typically half, than what can be obtained through the conventional bond market. At today's SRF rate of approximately 3% the City would realize a savings of approximately $30 million over the life of a 20-year loan compared to conventional financing. Current City Council Policy Ensure well-maintained sewer facilities. Previous City Council Action(s) On June 21, 2010, by Resolution No. 2010-069, the City Council approved a rate increase. Applicable General Plan Policy This action is consistent with City's General Plan Goal Policy Nos. 52.04 and 52.05. Fiscal Impact The SRF Loan will provide approximately $40 million. The loan is to be paid back over a 20- year term. The current annual interest rate for the SRF Loan is approximately 3%, with the actual rate determined at the time the loan is issued. Repayment of the loan will be funded through the recently approved rate increase. Budget Authority Staff will request that the City Council appropriate funds at the award of the construction contract. C~ ~~,Perry C er, Interim Finance Director