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CITY OF SAN LEANDRO <br /> APPROVED AND <br /> STAFF REPORT FORWARDED <br /> TO CITY CIL <br /> DATE: September 20, 2010 Stephen L. Hollister <br /> City Manager <br /> TO: Stephen L. Hollister, City Manager <br /> • <br /> FROM: Uche Udemezue, Director { <br /> Engineering and Transportat• artment <br /> BY: Ken Joseph, City Engineer <br /> Engineering and Transportati epartment <br /> SUBJECT PROJECT /PROJECT DESCRIPTION: <br /> MATTER OF DEDICATING A SOURCE OF REVENUE TO REPAY THE STATE <br /> REVOLVING FUNDING PROGRAM FINANCING FOR THE CONSTRUCTION OF THE <br /> WATER POLLUTION CONTROL PLANT (WPCP) REHABILITATION PROJECT, <br /> PROJECT NO. 08- 593 -52 -239, CWSRF NO. C06- 7002 -1 10. <br /> • <br /> SUMMARY AND RECOMMENDATION <br /> It is recommended that the City Council adopt a resolution dedicating a source of revenue to <br /> repay the State Revolving Fund (SRF) loan for the construction of the Water Pollution Control <br /> Plant (WPCP) Rehabilitation project. <br /> BACKGROUND <br /> Since 1938, the City has owned and operated a sewage treatment facility at 3000 Davis Street. <br /> The facility was designed to treat 7.6 MGD (million gallons per day — average dry weather flow) <br /> and 22.5 MGD (million gallons per day — average wet weather flow). Several minor <br /> modifications and repairs have been made over the years. However, recent studies indicate a <br /> series of deficiencies at the facility that require major repair and rehabilitation. The proposed <br /> project will ensure that the facility remains reliable and continues to meet regulatory <br /> requirements. <br /> The City applied for funding under the American Recovery and Reinvestment Act (ARRA) <br /> through the State Clean Water Resources Board (SCWRB). Unfortunately, the City's projects <br /> were not selected for grant funding. Staff was advised to convert the grant application to an SRF <br /> loan application, which offers a more favorable interest rate than conventional municipal bonds. <br /> The loan will be used to pay for the upgrade of the WPCP, which includes replacing the <br /> 1- Ieadworks, constructing an Influent Pump Station, installing a new Primary Clarifier, and <br /> improving the existing Primary Clarifiers, the Primary Effluent Flow Equalization, the <br />