8F Consent 2010 1101 - Laserfiche WebLink

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CITY OF SAN LEANI)RO APPROVED AND STAFF REPORT FORWARDED TO CITY COUNCIL DATE: November 1, 2010 5t en L. Hollister City Manager TO: Stephen L. Hollister, City Mana er FROM: Uche Udemezue, Director Engineering and Transportati n Department BY: Ken Joseph, City Engineer Engineering and Transports ion De lent SUBJECT PROJECT /PROJECT DESCRIPTION: RESOLUTION AUTHORIZING THE REIMBURSEMENT OF FUNDING RECEIVED UNDER FUNDS ADVANCED TO THE CITY PURSUANT TO A STATE REVOLVING FUND FINANCING AGREEMENT WITH THE STATE WATER RESOURCES CONTROL BOARD FOR THE WATER POLLUTION CONTROL PLANT (WPCP) REFIABILITATION PROJECT, PROJECT NO. 593 -52 -239. SUMMARY AND RECOMMENDATION Staff recommends that the City Council authorize the reimbursement of funds received under the State Revolving Fund (SRF) financing agreement with State Water Resources Control Board ( SWRCB) related to the construction of the Water Pollution Control Plant Rehabilitation ( \VPCP) project. I3ACKGROUND The City has owned and operated the subject facility located at 3000 Davis Street since 1938. The facility was designed to treat 7.6 MGD (million gallons per day — average dry weather flow) and 22.5 MGD (million gallons per day — average wet weather flow). Over the years several minor modifications have been done. However, recent studies of the facility indicated a series of deficiencies, which cannot continue to be repaired through the ongoing piecemeal process. Deficiencies at the WPCP must be corrected immediately to avoid penalties from environmental monitoring agencies and to protect the health of both the citizens and the WPCP workers, thereby limiting the City's liability. In 2009, City staff submitted a financing request for this facility to the SWRCB, the custodian of the SRF. It was determined that SRF loans offer more favorable rates than bonds for projects such as this. Staff has worked very closely with the SWRCB to provide all the necessary documents required for financial approval. Design of the facility is currently progressing with a planned bid date for construction in early 2011.