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Meeting Date: 12/13/2016 <br />FROM: Carrie Mattingly, Utilities Director <br />PREPARED BY: David Hix, Deputy Director – Wastewater <br /> <br />SUBJECT: WATER RESOURCE RECOVERY FACILITY PROJECT – FUNDING <br />RESOLUTIONS <br /> <br />RECOMMENDATION <br /> <br />1. Adopt a resolution (Attachment A) authorizing reimbursement to the State Water Resources <br />Control Board for the financing of the Water Resource Recovery Facility project and <br />authorize the Utilities Director to sign and file the financial assistance application for the <br />Water Resource Recovery Facility project; and <br /> <br />2. Adopt a resolution (Attachment B) pledging sewer fund revenues to State Water Resources <br />Control Board for the financing of the Water Resource Recovery Facility project; and <br /> <br />3. Adopt a resolution (Attachment C) requesting reimbursement of advanced monies related to <br />the construction of the Water Resource Recovery Facility project. <br /> <br />DISCUSSION <br /> <br />Background <br />The City operates a Water Resource Recovery Facility (WRRF) under a NPDES (National <br />Pollutant Discharge Elimination System) permit issued by the Central Coast Water Board <br />(CCWB). The most recent NPDES permit was adopted by the CCWB in 2014. In order to <br />comply with the 2014 NPDES permit, maximize water production, and address other pressing <br />issues including replacing equipment long past its useful life at the facility, much work is <br />required at the WRRF including process upgrades with strict regulatory deadlines. <br /> <br />Work on the WRRF Project commenced in 2014 when the City hired WSC as the WRRF Project <br />program manager. The project’s Facilities Plan was adopted by City Council in July 2015. <br />CH2M was hired as the project design firm in November 2015 and is currently working toward <br />60% design documents. The project Environmental Impact Report (EIR) was certified by the <br />City Council in August 2016. <br /> <br />Funding for the WRRF Project will come from the Clean Water State Revolving Fund loan <br />program. <br /> <br />Clean Water State Revolving Fund <br />The State of California established the Clean Water State Revolving Fund in 1989 under the <br />authority of the Federal Clean Water Act to help achieve the goal of clean water. The State <br />Revolving Fund (SRF) is capitalized with state and federal funds. The SRF loan program offers <br />low interest rates and favorable repayment terms, especially when compared with traditional <br />bond financing. <br />16 <br />Packet Pg. 242