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HomeMy WebLinkAbout08/07/1990, C-6 - WASTEWATER MANAGEMENT PLAN IMPLEMENTATION, AUTHORIZATION OF CAO OR HIS DESIGNEE TO FILE AN APPLICAT A gs71990 DATE: RI �p���P Illi city of sar. � �Ji s OBISPO u U g NagCOUNCIL AGENDA REPORT ""NUMBITE -1 FROM: William T. Hetland Prepared By: John E. Moss Utilities Director Wastewater Division Manage SUBJECT: v Wastewater Management Plan Implementation, Authorization of CAO or his designee to file an application for a State Revolving Fund (SRF) Loan and execute resultant loan agreement. CAO RECOMMENDATION: Adopt resolution authorizing CAO or his designee to sign and file, for and on the behalf of the City, an application for a State Revolving Fund Loan. Authorize the above representatives to certify the City's compliance with all applicable state and federal statutory and regulatory requirements related to any federal and state loan funds received. Authorize the above representatives to execute the resultant loan agreement and any amendments, for the purpose of securing loan funds. DISCUSSION: The City is seeking SRF low interest loan monies to fund the needed improvements to its wastewater facilities. These improvements consist of three projects: Unit 3 treatment plant improvements; Unit 4 treatment plant improvements; and Phase 1 collection system improvements. The total cost for all three projects is estimated to be $35 million. On May 17, 1990, the State Water Resources Control Board (SWRCB) granted concept approval of the projects and approved loan funding not to exceed $35 million. The State is currently reviewing plans and specifications for the Unit 3 and Phase 1 collection system projects. At this time the City is now required to submit loan applications for these two projects. The State requires the City governing board, City Council, direct and authorize specific representatives, through resolution, to act on the City's behalf in submitting the loan application and other related documents. There are three basic components to the resolution required by the State. First, authorizing and directing designated representatives to sign and file, for and on behalf of the City, an application for a State Revolving Fund Loan. Second, authorizing the designated representatives to certify that the City has and will comply with all applicable state and federal statutory and regulatory requirements related. to any federal and state loan funds received. Third, authorizing the designated representatives to execute the resultant loan agreement and any 0111111MIJ$ city of san-Luis osispo WhZe COUNCIL AGENDA REPORT SRF Loan Resolution Page 2 amendments thereto for the purpose of securing the loan funds. FISCAL IMPACT: The City is seeking an estimated $35 million in low interest loan funding from the State. The wastewater (sewer fund) financial plan and revenue program, adopted by Council on June 12, 1990 (Resolution No. 6824) , was developed on the assumption that the City would receive the low interest loan funding from the State. With the low interest loan funding, the current rates for single family residence will essentially double by July 1994, from $8.50 per month to $16.50 per month. Conventional financing would result in essentially tripling the current rates by July 1994. ALTERNATIVES: There are no legitimate alternatives to adopting the resolution. Council may wish to designate a representative other than the CAO at their discretion. RECOMMENDATION: Adopt resolution authorizing CAO or his designee to sign and file, for and on behalf of the City, an application for a State Revolving Fund Loan. Authorize the above representatives to certify the City's compliance with all applicable state and federal statutory and regulatory requirements related to any federal and state loan funds -received. Authorize the above representatives to execute the resultant loan agreement and any amendments, for the purpose of securing loan funds. ATTACHMENT: Resolution ORESOLUTION N0. (1990 Series) AUTHORIZING FILING APPLICATION FOR A STATE REVOLVING FUND LOAN TO CONSTRUCT FACILITIES FOR THE CONTROL AND PREVENTION OF WATER POLLUTION WHEREAS; the City is required to comply with wastewater discharge limitations established by the State and Federal governments; and WHEREAS, the City plans to construct facilities necessary to reach compliance with the aforementioned limitations; and WHEREAS, the City is seeking funding assistance for the construction of the required facilities through State Revolving Fund low interest loans; and WHEREAS, the State requires designation and authorization of representatives of the City to file the loan application and related materials. ONOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San Luis Obispo that the City Administrative Officer or his/her designee is hereby authorized and directed to sign and file, for and on behalf of the City of San Luis Obispo, an application for a State Revolving Fund Loan under the Water Quality Act of 1987 (PL 100-4) and any agreements or other documents necessary to secure and receive a State- Revolving fund Loan under said Act and the Clean Water Bond Laws of 1984 and 1988. BE IT RESOLVED that the City of San Luis Obispo hereby agrees and further does authorize the aforementioned representative or his/her designee to certify that the municipality has and will comply with all applicable state and federal statutory and regulatory requirements related to any federal and state loan funds received. BE IT FURTHER RESOLVED that the, City Administrative Officer or his/her designee of the City of San_Luis Obispo is hereby authorized to execute the resultant loan agreement and any amendments thereto for the purpose of securing the loan funds. A copy of the agreement will be filed in the office of the Authorized Record Keeper of the. Governing Board. O �-� -3 Resolution No. (1990 Series) - Upon motion of seconded by and on the following role call vote: AYES: NOES: ABSENT: the foregoing resolution was adopted this day of , 1990. MAYOR RON DUNIN ATTEST: Pam Voges, City Clerk C' APPROVED: i y A inistrative Officer tt ne C