AgdaPkt 2002-03-11 - Laserfiche WebLink

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7. Z- l REPORT To the Honorable Mayor and City Council From the City Manager March 11, 2002 Subject Water Recycling Project Recommendation By resolution, authorize the City Manager to: 1. Submit an application for grants and/or loans pursuant to the State Water Resources Control Board (SWRCB) program in an amount not to exceed twenty two million eighty thousand dollars ($22,080,000) for the planning, design, and construction of the Water Recycling Project, 2. Execute a Financial Assistance Application to the SWRCB, 3. Negotiate and execute a loan/grant contract with the SWRCB on behalf of the City. Background In March 2000, California voters approved Proposition 13 (2000 Water Bond), which authorizes the State of California to sell $1.97 billion in general obligation bonds to support safe drinking, water quality, flood protection and water reliability projects throughout the state. There is $53.2 million in grants available for construction of recycled water facilities and an additional $49.5 million for Iow or no interest loans. The recycled water loans and grants are awarded on a "first come, first served" basis for eligible projects with 60% of the funds designated for specified Southern California counties and 40% for the remainder of the state. Under this program, 25% of a project may be grant funded up to a maximum of $5 million. The portion of the project not covered by the grant may be financed by a Iow interest loan, with the provision that the total of grant and loan combined may not exceed $25 million in a single fiscal year. On February 4, 2002 the City Council accepted the Water Recycling Feasibility Study final report for the Redwood Shores area, produced by Kennedy/Jenks Consultants. The report - and the Dec. 3, 2001 study session that preceded it - indicated that the apparent preferred financing for the project would include state grants and/or Iow interest state "revolving" loans. The assumption has been that such financing would be pursued as the current work on a cost effectiveness study, project financing plan and review of water rates and connection fees is concluding in the summer of 2002. Some projects that were previously determined as eligible for grants in Northern California are experiencing delays in implementation and will possibly be dropped from the eligibility list this fiscal year, resulting in grant funds ($9 to $11 million) becoming available for other projects. A resolution approving the application for financial assistance and naming the agency designee authorized to execute grant/loan documents is required. At their special meeting of Feb. 27, 2002, the South Bayside System Authority (SBSA) Commission authorized the Authority Manager to apply for grants and/or loans for the "First 1 of 2