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Step" and subsequent water recycling treatment plant improvements, up to $2,225,000. It
<br /> has been determined that SBSA will be responsible for production of recycled water and
<br /> Redwood City will be responsible for transmission and distribution. Therefore, SBSA has
<br /> proposed that both agencies immediately submit grant / loan applications for state grants
<br /> and/or loans under the Proposition 13 funding program.
<br />
<br />The Water Recycling Feasibility Study (and subsequent analysis of the Highway 101 bike
<br />path transmission line) identified project costs for the initial phase of the program of
<br />$9,001,000 at SBSA for treatment, storage and pumping facilities, and $15,329,000 for
<br />Redwood City's distribution system improvements (including additional capacity through
<br />the Shores and Highway 101 corridor south to Whipple Ave.). This concept level estimate
<br />includes 15% for design and construction management, 20% contingency and 5%
<br />admlnlstretlon. By submitting applications for the project from two agencies, the project
<br />could receive as much as $6,082,000 in grant funding, as shown In the table below:
<br />
<br />Agency Total Estimated Maximum Grant Maximum Grant/Loan
<br />Application Costs at 25% Loan Portion Potential
<br />SBSA $ 9,001,000 $ 2,250,000 $ 0 to $ 2,250,000
<br /> $ 2,250~000
<br />Redwood City $15,329,000 $ 2,750,000 to $17,080,000 $15,329,000 to
<br /> $ 3,832,000 $22,080~000
<br />2002 $24,330,000 $ 5,000,000* to $18,248,000 to $24,330,000
<br />TOTALS $ 6,082,000 $19,330,000
<br />
<br /> * Maximum single-agency annual grant
<br />
<br />Alternative
<br />Do not authorize the resolution and give direction to staff.
<br />
<br />Fiscal Impact
<br />The work required to process initial applications and coordinate with the SWRCB will be
<br />completed under the current scope of services provided by Kennedy/Jenks Consultants.
<br />The Initial goal Is for the state to determine that the project is eligible for grant/loan funding,
<br />and for Redwood City to be placed on the ~eligibility list". Staff and the City's consultants
<br />believe that state loans and/or grants will be a necessary component of the overall project
<br />financing, In order to make it feasible for long-term debt service to be paid from revenues
<br />generated by consumer water rates and service charges. Application now will not commit
<br />the City to approve and construct the project, nor will this action pre-empt the Utilities
<br />Committee and Council from considering a range of financing alternatives as they make
<br />final project decisions In the summer of 2002.
<br />
<br />Peter Ingrain ~" -
<br />Director, Public Works Services City Manager
<br />
<br />Attachment
<br />Resolution
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