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7.C. - Page 2 of 5 <br />from inception to completion. To date, SVCW has incurred approximately $527 million of CIP expenditures <br />on projects that include replacement of leaking sections of forcemain, upgrades to treatment plant <br />processes, installation of energy solutions, and significant construction of Regional Environmental Sewer <br />Conveyance Upgrade (RESCU) assets. These projects enhance safety, reduce environmental risks, improve <br />reliability of treatment operations, and reduce electricity costs. <br />Since 2008, SVCW has funded its CIP using a variety of sources including Wastewater Revenue Bonds, a <br />loan from the U.S. Environmental Protection Agency ("EPA"), and several State Revolving Fund ("SRF") <br />loans from the California State Water Resources Control Board ("SWRCB"). Most recently, in November <br />2020 the Commission of SVCW and governing bodies of the member agencies authorized issuance of a <br />new 2021 taxable bond series to refund outstanding 2014 and 2015 Bonds. <br />The Resolution before the City Council will supplement Resolution #15920 to include the refunding of the <br />State Water Resources Control Board loan in the issuance of the 2021 Wastewater Revenue Bonds by <br />SVCW. <br />ANALYSIS <br />The 2021 Series Bonds are scheduled to be sold in February 2021. In addition to refunding 2014 and 2015 <br />Series Bonds, additional analysis now indicates it would be financially beneficial to include an existing SRF <br />loan in the refinancing. SVCW executed this $11.5 million SRF loan in 2011 to partially fund construction <br />of its Control Building. The loan currently has outstanding principal of $8.1 million with an interest rate of <br />2.60% and a 20 -year amortization that began in 2013. <br />FISCAL IMPACT <br />At current market conditions, it may be possible to refinance the SRF Control Building Loan at an interest <br />rate of approximately 1.2%, which would reduce the City's debt service payments by $398,000 in Fiscal <br />Year 2021 and afterwards to a range of approximately $500 - $3,000 annually over the following 13 years. <br />Nominal savings to Redwood City over the amortization period are estimated to be $412,000, or a Net <br />Present Value of $364,000. <br />ENVIRONMENTAL REVIEW <br />This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA <br />Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably <br />foreseeable indirect physical change in the environment. <br />Page 2 of 3 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore <br />189 <br />