Laserfiche WebLink
<br />7F <br />share of the SaSA debt and meet certain basic legal covenants. It is flexibly structured Page 2 <br />to meet individual agency needs and can be applied to all future SBSA debt, whether <br />bonds or State Revolving Fund (SRF) loans, rather then executing separate <br />agreements for each debt issuance. <br /> <br />The SaSA Commission approved a 10-Year Capital Improvements Program (CIP) of <br />approximately $400 million (in future dollars) in June 2008 to make necessary <br />improvements to its facilities. SaSA needs approximately $50 million in the near-term <br />to finance engineering and design work and several initial capital projects. Redwood <br />City's share of this first issuance is approximately $22 million. <br /> <br />The City has interagency agreements with the Town of Woodside and San Mateo <br />County for five county Sewer Maintenance Districts (SMD), listed below: <br /> <br />Edgewood SMD <br />Emerald Lake Heights SMD - Zone 2 <br />Fair Oaks SMD <br />Kensington SMD <br />Oak Knoll SMD <br /> <br />Note that by virtue of several interagency agreements between the City of Redwood <br />City and San Mateo County, Redwood City sold portions of it allocated treatment <br />capacity to these agencies. As currently defined, each agency proportionately shares in <br />Redwood City's financial obligation to the SBSA capital program costs over the term of <br />the capital program. The City passes its annual sewer rate increase to these agencies <br />and the SaSA capital expenses are contained within each rate increase. Based on the <br />existing agreement between Redwood City and the Town of Woodside, the latter <br />currently rents treatment and disposal capacity from the City. Staff will need to do a <br />further review of the agreements with the Town of Woodside to determine if the terms of <br />the agreements adequately address the Town's sharing in the costs of the SaSA capital <br />improvement costs. <br /> <br />Each year the City Council typically reviews and adjusts sewer service charges in <br />consideration of the operating and capital budgets for the City sanitary sewer collection <br />system and for the SaSA wastewater treatment plant. The established sewer service <br />charges for Fiscal Year 2008"2009 includes the costs associated with the impending <br />SaSA bond sale. Additionally, the City's 10-Year Financial Plan for the Sewer <br />Enterprise Fund contains the City's share of the projected costs of the SaSA CIP over <br />the long-term. <br /> <br />ALTERNATIVES <br />The City could issue its own debt independently. However, staff and the Council Utilities <br />Committee considered this alternative but preferred that SaSA take the lead on issuing <br />debt, while still giving the City flexibility to structure the debt as it sees fit. <br /> <br />FISCAL IMPACT <br /> <br />City Council must adjust sewer service charges to customers in order to meet the City's <br />financial obligations to the SaSA Capital Improvements Program debt. The table below <br />shows the current City Council approved Fiscal Year 2008"2009 and the future <br />proposed monthly service charge for City collection system operation, maintenance and <br />CIP costs and SBSA treatment operation, maintenance and CIP costs to Redwood City <br />Single Family Residential (SFR) customers over the next 5 fiscal years. <br />