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THE CITY OF <br /> j SANTON. CITY COUNCIL AGENDA REPORT <br /> June 22, 2015 <br /> Operation Services <br /> TITLE: ADOPT RESOLUTION TO PLEDGE REVENUES FOR REPAYMENT OF <br /> LOANED FUNDS THROUGH THE STATE WATER RESOURCES <br /> CONTROL BOARD FOR THE RECYCLED WATER PROJECT. ADOPT <br /> RESOLUTION APPROVING THE INSTALLMENT SALE AGREEMENT <br /> BETWEEN THE CITY AND THE STATE WATER RESOURCES CONTROL <br /> BOARD FOR THE RECYCLED WATER PROJECT, AND AUTHORIZING <br /> EXECUTION OF THE AGREEMENT AND ANY AMENDMENTS BY THE <br /> DIRECTOR OF OPERATION SERVICES <br /> SUMMARY <br /> To secure a 30 year low interest (1%) loan from the State Water Resources Control <br /> Board (SWRCB) to fund the estimated $19,875,720 construction costs related to Phase <br /> 1A of the Pleasanton Recycled Water Project, the SWRCB has asked the City to: adopt <br /> a resolution regarding the pledge of water revenues to repay the loan; and adopt a <br /> resolution approving the loan (called an Installment Sales Agreement) and authorizing <br /> execution by the Director of Operation Services. <br /> RECOMMENDATION <br /> Adopt both resolutions. <br /> FINANCIAL STATEMENT <br /> The total loan being requested through the SWRCB is $19,875,720. The loan will cover <br /> construction costs associated with developing the recycled water system. The Water <br /> Enterprise Fund is the fund being pledged to reimburse this loan, and annual debt <br /> service will be about $750,000. Currently, the City's water rates for Tier 3 and 4 <br /> residential rates, all commercial and multifamily rates and irrigation rates include a $.10 <br /> per 100 cubic feet surcharge for recycled water. These funds will be used to repay the <br /> loan for the recycled water project along with the revenues generated from recycled <br /> water sales. <br />