AGENDA REPORTS - Laserfiche WebLink

BACKGROUND In November 2013, the City Council adopted The City of Pleasanton Recycled Water Feasibility Study. The City subsequently decided to pursue a loan to fund a recycled water project through the State Water Resources Control Board's (SWRCB) Clean Water State Revolving Fund (CWSRF) at the 1% rate for a 30 year term. As required by the SWRCB, the City adopted Resolution No. 13-643, authorizing the Director of Operation Services to comply with all applicable state and regulatory requirements related to any state grant and/or loan funds received. In 2014 and early 2015, as the recycled water project was refined and environmental analysis completed, the City approved resolutions indicting the City's intent to borrow $19,875,720 from the CWSRF for the project. The project bids have been received and award of contract is scheduled for June 22, 2015, subject to the City's receipt of the CWSRF loan. DISCUSSION In its final review of the City's loan application, the SWRCB staff have requested that the City re-adopt a resolution to clarify the water enterprise fund revenues pledged to repay the loan. Resolution 15-729 had referenced the Water Maintenance and Operation Fund, and the SWRCB has requested that the City clarify that the net revenues of the Water Enterprise Fund and the Water Enterprise Fund are pledged to repay the loan. The requested clarifying resolution is Attachment 1. The SWRCB staff have also provided the City the form of the loan (called the Installment Sale Agreement) providing a 1% interest loan for $19,875.720 on a thirty (30) year term to fund the construction of the recycled water project. (Attachment 2.) Many of the terms relate to construction requirements (e.g. federal Davis-Bacon and state prevailing wages; which terms were already incorporated into the City's bid documents). Staff from the City's Operation Services, Community Development, Finance and City Attorney's Office have reviewed the terms of the loan and have found them acceptable. Annual debt service for this loan will be approximately $750,000, to be paid from the Water Enterprise Fund. The SWRCB requires the City Council to formally approve the loan, and authorize execution by City staff. Because Daniel Smith, Director of Operation Services, was previously authorized by Res. 13-643 to execute documents related to the City's project and loan application, SWRCB staff have advised that Mr. Smith is the correct party to designate to execute this document as well. The resolution (Attachment 3) provides for the approval of the loan and authorization for execution. As matters involving the recycled water project have been time sensitive due to the SWRCB's interest in thorough environmental review and other procedural requirements, this matter is being presented to the City Council at its June 22nd Special Meeting rather than waiting for the next regular meeting on July 21St Page 2 of 3