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r <br /> THE CITY OF <br /> 5 <br /> CITY COUNCIL AGENDA REPORT <br /> PL EASANTON. <br /> January 20, 2015 <br /> Operation Services <br /> TITLE: UPDATED AND REVISED ADOPTION OF TWO RESOLUTIONS <br /> PLEDGING REVENUES TO REIMBURSE THE STATE WATER <br /> RESOURCES CONTROL BOARD FOR FINANCIAL ASSISTANCE TO <br /> SUPPORT THE CONSTRUCTION OF THE RECYCLED WATER PROJECT <br /> SUMMARY <br /> On September 2, 2014, the City Council adopted two resolutions allowing the City to secure <br /> a 30-year, low interest loan (1%) from the State Water Resources Control Board (SWRCB) <br /> to fund construction costs related to Phase 1A of the Pleasanton Recycled Water Project <br /> that will provide, in part, recycled water to the Ken Mercer Sports Park, as specified in the <br /> City of Pleasanton Recycled Water Feasibility Study. Since that adoption, staffs <br /> preliminary cost estimate for the project has changed from $14,007,230 to $19,875,720 and <br /> the state is requiring modifications to one of the resolutions to more fully conform to <br /> program requirements. As a result, staff is recommending approval of the amended <br /> resolutions that address these two conditions. <br /> RECOMMENDATION <br /> Adopt the following two up dated resolutions required as part of the City's State's SWRCB <br /> Clean Water Revolving Fund Program: <br /> 1. A resolution stating the City's intention to reimburse itself from the State Water <br /> Resources Control Board loan for project funding to complete Phase 1A of the <br /> Pleasanton Recycled Water Project (Attachment 1) <br /> 2. A resolution pledging City revenue from the Water Maintenance and Operating fund <br /> (Water M&O Fund) within the Water Enterprise for repayment of loaned funds <br /> through the State Water Resources Control Board (Attachment 2). <br /> FINANCIAL STATEMENT <br /> The total loan being requested through the SWRCB is $19,875,720. The Water M&O Fund <br /> within the Water Enterprise is the fund being pledged to reimburse this loan. Currently the <br /> City's water rates for Tier 3 and 4 residential rates, all commercial and multifamily rates and <br /> irrigation rates include a $.10 per 100 cubic feet surcharge for recycled water. These funds <br /> will be used to repay the loan for the recycled water project along with the revenues <br /> generated from recycled water sales. The loan will cover the construction costs associated <br /> with developing the recycled water system. <br />