Loading...
SR-6-G (23) K6<J lfc1Z/7b {pc;, erJradff7'fLfY C(!5 JAN 2 7 fon~ EPWM CP RG F \EPWM\ADMIN\WPDOCS\ST AFFRPT\OWRRFSRF WPD Council Meeting January 27, 1998 Santa MOnica. California TO Mayor and City Councll FROM City Staff SUBJECT Recommendation to Adopt a ResolutIon Authorizing an Application for Loan Funds from the State Revolving Fund for the Santa MOnica Dry Weather Runoff Reclamation FacIlity INTRODUCTION This report recommends that the City Council adopt a resolution authonzlng an application for loan funds for the dry weather runoff reclamation facIlity (DWRRF) The DWRRF IS an Innovative facIlity that Will capture, treat, and reuse for Irrigation urban runoff, the leading source of water pollution contaminating the near shore environment Background The DWRRF, now rn the detailed design phase, 15 a faclllty that will accomplish the pnmary goal of urban runoff treatment and reuse but also Incorporate public educatIonal opportunities within the design The project Will create an invIting gateway from Ocean Avenue to Appian Way and all aspects of the BIG project The total cost of the project IS $7 million ThIS cost Includes the raw water feeder system (the system that bnngs the runoff to the facIlity), all aspects of the treatment plant, and the recycled water dlstnbutlon system City staff has been awarded $2 15 mIllIon In federal 1 (pG, JAN 2 7 19S5 and local grants for the project Nearly $1 million In CIty storm water funds IS earmarked for the facility and staff IS pursuing additional funds from the Federal Bureau of ReclamatIon and the Metropolitan Water Dlstnct of Southern CalIfornIa Because the CIty of Los Angeles generates approximately 50% of the flows entenng the Plco-Kenter storm drain, diScussions are underway with the City of Los Angeles to achIeve cost shanng for the facIlity Once the balance of project funding IS secured, construction of the facilIty may begin as early as the first part of 1999 with plant start-up anticipated to occur 12 months following the start of construction In order to augment the current budget shortfall for the DWRRF construction, staff has investigated procurrng a loan from the State Revolving Fund (SRF) The SRF contains funds, authonzed under the Federal Clean Water Act, that are loaned to mUnicIpalitIes for constructIon of waste water treatment plants These loans are used to upgrade antiquated systems or bUild new treatment plants Staff has submitted a proposal to the State Water Resources Control Board for funding for the DWRRF construction In order to secure the loan funds a resolutIon authorizing the City Manager to negotiate and execute a loan application with the State for the funds IS reqUired BUDGET/FINANCIAL IMPACT There IS no budget or financial Impact associated with adoptIng thIs resolution Staff antiCipates that the loan amount submitted would be $2 million The Interest rate on an SRF loan IS 50% of the Interest rate on the most recently sold state general obligation 2 bond The mm(lmum amortization period IS 20 years The City will be begIn makmg annual repayments of principal and Interest one year after the first disbursement of loan funds For a loan of $2 million with an Interest rate of 28% (current rate quoted by the SWRCB), the annual payments on the loan would be approximately $130,000 per year These repayments would be funded out of the Storm Water Management Fund RECOMMENDATION Staff recommends that the City CouncIl adopt the attached resolution authorizing the application for loan funds for the dry weather runoff reclamation facIlity and authonze the City Manager to negotfate and execute all documents assocIated with the loan Prepared by' Craig PerkIns, Director of Environmental & Public Works Management Roger Gorka, Sr Admin Analyst, EPWM 3 . - i EPWM CP RG F \EPWM\ADMIN\WPDOCS\STAFFRPT\SRFRESO WPD RESOLUTION NO 9236 CCS RESOLUTION OF THE CITY COUNCil OF THE CITY OF SANTA MONICA APPROVING THE APPLICATION FOR LOAN FUNDS FROM THE STATE REVOLVING FUND FOR THE DRY WEATHER RUNOFF RECLAMATION FACILITY WHEREAS, the Federal Water Pollution Control Act, as amended In 1987, provides for establishment of a State Revolving Fund (SRF) loan program capitalIzed both by a grant awarded to the State of California by the Environmental ProtectIon Agency and by State Bond Funds, and WHEREAS, the City has conducted several feaSibility studies for the treatment of dry weather flows from the Pier and Plco\Kenter storm drams and IS committed to a long-term solution, and, WHEREAS, the City wants to apply for these funds to help fInance the dry weather treatment facIlity, and, WHEREAS, the State Water Resources Control Board has set forth the necessary procedures governing applications for loan funds under the SRF program, NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL HEREBY 1 Approves the filing of an application With the State Water Resources Control Board for loan funds for the above named proJect, and, .. .. . 2 AppoInts the City Manager as agent of the City of Santa MOnica to conduct all negotIations, and to execute and submIt all documents IncludIng, but not limIted to, applications, agreements, amendments, payment requests, and so forth. which may be necessary for the completion of the dry weather treatment facility CIty Manager may delegate authonty to execute and submIt to C,ty staff APPROVED AS TO FORM 77tU{~/JJL6:k~ MARSHA JON~S MOUTRIE City Attorney - . Adopted and approved this 27th of January, 1998 ~r-/ dtL~,- Robert Holbrook, Mayor I, Mana M Stewart, City Clerk of the City of Santa MOnica, do hereby certIfy that the foregoIng Resolutton 9236 (CCS) was duly adopted at a meeting of the City Council held on the 27th of January r 1998 by the follOWing vote Ayes Councllmembers Ebner, Feinstein, Genser, Greenberg, Holbrook, O'Connor, Rosenstem Noes Council members None Abstain Councllmembers None Absent Councllmembers None ATTEST ....... ~~ ;~ I , Mana M Stewart. City Clerk