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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
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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
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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
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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,
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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
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Adopted and approved this 27th of January, 1998
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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
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Mana M Stewart. City Clerk