09-12-2016 BPU RPT 03 - Laserfiche WebLink

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W A T E R E N E R C Y I WI& P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES RIVERSIDE PUBLIC UTILITIES Board Memorandum DATE: SEPTEMBER 12, 2016 ITEM NO: 3 SUBJECT: AUTHORIZATION FOR APPLICATION TO THE STATE WATER RESOURCES CONTROL BOARD FOR THE WATER RECYCLING FUNDING PROGRAM FOR REDUCED RATE LOAN FINANCING OR GRANT FINANCING IN THE AMOUNT OF $21,315,000 FOR THE JACKSON STREET RECYCLED WATER PIPELINE PROJECT PHASES I AND II — AND ADOPTION OF AUTHORIZING RESOLUTION, REIMBURSEMENT RESOLUTION, AND PLEDGED REVENUE AND FUND(S) RESOLUTION ISSUES: Recommend that the City Council: 1) Adopt an authorizing resolution authorizing the City Manager, or his designee, to submit an application to the State Water Resources Control Board Water Recycling Funding Program; 2) Adopt a reimbursement resolution for financing the costs of constructing the Project through a loan; and 3) Adopt a pledged revenue and fund(s) resolution for repayment of any financing costs for constructing the Project. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: Adopt an Authorizing Resolution for the City Manager, or his designee, to sign and submit the Clean Water State Revolving Fund application for financial assistance (either a grant or a loan) for the Jackson Street Recycled Water Pipeline Project (Project), Phase I and 11; 2. Adopt a reimbursement resolution for financing the costs of constructing the Project through such loan; and 3. Adopt a pledged revenue and fund(s) resolution for repayment of any financing costs for constructing the Project. BACKGROUND: On January 22, 2016, the Board of Public Utilities (Board) approved the capital expenditure of $500,000 for the upfront costs of design and utility potholing for the Jackson Street Recycled Water Pipeline Project (Project), Phase I and 11. To date, Riverside Public Utilities (RPU) staff has completed the design and potholing for the Phase I project. In May 2016, RPU partnered with Western Municipal Water District (WMWD) to utilize their consultant for assistance to identify potential funding opportunities and submitting an application to the State Water Resources Control Board ( SWRCB). The SWRCB has a Water Recycling Funding Program (WRFP), which provides financial assistance, both grant and loan opportunities, for the planning, design and construction of recycled water infrastructure projects. Grant assistance through the WRFP is highly competitive and funds are limited. Reduced rate loan financing would be available at a rate of 1.9 %,