1997 AGN OCT 21 I17 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT For the Council Meeting of October 21, 1997 TO: HONORABLE MAYOR AND CITY COUNCIL APPROVAL: LEN WOOD, INTERIM CITY MANAGER FROM: THOMAS K. CLARKE, UTILITY DIRECTOR X V SUBJECT: ADOPTION OF A RESOLUTION ESTABLISHING A WASTEWATER CAPITAL RESERVE FUND FOR SRF LOAN NO. C-06-4251-110 FOR THE WASTEWATER TREATMENT PLANT EXPANSION AND RENOVATION FOR HYDRAULIC RELIABILITY TE: OCTOBER 7, 1997 BACKGROUND: At its September, 18, 1997 meeting, the State Water Resources Control Board approved the City of Colton's application for a State Revolving Fund Loan for the Wastewater Treatment Plant Expansion and Renovation for Hydraulic Reliability. DISCUSSION/ANALYSIS: Preliminary loan documents will be issued to the City of Colton after the Council approves the attached Resolution Establishing a Wastewater Capital Reserve Fund. The preliminary loan documents allows the City to request bids for the project. In order to remain on schedule for compliance with the Regional Water Quality Control Board's Cease and Desist, the City must request bids for the project by December, 1997, with construction to begin in January, 1998. Prior to Council award of the contract, the State Water Resources Control Board must first approve the selected bidder and bid amount. Final loan documents will be signed after award of the bid. FINANCIAL IMPACT: The Wastewater Capital Reserve Fund (WCRF) requires the City to "deposit sufficient funds to build up the WCRF at a minimum rate of one-half of one (0.5%) percent of the State Revolving fund loan amount each year for a period of ten (10) years. All interest earned on deposits to the WCRF shall remain in the WCRF for the uses specified below. The recipient shall replace any amounts expended from the WCRF by deep 'ting at a inim nnijal rate of ten (10%) percent of the expended amount." Thomas K. Clarke, Utility Director RECOMMENDATION: Staff recommends that Council waive the first reading of the Ordinance Establishing a Wastewater Capital Reserve Fund for the Wastewater Treatment Plant Expansion and Renovation for Hydraulic Reliability. Report Prepared By: Lorraine June _ to in IST®a 17 7