1997 AGN OCT 21 I18 - 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"' SUBJECT: ADOPTION OF A RESOLUTION ESTABLISHING A DEDICATED SOURCE OF REVENUE FOR THE SRF LOAN FOR THE WASTEWATER TREATMENT PLANT EXPANSION AND RENOVATIION FOR HYDRAULIC RELIABILITY DATE: OCTOBER 7, 1997 BACKGROUND: The City of Colton has applied for, and conditionally received, a State Revolving Fund loan for the Wastewater Treatment Plant Expansion and Renovation for Hydraulic Reliability (Title 22 Repairs). DISCUSSION/ANALYSIS: Preliminary loan documents will be issued to the City, after the Council approves the attached Resolution, which is required as a part of the loan application. The attached Resolution Establishing a Dedicated Source of Revenue is identical, with the exception of the loan number, to Resolution No. R-2-97 adopted by Council for the RIX State Revolving Fund Loan. FINANCIAL IMPACT: The dedicated source of revenue, sewer user charges, has been included in the five year Wastewater Financial Plan and Rate Study approved by Council on May 21, 1996. The City will not be required to make payments on the loan until one year after completion of the project. The timeline for the completion of the project is July, 2000, therefore, the first payment will be due July, 2001. At that time, the rates will be adequate to repay the loan. Thomas K. Clarke, Utility Director RECOMMENDATION: Staff recommends that Council adopt the attached Resolution Establishing a Dedicated Source of Revenue for the repayment of State Revolving Fund Loan No. C-06-4251- 110 for the Wastewater Treatment Plant Expansion and Renovation for Hydraulic Reliability. Report Prepared By: Lorraine June Item No 18