1993 CC ADJ MIN FEB 09 - Laserfiche WebLink

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Plan Operator for OMI, saying the City currently contracts with. OMI for the maintenance and operation of the dater Quality Control Plant and that the City has en)oyed good rapport with the contractor. Mr. Jon Reynolds, Krieger and Stewart, Consulting Engineers for the City, informed the Council they have been working on the Gityfs treatment plant upgrade/expansion design, deficiencies design and construction management, and in the capacity of engineering technical support for industrial waste pretreatment program and prepared the special report on revenue/sewer service rate. Mr. Reynolds reviewed Figures, 4, 5, 6, & 7 of the Workshop Report giving an overview of the projects, including the LEMN,A proposal for secondary treatment, and addressed the costs associated with each., saying the LEMNA Proposal is very land intensevice and the cost would be $6,484,000 as compared to $1,528,000 for convententional nitrogen removal facilities. Mr. Reynolds supported going with a single construction pro3ect as apposed to phasing the construction, saying it would be more economical. Reviewing the Tables of the Workshop Report, Mr. Steve Herrera., Krieger and Stewart spoke on the required revenue required to support the costs for ongoing operation and maintenance and the new treatment facility construction. Mr. Herrera reviewed various figure tables showing .Alternatives, Phases and. Costs to Existing User and Future User, the existing shortfall in, the Operation Fund and the Capital Improvement Fund Balance of $1.6 million and the need to burrow money. Mr. Herrera said the State Revolving Lean Program has an interest rate of 2 - 3.5% with. a 20 year payback; however, funds are very limited. They plan to actively pursue a loan through the State but it is not a sure thing. The City must also consider a revenue band or Certificate of Participation at about 7% interest with a 30 year payback. Burrowed money would be paid back through sewer service charges of existing users and capacity charges in new development. In reviewing the proposed sewer rates, Mr. Herrera said the Senior citizen rate had to be eliminated in accordance with State law. The increases are proposed to be incremental commencing on April 11 1993 and completing in July 1, 1996. Phase II would require an increase of $.70 more than Phase I. In response to inquiry regarding Grand Terrace, Mr. :Herrera said Grand Terrace would pay 10% less than the overall and they will be paying through, connection fees. Mr. Bernie Kersey, General Manager from the City of San Bernardino 'Water Department, spoke on ,San Bernardino's future growth and on the increase of future sewer service rates going to $28.00 per month this summer. Mayor Gonzales said in essence the proposed increase will be $4.50. Mr. Herrera responded yes, the current residential is 5