1990 AGN AUG 07 I29 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT (CONTINUED) FOR COUNCIL MEETING OF August 7, 1990 SUBJECT: RIX Demonstration Project (Colton/San Bernardino Tertiary Treatment Plant) This requirement follows closely the City's existing Pre-treatment Ordinance, but imposes additional fees (a sliding rate scale) for commercial and industrial users exceeding these limits. The State will fund through its low interest loan program, the demonstration project and full scale project with the aforementioned changes to our 'revenue rate structure program, and the State will cocmience funding for the demonstration project immediately if a letter is given to them committing to these changes to be implemented prior to the full scale project being funded. This letter of commitment must be received by the State prior to the Commission meeting on August 16, stating we are in agreement to their terms in order to receive the loan. ALTERNATIVES: Sell CIP bonds at 8% interest. FINANCIAL IMPACT: With the approval of the State loan the City will realize a savings of millions of dollars in the reduction of the interest paid. ENV I %)NMENTAL INTACT: None RDCOK&EVDATION: The State loan would result in the savings of millions of dollars as compared to the bond issue and this savings would be to all rate payers including senior citizens. Although we must commit now to the terms of the revenue rate program, staff estimates that it would not be prepared and implemented until after the first of 1991 and possibly a special rate could be considered in another form (i.e., water rates or electric rates). Staff recommends that Council authorize the City Manager to proceed with the letter of commitment and direct staff to implement the necessary revenue rate structure amendment to be presented to Council on or about January 1, 1991. JCH/ 1 j CITY MANAGER'S CONCURRENCE: Page of Item No