1996 AGN APR 16 I10 - Laserfiche WebLink

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AGENDA REPORT For the Council Meeting of April 16, 1996 TO: HONORABLE MAYOR AND CITY COUNCIL APPROVAL: NABAR ENRIQUE MARTINEZ, CITY MANAGER PP - FROM: LES EVANS, INTERIM WATER & WASTEWATER DIRECTOR SUBJECT: APPROVAL OF AGREEMENT WITH SAWPA AND THE CITY OF SAN BERNARDINO TO TRANSFER THE SRF LOAN ASSIGNMENTS FOR RIX AND SARI TO THE RESPONSIBLE AGENCIES DATE: APRIL 8, 1996 BACKGROUND: As a condition of the State Revolving Fund loan, the Cities of Colton and San Bernardino contracted with the Santa Ana Watershed Project Authority (SAWPA) to administrate the construction of the RIX Full Scale Tertiary Treatment Facility. The State approved the SARI Line to be placed in the same trench as the pipeline from each City's treatment plant to the RIX Facility. Therefore, the SRF loan for the construction of the two City's tertiary treatment, was combined with the funds for SAWPA's construction of the SARI Line. In turn, SAWPA, as administrators of the two projects, were responsible for disbursement of the funds to the contractors upon the State's approval of the construction bills. DISCUSSION/ANALYSIS: With the construction completed on the pipeline and RIX Facility, each agency must approve the attached Second Supplement to the Cost Sharing Agreement. The supplemental agreement makes each agency responsible for their proportionate share of the SRF loan. FINANCIAL IMPACT: The City of Colton is responsible for 20% of the construction cost for the RIX Facility and the pipeline, the City of San Bernardino is responsible for 80% of the construction cost for the RIX Facility and the pipeline, and SAWPA is responsible for the entire cost of the SARI Line in Reach IV -E. The City of Colton will begin making payments (approximately $306,000 per year) on the SRF loan one year after date of completion of the RIX project. It is estimated that final acceptance of the project will be after July 1, 1996, thereby making the first payment effective July 1, 1997. The proposed increase to the sewer rate charge will include the SRF payment for the RIX project. ---2 9�1� Les Evans, Interim Water & Wastewater Director RECOMMENDATION: Staff recommends that Council approve the attached Second Supplement to the Cost Sharing Agreement for the Colton/San Bernardino Regional Tertiary Treatment System and the Reach IV -E of the Santa Ana Regional Interceptor. Report Prepared By: Lorraine June Item No. 10