1990 AGN AUG 07 I29 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT For Council Meeting of August 7, 1990 TO: Honorable Mayor and City Council FROM: John C. Hutton, Director of Public Works JJ� SUBJECT: RIX Demonstration Project (Colton/San Bernardino Date: August 7, 1990 Tertiary Treatment Plant) BACKCJCUND: As you are aware, the City of Colton is required to build a tertiary treatment facility which the Council elected to do with a Joint Powers Agreement with the City of San Bernardino. The joint demonstration project is to be located along Agua Mansa Rd. STATEME2gT OF THE PROBLEM: The demonstration project will eventually lead to a full scale project which would treat all secondary flows from both communities at an estimated cost of $8,000,000 which includes the engineering costs, land acquisition costs and construction costs, Colton's share is 25% and San Bernardino's share is 75% of the estimated cost. The Santa Ana Watershed Project Authority (SAWPA), a commission of the regions water agencies, was selected to spear head the project for both agencies. The initial concept was to finance the project, both demonstration and full scale by CIP bonds, which an issue has been prepared and a financial report submitted for Council's review and approval. The other means of financing was to apply for a low interest rate State loan from the revolving fund of the State of California Clean Water Bond Act. This loan is designed specifically for projects of this nature and has an interest rate of 4%, which is approximately half of what the CIP bonds would be. An application for the State loan was submitted and recently tentatively approved pending an acceptable revenue program by the City of Colton (rate structure for residential, commercial and industrial users). The law interest rate State loan program is not without its draw backs, but would save millions of dollars over the term of the loan compared to CIP Bonds (4% to 8%) and the City of Colton's rate revenue program approved in 1987 would be acceptable if the following 2 categories were amended: 1. The State loan program follows the Federal loan guidelines which does not allow for a special rate for senior citizens (considered a special interest group). 2. Commercial and industrial dischargers rate would be based not only on the amount of flow, but also on the amount of BOD and SS emitted into the City's sewer system (BOD=bio oxygen demand, SS=suspended solids). Attachments: Page 1 of_—__ Item No. -Z I ORIGINAL .c a RECORDS qv 'Ni F NO. /��a . � ........«.....