Legislative Public Meetings

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File #: 18-1094   
Type: Report to Council Status: Passed
Meeting Body: City Council
On agenda: 12/18/2018
Title: Adopt Three Resolutions Enabling the City of Sunnyvale to Submit an Application to the State of California for up to $50 million in Clean Water State Revolving Funds to Fund the City of Sunnyvale Administration and Laboratory Building Project
Attachments: 1. Reimbursement Resolution, 2. Authorizing Resolution, 3. Pledged Revenues and Fund Resolution
REPORT TO COUNCIL

SUBJECT
Title
Adopt Three Resolutions Enabling the City of Sunnyvale to Submit an Application to the State of California for up to $50 million in Clean Water State Revolving Funds to Fund the City of Sunnyvale Administration and Laboratory Building Project

Report
BACKGROUND
The City has embarked on the most significant single public works program in its history, the rebuild of its aged Water Pollution Control Plant (WPCP), which is responsible for the treatment of sewage from all of Sunnyvale and a small area inside the Cities of Cupertino and San Jose. Named the "Sunnyvale Cleanwater Program" (the Program), current cost estimates for Phases 1-3 are approximately $500 million over twenty years. The WPCP Master Plan was developed as a long-term guide for replacing facilities at the WPCP. The City adopted the Master Plan on August 23, 2016 (see RTC No. 16-0663).

During Phase 1 of the Program, staff identified that favorable financing was available for the Headworks and Primary Treatment Project through the State of California Clean Water State Revolving Fund (CWSRF). By securing this financing, debt service for the City's Wastewater Management Fund has been reduced by more than $20 million, compared to the default assumption of standard utility revenue bond financing.

Now beginning Phase 2 projects, the Program is in preliminary design for the Administration and Laboratory Building, which is a new building that will house administration, outreach storage, operations, and laboratory and compliance inspection functions. This project is also eligible for a CWSRF loan. To apply for this financing, Council must adopt three resolutions, which are further described below.

EXISTING POLICY
Council Fiscal Policy 7.11 Enterprise Fund Policies, 1.1b.1 Capital improvements associated with the existing infrastructure of a utility should be primarily funded from two sources: rate revenue and debt financing.

Council Fiscal Policy 7.11 Enterprise Fund Poli...

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