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Adopt Resolutions and Authorize Application for State Revolving Fund Capital Project Financing <br />May 7, 2019 <br />Page 2 <br />The City completed a Well 32 Nitrate Mitigation and Rehabilitation study and has retained an <br />engineering firm, who is preparing the construction documents for the Well No. 32 rehabilitation <br />project. The construction cost for this project is estimated to be $5,290,000. <br />The California State Water Resources Control Board (SWRCB) oversees a capital improvement <br />financing program known as the Drinking Water State Revolving Fund (DWSRF) that provides low- <br />cost flexible financing for capital improvements to water utilities. This program is more cost <br />effective and requires less administrative burden than financing through bonds or certificates of <br />participation. Funding can be secured on a shorter timeline and repaid more flexibly, subject to <br />conditions of participation and competitive scoring criteria established and administered under the <br />supervision of SWRCB. <br />The three attached resolutions are needed to meet the State's application submittal requirements. <br />Adopting these resolutions will allow the Well No. 32 project to benefit from a near-term infusion of <br />cash to shorten the project delivery schedule and accelerate realization of service -level and <br />financial benefits to the City and its enterprise ratepayers. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item supports the City's efforts to meet Goal #6 - Community Facilities & <br />Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City <br />assets), Strategy G (develop and implement the City's Capital Improvement Program in <br />coordination with the Community Investment and Deferred Maintenance Plans. <br />ENVIRONMENTAL IMPACT <br />There is no environmental impact associated with this action. <br />FISCAL IMPACT <br />There is no fiscal impact associated with this action. Staff will return to Council with a request for <br />appr I of further actions and will indicate the fiscal impact of any such awards and associated <br />exp nd tures at that time. <br />Fuad SA$weiss, PE, PLS <br />Executi Director <br />Public rks Agency <br />Exhibits: 1. Authorization to Participate Resolution <br />2. Reimbursement Resolution <br />3. Pledge Revenues and Funds Resolution <br />55B-2 <br />