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Adopt Resolution for Well 32 Installment Sale Agreement <br />November 15, 2022 <br />Page 2 <br />is estimated that the project will provide the City with an additional 4,000 acre feet <br />(1,303,600,000 gallons) of water per year. Placing Well 32 back in the City's water system <br />will improve system efficiency and reduce the burden on other water -producing facilities. <br />Total project costs are estimated at $13,000,000. Staff has requested a principal loan <br />amount of $5,290,000, which according the Payment Schedule (Exhibit 3), will be paid <br />back over 33 years and at a cost of $959,105. <br />ENVIRONMENTAL IMPACT <br />There is no environmental impact associated with this action. <br />FISCAL IMPACT <br />Funds are available in the current fiscal year, FY 2022-23, to pay estimated administrative <br />and grant fund fees of $9,553 in Water Debt Service, Contract Services -Professional <br />expenditure account (No. 06017020-62300). Principal and interest payments are due <br />annually beginning one year after construction completion date of June 30, 2025. Funds <br />for debt servicing will be budgeted in Water Debt Service, Principal -Debt Services <br />expenditure account (No. 06017020-67100) and Interest -Debt Services expenditure <br />account (No. 06017020-67110) for FY25-26 through FY54-55. Loan reimbursement <br />disbursements will be recorded in Water Fund, Notes/Loan Payable account (No. <br />06001001-27000). The project costs are estimated at $13,000,000 and Staff continues to <br />seek funding to fully fund the delivery of this project. <br />EXHIBIT(S) <br />1. Resolution Approving the Construction Installment Sale Agreement with the <br />California State Water Resources Control Board for Financing of the Well 32 <br />Nitrate Treatment Project <br />2. Construction Installment Sale Agreement <br />3. Project Loan Schedule Summary <br />Submitted By: Nabil Saba, Executive Director Public Works <br />Approved By: Kristine Ridge, City Manager <br />