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HomeMy WebLinkAbout08 PASADENA WELL 02-05-01'AGENDA R E"'" O RT NO. 08 02-05-01 MEETING DATE TO' FROM' SUBJECT: FEBRUARY 5, 2001 WILLIAM A. HUSTON, CITY MANAGER PUBLIC WORKS DEPARTMENT/WATER SERVICES DIVISION APPROVAL OF AUTHORIZATION FOR THE DIRECTOR OF PUBLIC WORKS/CITY ENGINEER TO ACT AS THE CITY'S DESIGNATED REPRESENTATIVE AND SUBMIT A LOAN APPLICATION TO THE SAFE DRINKING WATER STATE REVOLVING FUND FOR THE CONSTRUCTION OF THE PASADENA WELL (ClP No. 6130) SUMMARY The Pasadena Well Project (CIP No. 6130) has been ranked on the State of California Department of Health Services priority list as eligible to receive a Iow interest construction loan through the Safe Drinking Water State Revolving Fund. The State Revolving Fund Program was established with Federal funds through the Clean Water Act amendments of 1987 to replace the Federal Clean Water Grant Program. The loan application requires the City Council, bY resolution, designate an authorized representative and authorize that individual to submit the loan application. The recommended action is to designate the Public Works Director/City Engineer as the City's authorized representative'and authorize that individual to submit the loan application. RECOMMENDATION It is recommended that the City Council adopt Resolution No. 01-12 designating the Public Works Director/City Engineer, Tim D. Serlet, aS the City's designated representative for the loan application and authorizing Mr. Serlet to submit the loan application for the Pasadena Well Construction. FISCAL IMPACT The Iow interest rate loan will enable the City to pay for the construction of the Pasadena Well over a twenty-year period apd delay the need for the City to sell bonds at a higher rate for future projects. Loan rates for the Safe Drinking Water State Revolving Fund Program are set each year at one-half the average State market bond rate for the previous calendar year. The loan rate was set at 2.32% for calendar year 2000 and is expected to be slightly higher for calendar year 2001. The Pasadena Well Project has an approved FY00/01 budget of $1,230,599. BACKGROUND The Clean Water Act Amendments of 1987 authorized the use of Federal money to create a State Revolving Fund Loan Program to replace the Federal Clean Water Grant Program. State Revolving Fund Loan can be used for construction and upgrade of municipal water systems. The Pasadena Well Construction is ranked within the fundable portion of the Departments of Health Services Project Priority List and is eligible for funding from this year's current Federal allocation. To be assured of receiving funding assistance, the Department of Health Services must receive the completed application no later than April 1,2001. Safe Drinking Water Revolving Fund February 5, 2001 Page 2 DISCUSSION The construction of the Pasadena Well is part of the City's Water Capital Improvement Program. Design of the well is currently underway and it is to be constructed on a parcel of land recently acquired from Caltrans adjacent to the 55 Freeway. It is anticipated that water from this well will not require substantial treatment since it is located outside of the underground nitrate plume. The well will provide the City with a source of safe, reliable and economical ground water. The proposed action will authorize the Director of Public Works/City Engineer to act as the City's designated representative and submit a loan application to the Safe Drinking Water State Revolving Fund Program. Tim D. Serlet Director of Public Works/City Engineer TDS:ccg'Safe Drinking Water Revolving' Fund.doc. Attachment ~2 ~9 2O 21 o_6 o_7 RESOLUTION NO. 01-12 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AUTHORIZING TIM D. SERLET, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER TO ACT AS CITY OF TUSTIN'S DESIGNATED REPRESENTATIVE AND TO SiGN AND SUBMIT A LOAN APPLICATION FOR SAFE DRINKING WATER STATE REVOLVING FUND FOR THE PASADENA WELL PROJECT (CIP NO. 6130) WHEREAS, it is the intention of the City Council of the City of Tustin, California to submit a loan application for the Pasadena Well Project (CIP No. 6130) from the Safe Drinking Water State Revolving Fund; and WHEREAS, Tim D. Serlet, Director of Public Works/City Engineer is responsible for the completion of both the Pasadena Well Project and the completion of the application for a Safe Drinking Water State Revolving Fund Loan; and NOW, THEREFORE, BE IT RESOLVED that Tim D. Serlet, Director of Public Works/City Engineer is hereby authorized to act as the City of Tustin's designated representative and to sign and submit a loan application for the Pasadena Well Project (CIP No. 6130). · PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 5th day of February 2001. Tracy Wills Worley, Mayor ATTEST' City Clerk