RECOMMENDATION TO COUNCIL
Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute the Clean Water State Revolving Fund (CWSRF) Installment Sale Agreement Amendment 2 for the low interest loan (1.3 percent) of $78,347,000 from the California State Water Resources Control Board (SWRCB) for the Pleasant Grove Wastewater Treatment Plant Expansion Project.
| BACKGROUND
The Pleasant Grove Wastewater Treatment Plant (PGWWTP) Expansion Project involves the addition of primary clarifiers, solids thickening equipment, and anaerobic digesters. The plant expansion will increase the PGWWTP’s treatment capacity from 9.5 to 12 million gallons per day and is expected to provide sufficient capacity to accommodate growth within the South Placer Wastewater Authority (SPWA) service area through 2035.
Construction of this project has already begun. The Expansion Project construction is behind the scheduled completion in June 2022; therefore an amendment to the City’s CWSRF Installment Sale Agreement for the low interest loan (1.3 percent) of $78,347,000 from the SWRCB is required. The CWSRF Installment Sale Agreement Amendment 2 extends the construction date from June 10, 2022, to July 3, 2023. Based on the current status of the construction projects at the PGWWTP, it is anticipated that the Expansion Project will be completed by July 3, 2023.
| FISCAL IMPACT
The adoption of the CWSRF Installment Sale Agreement Amendment 2 initiates the financial commitments to repay the loans and repayment will be based on the amount of the loan used, which has not been revised in the amendment. The Debt Service Agreement between the City and SPWA will allow all CWSRF loan repayment costs made by the City to be fully reimbursed by the SPWA agency partners; therefore resulting in no direct fiscal impact to the City.
The CWSRF interest rate of 1.3 percent is the lowest available financing option evaluated for SPWA to fund these projects.
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ENVIRONMENTAL REVIEW
Implementation of the PGWWTP Expansion Project was previously evaluated in the Pleasant Grove Wastewater Treatment Plant Expansion and Energy Recovery Project Final Initial Study/Mitigated Negative Declaration (IS/MND) (SCH# 2016122040) (certified by the City Council on April 6, 2017), and the Addendum to the IS/MND (SCH# 2016122040) (certified by the City Council on November 7, 2018). The improvement plans included in the design-assist and construction agreement are consistent with the project evaluated in the certified Final IS/MND and the Addendum, and consequently no additional CEQA action is required for approval of this amended CWSRF agreement.
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CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal F - Invest in well-planned infrastructure and growth
| Respectfully Submitted,
Tracie Mueller, Senior Engineer
Richard Plecker, Environmental Utilities Director | | | 
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Dominick Casey, City Manager
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