REPORT TO THE CITY COUNCIL
May 19, 2016
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
THROUGH: BUD TICKEL, Water Systems Manager
Department of Public Utilities - Water Division
BY: HENRY McLAUGHLIN, Business Manager
Department of Public Utilities - Water Division
SUBJECT
Title
***RESOLUTION - 42nd Amendment to the Annual Appropriation Resolution (AAR) No. 2015-104 to appropriate $103,900 for preliminary costs related to the Orange Center School and Daleville water line connection projects (Council Districts 3 and 5) (Requires 5 affirmative votes)
Body
RECOMMENDATION
Staff recommends that City Council approve the 42nd Amendment to the AAR No. 2015-104.
EXECUTIVE SUMMARY
During FY 2016, the City has been awarded the following funding opportunities to provide a source of safe and reliable drinking water for two disadvantaged areas by connecting them to the City water system:
1. On March 3, 2016, the State Water Resources Control Board (SWRCB), under its Safe Drinking Water State Revolving Fund (SDWSRF) awarded a zero percent (0%) interest loan of $2,932,600 with principal repayment to be waived for the Orange Center School District (OCSD) Consolidation Incentive Pipeline Project.
2. On August 13, 2015, the City was approved for a United States Department of Agriculture (USDA) Grant of $500,000 for the Daleville Community and South Cherry Avenue areas.
No costs will be borne by the City's water utility rate payers to fund the extension of the City's public water system to serve these areas.
The establishment of separate funds will properly account for the revenue and expenditures related to these projects.
BACKGROUND
The City has received funding for the following projects during FY 2016:
Orange Center School District Connection Project
The OCSD is a K-6 school and has operated its own water system since the early 1950's. The school is located at 3530 South Cherry Avenue (within the City's sphere of influence), and i...
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