REPORT TO THE CITY COUNCIL
December 8, 2016
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
THROUGH: MICHAEL CARBAJAL, Division Manager
Department of Public Utilities - Water Division
BY: GLENN A. KNAPP, PE, Professional Engineer
Department of Public Utilities - Water Division
SUBJECT
Title
***RESOLUTION - To revise Pledge Revenue Resolution to increase Safe Drinking Water State Revolving Fund Low Interest Loan funding for the City of Fresno's Regional Transmission Main Project to $75,900,000 (Citywide)
Body
RECOMMENDATIONS
Staff recommends that City Council:
1. Approve a revised Pledge Revenue Resolution to increase Safe Drinking Water State Revolving Fund Low Interest Loan funding to $75,900,000 for construction of regional water transmission mains throughout the City of Fresno.
2. Authorize the Director of Public Utilities, or designee, to sign the Resolution on behalf of the City of Fresno.
EXECUTIVE SUMMARY
On July 30th, 2015, City Council adopted Pledge Revenue Funds and Reimbursement Resolutions to enable the City of Fresno to obtain State Revolving Fund (SRF) Low-Interest Loan funding for the Friant-Kern Canal Pipeline (Friant-Kern), Kings River Pipeline (Kings), and Regional Transmission Mains (RTMs) projects. Favorable bids were received for the Friant-Kern and Kings pipelines allowing SRF loans to be reduced below the Council authorization for those projects. Recent bids received for RTMs segments A1 and A2 were higher than anticipated resulting in the need to increase the SRF loan authorization from $63,100,000 to $75,900,000 to fully finance the construction of all RTMs segments. Council approval of the revised Pledge Revenue Resolution for the RTMs project will reallocate $12,800,000 of available SRF financing capacity to the RTMs project. Reallocation of available SRF loan funds will fully finance construction of all major Recharge Fresno projects within the total overall loan funding approved by Counci...
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