DATE: December 12, 2023
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT
Title
Adopt a Resolution Authorizing the City Manager to Apply for a United States Environmental Protection Agency (EPA) Water Infrastructure Finance and Innovation Act (WIFIA) Loan for the Water Pollution Control Facility (WPCF) Improvements - Phase II Project No. 07760
RECOMMENDATION
Recommendation
That Council adopts a resolution (Attachment II) authorizing the City Manager to apply for a United States Environmental Protection Agency (EPA) Water Infrastructure Finance and Innovation Act (WIFIA) Loan for the Water Pollution Control Facility (WPCF) Improvements - Phase II project.
End
SUMMARY
The WPCF core infrastructure was originally constructed in 1952 to treat wastewater flows from the City of Hayward’s residents and businesses prior to discharge into the San Francisco Bay. Over the years, the WPCF has undergone several major upgrades to meet more stringent discharge requirements, as well as increasing capacity as the City’s population and industry has grown. The WPCF now treats an average flow of approximately eleven million gallons per day (MGD) and meets current regulatory requirements for discharge of treated effluent to the deep waters of the San Francisco Bay (Bay).
In May 2019, the San Francisco Bay Regional Water Quality Control Board (Water Board) announced upcoming regulatory requirements limiting discharge of nutrients (nitrogen) to the Bay. In June 2020, the City completed a comprehensive Master Plan update, the WPCF Phase II Facilities Plan (Facilities Plan), to identify improvements required for the WPCF to upgrade its treatment process to incorporate nutrient reduction in the treated effluent to meet the upcoming requirements. In July 2022, Council authorized design and engineering services with Brown & Caldwell for the WPCF Improvements - Phase II Project (Phase II Project).
Staff are exploring funding opportunities for the Phase II Project, including the U.S. Environmental Protection Agency (EPA) Water Infrastructure Finance and Innovation Act (WIFIA) loan program. This program offers funding for water infrastructure projects for up to 49% of project costs. The first step of the WIFIA loan application involves a Letter of Interest (LOI). The LOI provides information to demonstrate the borrower’s project eligibility, financial creditworthiness, engineering feasibility, and alignment with EPA’s policy priorities. A signed resolution from Council is required as an attachment to the LOI form.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution