DATE: April 16, 2024
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT
Adopt Resolutions 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 Resource Recovery Facility (WRRF) Improvements - Phase II Project in an Amount up to $260 Million, and Authorize Payment of WIFIA Loan Application Fee in the Amount of $100,000
End
RECOMMENDATION
Recommendation
That Council adopts resolutions (Attachments II and III) authorizing the City Manager to:
1) Apply for a United States Environmental Protection Agency (USEPA) Water Infrastructure Finance and Innovation Act (WIFIA) Loan for the Water Resource Recovery Facility (WRRF) Improvements - Phase II Project in an amount up to $260 Million.
2) Authorize payment of WIFIA Loan Application Fee in the Amount of $100,000.
SUMMARY
The City of Hayward’s Department of Public Works & Utilities is pursuing the WRRF (formerly WPCF) Improvements Phase II Project in anticipation of the upcoming San Francisco Bay Regional Water Quality Control Board (Water Board) regulatory requirements limiting discharge of nutrients to the Bay. Council previously authorized the City Manager to apply for the U.S. Environmental Protection Agency (USEPA) Water Infrastructure Finance and Innovation Act (WIFIA) Loan for 49% of eligible project costs, up to the amount of $200 million, to finance the project. As the project design has been further refined, and other WIFIA eligible costs have been included, the upper range of the estimated total project cost has increased to $530 million, which increases the total 49% eligible costs for WIFIA funding to $260 million. Staff requests that the Council revise the authorized resolution to increase the loan amount from $200 million to $260 million.
In addition, a $100,000 application fee is due at submittal with the WIFIA Application. The fee covers EPA time and resources necessary to close the loan. The application fee is an eligible cost that can be included in the WIFIA loan amount. Staff requests that the Council authorize the payment of the WIFIA loan application fee in the amount of $100,000.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Resolution