DATE: April 1, 2025
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT
Title
2025 WIFIA Loan: Adopt Resolution of the City Council Authorizing the Execution and Delivery of a WIFIA Loan Agreement with the United States Environmental Protection Agency and a Related Promissory Note in the Maximum Principal Amount of $244,139,000 (Excluding Capitalized Interest) to Finance Certain Capital Improvements to the Wastewater System, Including the Water Resource Recovery Facility Improvements, and Approving Related Agreements and Actions (Report from Director of Public Works Ameri)
End
RECOMMENDATION
Recommendation
That City Council adopts a resolution (Attachment II) authorizing the execution and delivery of a WIFIA Loan Agreement in the maximum principal amount of $244,139,000 to finance capital improvements to the Wastewater System, including the Water Resources Recovery Facility (WRRF) Phase II Project (the “Project”), and approving related agreements and actions.
End
SUMMARY
The City of Hayward’s Department of Public Works & Utilities is pursuing a major capital improvement project to improve the WRRF, formerly known as the Water Pollution Control Facility, (WRRF Phase II Improvement Project, the “Project”) to meet the nutrient reduction mandate for treated effluent identified in the 3rd Nutrients Watershed Permit adopted by the California Regional Water Quality Control Board (Control Board) in July 2024. The total cost of the Project is estimated at $498 million, including capital costs, contingencies, and financing costs.
As part of the funding strategy, the City intends to finance approximately 49% of the Project costs through the U.S. Environmental Protection Agency’s Water Infrastructure Finance and Innovation Act of 2014 (WIFIA) loan program (the “WIFIA Loan”). The WIFIA loan is expected to be approximately $244.139 million and is expected to provide funding for construction costs between September 2026 and September 2028. The remaining cost will be funded by publicly sold revenue bonds, a newly received grant from the Water Resources Development Act (WRDA), and sewer fund reserves.
Similar to the 2025 Bonds, the WIFIA Loan will be secured by net revenues (total revenues minus operation and maintenance costs) received by the City from its wastewater collection, pumping, transport, treatment, storage, and disposal system (Wastewater System).
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Loan Agreement
Attachment IV Term Sheet