DATE: December 2, 2025
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT
Title
Adopt Resolution Authorizing the City Manager to Apply for a State Water Resources Control Board (SWRCB) State Revolving Fund (SRF) Loan and Approve Reimbursement Resolution in Support of SWRCB SRF Loan Application for the Water Resource Recovery Facility (WRRF) Improvements - Phase II Project
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RECOMMENDATION
Recommendation
That City Council adopts (Attachments II and III):
1) Resolution Authorizing the City Manager to apply for a State Water Resources Control Board (SWRCB) State Revolving Fund (SRF) Loan for the Water Resource Recovery Facility (WRRF) Improvements - Phase II Project in an amount up to $50 Million.
2) Reimbursement Resolution in Support of SWRCB SRF Loan Application
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SUMMARY
The City of Hayward's Department of Public Works & Utilities is pursuing a major capital improvement project to improve the Water Resources Recovery Facility, 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 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 $50 million of the project costs through the SWRCB Division of Financial Assistance's SRF loan program (the "SRF Loan"). The remaining cost will be funded by publicly-sold revenue bonds, United States Environmental Protection Agency (USEPA) Water Infrastructure Finance and Innovation Act (WIFIA) loan, and sewer fund reserves. Application for SRF funding must be submitted by December 31, 2025. In order to initiate the loan application process, the City Council must authorize the City Manager to submit...
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