Adopt a Resolution Approving an Agreement with
12.2 “Placerville, a Unique Historical Past Forging into a Golden Future”
City Manager’s Report June 27, 2017 City Council Meeting Prepared By: M. Cleve Morris Item#: 12.2 Subject:
1. Adopt a Resolution approving an agreement with Herrera Engineering Consultants, Inc. in the amount of $18,700 to prepare an application for a Clean Water State Revolving Fund Loan and authorizing the City Manager to execute the agreement. 2. Approve a Budget appropriation from the Sewer Enterprise Fund Contingency for Unforeseen Expenditures in the amount of $18,700. ____________________________________________________________________________ Background: Recently, the City approved an agreement with Johnson Controls for an energy efficiency project which includes a solar field at the Hangtown Creek Water Reclamation Facility (WRF). As part of that agreement, the next step was to secure financing for the project. One of the financing alternatives presented to Council was a Clean Water State Revolving Fund (CWSRF) loan. The City would also qualify for the Green Project Reserve, which means the City would be eligible for special loan forgiveness provisions. Staff has further researched the program and determined our eligibility. However, funding is limited, and therefore, it is not guaranteed that funding for the loan forgiveness provisions will be available. This will not be known until the application is approved. If funding is available, the City could qualify for up to 50% principal forgiveness. Discussion: In 2005, the City applied for a SRF Loan through the State. Steve Herrera assisted the City in preparing and submitting the successful application. In reviewing the current application process, staff determined it requires special technical reports and information to complete. For this reason, staff has determined that it would be best to solicit a consultant to assist in preparing the application. Steve Herrera of Herrera Engineering Consultants, Inc. has submitted the attached proposal to prepare the application. Mr. Herrera is intimately familiar with the current plant as he was the consultant who assisted with the upgrade process. In addition, Mr. Herrera has provided consulting services on the plant to the City since completion of the upgrade. Based on these factors staff felt Herrera Engineering Consultants would be best qualified to prepare the application. The proposal includes a timeline that shows completion of the application by October 15, 2017. The cost for preparation of the application is not to exceed the amount of $18,700. If approved, this cost could be financed by the CWSRF loan. In addition, the program provides planning funds up to $500,000. The application process is an eligible cost for planning funds. This amount can be immediately rolled into the loan upon approval. Staff will be reviewing these provisions to see if it makes sense to apply for the planning funds that could pay for the $18,700 cost. The State has informed the City that the process can take 12 – 15 months to approve, so it will be some time before we know if we qualify.
12.2_SR CMReport 06272017 SRF Herrera Agreement (DW) (1)
12.2 Staff is requesting approval of the attached agreement with Herrera Engineering Consultants, Inc. for a total not to exceed amount of $18,700. Options: 1. 2. 3. 4.
Approve the agreement as recommended. Approve the agreement with amendments. Do not approve the agreement and direct staff to solicit other proposals. Do not proceed with the Clean Water State Revolving Fund Loan at this time.
Cost: The cost for the loan application preparation and submittal is estimated at $18,700. Budget Impact: This cost was not expected at budget preparation. In addition, the cost will be reimbursed once the loan is approved. Staff is requesting that an $18,700 budget appropriation from the Sewer Enterprise Fund Contingency for Unforeseen Expenditures. Recommendation: 1. Adopt a Resolution approving an agreement with Herrera Engineering Consultants, Inc. in the amount of $18,700 to prepare an application for a Clean Water State Revolving Fund Loan and authorizing the City Manager to execute the agreement. 2. Approve a Budget appropriation from the Sewer Enterprise Fund Contingency for Unforeseen Expenditures in the amount of $18,700.
M. Cleve Morris, City Manager
Attachments: Resolution Agreement
12.2_SR CMReport 06272017 SRF Herrera Agreement (DW) (1)
City Manager’s Report June 27, 2017 City Council Meeting Prepared By: M. Cleve Morris Item#: 12.2 Subject:
1. Adopt a Resolution approving an agreement with Herrera Engineering Consultants, Inc. in the amount of $18,700 to prepare an application for a Clean Water State Revolving Fund Loan and authorizing the City Manager to execute the agreement. 2. Approve a Budget appropriation from the Sewer Enterprise Fund Contingency for Unforeseen Expenditures in the amount of $18,700. ____________________________________________________________________________ Background: Recently, the City approved an agreement with Johnson Controls for an energy efficiency project which includes a solar field at the Hangtown Creek Water Reclamation Facility (WRF). As part of that agreement, the next step was to secure financing for the project. One of the financing alternatives presented to Council was a Clean Water State Revolving Fund (CWSRF) loan. The City would also qualify for the Green Project Reserve, which means the City would be eligible for special loan forgiveness provisions. Staff has further researched the program and determined our eligibility. However, funding is limited, and therefore, it is not guaranteed that funding for the loan forgiveness provisions will be available. This will not be known until the application is approved. If funding is available, the City could qualify for up to 50% principal forgiveness. Discussion: In 2005, the City applied for a SRF Loan through the State. Steve Herrera assisted the City in preparing and submitting the successful application. In reviewing the current application process, staff determined it requires special technical reports and information to complete. For this reason, staff has determined that it would be best to solicit a consultant to assist in preparing the application. Steve Herrera of Herrera Engineering Consultants, Inc. has submitted the attached proposal to prepare the application. Mr. Herrera is intimately familiar with the current plant as he was the consultant who assisted with the upgrade process. In addition, Mr. Herrera has provided consulting services on the plant to the City since completion of the upgrade. Based on these factors staff felt Herrera Engineering Consultants would be best qualified to prepare the application. The proposal includes a timeline that shows completion of the application by October 15, 2017. The cost for preparation of the application is not to exceed the amount of $18,700. If approved, this cost could be financed by the CWSRF loan. In addition, the program provides planning funds up to $500,000. The application process is an eligible cost for planning funds. This amount can be immediately rolled into the loan upon approval. Staff will be reviewing these provisions to see if it makes sense to apply for the planning funds that could pay for the $18,700 cost. The State has informed the City that the process can take 12 – 15 months to approve, so it will be some time before we know if we qualify.
12.2_SR CMReport 06272017 SRF Herrera Agreement (DW) (1)
12.2 Staff is requesting approval of the attached agreement with Herrera Engineering Consultants, Inc. for a total not to exceed amount of $18,700. Options: 1. 2. 3. 4.
Approve the agreement as recommended. Approve the agreement with amendments. Do not approve the agreement and direct staff to solicit other proposals. Do not proceed with the Clean Water State Revolving Fund Loan at this time.
Cost: The cost for the loan application preparation and submittal is estimated at $18,700. Budget Impact: This cost was not expected at budget preparation. In addition, the cost will be reimbursed once the loan is approved. Staff is requesting that an $18,700 budget appropriation from the Sewer Enterprise Fund Contingency for Unforeseen Expenditures. Recommendation: 1. Adopt a Resolution approving an agreement with Herrera Engineering Consultants, Inc. in the amount of $18,700 to prepare an application for a Clean Water State Revolving Fund Loan and authorizing the City Manager to execute the agreement. 2. Approve a Budget appropriation from the Sewer Enterprise Fund Contingency for Unforeseen Expenditures in the amount of $18,700.
M. Cleve Morris, City Manager
Attachments: Resolution Agreement
12.2_SR CMReport 06272017 SRF Herrera Agreement (DW) (1)
