Item #05
Date: October 1, 2024
To: Mayor and City Council
From: Vincenzo S. Corazza, Public Works Director
Jim Schaad, City Manager
Subject: Grant/Loan Application: State Revolving Funds Regarding Sewer Inflow and Infiltration Study
Recommendation:
Motion to Pass adopting Resolution No. 2024-XX, approving the City Manager as the “Authorized Representative” to execute a financial assistance grant/loan application and accept funds for a financing agreement from the State Water Resources Control Board’s State Revolving Fund for the planning and preliminary design of the citywide sewer inflow and infiltration study.
Rationale for Recommendation:
The City of Marysville is a “Disadvantaged Community” and therefore eligible for State grant and loan funds to assist a citywide sewer inflow and infiltration study. However, to apply for the grant/loan, the State Water Resources Control Board’s State Revolving Fund (SRF) requires an approved resolution from the City Council. Without these funds, the City would pay for the citywide sewer inflow and infiltration study from the City’s Enterprise Fund.
Background:
On February 20, 2024, the City Council accepted and entered a Memorandum of Understanding (MOU) with the Sacramento Area Council of Governments (SACOG) to secure in funding in the amount of $293,000, through the SACOG Green Means Go program to conduct a sewer and storm drain capacity analysis. In the Fiscal Year 24/25, $100,000 was included in the annual budget from the Enterprise Fund to support the project as a “local” match.
The recent State of California fiscal budget shortfall resulted in less funds flowing to the local Metropolitical Planning Organizations and Council of Governments. Specifically, the SACOG Board of Directors on August 15, 2024, reduced Green Means Go funds proportionately roughly
6.2% and Marysville’s award was reduced to $275,000.
Item #05
Discussion & Analysis:
The funding for Green Means Go is stable but could be exposed to additional future cuts. Staff has decided to pursue other, more reliable funding sources from the State Revolving Fund, similar to the previously funding mechanism for the decommissioning of the sewer ponds.
MHM, the City Engineer, is taking the lead and has subcontracted with Bennett Engineering Services + Y&C Transportation Consultants in applying for grant funding from SRF for this project.
As a requirement of the SRF, the City needs to authorize a representative to negotiate and execute the financial agreement on behalf of the City.
The attached “Authorizing Resolution” incorporates specific language required by the SRF designating the City Manager (or designee including the City’s consultant) to represent the City (i.e., the “entity”) on all matters regarding the Financial Assistance Application. Following award of financial assistance, the City Manager, or designee, is also designated to coordinate all responsibilities under the financing agreement including certifying disbursement requests to the City’s contractors.
As a “Disadvantaged Community,” the City of Marysville is eligible for up to $1.8 million in grant monies to assist with a citywide sewer inflow and infiltration study.
Fiscal Analysis:
There is no fiscal impact with is Resolution for application.
Attachment:
1) Resolution 2024-XX