CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
8/11/2025
1 SUBJECT:
Adopt Resolution Updating List of Projects Funded by 2017 Wastewater Revenue Bonds RECOMMENDED ACTION:
Move to Adopt Resolution to Update 2017 Wastewater Revenue Bond (Installment Sale Agreement Appendix B)
STAFF CONTACT:
Kevin Woodhouse, City Manager
(650) 738-7409
[email protected]
Melissa Tigbao, P.E., Director of Public Works
(650) 738-3767
[email protected]
Louis Sun, P.E., Deputy Director of Public Works – Wastewater (650) 738-4660
[email protected]
BACKGROUND/DISCUSSION:
The City of Pacifica Financing Authority (the “Authority”), which is a joint powers authority formed in 1996 between the City and the Redevelopment Agency, has previously issued its 2017 Wastewater Revenue Bonds (“2017 Bonds”) in the principal amount of $22,100,000.
Proceeds of the 2017 Bonds were authorized to be spent on a wet weather flow equalization (“EQ”) basin and associated improvements, including a 2.1 million gallon EQ basin near the Linda Mar Pump Station, two diversion structures, a small equipment building, and 170 lineal feet of sewer pipelines and 575 lineal feet of sewer force main.
The Wet Weather Equalization Basin Project has been completed, for a total cost or approximately $19 million, leaving approximately $4.5 million currently remaining in the Project Fund that was established for the 2017 Bond proceeds. As provided in the financing documents relating to the 2017 Bonds, amounts remaining on deposit in the Project Fund may be expended for other improvements to the Wastewater System.
City staff recommends that the remaining proceeds of the 2017 Bonds be authorized to finance improvements to the Anza Pump Station, which is a stormwater drainage pump station by definition and listed in the Wastewater System description (Attachment 2) from the 2017 Wastewater Revenue Bond Installment Sale Agreement. On March 16, 2020, the Department of Public Works received a report regarding a fire at the Anza Pump Station at Pacifica State Beach, which caused significant damage, threatening the safety of people and properties within the watershed due to the risk of flooding without an operational pump station. On April 8, 2020, Pacifica City Council 2
August 11, 2025
the City Manager, acting in his capacity as Director of Emergency Services, proclaimed the existence of a local emergency, which was ratified by the City Council on April 13, 2020. In response, the City contracted engineering services to assist with the temporary repair of the pump station. Active construction on the permanent repair solution began on May 1, 2022, and was substantially completed in November of 2024. Costs of the repair have largely been covered by insurance, but approximately $2.3 million of the total cost remained unfunded and needed to be paid from other sources. City staff recommends using a portion of the remaining 2017 Bond proceeds to cover this cost.
The City of Pacifica is authorized under the 2017 Bond documents to amend the description of the Projects for which bond proceeds can be expended to include additional Wastewater System projects not originally included, and to prepare detailed plans and specifications for such additional projects.
Attachment 1 to this staff report is a document labeled “Appendix B / Description of Projects.” This is a draft update to “Appendix B” to the Installment Agreement that was entered into in connection with the 2017 Bonds. For the reasons summarized on Appendix B, the Public Works Director has determined that each of the additional Wastewater System projects are authorized for the expenditure of bond proceeds. If the final project expenditures are less than originally anticipated, the remaining funds will be used to address capital improvements necessary to address other wastewater CIP projects listed in Appendix B.
City staff has been working with the City Attorney’s Office as well as bond counsel in preparing the amendment to Appendix B (Attachment 1). As a clarification, the listed projects in Appendix B are already authorized under the 2017 Bond documents. The purpose of amending Appendix B is to provide and include enough potential projects on the list to fully expend the remaining proceeds. By amending additional projects to Appendix B, it does not obligate the city to use the bond proceeds on any particular listed project.
ALTERNATIVE ACTION:
Council may choose not to approve the resolution to update the list of projects in the 2017 Wastewater Revenue Bond Installment Sale Agreement Appendix B; however, this action would prevent the City to draw down on the remaining bond funding to reimburse the Wastewater Enterprise Fund for the expenses related to the Anza Pump Station Repair Project that was not covered by insurance. Staff does not recommend this alternate action.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
• “Stewardship of City Infrastructure, street, and facilities - This action will improve the Wastewater System infrastructure to mitigate potential impacts of flooding including threatening the safety of residents and damaging private property or critical public infrastructure.
FISCAL IMPACT:
There is no additional fiscal impact as a result of adopting the resolution. The fiscal impacts of the Anza Pump Station Repair Project (C036) are explained in a separate report to the City Council on the November 25, 2024, City Council meeting agenda titled “Additional Budget Authorization for Anza Pump Station Project for Substantial Completion.” Staff recommends allocating the remaining 2017 Bond proceeds to cover the approximately $2.3 million net cost of the Anza Pump Station, not covered by insurance, enabling the City to reimburse the Pacifica City Council 3
August 11, 2025
Wastewater Enterprise Fund for this expenditure.
ORIGINATED BY:
Public Works - Wastewater Division
ATTACHMENT LIST:
Attachment 1 - 2017 Sewer Revenue Bond Installment Sale Agreement Appendix B (PDF) Attachment 2 - Wastewater System description from 2017Bond-FOS-pgs18-19 (PDF) Pacifica City Council 4
August 11, 2025
RESOLUTION NO. _______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA TO UPDATE 2017
WASTEWATER REVENUE BOND INSTALLMENT SALE AGREEMENT APPENDIX B ______________________________________________________
WHEREAS, the City of Pacifica Financing Authority (the “Authority”), which is a joint powers authority formed in 1996 between the City and the Redevelopment Agency, has previously issued its 2017 Wastewater Revenue Bonds (“2017 Bonds”) in the principal amount of $22,100,000, the proceeds of which were authorized to be spent on a wet weather flow equalization (“EQ”) basin and associated improvements, including a 2.1 million gallon EQ basin near the Linda Mar Pump Station, two diversion structures, a small equipment building, and 170 lineal feet of sewer pipelines and 575 lineal feet of sewer force main; and WHEREAS, the Wet Weather Equalization Basin Project has been completed, for a total cost of approximately $19 million, leaving approximately $4.5 million currently remaining in the Project Fund that was established for the 2017 Bond proceeds; and WHEREAS, as provided in the financing documents relating to the 2017 Bonds, amounts remaining on deposit in the Project Fund may be expended for other improvements to the Wastewater System, and City staff has recommended that the remaining proceeds of the 2017 Bonds be authorized to finance improvements to the Anza Pump Station to the extent the costs of such improvements are not covered by insurance; and WHEREAS, the City is authorized under the 2017 Bond documents to amend the description of the projects for which bond proceeds can be expended to include additional Wastewater System projects not originally identified, and to prepare detailed plans and specifications for such additional projects (see that certain Installment Sale Agreement dated as of June 1, 2017, between the City and the Authority, herein the “2017 Installment Sale Agreement,” Section 3.5) ; and
WHEREAS, to that end the City Council intends this Resolution to amend the description of projects identified on Appendix B to the 2017 Installment Sale Agreement, for the purpose of revising and expanding the description of projects (within the definition of “Wastewater System” for the 2017 Bonds) for which the remaining proceeds of the 2017 Bonds are authorized to be expended;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pacifica as follows:
Section 1. The City Council hereby approves the amendment to the description of Projects authorized to be funded with proceeds of the 2017 Bonds by amending Appendix B to the 2017 Installment Sale Agreement, which shall read in its entirety as set forth in the attachment to this Resolution.
Pacifica City Council 5
August 11, 2025
• • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 11th day of August 2025, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
Sue Beckmeyer, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ ______________________________ Sarah Coffey, City Clerk Michelle Marchetta Kenyon, City Attorney