City of Piedmont
COUNCIL AGENDA REPORT
DATE: March 16, 2026
TO: Mayor and Council
FROM: Rosanna Bayon Moore, City Administrator
SUBJECT: Public Hearing: Consideration of Adoption of an Ordinance and Resolutions related to State of California Revolving Fund Loan Application for the Phase 6 Sanitary Sewer Rehabilitation Project RECOMMENDATION:
Hold a public hearing and by separate motions:
1. Approve the Introduction and First Reading of Ordinance Approving the Borrowing of Funds Through Agreements with the State Water Resources Control Board;
2. Approve the Reimbursement Resolution Regarding the City’s Intent to Finance Project C and Expectation of reimbursement for Project Costs from the State of California; and
3. Approve the Resolution Dedicating a Source of Revenue for Repayment of the State Revolving Fund Loan in Accordance with the State Water Resources Control Board’s Requirements.
BACKGROUND:
At the City Council meeting of March 6, 2023, Council approved an agreement with Bennett Engineering for design services for Phase 6 of the City’s Sanitary Sewer Rehabilitation project. Phase 6 is anticipated to replace or rehabilitate approximately 17,000 feet of aging city sewers, or approximately 12% of the total sanitary sewer system.
Upon completion of Phase 6, approximately 92% of the sewer system will have been rehabilitated. A city-wide map showing the proposed replacement pipe locations is attached as Exhibit A.
Future Phase 7, currently in the design phase, will complete the remaining rehabilitation of the system. The remaining sewer rehabilitation is a key component of the work required of the City of Piedmont under the Consent Decree with the United States Environmental Protection Agency entered in September of 2014.
At this time, the 100% design documents have been completed and the initial loan application was submitted to the State Water Resources Control Board on December 23, 2024. The approval of the proposed ordinance and resolutions are a requirement of the loan application. The environmental study is complete and was brought to Council on December 2, 2024, for review and approval. In bringing the project to its present status, staff and Coastland Civil Engineering have adhered to the guidelines as set forth in the Project Risk Management Policy for projects in excess of $300,000. This will continue as the project moves into final construction documents, bidding, award and construction.
SCHEDULE OF REMAINING ACTIVITIES
The following are the key remaining steps for the project and tentative timing. A bar chart timeline summarizing this information is attached as Exhibit B. • Complete Final Design and Documents for Construction Bidding: early April 2026
• Authorization of Construction contract/final funding by State of SRF Loan: June 2026
• Advertise project for public bid and council award of construction contract: July - October 2026
• Construction Notice to Proceed: November 2026
• Complete Construction: October 2027
FISCAL IMPACT
There are no additional financial considerations for this item that have not been previously discussed and approved. The project is currently estimated to cost approximately $8,041,925, which is the amount of the requested financing from the State. The total cost includes planning, design, construction, construction management and inspection.
CITY ATTORNEY REVIEW
The City Attorney has reviewed and approved the proposed Ordinance and Resolutions Attachments:
Exhibit A: Citywide Map of Proposed Sewer Pipeline Replacement Exhibit B: Sewer Rehabilitation Project Timeline
By: Daniel Gonzales, Public Works Director
Kiran Bawa, Finance Director
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ORDINANCE 790
AN ORDINANCE APPROVING THE BORROWING OF FUNDS THROUGH
AGREEMENTS WITH THE STATE WATER RESOURCES CONTROL BOARD SECTION 1.
By adopting this ordinance, the Piedmont City Council intends to authorize the borrowing of funds as required by Section 2.11 (5) of the City Charter, particularly relating to entering into a loan or grant contract with the State Water Resources Control Board for improvements to the sanitary sewer collection system.
SECTION 2.
The Piedmont City Council authorizes the City to borrow funds pursuant to agreement(s) with the State Water Resources Control Board for improvements to the City’s sanitary sewer collection system, including but not limited to all of the specific matters set forth in Resolution No. , and particularly including funds available through the State Revolving Fund, and further providing authorization for all prior and continuing obligations to and through the State Water Resources Control Board, including those pursuant to CSWRF Application No. 32944.
SECTION 3.
The City Administrator is hereby authorized and directed to sign and file, for and on behalf of the City of Piedmont, a Financial Assistance Application for a financing agreement from the State Water Resources Control Board for the planning, design, and construction of Sanitary Sewer Rehabilitation - Phase 6 (the “Project”).
SECTION 4.
The City Administrator is designated to provide the assurances, certifications, and commitments required for the financial assistance application, including executing a financial assistance agreement from the State Water Resources Control Board and any amendments or changes thereto.
SECTION 5.
The City Administrator, or his/her designee, is designated to represent the Entity in carrying out the Entity’s responsibilities under the financing agreement, including certifying disbursement requests on behalf of the Entity and compliance with applicable state and federal laws.
SECTION 6.
This ordinance shall be posted at City Hall and after its second reading by the City Council for at least thirty (30) days and shall become effective thirty (30) days after such second reading.
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Resolution
REIMBURSEMENT RESOLUTION REGARDING THE CITY’S INTENT TO FINANCE
PROJECT COSTS AND EXPECTATION OF PROJECT REIMBURSEMENT FROM THE
STATE OF CALIFORNIA
WHEREAS, the City of Piedmont desires to finance the costs of constructing and/or reconstructing certain public facilities and improvements relating to its water and wastewater system, including certain treatment facilities, pipelines and other infrastructure (the "Project"); and
WHEREAS, the City of Piedmont intends to finance the construction and/or reconstruction of the Project or portions of the Project with moneys ("Project Funds") provided by the State of California, acting by and through the State Water Resources Control Board (State Water Board); and
WHEREAS, the State Water Board may fund the Project Funds with proceeds from the sale of obligations the interest upon which is excluded from gross income for federal income tax purposes (the "Obligations"), and
WHEREAS, prior to either the issuance of the Obligations or the approval by the State Water Board of the Project Funds the City of Piedmont desires to incur certain capital expenditures (the "Expenditures") with respect to the Project from available moneys of the City of Piedmont; and
WHEREAS, the City of Piedmont has determined that those moneys to be advanced on and after the date hereof to pay the Expenditures are available only for a temporary period and it is necessary to reimburse the City of Piedmont for the Expenditures from the proceeds of the Obligations.
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Piedmont does hereby declare, determine, and order as follows:
SECTION 1. The City of Piedmont hereby states its intention and reasonably expects to reimburse Expenditures paid prior to the issuance of the Obligations or the approval by the State Water Board of the Project Funds.
SECTION 2. The reasonably expected maximum principal amount of the Project Funds is $8,041,925.
SECTION 3. This resolution is being adopted no later than 60 days after the date on which the City of Piedmont will expend moneys for the construction portion of the Project costs to be reimbursed with Project Funds.
SECTION 4. Each Expenditure will be of a type properly chargeable to a capital account under general federal income tax principles.
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SECTION 5. To the best of our knowledge, the City of Piedmont is not aware of the previous adoption of official intents that have been made as a matter of course for the purpose of reimbursing expenditures and for which tax-exempt obligations have not been issued.
SECTION 6. This resolution is adopted as official intent of the City of Piedmont in order to comply with Treasury Regulation §1.150-2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of Project costs. [END OF DOCUMENT]
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RESOLUTION
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PIEDMONT
DEDICATING A SOURCE OF REVENUE
FOR REPAYMENT OF THE STATE REVOLVING FUND LOAN
IN ACCORDANCE WITH THE STATE WATER RESOURCES CONTROL
BOARD’S REQUIREMENTS
WHEREAS, before the State Water Resource Control Board, Division of Clean Water Programs, can issue a loan contract to the City under the State Revolving Fund Program, a dedicated source of revenue for repayment must be adopted and approved NOW THEREFORE BE IT RESOLVED that the City Council of the City of Piedmont does hereby declare, determine, and order as follows:
SECTION 1. The City of Piedmont hereby dedicated and pledges revenues from The Sewer Fund to payment of any and all Clean Water State Revolving Fund and/or Water Recycling Funding Program financing for Sanitary Sewer Rehabilitation - Phase 6 CWSRF Project No. 8844-110 (the “Project”).
SECTION 2. The City of Piedmont commits to collecting such revenues and maintaining such fund(s) throughout the term of such financing and until the Entity has satisfied its repayment obligation thereunder unless modification or change is approved in writing by the State Water Resources Control Board. So long as the financing agreement(s) are outstanding, the Entity’s pledge hereunder shall constitute a lien in favor of the State Water Resources Control Board on the foregoing fund(s) and revenue(s) without any further action necessary. So long as the financing agreement(s) are outstanding, the Entity commits to maintaining the fund(s) and revenue(s) at levels sufficient to meet its obligations under the financing agreement(s). [END OF DOCUMENT]
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EXHIBIT A AGENDA
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EXHIBIT B
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