12/5/2024 6:15:09 PM
C:\Program Files\eSCRIBE\TEMP\1815533675\1815533675,,,Report - Grant App to Economic Development Admin .docx Agenda Report
MEETING DATE: Tuesday, December 10, 2024
TO: City Council
FROM: CITY MANAGER VIDES
SR ADMINISTRATIVE ANALYST ZAVALA
SUBJECT: AUTHORIZATION TO SUBMIT A GRANT APPLICATION TO THE
ECONOMIC DEVELOPMENT ADMINISTRATION
RECOMMENDED ACTION:
It is recommended that the City Council adopt a resolution authorizing the City Manager to apply for funds and accept any funds from the U.S. Economic Development Administration (EDA) Public Works and Economic Adjustment Assistance (PWEAA) Program on behalf of Elite Developments, Inc. for the completion of the off-site public street improvements as part of phase 2 of the Lee Rd. development project.
BACKGROUND:
In May 2021, Elite Developments, Inc. completed phase 1 of the Lee Road development project, which consisted of a four-story, 112-room hotel, a gas station, and commercial retail space. Elite Development, Inc. is now ready to move forward with Phase 2 of the project on the adjacent lot on the corner of Lee and Beach Road (81 Lee Road). Phase 2 of the project is planned to include another hotel, a restaurant, and more retail spaces.
DISCUSSION:
Phase 2 requires significant off-site public street improvements that include curb, gutter, sidewalk, pedestrian ramps, street paving, traffic signal relocation/modification, storm drain facilities, utility relocations, and conversion of overhead utilities into a new underground system, among others. Completing these public street improvements will not only allow for the completion of phase 2 of the Lee Road project but will also open the door for additional development in the area, creating new job opportunities for residents and increased revenue for the City.
To help move the project forward, the City is seeking approval to apply for funding from the U.S. Economic Development Administration (EDA) Public Works and Economic Adjustment Assistance (PWEAA) Program on behalf of Elite Developments, Inc. The cost of the off-site public street improvements is estimated to be between $2,000,000 and $3,000,000, allowing the City to seek a grant of up to 80% ($2,400,000) of the cost, with the developer covering the remaining costs. The U.S. Economic Development Administration (EDA) Public Works and Economic Adjustment Assistance (PWEAA)
12/5/2024 6:15:09 PM
C:\Program Files\eSCRIBE\TEMP\1815533675\1815533675,,,Report - Grant App to Economic Development Admin .docx Program supports development in economically distressed areas of the United States by fostering job creation and attracting private investment, which makes this project a good candidate for funding.
The city has entered into a reimbursement agreement with Elite Developments, Inc., in which they have agreed to cover all costs incurred by the City in connection with the submission of this grant application and, if awarded, the administration costs for managing the grant.
STRATEGIC PLAN:
(1) Economic Development: Support and grow existing businesses, attract new businesses and industries, enhance workforce development, revitalize downtown, and encourage entrepreneurs to invest and grow locally.
(2) Infrastructure & Environment: Build and maintain our infrastructure and preserve the natural environment through careful planning, preservation, and maintenance for residents and future generations.
(4) Fiscal Health: enhance fiscal sustainability of the City, through prudent financial planning and decision-making
FINANCIAL IMPACT:
Approval of this recommendation will not have a financial impact on the City.
ALTERNATIVE ACTION:
City Council could choose not to apply for this grant funding.
ATTACHMENTS AND/OR REFERENCES (If any):
None.
1 Reso No. ______ (CM)
Meeting Date: 121024 SWZ ______ TV ______ CM ______
RESOLUTION NO. _________ (CM)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE
AUTHORIZING THE CITY MANAGER TO APPLY FOR FUNDS AND
ACCEPT ANY FUNDS FROM THE U.S. ECONOMIC DEVELOPMENT
ADMINISTRATION (EDA) PUBLIC WORKS AND ECONOMIC
ADJUSTMENT ASSISTANCE (PWEAA) PROGRAM ON BEHALF OF ELITE DEVELOPMENTS, INC.
WHEREAS, Elite Developments, Inc. is ready to continue work on Phase 2 of the Lee Road development project that will include a hotel, a restaurant and commercial space; and
WHEREAS, phase 2 of the project requires a substantial investment in off-site public street improvements that is estimated between $2,000,000 and $3,000,000; and WHEREAS, completion of the off-site public street improvements would ease future development in the area; and
WHEREAS, the U.S. Economic Development Administration (EDA) Public Works and Economic Adjustment Assistance (PWEAA) Program supports development in economically distressed areas of the United States by fostering job creation and attracting private investment.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:
1. Finds that applying for and accepting any funds from the U.S. Economic Development Administration (EDA) Public Works and Economic Adjustment Assistance (PWEAA) Program on behalf of Elite Developments, Inc. does not meet CEQA's definition of a “project,” because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.
2 Reso No. ______ (CM)
Meeting Date: 121024
2. Directs City of Watsonville staff to work as applicant on behalf of Elite Developments, Inc. to submit a grant application to the U.S. Economic Development Administration (EDA) Public Works and Economic Adjustment Assistance (PWEAA) Program, for an amount estimated at $2,400,000.
3. Authorizes and directs the City Manager of the City of Watsonville to apply for, accept, and execute in the name of the City of Watsonville all necessary documents including but not limited to applications, contracts and agreements and amendments from the U.S. Economic Development Administration (EDA) Public Works and Economic Adjustment Assistance (PWEAA) Program, and take any actions necessary to effectuate awarding of the grant funds.
*****************************************
12/5/2024 8:29:59 PM
C:\Program Files\eSCRIBE\TEMP\20295640656\20295640656,,,Report - Loan Application for Headworks and Influent Pump Station Project.docx
Agenda Report
MEETING DATE: Tuesday, December 10, 2024
TO: City Council
FROM: PUBLIC WORKS & UTILITIES DIRECTOR LINDBERG
ASST PUBLIC WORKS & UTILITIES DIRECTOR GREEN
SUBJECT: ADOPT RESOLUTIONS 1) AUTHORIZING CITY MANAGER TO
APPLY FOR A FINANCIAL ASSISTANCE APPLICATION FOR A
$37,000,000 FINANCING AGREEMENT FROM THE STATE
WATER RESOURCES CONTROL BOARD FOR THE PLANNING,
DESIGN, AND CONSTRUCTION OF THE HEADWORKS AND
INFLUENT PUMP
RECOMMENDED ACTION:
Adopt two resolutions 1) Authorizing the City Manager to apply for a financial assistance application for a $37,000,000 financing agreement from the State Water Resources Control Board for the planning, design and construction of the Headworks and Influent Pump Station Project and 2) Approving official intent as a matter of course for the purpose of reimbursing expenditures for which tax-exempt obligations have not been issued as required for the State Revolving Fund Loan Application.
BACKGROUND:
Design is underway for the Headworks and Influent Pump Station Project, No. WW-24-14410.
This project will be a significant capital investment in the Wastewater Treatment Facility (WWTF) to replace the existing headworks process area, influent pump station, and grit handling area. The estimated construction cost is approximately $37 million, requiring some form of low-interest loan or other grant funding sources prior to construction as the Sewer Enterprise Fund currently does not have sufficient budget to cover such a large capital expense.
DISCUSSION:
The headworks area at the City’s WWTF consists of an influent pump station and preliminary wastewater treatment facilities. The influent pump station lifts water up from the underground sewer lines that convey sewage to the WWTF, and into the concrete headworks structure that contains preliminary treatment processes. The preliminary treatment systems are screening for rags/wipes and other debris removal, followed by a grit removal system to remove rocks and sand. As a whole, the influent pump station and headworks are a single point of failure at the WWTF.
12/5/2024 8:29:59 PM
C:\Program Files\eSCRIBE\TEMP\20295640656\20295640656,,,Report - Loan Application for Headworks and Influent Pump Station Project.docx
Unfortunately, the influent pump station and headworks structures are significantly aged and in need of replacement. Decades of corrosive sewer gasses have severely corroded the concrete, exposing aggregate and rebar, and making the structure unsafe to walk on in certain areas. Additionally, the structure was designed and constructed prior to modern day seismic codes. To highlight the importance of the headworks, a significant failure of the structure that could not be fixed immediately would result in needing to mobilize emergency pump-around equipment and staffing the facility 24/7 until repaired. It could also result in violations of environmental regulations due to improper operation of the treatment plant. Replacing the headworks with a new structure and screening/grit removal technologies will reduce these types of risks and additional costs to the City, by improving the WWTF’s reliability and performance.
Staff is preparing a State Revolving Fund application for the project which would provide a lowinterest loan from the State Water Resources Control Board. In order to submit the application, the two resolutions are required to be approved by Council.
The overall project CEQA analysis is in the process of being prepared. Most likely it will result in an exemption from CEQA because the project involves the replacement of existing wastewater treatment infrastructure with no expansion of capacity. Once analysis is completed, staff will file the notice of exemption.
STRATEGIC PLAN:
Applying for an SRF loan is consistent with the following strategic plan goals:
2-Infrastructure & Environment
4-Fiscal Health
FINANCIAL IMPACT:
There is no financial impact at this time in applying for an SRF loan. If awarded, an action will be returned to Council to formally accept and execute the loan agreement.
ALTERNATIVE ACTION:
No reasonable alternatives are known at this time.
ATTACHMENTS AND/OR REFERENCES (If any):
None.
1 Reso No. ______ (CM)
Meeting Date: 121024 SWZ ______ TV ______ PWU ______
RESOLUTION NO.__________ (CM)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE AUTHORIZING AND DIRECTING THE CITY MANAGER
ON BEHALF OF THE CITY OF WATSONVILLE TO APPLY FOR A
FINANCIAL ASSISTANCE APPLICATION FOR A $37,000,000
FINANCING AGREEMENT FROM THE STATE WATER RESOURCES
CONTROL BOARD FOR THE PLANNING, DESIGN, AND
CONSTRUCTION OF THE HEADWORKS AND INFLUENT PUMP
STATION PROJECT, NO. WW-24-14410
WHEREAS, the City of Watsonville desires to finance the costs of constructing and/or reconstructing certain public facilities and improvements relating to its water system, including certain treatment facilities, pipelines and other infrastructure (the "Project"); and WHEREAS, the City of Watsonville 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 requires an Authorized Representative for the project, who will have the authority to sign and submit the Clean Water State Revolving Fund (CWSRF) application materials, certify compliance with applicable state and federal laws, execute the financial assistance agreement and amendments, and certify disbursement requests.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:
1. That the City Council hereby authorizes and directs the City Manager (the “Authorized Representative”) or designee to sign and file, for and on behalf of the City of Watsonville, a Financial Assistance Application for a financing agreement from the State Water Resources Control Board for the planning, design, and
2 Reso No. ______ (CM)
Meeting Date: 121024
construction of the Headworks and Influent Pump Station Construction Project (the “Project”).
2. That if recommended for funding by the State Water Resources Control Board, the City Council authorizes the City Manager or designee to accept funding up to $37,000,000.
3. This Authorized Representative, or his/her designee, 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.
4. This resolution is being adopted no later than 60 days after the date on which the City of Watsonville will expend moneys for the construction portion of the Project costs to be reimbursed with Project Funds.
5. The Authorized Representative, or his/her designee, is designated to represent the City of Watsonville in carrying out the City of Watsonville’s responsibilities under the financing agreement, including certifying disbursement requests on behalf of the City of Watsonville and compliance with applicable state and federal laws. **************************************
1 Reso No. ______ (CM)
Meeting Date: 121024 SWZ ______ TV ______ PWU ______
RESOLUTION NO.__________ (CM)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE APPROVING OFFICIAL INTENT AS A MATTER OF
COURSE FOR THE PURPOSE OF REIMBURSING EXPENDITURES
FOR WHICH TAX-EXEMPT OBLIGATIONS HAVE NOT BEEN ISSUED
AS REQUIRED FOR THE STATE REVOLVING FUND LOAN
APPLICATION
WHEREAS, the City of Watsonville desires to finance the costs of constructing and/or reconstructing certain public facilities and improvements relating to its water system, including certain treatment facilities, pipelines and other infrastructure (the "Project"); and WHEREAS, the City of Watsonville 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 Watsonville desires to incur certain capital expenditures (the "Expenditures") with respect to the Project from available moneys of the City of Watsonville; and
WHEREAS, the City of Watsonville 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 Watsonville for the Expenditures from the proceeds of the Obligations.
2 Reso No. ______ (CM)
Meeting Date: 121024
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:
1. The City of Watsonville 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.
2. The reasonably expected maximum principal amount of the Project Funds is $37,000,000.
3. This resolution is being adopted no later than 60 days after the date on which the City of Watsonville will expend moneys for the construction portion of the Project costs to be reimbursed with Project Funds.
4. Each City of Watsonville expenditure will be of a type properly chargeable to a capital account under general federal income tax principles.
5. To the best of our knowledge, the City of Watsonville is not aware of the previous adoption of official intents by the City of Watsonville 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.
6. This resolution is adopted as official intent of the City of Watsonville 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.
7. All the recitals in this Resolution are true and correct and the City of Watsonville so finds, determines and represents.
*******************************
1 Reso No. (CM)
C:\Program Files\eSCRIBE\TEMP\11222810946\11222810946,,,RESOLUTION TO HONOR BANK SIGNATURES .docx bvf 12/5/2024 11:22:30 AM
RESOLUTION NO. (CM)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE AUTHORIZING ITS BANKS, INVESTMENT
INSTITUTIONS AND THEIR CORRESPONDENTS TO HONOR
SIGNATURES OF CITY MANAGER TAMARA VIDES, ADMINISTRATIVE
SERVICES DIRECTOR MARISSA DURAN, FINANCE ANALYST ILDA
ESTRADA AND ACCOUNTANT II JILLIAN MORALES ON BEHALF OF
THE CITY OF WATSONVILLE
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:
1. This action is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.), including without limitation, Public Resources Code section 21065 and California Code of Regulations 15378 as this is not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment and because the action constitutes organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. Additionally, even if a “project,” the action would be exempt under the “common sense” exception (14 Cal. Code Regs. § 15061(b)(3)) because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment.
2. That the City's banks and investment institutions be and they (including their correspondent banks) are hereby requested, authorized and directed to honor all checks, drafts, other orders for the payment or transfers of money drawn in the City of Watsonville’s name, on its accounts (including those drawn to the individual order of any person or persons whose name or names appear thereon a signer or signers thereof)
2 Reso No. (CM)
C:\Program Files\eSCRIBE\TEMP\11222810946\11222810946,,,RESOLUTION TO HONOR BANK SIGNATURES .docx bvf 12/5/2024 11:22:30 AM
when bearing or purporting to bear the actual signatures or facsimile signatures of any two (2) of the four (4) following individuals, to wit:
City Manager Tamara Vides
Administrative Services Director Marissa Duran
Finance Analyst Ilda Estrada
Accountant II Jillian Morales
********************************