REPORT TO COUNCIL
SUBJECT
Title
Action to Approve a Resolution of Intention to Reimburse Expenditures from the Proceeds of Tax-Exempt Financing for Capital Improvements at the San Jos?-Santa Clara Regional Wastewater Facility (RWF)
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The San Jos?-Santa Clara Regional Wastewater Facility (RWF) treats an average of 110 million gallons per day (mgd) of wastewater for the cities of San Jos?, Santa Clara, and five tributary agencies in the South Bay Area. The City of Santa Clara (City) is a co-owner of the facility with the City of San Jos?, who is a majority owner and is responsible for the operations, management, and administration of the facility. The RWF was built in 1956 and, in 1959, the City signed an agreement to gain an ownership stake of approximately 20% in the RWF. The operations and maintenance (O&M) and capital improvement program (CIP) costs are shared based on the ownership percentage, as well as allocated in appropriate shares to the tributary agencies. As a co-owner, Santa Clara (along with San Jose and the tributary agencies) is represented on the Treatment Plant Advisory Committee (TPAC), which advises San Jos? and its Council on the operations and administration of the facility. The City's share of RWF related expenditures are paid for by the Santa Clara sewer customers.
San Jos? is rebuilding and modernizing the RWF through a CIP program that is based on the 2013 Plant Master Plan which was approved by TPAC. This plan outlined 114 capital improvement projects, totaling approximately $2 billion. In the past five years, the City has spent over $161 million on RWF capital costs. The City's share over the next five years totals approximately $77.1 million, including $13.8 million this fiscal year (2022/23) and $15.0 million next fiscal year (2023/24).
DISCUSSION
On May 26, 2020, Council approved Resolution No. 20-8849 authorizing an installmen...
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