Report Prepared by: Ken F. Elwin, PE, Director of Public Works
Title
SUBJECT: Authorization to Execute and Deliver Construction Installment Sale Agreement with State Water Resources Control Board to Provide Financing for Improvements to the Merced Wastewater Treatment Facility
REPORT IN BRIEF
Authorizes execution and delivery of agreement for up to $50,000,000 of low-cost financing through the California Clean Water State Revolving Fund Loan Program for certain improvements to the wastewater treatment facility.
RECOMMENDATION
City Council - Adopt a motion:
A. Adopting Resolution 2026-21, A Resolution of the City Council of the City of Merced, California authorizing the execution and delivery of a Construction Installment Sale Agreement with the State Water Resources Control Board; and,
B. Authorizing the City Manager to execute any other necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to modifications as conditioned by City Council; or,
3. Refer to staff for reconsideration of specific items; or,
4. Deny.
AUTHORITY
Charter of the City of Merced, Section 200 et seq.
Services with an estimated value greater than $36,000.00 are made by written contract in accordance with Merced Municipal Code, Title 3 - Revenue and Finance, Chapter 3.04.
CITY COUNCIL PRIORITIES
As provided for in the 2025-26 Adopted Budget.
DISCUSSION
Wastewater Treatment Facility Improvements Status
Wastewater generated within the City of Merced city limits is processed at the Wastewater Treatment Facility (WWTF), located southwest of the City at 10260 Gove Road. Currently, the WWTF is designed with a capacity of 12 million gallons per day (MGD).
On June 15, 2020, the City Council approved an agreement with Stantec Consulting Services, Inc. ("Stantec") to evaluate alternatives for cost effective upgrades to achieve a 16 or 20 MGD capacity and meet regulatory requirements. Future regulatory items of concern include, but ar...
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