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Donald C. Tillman Advanced Water Purification Facility and Groundwater Replenishment Project / U.S. Environmental Protection Agency Water Infrastructure Finance and Innovation Act Program / Financing Agreement

Council File 20-1176

Under review — the city discovered that a contractor used foreign steel in a maintenance building, violating the federal loan's American-made requirement. Council is now weighing a proposed fix: removing that $10 million facility from the loan scope while keeping the $224 million core water treatment project intact and fully funded.

Introduced
2020-09-16
Last changed
2026-09-17
CFMS file status
File open See note on file status
Expires
2028-08-27
Committee
Energy and Environment Committee
Initiated by
Board of Public Works
References
Board Report: 2020-0561City Administrative Officer Report: 0220-05291-1045; 0220-05291-1561City Attorney Report: R21-0249; R24-0436

This is the City Clerk's status for the council file itself, not the outcome of the measure. A file often stays open after the Council has already adopted an item. The summary above reflects the latest recorded action.

Brief

The city is building an advanced water purification and groundwater replenishment facility at the Donald C. Tillman Water Reclamation Plant, financed through a U.S. EPA Water Infrastructure Finance and Innovation Act (WIFIA) loan program. The Board of Public Works sought authority to negotiate and execute financing agreements starting in 2020. Council adopted ordinances authorizing subordinate revenue bonds in 2021 and 2024 to support the project. In September 2024, Council approved an amended financing agreement 13-0-2. The file remains open pending final Bureau of Sanitation documentation, with the most recent action a committee waiver in September 2026.

Full summary

The Donald C. Tillman Advanced Water Purification Facility is a major infrastructure project — total cost approximately $700.5 million — designed to treat up to 19 million gallons per day of reclaimed water and replenish San Fernando Valley groundwater supplies via the Hansen Spreading Grounds. The city is financing it partly through a U.S. EPA Water Infrastructure Finance and Innovation Act (WIFIA) loan of $223,921,010 at 1.72 percent interest, with the remainder coming primarily from a $451 million LADWP capital contribution, state and federal grants, and Bureau of Sanitation operating funds. Construction is being performed by Jacobs Project Management Company under two progressive design-build contracts worth a combined $690 million, with substantial completion targeted for September 2027. The legislative history spans three separate Council authorizations. In October 2020, Council approved the Bureau of Public Works request to enter into WIFIA financing. In 2021, Council adopted an ordinance creating the bond structure needed to receive and manage loan proceeds. In September 2024, Council voted 13-0-2 to approve Amendment No. 1 to the WIFIA loan agreement, updating the disbursement schedule to allow earlier access to funds based on a revised project funding plan; loan disbursements commenced in January 2025. The most recent action concerns a proposed Amendment No. 2, triggered by a compliance problem discovered in March 2026. The WIFIA loan requires all iron and steel used in the project to be American-made. The contractor for the maintenance and warehouse facility component, Ford E.C., installed some non-compliant foreign iron and steel, which the contractor attributed to limited domestic availability at the time. After the Bureau of Sanitation disclosed the issue to EPA, both parties agreed the cleanest resolution was to remove the maintenance and warehouse facility from the loan's defined project scope entirely. The core water purification treatment train and equalization basin components — representing more than $690 million of the $700.5 million total project budget — remain fully within scope and unaffected. The removed facility cost approximately $10 million. Critically, the full $223,921,010 loan amount, interest rate, and overall funding plan remain unchanged; future disbursements will continue to finance the treatment train component. The Bureau of Sanitation submitted Amendment No. 2 and the draft agreement to Council in August 2026, requesting authorization for the Bureau's Executive Director and the City Administrative Officer to execute it with EPA. The Energy and Environment Committee waived consideration of the item on September 17, 2026, meaning the amendment has not yet received a formal committee vote or moved to full Council. The file remains open pending that action.

Activity (30)

  • 2026-09-17 Energy and Environment Committee waived consideration of item .
  • 2026-08-28 Bureau of Sanitation document(s) referred to Energy and Environment Committee.
  • 2026-08-27 Document submitted by Bureau of Sanitation, dated August 27, 2026.
  • 2024-09-25 Ordinance posted/published. Ordinance effective date: September 27, 2024.
  • 2024-09-24 City Clerk transmitted file to Mayor. Last day for Mayor to act is October 4, 2024.
  • 2024-09-24 Council action final.
  • 2024-09-24 Council adopted item forthwith.
  • 2024-09-20 City Clerk scheduled item for Council on September 24, 2024.
  • 2024-09-13 Energy and Environment Committee approved item(s) .
  • 2024-09-06 City Administrative Officer document(s) referred to Energy and Environment Committee.
  • 2024-09-05 City Attorney document(s) referred to Energy and Environment Committee.
  • 2024-09-05 Document(s) submitted by City Administrative Officer, as follows:City Administrative Officer Report 0220-05291-1561, dated September 5, 2024, relative to amendment No. 1 to he United States Environmental Protection Agency Water Infrastructure Finance and Innovation Act Program Loan Agreement for the Donald C. Tillman Advanced Water Purification Facility Project.
  • 2024-09-04 Document(s) submitted by City Attorney, as follows:City Attorney report R24-0436, dated September 04, 2024, relative to a draft Ordinance amending the Los Angeles Administrative Code to provide for the issuance of a replacement subordinate bond - Wastewater System Subordinate Revenue bond, series 2021, Water Infrastructure Finance and Innovation Act Program and the creation of a construction fund to receive proceeds of the bond.
  • 2021-09-16 Council action final.
  • 2021-09-15 Ordinance posted/published. Ordinance effective date: September 17, 2021.
  • 2021-09-01 Council adopted item forthwith.
  • 2021-08-27 City Clerk scheduled item for Council on September 1, 2021.
  • 2021-08-19 Energy, Climate Change, Environmental Justice, and River Committee approved item(s) .
  • 2021-08-13 Energy, Climate Change, Environmental Justice, and River Committee scheduled item for committee meeting on August 19, 2021.
  • 2021-08-11 City Attorney document(s) referred to Energy, Climate Change, Environmental Justice, and River Committee.
  • 2021-08-10 Document(s) submitted by City Attorney, as follows:City Attorney report R21-0249, dated August 10, 2021, relative to a draft Ordinance providing for issuance of a subordinate bond for the Wastewater System and amending the Los Angeles Administrative Code to add special funds related to the 2021 WIFIA Bond.
  • 2021-08-09 City Administrative Officer document(s) referred to Energy, Climate Change, Environmental Justice, and River Committee.
  • 2021-08-09 Document(s) submitted by City Administrative Officer, as follows:City Administrative Officer Report 0220-05291-1045, dated August 9, 2021, relative to the United States Environmental Protection Agency Water Infrastructure Finance and Innovation Act Program Loan Agreement for the Donald C. Tillman Water Reclamation Plant Advanced Water Purification Facility Project, and issuance of a subordinate bond.
  • 2020-10-29 Council action final.
  • 2020-10-28 Council adopted item forthwith.
  • 2020-10-26 City Clerk scheduled item for Council on October 28, 2020.
  • 2020-10-20 Energy, Climate Change, and Environmental Justice Committee approved item(s) .
  • 2020-10-16 Energy, Climate Change, and Environmental Justice Committee scheduled item for committee meeting on October 20, 2020.
  • 2020-09-17 Board of Public Works document(s) referred to Energy, Climate Change, and Environmental Justice Committee.
  • 2020-09-16 Document(s) submitted by Board of Public Works, as follows:Board of Public Works report 2020-0561, dated September 15, 2020, relative to authorizing the Director of the Bureau of Sanitation, or designee, to accept, negotiate, execute all documents to secure financing agreement for the Donald C. Tillman Advanced Water Purification Facility and Groundwater Replenishment Project from the U.S. Environmental Protection Agency Water Infrastructure Finance and Innovation Act Program.

Documents (25)

Council votes (1)

  • 2024-09-24 Vote — 13-0-2 · Regular

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