SRF Loan for LA Co for San Pasqual WW Collection System

ITEM 2: APPROVAL OF A STATE REVOLVING FUND (SRF) LOAN FOR THE COUNTY OF LOS ANGELES DEPARTMENT OF PUBLIC WORKS (COUNTY) FOR CONSTRUCTION OF A WASTEWATER COLLECTION SYSTEM FOR THE SAN PASQUAL AREA, SRF LOAN PROJECT NO. C-06-4679-110

DISCUSSION: In accordance with the State Water Resources Control Board's (SWRCB) Policy for Implementing the State Revolving Fund for Construction of Wastewater Treatment Facilities (Policy), adopted on February 16, 1995, and amended on June 18, 1998, projects on the adopted priority list need SWRCB approval to receive a SRF loan. Loans can be approved by the SWRCB after the Division of Clean Water Programs (Division) has approved the facilities plan, including (1) the project report; (2) environmental documents; (3) the draft revenue program; and (4) the water conservation plan.

On March 25, 1999, the Division issued Facilities Plan Approval to the County for the construction of the San Pasqual Sewers and the County agreed in writing with the approval on April 6, 1999.

The San Pasqual area is an unincorporated area in Los Angeles County bordered by the cities of Pasadena and San Marino. The service area is a densely populated area of about 3,200, or about 760 equivalent dwelling units, which still use on-site sewage disposal systems consisting of cesspools, septic tanks, and leachfields. Because of the relatively small lots, expansion of leachfield area is problematic, and the continued discharge of wastewater is negatively impacting the underlying aquifer. Of six local wells, one has been abandoned due to high nitrates. The Division and the Los Angeles Regional Water Quality Control Board and the County staff agreed on a hook-up schedule for connection of properties to the sewer system. On March 30, 1999, the County Board of Supervisors adopted a resolution containing the connection schedule.

The local residents have expressed concern regarding the use of individual on-site systems due to their age, the need for frequent pumping and maintenance, and occasional spills. The surrounding residential areas are all sewered and connected to the County Sanitation Districts of Los Angeles County (CSDLAC) Joint Outfall System for transport to and treatment of their wastewater at the Joint Water Pollution Control Plant in Carson. Similarly, the cost-effective solution to the problem at San Pasqual is the construction of a gravity sewage collection system which will connect to the CSDLAC system. Proposed construction will consist of about 28,000 linear feet of 12-inch, ten-inch, and eight-inch diameter sewer gravity mains and manholes and connections.

The proposed project will benefit the area (1) by eliminating potential health hazards due to failure of individual on-site disposal systems in a high density area, and (2) by protecting ground water supply and nearby wells from contamination.

The water distribution and storage facilities for the service area are in place. Since the study area is essentially built out, any increase in water demand would be minimal. The potable water for the service area is supplied by the California American Water Company from local wells. In accordance with the SRF Policy requirement for a water conservation program, the County is a signatory to the "Memorandum of Understanding Regarding Urban Water Conservation in California".

The County has provided the Division with a milestone schedule containing a submittal date of August 15, 1999, for the biddable plans and specifications (P&S). In accordance with Section IX.(I) of the Policy, the "sunset" date for the submittal of final P&S is hereby established as August 15, 1999. The Division may approve up to a 90 day extension on the P&S submittal for good cause.

The County of Los Angeles prepared a Negative Declaration/Initial Study (ND/IS) which was distributed to the public and circulated through the State Clearinghouse (SCH# 98091077) for review from September 22, 1998, through October 22, 1998. During the review period, the County received two comment letters. The County provided adequate responses to the written comments. The County prepared an Addendum to the Initial Study (IS) on September 28, 1998, to make minor technical changes to the IS. The County Board of Supervisors approved the project and adopted the ND on December 1, 1998. A Notice of Determination was filed with the Los Angeles County Clerk’s Office and the Governor’s Office of Planning and Research.

The estimated SRF loan eligible project cost is $5.16 million. The County requests the SWRCB approve a loan of $5.16 million for this project and agrees to pay back the loan in accordance with the SRF Policy.

POLICY ISSUE: Should the SWRCB approve SRF loan funding for the proposed project, including a 20 year period, with the first repayment due one year after completion of construction? Should the SWRCB, in accordance with Section IX.(I) of the February 16, 1995, amended on June 18, 1998, Policy, condition this approval by requiring expiration of the preliminary loan commitment if biddable plans and specifications are not submitted by August 15, 1999?

RWQCB IMPACT: Los Angeles Regional Water Quality Control Board. Approval of this funding will benefit the local ground water basin by eliminating pollution impacts, and also potential health hazards due to failure of individual on-site disposal systems. It is therefore consistent with the local water quality management plan.

FISCAL IMPACT: According to SWRCB Resolution No. 97-001 (Approval of a Staff Proposal to Better Manage the SRF Repayment Account), the SWRCB may approve preliminary loan commitments against the current Federal Fiscal Year (FFY) account and against 125 percent of future repayment funds based on scheduled loan dates.

The SRF account balances, anticipated repayment amounts, and project approvals under consideration by the SWRCB in May 1999 are as follows:

	FFY	FFY	FFY	FFY	FFY	FFY
	1998-99	1999-00	2000-01	2001-02	2002-03	2003-04
	SRF Account	Repayment	Repayment	Repayment	Repayment	Repayment

Repayments per Res. 99-011:	$66,706,882	$76,393,847	$85,249,811	$85,251,369	$84,913,928	$84,913,928
125% Repayments:		95,492,309	106,562,263	106,564,211	106,142,410	106,142,410
FFY 98 Carryover:	38,009,707
FFY 98 Fed. Cap. Grant:	22,146,937
FFY 99 Fed. Cap. Grant:	92,461,850
CWG funds trans. per Res. 99-011:	8,161,062
WQCF funds trans. per Res. 99-011	1,632,212
1996 Bond Funds:	39,825,821
SMIF Interest (Estimated)	12,000,000
Local Match equivalent:	17,503,926
Previous Commitments:	272,242,278	93,280,341	101,135,205	77,510,000	53,036,000	0
Subtotal:	$26,206,119	2,211,968	5,427,058	29,054,211	53,106,410	106,142,410

Amador W. A.-Pine Grove 4555-110	$570,000
Calistoga, City of 4616-110	$4,400,000
La Co. Dpw-San Pasqual 4679-110	$5,160,000

Balance:	$16,076,119	$2,211,968	$5,427,058	$29,054,211	$53,106,410	106,142,410

STAFF RECOMMENDATION: That the SWRCB adopt a resolution approving a SRF loan of $5.16 million for the proposed project, with a period of 20 years, and with the first repayment due one year after completion of construction. In accordance with Section IX.(I) of the February 16, 1995, SRF Policy amended on June 18, 1998, the proposed resolution includes an expiration date for this preliminary loan commitment if biddable P&S are not submitted by August 15, 1999.

2. The SWRCB, on June 18, 1998, adopted the Federal Fiscal Year (FFY) 1999 SRF Loan Program Priority List which included the San Pasqual Sewer project in Priority Class B;

The Division of Clean Water Programs (Division) has approved the facilities plan;

The County is signatory to the "Memorandum of Understanding Regarding Urban Water Conservation in California"; and

3. The County of Los Angeles adopted a Negative Declaration for the proposed project (State Clearinghouse No. 98091077) which has been reviewed and it has been determined that the proposed project will not result in significant negative environmental impacts.

1. Approves a SRF loan of $5.16 million to the County of Los Angeles Department of Public Works for the construction of a wastewater collection system for the San Pasqual area. The repayment period shall be 20 years, and the first repayment due one year after completion of construction; and

2. Will withdraw this preliminary SRF loan commitment if biddable plans and specifications are not submitted by August 15, 1999. The Division may approve up to a 90 day extension for good cause.

The undersigned, Administrative Assistant to the Board, does hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the State Water Resources Control Board held on May 20, 1999.