STATE WATER RESOURCES CONTROL BOARD MEETING
SACRAMENTO, CALIFORNIA
MAY 20, 1999

ITEM 14:  APPROVAL OF A STATE REVOLVING FUND LOAN FOR THE CITY OF CALISTOGA (CITY), WASTEWATER TREATMENT PLANT UPGRADE PROJECT, STATE REVOLVING FUND (SRF) LOAN NO. C-06-4616-110

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) water conservation program.

On April 9, 1999, the Division issued Facilities Plan Approval to the City for the Wastewater Treatment Plant Upgrade Project, and the City agreed in writing with the approval on April 9, 1999.

The City is located in Napa County at the junction of State Highways 29 and 128, approximately 75 miles from San Francisco. The City serves a permanent population of 4,852 and a year-round tourist population due to the hot springs and spas within the City. The treatment plant average dry weather flow is about 680,000 gallons per day.

The City’s wastewater treatment facility consists of headworks, primary clarification, facultative aerated lagoons, mix/floc tank, secondary clarification, and pressure filtration. The City uses anaerobic digestion to digest the primary sludge and aerobic digestion to digest secondary (algae) sludge. The sludge is dried in sludge drying beds and disposed of at a landfill. The City’s effluent is disposed of in two ways. When flows are sufficient in the Napa River, the City’s NPDES Permit allows discharge to the river. At other times, the effluent is stored and landscape irrigation is the method of disposal.

The City’s average dry weather flow exceeds the permitted and treatment capacity of the wastewater treatment facility. In addition, the water reclamation facilities do not meet the Department of Health Services Title 22 water reclamation requirements. The City’s effluent storage and irrigation areas are at capacity as well. These capacity limitations present the following possible water quality problems:

The City Council adopted a Declaration of a Potential Water Quality Problem and time schedule for correction on April 22, 1997. The San Francisco Bay Regional Water Quality Control Board (SFRWQCB) adopted Resolution No. 97-110 on September 17, 1997, accepting the City’s Declaration of a Potential Water Quality Problem and time schedule for correction.

Purpose of proposed project:

The proposed project changes the method of treatment to extended aeration activated sludge. This treatment process requires much less area, thus enabling the City to convert the existing facultative lagoons to effluent storage and flow equalization.

The proposed project generally consists of:

The construction cost of the project is estimated at $4,327,300. This estimate is based on the May 1998 amendment to the City’s Master Plan prepared by Winzler & Kelly titled, Wastewater Treatment Plant Upgrade Project, Amended Wastewater Treatment Plant Master Plan, City of Calistoga. The estimated loan eligible cost is $4,400,000. The total project cost including engineering and administration allowances is estimated at $5,756,300.

The City has provided the Division with a schedule for the submittal of biddable plans and specifications and other milestones. These dates are contained in the milestone schedule in the Division's facilities plan approval letter. The Division may approve up to a 90 day extension for good cause.

The City prepared a Draft Environmental Impact Report (EIR) for the proposed project that was distributed to the public and circulated through the State Clearinghouse (SCH# 97112061) from April 8, 1998, through May 26, 1998. During the comment period, comment letters were received from four public agencies and six individuals regarding: adequacy of mitigation measures, land use compatibility, conflicts with general plans, growth accommodation, cumulative impacts, alternatives, effluent disposal needs, availability of reclamation sites, location of reclaimed transmission line, sludge disposal, water conservation, earthquake and flooding hazards, noise, aesthetics, and impacts to riparian habitat, native trees, agricultural lands, water quality, air quality, cultural resources, and wildlife species. In addition, five individuals commented at the two public hearings. No new issues were raised.

In May 1998, the City prepared a Final EIR that included comments, responses, and text revisions based on comments received. The City has adequately addressed the environmental issues raised during the review period. The City Council approved the project and certified the EIR on June 9, 1998. A Notice of Determination was filed with the Napa County Clerk and the Governor’s Office of Planning and Research on June 11, 1998.

The District requests the SWRCB approve a loan of $4.4 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 repayment period, with the first repayment due one year after completion of construction, and should the SWRCB, in accordance with Section IX(I) of the SRF Policy, condition this approval by requiring expiration of the preliminary loan commitment if biddable plans and specifications are not submitted by July 1, 1999?

REGIONAL BOARD IMPACT: SFRWQCB. Completion of project will eliminate the potential health hazard and allow the City to meet their waste discharge requirements. In addition, the City will fully comply with Title 22 Water Reclamation requirements for landscape irrigation.

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 February 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 resolution approve a SRF loan of $4.4 million from the FFY 1999 account for the proposed project, with a repayment period of 20 years, and with the first repayment due one year after completion of construction. In accordance with Section IX(I) of the SRF Policy, the proposed resolution includes an expiration date for this preliminary loan commitment if the submittal date for biddable plans and specifications is not met.


Draft                                                                                                                        April 23, 1999

STATE WATER RESOURCES CONTROL BOARD

RESOLUTION NO. 99 - __

APPROVAL OF A STATE REVOLVING FUND LOAN CITY OF CALISTOGA WASTEWATER TREATMENT PLANT UPGRADE PROJECTSTATE REVOLVING FUND LOAN PROJECT NO. C-06-4616-110

WHEREAS: 1. The State Water Resources Control Board (SWRCB), on February 16, 1995, adopted the Policy for Implementing the State Revolving Fund for Construction of Wastewater Treatment Facilities, and revised it on June 18, 1998;

2. The Division of Clean Water Programs has approved the project report, environmental documents, draft revenue program, and water conservation program schedule, for the City of Calistoga’s project;

                 3. The City of Calistoga has certified an Environmental Impact Report (EIR)
                (State Clearinghouse No. 97112061) which has been reviewed and considered,
                and it has been determined that:
                 a)  As stated in the EIR, the project may result in significant and unavoidable
                      impacts from growth inducement and construction noise.

                 b)  Changes or alterations have been required in or incorporated into the
                       proposed project which avoid or reduce to less than significant levels other
                       potentially significant environmental impacts identified in the EIR with
                       respect to: (i) water quality impacts which will be mitigated by
                       incorporating embankment drains and reinforcing embankments in flood
                       zones, complying with a Stormwater Pollution Prevention Plan, instituting a
                       groundwater monitoring program, reducing salinity levels as necessary, and
                       incorporating best current technology for storage reservoir seepage control;
                       and (ii) cultural resources impacts which will be mitigated by using qualified
                       archaeologists and Native American representatives to monitor, identify, and
                       evaluate any discovered cultural resources and ceasing all work until proper
                       notification can be made and the find can be evaluated.

                 c)   With respect to other potentially significant environmental impacts identified
                       the environmental document, appropriate changes or alterations are not
                       within the responsibility and jurisdiction of the SWRCB. Such other changes
                       or alterations have been adopted or should be adopted by other agencies.
     

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board:

1.  Approves a SRF loan of $4.4 million from the Federal Fiscal Year 1999 account to the City of Calistoga for construction of the Wastewater Treatment Plant Upgrade Project, with a repayment period of 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 July 1, 1999. The Division of Clean Water Programs may approve up to a 90 day extension for good cause.

3.  Adopts the following statement of overriding considerations to address the unmitigable significant impacts that may occur from approval of the project:

Implementation of the project would result in benefits which include: (i) enabling the City to meet RWQCB permit criteria, water quality standards, projected future influent organic load and solids load standards, disinfection standards, and Title 22 redundancy standards; and (ii) the chosen alternative would result in the fewest environmental impacts of all alternatives discussed that would still meet the objectives of the project. In balancing the project benefits against the potential significant growth inducing and construction noise impacts, the SWRCB finds that the public benefits of the project outweigh the unavoidable impacts, and, therefore, determines that the impacts are acceptable.
CERTIFICATION

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.

Maureen Marché
Administrative Assistant to the Board