STATE WATER RESOURCES CONTROL BOARD

BOARD MEETING SESSION -- DIVISION OF CLEAN WATER PROGRAMS

MARCH 15, 2000

 

ITEM  3

 

SUBJECT

 

APPROVAL OF A STATE REVOLVING FUND (SRF) LOAN FOR THE CROCKETT – VALONA SANITARY DISTRICT (DISTRICT), WASTEWATER TRANSPORT SYSTEM IMPROVEMENTS, PHASES I, II, III, AND IV, SRF LOAN PROJECT NO. C-06-4675

 

DISCUSSION

 

In accordance with the State Water Resources Control Board’s (SWRCB) Policy for Implementing the SRF 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) the environmental documents; (3) the draft revenue program; and (4) the water conservation plan.

 

On February 3, 2000, the Division issued Facilities Plan Approval to the District for the wastewater transport system improvements, Phases I, II, III, and IV, and the District agreed in writing with the approval on February 7, 2000.

 

The District is located on the Southside of the San Pablo Bay near the South end of the Carquinez bridge.  It provides wastewater collection and transport service to a population of approximately 3,200.  The sewage is being treated at the Joint Treatment Plant which is partly owned by the District and managed and operated by the C&H Sugar Company.  Treated effluent is being discharged to the Carquinez Strait according to San Francisco Bay Regional Water Quality Control Board’s (SFBRWQCB) waste discharge requirements, and Order No. 95-078.

 

The District’s wastewater collection and transport systems were constructed more than 60 years ago.  The collection and transport systems have sewage overflow, inflow and infiltration, and grit removal problems.  The District has been conducting studies and field investigation of the sewer systems since 1995.  The Sewer System Evaluation Survey (Inflow/Infiltration Study) and Video Inspection of the trunk sewer showed that the following improvements are needed:  (1) construct approximately 1,000 feet of interceptor sewer to relieve sewer overflows, (2) replace approximately 1,000 feet of deteriorated sewer to correct inflow and infiltration problems; (3) replace approximately 300 feet of the shoreline interceptor to correct tuberculation and inflow problems; and (4) upgrade the Main Pumping Station to reduce grit problems.  Upon completion of these improvements, these problems will be reduced or eliminated within the District.

 

The domestic water supply for the District is provided by the East Bay Municipal Utility District (EBMUD) which is a signatory to the Memorandum of Understanding Regarding Urban Water Conservation in California.

 

The District prepared an Initial Study/Mitigated Negative Declaration which was distributed to the public and circulated through the State Clearinghouse (SCH# 99112025) for review from November 5, 1999, to December 3, 1999.  During the review period the District received comments from the Division, and from the Department of Toxic Substances Control. Environ-mental issues were raised regarding hazardous materials, noise, air quality, wetlands, and cultural resources.  The District considered the comments and provided adequate responses. The District Board of Directors adopted the Mitigated Negative Declaration and approved the project on December 15, 1999.  The District filed a Notice of Determination with the Governor’s Office of Planning and Research on January 7, 2000.

 

The District has provided the Division with a schedule for the submittal of final plans and specifications and other milestones.  These dates are contained in the milestone schedule in the Division's facilities plan approval letter.  In accordance with Section IX(J) of the SRF Policy, the resolution will include an expiration date for the preliminary loan commitment if the milestone schedule for commencement of construction is not met.  The Division may approve up to a 90-day extension for good cause.

 

The estimated construction cost for all four phases of the project is $0.5 million, and the estimated loan eligible cost (including allowance) is $0.7 million.  The District requests the SWRCB approve a loan of $0.7 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?  Should the SWRCB, in accordance with Section IX(J) of the SRF Policy, condition this approval by requiring expiration of the preliminary loan commitment if final plans and specifications are not submitted by December 31, 2000.

 

RWQCB IMPACT

 

SFBRWQCB.  Completion of this project will improve the District’s ability to comply with the SFBRWQCB’s requirements of reducing the untreated wastewater overflows to the San Francisco Bay.

 

FISCAL IMPACT

 

The SWRCB adopted Resolution No. 99-40 on May 20, 1999, which changed the method for determining the amount of funding available for new loans to a system based on the availability of cash to make disbursements to the project under consideration by the SWRCB.  A minimum cash balance of $25,000,000 will be maintained.  The SRF account balances, anticipated repayment amounts, and project approvals under consideration by the SWRCB in March 2000 are as follows:

 

 

SFY

SFY

SFY

SFY

SFY

 

1999-00

2000-01

2001-02

2002-03

2003-04

 

___________

__________

__________

_________

_________

Beginning Balance:

$518,269,168

$330,548,159

$149,849,199

$128,226,188

$149,804,767

Est. Repayments:[1]

75,859,855

91,170,889

102,198,380

118,379,704

141,975,512

Cap Grants:[2]

111,300,181

63,800,000[3]

63,800,000

0

0

Est. SMIF Interest:

10,000,000

6,000,000

1,000,000

1,000,000

1,000,000

Est. Disbursements:[4]

-384,881,045

-315,969,849

-163,621,391

-72,801,125

-5,601,507

     Subtotal:

$330,548,159

$175,549,199

$153,226,188

$174,804,767

$287,178,772

 

 

 

 

 

 

City of Santa Rosa                     4062

 

-25,000,000

-25,000,000

-25,000,000

-25,000,000[5]

Crockett-Valona Sanitary D.      4675

 

-700,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance:

$330,548,159

$149,849,199

$128,226,188[6]

$149,804,767

$262,178,772

 

STAFF RECOMMENDATION

 

The SWRCB adopts a resolution approving a SRF loan for the proposed project, with a repayment period up to 20 years, and with the first repayment due one year after completion of construction. In accordance with the June 18, 1998, SRF Policy, the proposed resolution includes an expiration date for this preliminary loan commitment if the final plans and specifications are not submitted by December 31, 2000.

 

_______________________________________________

DRAFT  February 18, 2000

STATE WATER RESOURCES CONTROL BOARD

RESOLUTION NO. 2000-__

 

APPROVAL OF A STATE REVOLVING FUND LOAN

FOR WASTEWATER TREATMENT TRANSPORT SYSTEM IMPROVEMENTS

PHASES I, II, III, and IV

CROCKETT - VALONA SANITARY DISTRICT (DISTRICT)

STATE REVOLVING FUND (SRF) LOAN PROJECT NO. C-06-4675

 

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 amended it on June 18, 1998;

 

2.  The SWRCB, on June 17, 1999, adopted the SFY 1999/00 SRF Loan Program Priority List which included the wastewater transport system improvements, Phases I, II, III, and IV, Crockett-Valona Sanitary District, in Priority Class A;

 

3.  The Division of Clean Water Programs has approved the project report, environmental documents, and draft revenue program;

 

4.  The East Bay Municipal Utility District is the water purveyor for the service area and is signatory to the Memorandum of Understanding Regarding Urban Water Conservation in California; and

 

5.  The District adopted an Initial Study/Mitigated Negative Declaration (State Clearinghouse No. 99112025) prepared for the project, which has been reviewed and considered and it has been determined that the project will not result in any significant environmental impacts.

 

THEREFORE BE IT RESOLVED THAT:

 

The State Water Resources Control Board

 

1.  Approves a SRF loan of $0.7 million to the Crockett-Valona Sanitary District for construction of the wastewater transport system improvements, Phases I, II, III, and IV, with a repayment period up to 20 years, and the first repayment due one year after completion of construction; and

 

2.  Will withdraw this preliminary SRF loan commitment if final plans and specifications are not submitted by December 31, 2000.  The Division may approve up to a 90-day extension for good cause.

 

 

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 March 15, 2000.

 

                                                                                                                                          

                                                                        Maureen Marché

                                                                        Administrative Assistant to the Board


[1] Est. repayments include repayments from existing loans and from loans expected to be executed in the next few years for projects with existing commitments.

[2] An EPA Capitalization Grant of $95,948,432 for SFY 2000 is anticipated (the final 0.38% reduction in the federal budget is not approved at this time) plus State match funds of $19,189,686.  $3,837,937 is deducted for administrative costs.

[3] An EPA Capitalization Grant of $55,000,000 for SFY’s 2001 and 2002 is forecast.  The 20% state match as added and the 4% administrative allowance is deducted.

[4] Estimated disbursements include disbursements remaining on existing loans as well as disbursements anticipated on loans executed for projects with existing commitments (including FY2000 commitments).  The Division will revise the estimated disbursements total each month as cash draw forecasts are updated.

[5] Total project cost estimated to be $101,000,000.  Maximum loan amount is capped at $25,000,000 per year.  Final year’s commitment of $1,000,000 in SFY 2004-05 is not shown for clarity.

[6] The cash balance on June 30, 2002, is estimated to be $103,226,188 above the level needed to maintain a $25,000,000 reserve.