February 20, 1997 Item 2

STATE WATER RESOURCES CONTROL BOARD MEETING

SACRAMENTO, CALIFORNIA

FEBRUARY 20, 1997

ITEM: 2

SUBJECT: APPROVAL OF ADDITIONAL STATE REVOLVING FUND LOANS FOR THE WASTEWATER TREATMENT PLANT EXPANSION, CITY OF CORONA, PROJECT NO. C-06-4461-110; THE WASTEWATER TREATMENT PLANT EXPANSION, CITY OF DAVIS, PROJECT NO. C-06-4360-110; JOINT WATER POLLUTION CONTROL PLANT UPGRADE, THE COUNTY SANITATION DISTRICT OF LOS ANGELES COUNTY, PROJECT NO. C-06-4001-220; THE WASTEWATER TREATMENT PLANT UPGRADE, CITY OF PACIFICA, PROJECT NO. C-06-4121-112; RANKIN STREET PUMP STATION AND SOUTHEAST WATER POLLUTION CONTROL PLANT IMPROVEMENTS, CONTRACT "4", CITY AND COUNTY OF SAN FRANCISCO, PROJECT NO. C-06-4025-252; RANKIN STREET PUMP STATION AND SOUTHEAST WATER POLLUTION CONTROL PLANT IMPROVEMENTS, CONTRACT "5", CITY AND COUNTY OF SAN FRANCISCO, PROJECT NO. C-06-4025-260; THE CONSTRUCTION OF ISLAIS CREEK TRANSPORT AND STORAGE FACILITIES, CONTRACT "B", CITY AND COUNTY OF SAN FRANCISCO, PROJECT NO. 4025-420; THE CONSTRUCTION OF ISLAIS CREEK TRANSPORT AND STORAGE FACILITIES, CONTRACT "E", CITY AND COUNTY OF SAN FRANCISCO, PROJECT NO. 4025-451; CONSTRUCTION OF SOUTH BAY WATER RECYCLING FACILITIES, PHASE 1, CITY OF SAN JOSE, PROJECT NO. C-06-4220-110; SOUTH REGIONAL CONVEYANCE SYSTEM, WESTERN RIVERSIDE COUNTY REGIONAL WASTEWATER AUTHORITY, PROJECT NO. C-06-4442-110

DISCUSSION: This item is a request for approval of additional State Revolving Fund (SRF) loans for seven agencies. These agencies received State Water Resources Control Board (SWRCB) approval for SRF loans that were issued in previous fiscal years. At the time of the prior approval, these projects exceeded the loan funding cap and the agencies are now requesting additional loan funding for their projects. The agencies and their projects are discussed below.

City of Corona

The existing wastewater treatment plant, Treatment Plant No. 1, is capable of providing secondary level treatment and is presently operating at full capacity. The plant experienced a sewage overflow in January of 1995. The Regional Water Quality Control Board (RWQCB) issued a Cease and Desist Order to the City as a result of the sewage overflow. This project is to increase the treatment plant capacity from 5.5 million gallons per day (mgd) to 6.0 mgd and to increase the treatment level to tertiary treatment. A disinfection system will be constructed for this plant.

The SWRCB approved $20 million in loans from the Federal Fiscal Year (FFY) 1995 and FFY 1996 SRF accounts for this project which has an eligible cost of $22.2 million. The City of Corona is requesting additional loan funding of $2.2 million for this project.

City of Davis

The existing wastewater treatment plant is being operated at its design capacity and needs an expansion to accommodate the projected population growth. This project will increase the treatment plant capacity from 5 mgd to 7.5 mgd.

The SWRCB approved a $5 million loan from the FFY 1996 SRF account for this project which has an eligible cost of $11.1 million. The City of Davis is requesting additional loan funding of $6.1 million for this project.

Los Angeles County Sanitation District (District)

The Joint Water Pollution Control Plant (JWPCP) has a rated and permitted capacity of 385 mgd. It provides 200 mgd of secondary treatment and 185 mgd of primary treatment. In 1992, the RWQCB filed a lawsuit to compel full secondary treatment at the JWPCP. Subsequent negotiations among the District, the United States, the State of California, and other concerned parties produced an agreement which requires the District to provide full secondary treatment at JWPCP by December 31, 2002. This project is necessary to fulfill that agreement.

The SWRCB approved a $5 million loan from the FFY 1996 SRF account for this project which has an eligible cost of $206.4 million. The Los Angeles County Sanitation District is requesting additional loan funding of $1.5 million for FFY 1997 for this project. The District will request additional funds in future fiscal years based on construction cash flow.

City of Pacifica

The existing wastewater treatment plant was constructed in the 1970's and is unable to consistently meet the RWQCB waste discharge requirements. A new wastewater treatment plant to replace the existing treatment plant is needed. This project will construct a new treatment plant at a new site and convert the existing treatment plant into an influent pump station. A wetland will be constructed for the disposal of the plant effluent.

The SWRCB approved $20 million in loans from the FFY 1995 and FFY 1996 SRF accounts for this project which has an eligible cost of $41.3 million. The City of Pacifica is requesting additional loan funding of $21.3 million for this project.

City and County of San Francisco

The City and County of San Francisco was issued a Cease and Desist Order by the RWQCB to control the untreated combined sewer overflows into San Francisco Bay. The Islais Creek Project, which includes construction of the transport and storage facilities, the Rankin Street Pump Station, and Southeast Water Pollution Control Plant Improvements, is designed to correct the untreated combined sewer overflow problems. Upon completion of the entire transport, storage and plant improvement project, the City will provide for dry weather transport, wet weather storage, and primary treatment of the wet weather flows that exceed the wastewater treatment plant capacity. This will reduce the occurrence of untreated sewer overflows into the San Francisco Bay.

The SWRCB previously approved $72.8 million in loans from the SRF accounts for the construction of the entire Islais Creek transport, storage and plant improvement project which has an eligible cost of $175.2 million. The City and County of San Francisco is requesting additional loan funding of $102.4 million for these projects. The funds cap for each agency for FFY 1997 is $50 million and that amount will be allotted to the City and County of San Francisco.

City of San Jose

The San Jose/Santa Clara Water Pollution Control Plant discharges treated effluent into the South San Francisco Bay. Both the RWQCB and the USEPA determined that the effluent discharged from the plant reduces the salinity in the nearby salt marsh and threatens the habitat of two endangered species: the salt marsh harvest mouse and the California clapper rail. This project enables the Cities of San Jose, Santa Clara, and Milpitas to reuse the nonpotable effluent instead of discharging it into the South San Francisco Bay.

The SWRCB approved a $5 million loan from the FFY 1996 account for this project which has an estimated cost of $130 million. The City of San Jose is requesting additional loan funding of $125 million for this project. The allotment for the City of San Jose is $50 million.

Western Riverside County Regional Wastewater Authority (WRCRWA)

The WRCRWA is constructing a regional wastewater treatment plant with its own funding for the cities which are members of WRCRWA and needs to construct a regional conveyance system to transport the sewage to the new treatment plant. This project is to construct a 41,400 ft. gravity sewer, a 17,400 ft. force main, a 1300 ft. interceptor and pump stations.

The SWRCB approved a $5 million loan from the FFY 1996 account for this project which has an eligible cost of $15.3 million. The WRCRWA is requesting additional loan funding of $10.3 million for this project.

POLICY ISSUE: Should the SWRCB approve the additional loans for: (1) the City of Corona of $2.2 million, (2) the City of Davis of $6.1 million, (3) the County Sanitation District of Los Angeles County of $1.5 million, (4) the City of Pacifica of $21.3 million, (5) the City and County of San Francisco of $50 million, (6) the City of San Jose of $50 million and (7) the Western Riverside County Regional Wastewater Treatment Authority of $10.3 million?

REGIONAL BOARD IMPACT: None

FISCAL IMPACT: Current SRF fund balance (as of January 1997): $276,453,377

Project approvals under consideration by the Board in February 1997:

Loan No. Amount

City of Corona 4461-110 $ 2,200,000

City of Davis 4360-110 $ 6,100,000

Los Angeles CSD 4001-220 $ 1,500,000

City of Pacifica 4121-112 $21,300,000

City & County of San Francisco 4025-252 $12,000,000

City & County of San Francisco 4025-260 $ 8,300,000

City & County of San Francisco 4025-420 $18,000,000

City & County of San Francisco 4025-451 $11,700,000

City of San Jose 4220-110 $50,000,000

Western Riverside CRWA 4442-110 $10,300,000

City of Riverside 4331-130 $10,000,000

City of Bakersfield 4321-110 $ 6,700,000

Irvine Ranch Water District 4321-110 $ 6,000,000

-$164,100,000

New SRF fund balance, if all of the February 1997 proposals

are approved by the Board: $112,353,377

STAFF RECOMMENDATION: That the SWRCB adopts a resolution approving the additional loans for the subject projects, with a repayment period of twenty (20) years and first repayment due one (1) year after completion of construction.

STATE WATER RESOURCES CONTROL BOARD

RESOLUTION NO. 97-

APPROVAL OF ADDITIONAL STATE REVOLVING FUND LOANS FOR THE WASTEWATER TREATMENT PLANT EXPANSION, CITY OF CORONA, PROJECT NO. C-06-4461-110; THE WASTEWATER TREATMENT PLANT EXPANSION, CITY OF DAVIS, PROJECT NO. C-06-4360-110; JOINT WATER POLLUTION CONTROL PLANT UPGRADE, THE COUNTY SANITATION DISTRICT OF LOS ANGELES COUNTY, PROJECT NO. C-06-4001-220; THE WASTEWATER TREATMENT PLANT UPGRADE, CITY OF PACIFICA, PROJECT NO. C-06-4121-112; RANKIN STREET PUMP STATION AND SOUTHEAST WATER POLLUTION CONTROL PLANT IMPROVEMENTS, CONTRACT "4", CITY AND COUNTY OF SAN FRANCISCO, PROJECT NO. C-06-4025-252; RANKIN STREET PUMP STATION AND SOUTHEAST WATER POLLUTION CONTROL PLANT IMPROVEMENTS, CONTRACT "5", CITY AND COUNTY OF SAN FRANCISCO, PROJECT NO. C-06-4025-260; THE CONSTRUCTION OF ISLAIS CREEK TRANSPORT AND STORAGE FACILITIES, CONTRACT "B", CITY AND COUNTY OF SAN FRANCISCO, PROJECT NO. 4025-420; THE CONSTRUCTION OF ISLAIS CREEK TRANSPORT AND STORAGE FACILITIES, CONTRACT "E", CITY AND COUNTY OF SAN FRANCISCO, PROJECT NO. 4025-451; CONSTRUCTION OF SOUTH BAY WATER RECYCLING FACILITIES, PHASE 1, CITY OF SAN JOSE, PROJECT NO. C-06-4220-110; SOUTH REGIONAL CONVEYANCE SYSTEM, WESTERN RIVERSIDE COUNTY REGIONAL WASTEWATER AUTHORITY, PROJECT NO. C-06-4442-110

WHEREAS:

The State Water Resources Control Board (SWRCB), on February 16, 1995, adopted the "Policy for Implementing the State Revolving Fund (SRF) for Construction of Wastewater Treatment Facilities", and amended it on January 18, 1996;
The SWRCB has approved the wastewater treatment plant expansion project for the City of Corona that has an estimated eligible cost of $22.2 million and provided $20 million in loan funds from the SRF loan account;
The SWRCB has approved the wastewater treatment plant expansion project for the City of Davis that has an estimated eligible cost of $11.1 million and provided $5 million in loan funds from the SRF loan account;
The SWRCB has approved the wastewater treatment plant upgrade project for the County Sanitation District of Los Angeles County that has an estimated eligible cost of $206.4 million and provided $5 million in loan funds from the SRF loan account;
The SWRCB has approved the construction of a new wastewater treatment plant for the City of Pacifica that has an eligible cost of $41.3 million and provided $20 million in loan funds from the SRF loan account;
The SWRCB has approved the construction of Islais Creek Transport and Storage Facilities, Rankin Street Pump Station, and Southeast Water Pollution Control Plant Improvements for the City and County of San Francisco that has an estimated eligible cost of $175.2 million and provided $72.8 million in loan funds from the SRF loan account;
The SWRCB has approved the South Bay Water Recycling Program for the City of San Jose that has an estimated cost of $130 million and provided $5 million in loan funds from the SRF loan account; and
The SWRCB has approved the South Regional Conveyance System for the Western Riverside County Regional Wastewater Authority which has an eligible cost of 15.3 million and provided $5 million in loan funds from the SRF loan account.

THEREFORE BE IT RESOLVED THAT

The State Water Resources Control Board:

Approves a loan of $2.2 million for the expansion of Treatment Plant No. 1, City of Corona, Project No. C-06-4461-110, with a repayment period of twenty (20) years, and the first payment to be due one (1) year after the completion of construction;
Approves a loan of $6.1 million for the expansion of the existing wastewater treatment plant, City of Davis, Project No. C-06-4360-110, with a repayment period of twenty (20) years, and the first payment to be due one (1) year after the completion of construction;
Approves a loan of $1.5 million for the upgrade of the Joint Water Pollution Control Plant to full secondary treatment, County Sanitation District of Los Angeles County, Project No. C-06-4001-220, with a repayment period of twenty (20) years, and the first payment to be due one (1) year after the completion of construction;
Approves a loan of $21.3 million for the construction of a new wastewater treatment plant, City of Pacifica, Project No. C-06-4121-112, with a repayment period of twenty (20) years, and the first payment to be due one (1) year after the completion of construction;
Approves a loan of $12 million for the construction of Rankin Street Pump Station and Southeast Water Pollution Control Plant Improvements, Contract "4", City and County of San Francisco, Project No. C-06-4025-252, with a repayment period of twenty (20) years, and the first payment to be due one (1) year after the completion of construction;
Approves a loan of $8.3 million for the construction of Rankin Street Pump Station and Southeast Water Pollution Control Plant Improvements, Contract "5", City and County of San Francisco, Project No. C-06-4025-260, with a repayment period of twenty (20) years, and the first payment to be due one (1) year after the completion of construction;
Approves a loan of $18 million for the construction of Islais Creek Transport and Storage Facilities, Contract "B", City and County of San Francisco, Project No. C-06-4025-420, with a repayment period of twenty (20) years, and the first payment to be due one (1) year after the completion of construction;
Approves a loan of $11.7 million for the construction of Islais Creek Transport and Storage Facilities, Contract "E", City and County of San Francisco, Project No. C-06-4025-451, with a repayment period of twenty (20) years, and the first payment to be due one (1) year after the completion of construction;
Approves a loan of $50 million for the South Bay Water Recycling Program, City of San Jose, Project No. C-06-4220-110, with a repayment period of twenty (20) years, and the first payment to be due one (1) year after the completion of construction; and
Approves a loan of $10.3 million for the construction of the South Regional Conveyance System, Western Riverside County Regional Wastewater Authority, Project No. C-06-4442-110, with a repayment period of twenty (20) years, and the first payment to be due one (1) year after the completion of construction; and
Will withdraw the preliminary loan approval specified here if biddable plans and specifications are not submitted as specified in the preceding resolutions for these projects.

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 February 20, 1997.

______________________________

Maureen Marché

Administrative Assistant to the Board