STATE WATER RESOURCES CONTROL BOARD MEETING
SACRAMENTO, CALIFORNIA
FEBRUARY 20, 1997
ITEM: 4
SUBJECT: APPROVAL OF A STATE REVOLVING FUND LOAN FOR THE CITY OF BAKERSFIELD, TREATMENT PLANT NO. 2 UPGRADE AND EXPANSION, STATE REVOLVING FUND LOAN PROJECT NO. C-06-4321-110
DISCUSSION: In accordance with the State Water Resources Control Board's (SWRCB) Policy for Implementing the State Revolving Fund (SRF) for Construction of Wastewater Treatment Facilities (Policy), adopted on February 16, 1995 and amended on January 18, 1996, 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 July 31, 1996 the Division issued Facilities Plan Approval to the City of Bakersfield (City) for the City of Bakersfield Treatment Plant No. 2 Upgrade. On October 23, 1996, the Division issued an amended Facilities Plan Approval and the City agreed in writing with the approval on October 31, 1996.
The City is located in Kern County and is approximately 70 miles north of Los Angeles (see attached map). The City serves a population of 122,000 at Plant No. 2 and the treatment plant average flow is about 18 million gallons per day.
The City's current treatment system at Plant No. 2 consists of primary clarifiers followed by aerated lagoons which have a capacity of 19 million gallons per day. The plant is almost at capacity and is having difficulty meeting Waste Discharge Requirements. The City's upgrade project consists of constructing trickling filters and secondary clarifiers to replace the aerated lagoons and will increase the plant capacity to 25 million gallons per day.
The estimated project cost is $23.1 million. Construction of Plant No. 2's original capacity of 19 million gallons per day was funded by a Clean Water Grant and thus is ineligible for an SRF loan. The estimated loan eligible cost is $6.7 million.
The domestic water supply for the City is provided by a local water purveyor. Water supplies are adequate for the 20-year project life because the City has unused water rights to the Kern River. In accordance with the SRF Policy requirements for water conservation, the City's water purveyor is a signatory to the "Memorandum of Understanding Regarding Urban Water Conservation in California".
The City has provided the Division with a schedule for the 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 VIII (J) of the SRF Policy, the Division will add eight (8) weeks to complete its review and approval process. The Division may approve up to a ninety (90) day extension for good cause.
The City prepared a Mitigated Negative Declaration and supporting Initial Study which were distributed to the public and circulated through the State Clearinghouse (SCH# 90020693) for a 30-day review period ending in August 1990. During the review period the City received comments from the public and from local and state agencies. Environmental issues were raised regarding odors, mosquito breeding, and groundwater contamination. The City provided responses to all environmental issues raised regarding the project. The City council adopted the Mitigated Negative Declaration, approved the project, and filed a Notice of Determination with the Governor's Office of Planning and Research on September 19, 1990.
The City requests that the SWRCB approve a loan of $6.7 million for this project and agrees to pay back the loan in accordance with the SRF Policy.
POLICY Should the SWRCB approve SRF loan funding for the proposed project, including a twenty ISSUE: (20) year repayment period, with the first repayment due one (1) year after completion of construction? Should the SWRCB, in accordance with Section VIII (J) of the SRF Policy, condition this approval by requiring expiration of the preliminary loan commitment if biddable plans and specifications are not approved by May 1, 1997?
REGIONAL BOARD IMPACT: None
FISCAL IMPACT: Current SRF fund balance (as of January 1997): $276,453,377
Project approvals under consideration by the SWRCB 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 of San Francisco 4025-252 $12,000,000
City of San Francisco 4025-260 $ 8,300,000
City of San Francisco 4025-420 $18,000,000
City 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 4455-110 $ 6,000,000
$164,100,000
New SRF fund balance, if all the February 1997 proposals are approved by the SWRCB: $112,353,377
STAFF RECOMMENDATION: That the SWRCB adopt a resolution approving a SRF loan for the proposed project with a repayment period of twenty (20) years, and with the first repayment due one (1) year after completion of construction. In accordance with the January 18, 1996, revisions to the SRF Policy, the proposed resolution includes an expiration date for this preliminary loan commitment if the issuance of plans and specifications approval is not met.
STATE WATER RESOURCES CONTROL BOARD
RESOLUTION NO. 97 -
APPROVAL OF A STATE REVOLVING FUND LOAN
FOR TREATMENT PLANT NO. 2 UPGRADE AND EXPANSION,
CITY OF BAKERSFIELD,
STATE REVOLVING FUND LOAN PROJECT NO. C-06-4321-110
WHEREAS:
THEREFORE BE IT RESOLVED THAT
The State Water Resources Control Board:
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