STATE WATER RESOURCES CONTROL BOARD MEETING
FEBRUARY 20, 1997
SUBJECT: APPROVAL OF A STATE REVOLVING FUND LOAN FOR THE IRVINE RANCH WATER DISTRICT, ZONE A SOUTH RECLAIMED WATER RESERVOIR PROJECT, STATE REVOLVING FUND PROJECT NO. C-06-4455-110 (ORANGE COUNTY)
DISCUSSION: In accordance with the State Water Resources Control Board's Policy for Implementing the State Revolving Fund (SRF) for Construction of Wastewater Treatment Facilities, adopted on August 18, 1988; and amended September 20, 1990; January 21, 1993; February 1995; and on January 18, 1996; projects on the adopted priority list need State Water Resources Control Board approval to receive a loan. Loans can be approved by the State Water Resources Control Board after the Division of Clean Water Programs (Division) has approved the facilities plan, including (1) project report; (2) environmental documents; and (3) draft revenue program.
The Irvine Ranch Water District (District) loan application for the Zone A South Reclaimed Water Reservoir Project has met the legal and policy requirements of both the Water Reclamation Loan Program and State Revolving Fund loan programs except as noted below. The District's proposed construction of a reclaimed water reservoir has received facilities plan approval by the Division.
The District proposes to construct the reclaimed water reservoir to enhance the expansion of the reclaimed water system that presently serves the southern portions of the Zone A pressure zone, and a portion of the Zone B pressure zone in Turtle Rock (see attached map). The proposed project consists of a concrete tank with a capacity of 10 million gallons (mg), pipelines to connect the reservoir to the existing reclaimed water system, and an access road.
The estimated first year reclaimed water use will be 2,456 acre feet per year (AFY), and reach eligible project demand of 4,408 AFY within the seventh year of operation. The estimated eligible cost of the proposed project is $6.0 million.
WRLP guidelines provide that the District submit 1) copies of the letters of intent to participate in the project, or 2) copies of the notifications to the users subject to the mandatory use ordinance. IRWD has not provided the letters of intent or the notifications to the users, but IRWD has a mandatory use ordinance in compliance with the WRLP guidelines. The area expansion is a master planned community development, under one ownership. Several new major residential communities, and non-residential developments are currently underway. New development within the District is dual plumbed to receive reclaimed water. The staff believes history of IRWD's past expansion of the reclaimed water system combined with dual plumbing and reasonable growth projections negate the need for letters of intent, or notifications to the users. Therefore, the staff recommends that the SWRCB waive the above guideline for this project.
The District prepared a Negative Declaration for the project which was distributed to the public and circulated through the State Clearinghouse (SCH# 96101066) for review from October 25, 1996, to November 25, 1996. During the review period, the District received comments from the Division of Clean Water Programs, the Department of Water Resources, the Department of Transportation, and Orange County. The Orange County comments raised environmental issues regarding water quality and biological resources. The District provided adequate responses to all comments with their Final Negative Declaration. The District Board of Directors adopted the Negative Declaration on December 16, 1996, and filed a Notice of Determination with the Orange County Clerk and with the Governor's Office of Planning and Research on December 18, 1996.
The Irvine Ranch Water District requests SWRCB approval for a $6.0 million SRF loan in FFY 1997 loan funds. The first loan repayment will be due one year after completion of construction.
SWRCB staff proposes a special condition that the preliminary loan commitment will expire if Plans and Specifications Approval has not been issued by April 1, 1997 for the construction contracts. The Division of Clean Water Programs may approve up to a 90-day extension for good cause.
POLICY ISSUE: Should the SWRCB approve a SRF loan for the Irvine Ranch Water District Zone A South Reclaimed Water Reservoir, including the proposed repayment period and due date for the first loan repayment? Should the SWRCB waive the WRLP guideline on user notifications procedures when user sites are dual plumbed and a satisfactory mandatory use ordinance is in effect?
Should there be a condition to requiring expiration of the preliminary loan commitment if the Plans and Specifications Approval has not been issued by April 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 January 1997:
Loan No. Amount
City of Corona 4461-110 $2,200,000
City of Davis 4360-110 $6,100,000
Los Angeles Cnty. San. Dist. 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 4026-260 $ 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 $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
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 an SRF loan for the subject project, with a repayment period of twenty (20) years and the first repayment due one (1) year after completion of construction, and waiving the user notification procedures for this project, with a special condition requiring expiration of the preliminary loan commitment if the Plans and Specifications Approval has not been issued by April 1, 1997.
STATE WATER RESOURCES CONTROL BOARD
RESOLUTION NO. 97-
APPROVAL OF A STATE REVOLVING FUND LOAN FOR
THE IRVINE RANCH WATER DISTRICT ZONE A SOUTH
RECLAIMED WATER RESERVOIR PROJECT
THEREFORE BE IT RESOLVED THAT:
The State Water Resources Control Board approves a State Revolving Fund loan of $6.0 million for the Irvine Ranch Water District's, Zone A South Reclaimed Water Reservoir Project with a repayment period of twenty (20) years, and the first loan repayment due one (1) year after completion of construction. The State Water Resources Control Board waives the user's notification procedures for this project, and approves a special condition requiring expiration of the preliminary loan commitment if the Plans and Specifications Approval have not been issued by April 1, 1997. The Division of Clean Water Programs 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 February 20, 1997.
Administrative Assistant to the Board