ITEM 5: APPROVAL OF A STATE REVOLVING FUND LOAN FOR JURUPA COMMUNITY SERVICES DISTRICT, WASTEWATER EQUALIZATION BASINS FOR REGIONAL FORCE MAIN, STATE REVOLVING FUND LOAN PROJECT NO. C-06-4512-110.

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) draft revenue program; and (4) water conservation plan.

On April 29, 1997, the Jurupa Community Services District (District) received facilities plan approval from the Division for the wastewater equalization basins project. The District agreed, in writing, with the Division's facility plan approval letter.

The District currently pumps the majority of its wastewater via the Jurupa Force Main Pipe to the City of Riverside=s Regional Treatment Plant for treatment and disposal. The pump station is located at the District=s abandoned sewage treatment plant in the unincorporated community of Jurupa, in Riverside County. When the inflow exceeds the pumping capacity of the pump station (5.04 million gallons per day), the District uses facilities at the abandoned treatment plant for emergency storage. These facilities have a limited storage capacity. Also, repairs done on the force main, must be done as soon as possible since the pump station has to be shut down.

The domestic water supply of the sewer service area is currently supplied by Jurupa Community Services District and Mutual Water Company of Glen Avon Heights from their groundwater wells located in the Chino Ground Water Basin. This project does not involve any treatment expansion and therefore has no impact on future availability of water supplies in the project service area. The District is a signatory to the Memorandum of Understanding Regarding Urban Water Conservation in California, September 1991, California Urban Water Conservation Council.

The District is under Cease and Desist Order No. 96-85 from the Santa Ana Regional Water Quality Control Board for two sewage spills from the force main. The Order requires the District to construct holding basins for the temporary storage of wastewater so as to allow inspection and maintenance work on the force main.

The purpose of the proposed project is to: (1) provide emergency storage in the event the force main is removed from service for repairs for a period of time; and (2) to provide a properly sized facility to reduce or equalize the excessive peak wet weather flows and thus eliminate the potential for sewage spills. The project essentially consists of two concrete-lined earthen basins, a lift station to pump wastewater from the pump station=s wet well to the basins, floating aerators, associated piping and utilities, and slip-lining the inverted siphons of the force main that cross under the Santa Ana River.

The basins will provide a storage volume equal to about two days of the present average daily flow or equal to the maximum one day pumping capacity of the pump station. The estimated loan eligible construction costs of the project is about $1.6 million. The total loan eligible cost including engineering and administration allowances is about $1.9 million.

The project site is located at the District=s abandoned treatment plant site, in the unincorporated community of Jurupa in Riverside County as shown on the attached map.

The District has provided the Division with a schedule containing project milestones. These dates are included in the Division=s facilities plan approval letter, including submittal of the final plans and specifications for facility construction. In accordance with Section IX (J) of the SRF Policy, the draft resolution includes August 1, 1997, as the deadline for submittal of final plans and specifications. The Division may approve up to a ninety (90) day extension for a good cause.

The District prepared a Mitigated Negative Declaration/Initial Study which was distributed to the public and circulated through the State Clearinghouse (SCH No. 97011084) for review from January 31, 1997 to March 3, 1997. The District did not receive any significant comments during the review period. On March 10, 1997, the District Board of Directors adopted the Mitigated Negative Declaration and on March 12, 1997, the District filed a Notice of Determination with the Riverside County Clerk and the Governor=s Office of Planning and Research. As a result of the District=s consultation with Native Americans, required under Section 106 of the National Historic Preservation Act, the following mitigation measure will be included as a loan condition: Native American monitoring shall be required during any ground disturbing construction activities for the project. This mitigation measure is acceptable to the District although they did not adopt it during the CEQA process.

The District requests that the SWRCB approve a zero-percent interest loan of $1.9 million for the project with a twenty (20) year repayment period. The Board of Directors of the District adopted Resolution No. 832 which provides the State funding equal to 16.667 percent of the eligible project cost of $1.9 million or $316,673, based on the engineer=s estimate. The first SRF loan repayment will be due one (1) year after completion of construction.

POLICY ISSUE: Should the SWRCB approve zero-percent SRF loan funding for the proposed project including a twenty (20) year repayment period, with the first repayment due one (1) year after completion of construction? Should the SWRCB, in accordance with Section IX (J) of the January 18, 1996 SRF Policy, condition this approval requiring expiration of the preliminary loan commitment if final biddable plans and specifications are not submitted by August 1, 1997.

RWQCB: None

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 FFY account and against 125 percent of future repayment monies based on scheduled loan dates.

The SRF account balances, anticipated repayment amounts, and project approvals under consideration by the SWRCB in July 1997 are as follows:

STAFF RECOMMENDATION: That the SWRCB adopt a resolution approving a zero percent interest loan of $ 1.9 million for the proposed project, with a repayment period of twenty (20) years, with the first repayment due one (1) year after completion ofconstruction. In accordance with the February 15, 1995, revision to the SRF Policy, the proposed resolution includes an expiration date for this preliminary loan commitment if the submittal date of final plans and specifications for facility construction is not met.

June 23, 1997 DRAFT

WHEREAS:

1. The State Water Resources Control Board, 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;

2. The State Water Resources Control Board, on September 19, 1996, adopted the FFY 1997 SRF Loan Program Priority List which included the Jurupa Community Services District (District), Wastewater Equalization Basins for Regional Force Main in Priority Class C;

3. The Division of Clean Water Programs has approved the project report, environmental documents, draft revenue program, and water conservation plan for the District=s Wastewater Equalization Basins Project;

4. The District adopted a Mitigated Negative Declaration (State Clearinghouse No. 97011084) 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; and

5. The Board of Directors of the District adopted a resolution committing to provide the State funding match equal to 16.667 percent of the total eligible project costs to qualify for a zero percent interest SRF loan.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board

1. Approves a zero percent interest SRF loan of $1.9 million to the Jurupa Community Services District for the construction of the Wastewater Equalization Basins for the Regional Force Main, the repayment period is twenty (20) years, the first repayment is due one (1) year after completion of construction; and

2. Will withdraw this preliminary loan commitment if biddable plans and specifications are not received by August 1, 1997, unless the Division approves a ninety (90) day extension for good cause; and

3. Native American monitoring shall be required during any ground disturbing construction activities for the project.

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 July 17, 1997.

_________________________________

Maureen Marché

Administrative Assistant to the Board