ITEM 3 RECOMMITMENT OF STATE REVOLVING FUND (SRF) LOAN FOR THE EAST BAY MUNICIPAL UTILITY DISTRICT FOR THE PUMP STATION AB@ UPGRADE, SRF LOAN PROJECT NO. C-06-4003-490
DISCUSSION: On September 19, 1996, the State Water Resources Control Board (SWRCB) approved a $2.5 million loan for the East Bay Municipal Utility District's (District) Pump Station "B" project as given in SWRCB Resolution No. 96-066 (Attachment 1). The Resolution stated that the preliminary loan commitment would expire if biddable plans and specifications were not approved by the Division of Clean Water Programs (Division) by February 1, 1997. The District subsequently changed the design for the project and could not submit the biddable plans and specification to the Division by the expiration date. Attachment 2 is a copy of the District's letter discussing the reasons for the delay and requesting the loan recommitment. The District is asking the SWRCB to recommit the loan funding for this project from the FFY 98 repayment funds.
POLICY ISSUE: Should the SWRCB recommit 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 SRF Policy, condition this approval by requiring expiration of the preliminary loan commitment if biddable plans and specifications are not submitted by January 30, 1998?
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:
|Loan No.||SRF Account||Repayment||Repayment|
|City of Riverside||6042-110||-$7,000,000|
|East Bay MUD||4003-490||+$2,500,000||-$2,500,000|
|City of Bakersfield||4321-110||-$10,000,000|
|City of Placerville||4505-110||-$900,000||-$2,600,000|
|Balance after Approval:||$55,720,080||$16,993,499||$68,242,174|
STAFF RECOMMENDATION: That the SWRCB adopt a resolution recommitting loan funding 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 February 15, 1995, revisions to the SRF Policy, the proposed resolution includes an expiration date for this preliminary loan commitment based on the submittal and approval of biddable plans and specifications.
[Attachment for this item not available electronically but can be obtained by calling Patrick Lam at (916) 227-4569.]
July 8, 1997 DRAFT
1. 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 (SRF Policy)" and amended it on January 18, 1996;
2. The SWRCB, on September 19, 1996, approved a $2.5 million loan to the Pump Station "B" Upgrade project, East Bay Municipal Utility District (District);
3. The preliminary loan commitment specified that the expiration date for the preliminary loan commitment was February 1, 1997;
4. The District is redesigning the Pump Station and has been unable to submit the plans and specifications to the Division for approval; and
5. The District is requesting a recommitment of loan funding for this project.
THEREFORE BE IT RESOLVED THAT:
The State Water Resources Control Board
1. Recommits SRF loan funding of $2.5 million to the East Bay Municipal Utility District for construction of the Pump Station "B" Upgrade, with a repayment period of twenty (20) years, and the first repayment due one (1) year after completion of construction; and
2. Will withdraw this preliminary SRF loan commitment if biddable plans and specifications are not submitted to the Division by January 30, 1998.
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.
Administrative Assistant to the Board