ITEM 5: 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.
The SWRCB approved a $6.7 million loan for the City of Bakersfield's Treatment Plant No. 2 Upgrade and Expansion project on February 20, 1997 (Resolution No. 97-012). The City's upgrade project consists of constructing trickling filters and secondary clarifiers to replace the aerated lagoons and will increase the plant capacity from 19 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 replacement of this capacity is therefore ineligible for an SRF loan. The estimated loan eligible cost when the project was approved and prior to completion of plans and specification was $6.7 million. Upon review of the completed plans and specifications and detailed cost information for the original Clean Water Grant, the estimated loan eligible amount including allowances is currently $16.7 million. Per Policy Section XV.D., if at any time the total eligible project costs exceed the preliminary loan commitment amount by more than fifty (50) percent, the project must be re-approved by the SWRCB
The City requests that the SWRCB approve an additional loan of $10 million for this project, bringing the total SRF loan amount to $16.7 million, and agrees to pay back the loan in accordance with the SRF Policy.
POLICY ISSUE: Should the SWRCB approve additional 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 VIII (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 October 1, 1997?
RWQCB: None
FISCAL IMPACT: According to SWRCB Resolution No. 97-001 (Approval of a Staff Proposalto 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 funds 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:
| 1997 | 1998 | 1999 | ||
| Loan No. | SRF Account | Repayment | Repayment | |
| Balance: | $91,120,080 | $56,794,799 | $63,633,739 | |
| 125% Repayment: | $70,993,499 | $79,542,174 | ||
| Previous commitment: | -$47,000,000 | -$11,300,000 | ||
| City of Riverside | 6042-110 | -$7,000,000 | ||
| Riverside County | 6011-110 | -$20,000,000 | ||
| East Bay MUD | 4003-490 | +$2,500,000 | -$2,500,000 | |
| Jurupa CSD | 4512-110 | -$1,900,000 | ||
| 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 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 February 16, 1995, revisions to the SRF Policy, the proposed resolution includes an expiration date for this preliminary loan commitment if the submittal date of plans and specifications for facility construction is not met.
July 8, 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; and
2. The SWRCB has approved the Treatment Plant No. 2 Upgrade and Expansion project for the City of Bakersfield with an estimated eligible cost of $16.7 million and provided $6.7 million in loan funds per SWRCB Resolution No. 97-012 from the SRF loan account.
THEREFORE BE IT RESOLVED THAT:
The State Water Resources Control Board
1. Approves a SRF loan of an additional $10 million, for a combined total SRF loan amount of $16.7 million, to the City of Bakersfield for construction of the Treatment Plant No. 2 Upgrade and Expansion project, 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 specifica-tions are not submitted to the Division of Clean Water Programs by October 1, 1997. The Division may approve up to a ninety (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 July 17, 1997.
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Maureen Marché
Administrative Assistant to the Board