ITEM 14: CONSIDERATION OF APPROVAL OF A RESOLUTION TO PROVIDE A STATE REVOLVING FUND (SRF) LOAN TO THE CITY OF RIVERSIDE PUBLIC WORKS DEPARTMENT FOR THE WATER QUALITY PROTECTION FACILITIES AT THE TEQUESQUITE LANDFILL (LOAN NO. C-06-6042-110).
DISCUSSION: The City of Riverside Public Works Department (City) has requested an SRF loan for the Water Quality Protection Facilities at the Tequesquite Landfill Project (Project). The Project is required to implement the City's Closure and Postclosure Maintenance Plan (Plan) of the Tequesquite Landfill site mandated by the Santa Ana Regional Water Quality Control Board (SARWQCB) under Title 23, Division 3, Chapter 15 of the California Code of Regulations. The Plan is also mandated by the California Integrated Waste Management Board, the Riverside County Department of Health, and the South Coast Air Quality Management District.
The Tequesquite Landfill is a 120 acre Class III landfill located in Riverside County adjacent to the Santa Ana River. The landfill is owned and operated by the City and has not accepted solid waste since February 1985. Ground water monitoring at the landfill has detected concentrations of trichloroethylene, tetrachloroethene, vinyl chloride, and other contaminants.
Provisions of the Plan include construction of the following:
A landfill cover to reduce leachate from further degrading ground water;
A gas extraction system to remove contaminants from the ground water; and
A levee to prevent runoff and trash flowing into the Santa Ana River.
The City is requesting that SRF funds be provided for partial funding of the landfill cover and the levee. The City is not requesting SRF funding for the gas extraction system. The total cost for the landfill cover and the levee is $13.8 million. The City is requesting an SRF loan for $7 million for both items to supplement its own funding. The Dedicated Source of Revenue for repayment of the SRF loan will be the City's Refuse Service Fees which have already generated the funds necessary to pay the additional costs above the SRF loan amount.
Construction of the Project will require a U.S. Fish and Wildlife Service permit, a U.S. Army Corps of Engineers Clean Water Act (CWA) Section 404 permit, a CWA Section 401 certification from the State Water Resources Control Board (SWRCB), or waiver thereof from the SARWQCB, and a California Department of Fish and Game Streambed Alteration Agreement. The City completed an Environmental Document in January 1997 to comply with the California Environmental Quality Act (CEQA). The City Council accepted the CEQA document on May 20, 1997.
POLICY ISSUE: Should the SWRCB approve an SRF loan to the City for $7 million for an SRF loan to construct the Water Quality Protection Facilities at the Tequesquite Landfill Project?
This Project will set a precedent in that the California SRF has never been used for a landfill closure before. In order for the Project to be eligible, it has to be included in the SWRCB Nonpoint Source Management Plan. Approval by the SWRCB will allow an update of the Management Plan to include landfill closures. The Management Plan also requires approval by the U.S. Environmental Protection Agency (U.S. EPA). However, the U.S. EPA has previously allowed SRF funding of landfill closures for the states of North Dakota and South Dakota.
The main policy issue is the possibility that a major portion of the SRF will be diverted to other landfill closures considering the large number of landfills in the State. Landfill closures may not be a high priority for the use of SRF funds.
Another policy issue is that approval of this Project may lead to funding for construction of future landfills. This will give those landfills a competitive advantage on tipping fees.
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 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:
Loan No. |
1997 SRF Account |
1998 Repayment |
1999 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 Bakersfied | 4321-110 | -$10,000,000 | ||
| City of Placerville | 4505-110 | -$900,000 | ||
| Balance after Approval: | $55,720,080 | $16,993,499 | $68,242,174 | |
RWQCB IMPACT: SARWQCB.
STAFF RECOMMENDATION: Staff has no recommendation on the SRF loan of $7 million to the City to construct the Water Quality Protection Facilities at the Tequesquite Landfill Project.
JULY 8, 1997 DRAFT
WHEREAS:
1. The City of Riverside (City) has requested an SRF loan of $7 million for the construction of the Water Quality Protection Facilities at the Tequesquite Landfill Project (Project).
2. Because of the unique aspects of the Project, which include those listed below, this approval should not be considered a precedent for future funding requests:
(a) The landfill is located immediately adjacent to and in the floodplain of a major watercourse, the Santa Ana River (River).
(b) The River has multiple beneficial uses.
(c) The River is classified as a water quality limited segment pursuant to the Clean Water Act.
d) The landfill has been innundated during floods, (subjecting the River to trash and leachate pollution.
(e) The Regional Water Quality Control Board has issued an enforcement order requiring the City to address the nonpoint source water quality threats to the River caused by the landfill.
(f) The landfill ceased operating in 1985 but has not yet been adequately closed in a manner to abate the nonpoint source problems.
3. The Project is required for the City's Closure and Postclosure Maintenance Plan (Plan) of the Tequesquite Landfill site mandated by the Santa Ana Regional Water Quality Control Board under Title 23, Division 3, Chapter 15 of the California Code of Regulations.
4. The Project will prevent leachate from further degrading ground water and trash and other debris from washing into the Santa Ana River.
5. The City completed an Environmental Document in January 1997 to comply with the California Environmental Quality Act, and it was accepted by the City Council on May 20, 1997.
THEREFORE BE IT RESOLVED THAT:
The State Water Resources Control Board approves an SRF loan of $7 million to the City of Riverside for the Water Quality Protection Facilities at the Tequesquite Landfill 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