ITEM 9:
APPROVAL OF A STATE REVOLVING FUND LOAN FOR THE SANTA YNEZ COMMUNITY SERVICES DISTRICT, WESTSIDE COMMUNITY SEWER COLLECTION SYSTEM, PROJECT AREA NO. 1, STATE REVOLVING FUND LOAN NO. C-06-4357-110
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) the draft revenue program; and (4) the water conservation plan.
On July 31, 1997, the Division issued Facilities Plan Approval to the Santa Ynez Community Services District (District) for the Westside Community Sewer Collection System, Project Area No. 1, and the District agreed in writing with the Division's facility plan approval letter on July 31,1997.
The District is located in Santa Barbara County (see attached map). The District serves a population of 1,700 and the treatment plant's average flow is about 0.175 million gallons per day.
The proposed project consists of construction of approximately 7,000 linear feet of sewer collection system serving a population of 156 people on 88 acres west of the current District's boundary, where the on-site septic systems are failing. This project will be an extension of the District's collection system with the wastewater being delivered to the expanded City of Solvang regional wastewater treatment facilities.
The estimated project cost is $518,000, and the estimated loan eligible cost is $508,000.
The domestic water supply for the District is provided by the Santa Ynez River Water Conservation District (SYRWCD) - Improvement District No. 1. Water supplies are adequate for the 20-year project life because the capacity of the system is adequate to supply domestic water for existing residences and all infill construction.
In accordance with the SRF Policy requirements for water conservation, the SYRWCD is a signatory to the "Memorandum of Understanding Regarding Urban Water Conservation in California".
The District has provided the Division with a schedule for the final plans and specifications and other milestones. These dates are contained in the milestone schedule in the Division's facilities plan approval letter. In accordance with Section VIII (J) of the SRF Policy, the Division will add eight (8) weeks to complete its review and approval process. The Division may approve up to a ninety (90) day extension for good cause.
The District prepared a draft Mitigated Negative Declaration and supporting Initial Study for the proposed collection system extension project which was distributed to the public and circulated through the State Clearinghouse (SCH #96021053) for review from February 23, 1996, through April 5, 1996. No environmental issues were raised during the review period. The District approved the project, and certified the Final Mitigated Negative Declaration on June 26, 1996. A Notice of Determination was filed with the Santa Barbara County Clerk and the Governor's Office of Planning and Research on July 3, 1996.
The District requests that the SWRCB approve a loan of $508,000 for this project and agrees to pay back the loan in accordance with the SRF Policy.
POLICY ISSUE:
Should the SWRCB approve 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 December 15, 1997?
RWQCB IMPACT: 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 funds based on scheduled loan dates.
The SRF account balances, anticipated repayment amounts, and project approvals under consideration by the SWRCB in September 1997 are as follows:
| Loan No. | 1997 | 1998 | 1999 | |
| SRF Account | Repayment | Repayment | ||
| Balance: | $59,523,155 | $56,794,799 | $63,633,739 | |
| 125% Repayment: | $70,993,499 | $79,542,174 | ||
| Previous commitment: | -$65,339,000 | -$61,300,000 | ||
| City of Colton | 4251-110 | $8,100,000 | ||
| Santa Ynez CSD | 4357-110 | $508,000 | ||
| City of San Diego | 4383-110 | $10,900,000 | ||
| City of Auburn | 4471-110 | $3,200,000 | ||
| Balance after Approval: | $36,815,155 | $5,654,499 | $11,592,174 |
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.
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 revised it on January 18, 1996;
2. The State Water Resources Control Board, on September 19, 1996, adopted the FFY 1996 SRF Loan Program Priority List which included the collection system for failing sewers, Santa Ynez Community Services District (District) in Priority Class D;
3.The Division of Clean Water Programs (Division) has approved the project report, environmental documents, draft revenue program, and water conservation for the District Project;
4. The water purveyors for the service area are signatories to the "Memorandum of Understanding Regarding Urban Water Conservation in California"; and
5.The Santa Ynez Community Services District has approved and adopted a Mitigated Negative Declaration (State Clearing House No. 96021053) which has been reviewed and considered and it has been determined that the project will not result in any significant impacts.
THEREFORE BE IT RESOLVED THAT:
The State Water Resources Control Board:
1. Approves a SRF loan of $508,000 to the District for construction of the Westside Community Sewer Collection System, Project Area No. 1, 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 December 15, 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 September 18, 1997.
Maureen Marché
Administrative Assistant to the Board