ITEM 4:CONSIDERATION OF APPROVAL OF A STATE REVOLVING FUND (SRF) LOAN FOR THE CITY OF COLTON, WASTEWATER TREATMENT PLANT EXPANSION AND RENOVATION FOR HYDRAULIC RELIABILITY SRF LOAN PROJECT NO. C-06-4251-110

DISCUSSION: In accordance with the State Water Resources Control Board's (SWRCB) Policy for implementing the 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 that includes (1) a project report; (2) environmental documents; (3) a draft revenue program; and (4) a water conservation plan.

The City of Colton has received facilities plan approval from the Division for its wastewater treatment plant expansion and renovation project. The City has agreed in writing with the Division's facility plan approval letter. Currently, the City's wastewater treatment plant consists of three secondary treatment units with a total treatment capacity of 6.4 million gallons per day (mgd). The first unit was constructed in 1950, the second in 1972 and the third in 1990. The effluent from the secondary treatment plant is transported to a regional treatment facility that provides tertiary treatment and disposal to the Santa Ana River. The proposed project consists of construction of two new secondary treatment modules, each with a capacity of 1.0 mgd, and modifications to existing treatment facilities.

The City's service area includes the Cities of Colton and Grand Terrace and a small unincorporated portion of San Bernardino County. The population projection to the year 2010 is 74,800 for the service area. The expansion will provide a reserve treatment capacity of 12 years from the date of initiation of construction (1998).

The project site is located in the City of Colton, San Bernardino County as indicated on the attached site map. The estimated loan eligible project cost including engineering and administration allowances is $8.1 million.

The potable water supply to the City's sewer service area is provided by City of Colton, Riverside Highlands Water Company, and West San Bernardino Valley Water District. The supply consists entirely of ground water extraction from local wells. The City indicated that there is adequate available ground water to meet the needs of the projected population growth. The City has submitted an adopted water conservation plan that has been reviewed and approved by the Division.

The City 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 resolution includes October 15, 1997 as a deadline for submittal of final plans and specifications. The Division may approve up to ninety (90) day extension for a good cause.

The City prepared a Mitigated Negative Declaration/Initial Study which was distributed to the public and circulated through the State Clearinghouse (SCH #96091005) for review from September 4, 1996 to October 4, 1996. The City received comments from San Bernardino County, Riverside County, and the Division. Environmental issues included erosion, population growth, flooding, riparian vegetation, and acceptance of liquid wastes. The City considered the comments and prepared adequate responses. On March 25, 1997, the City Council approved the Mitigated Negative Declaration and filed a notice of Determination with the San Bernardino County Clerk. On June 13, 1997, the City filed a Notice of Determination with the Governor's Office of Planning and Research. On July 1, 1997 the City again approved the Mitigated Negative Declaration.

The City requests that the SWRCB approve a SRF loan of $8.1 million for the project with a twenty (20) year repayment period. The first SRF loan repayment will be due one (1) year after completion of construction.

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 January 18, 1996 SRF Policy, condition this approval requiring expiration of the preliminary loan commitment if biddable plans and specifications are not submitted by October 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		$6,650,000
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.

September 9, 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 Federal Fiscal Year 1997 SRF Loan Program Priority List which included the City of Colton Wastewater Treatment Plant Expansion and Renovation for Hydraulic Reliability 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 City of Colton's Wastewater Treatment Plant Project; and

4.The City adopted a Mitigated Negative Declaration (State Clearinghouse No. 96091005) 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.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board:

1. Approves a SRF loan of $8.1 million to the City of Colton for the construction of its wastewater treatment plant expansion and renovation for hydraulic reliability project; 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 October 15, 1997 unless the Division approves 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 September 18, 1997.

_____________________________

Maureen Marché

Administrative Assistant to the Board