ITEM 6: APPROVAL OF A STATE REVOLVING FUND (SRF) LOAN FOR SANTA ANA WATERSHED PROJECT AUTHORITY (SAWPA), TEMESCAL VALLEY REGIONAL INTERCEPTOR (TVRI), SRF LOAN PROJECT NO. C-06-4452-110
DISCUSSION: In accordance with the State Water Resources Control Board's (SWRCB) Policy for Implementing the State Revolving Fund for Construction of Wastewater Treatment Facilities (Policy), adopted on February 16, 1995, and amended on June 18, 1998, 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.
The Division issued Facilities Plan Approval on February 5, 1999, to SAWPA for the TVRI project. SAWPA agreed in writing with the approval on February 11, 1999.
SAWPA was formed in 1972 to plan and build facilities to protect the water quality in the Santa Ana River Watershed. It is a joint powers agency composed of five major water districts that share the Santa Ana River. The current members of SAWPA are: (1) Eastern Municipal Water District, (2) Western Municipal Water District, (3) Inland Empire Utilities Agency (formerly Chino Basin Municipal Water District), (4) San Bernardino Valley Municipal Water District, and (5) Orange County Water District. The Santa Ana Regional Interceptor (SARI) pipeline was built by SAWPA for salinity management in the Upper Santa Ana Watershed. The SARI line, with a design capacity of 30 million gallons-per-day, transports non-reclaimable wastewater from the upper Santa Ana Watershed to the ocean for disposal after treatment.
The proposed TVRI project is an extension of the SARI line system. It will convey non-reclaimable wastewater from the Perris Valley and Temescal Valley to SAWPA's existing non-reclaimable wastewater sewer(also part of SARI line system) in the City of Corona. From Corona, the SARI line will convey the waste to the Orange County Sanitation District's Wastewater Treatment Plant No. 2 in Huntington Beach for treatment and ocean disposal. The wastewater will be composed of brine from groundwater desalters, saline industrial discharges and sometimes domestic waste, on a temporary basis. The TVRI will be a pressurized pipeline about 22 miles long with pipe diameters of 24 and 30 inches. The location of the project is within the Temescal Valley between the cities of Corona and Lake Elsinore. The TVRI starts in the City of Lake Elsinore where it will connect with an existing 30-inch diameter non-reclaimable wastewater pipeline that belongs to Eastern Municipal Water District and will terminate in the City of Corona where it will connect with an existing 36-inch diameter SARI pipeline. The design capacity of the TVRI is 14.74 million gallons-per-day and will provide a reserve conveyance capacity of 40 years from the date of initiation of construction (June 28, 1999).
The TVRI pipeline consists of five reaches. There will be four construction contracts and four corresponding loan contracts. Construction is projected to start on June 28, 1999 and be completed by November 30, 2000.
The estimated total loan eligible cost of the TVRI project is $21.7 million.
SAWPA has entered into SARI Capacity Sale Agreements with certain member agencies for the purpose of financing the construction of the TVRI project and repayment of loans associated with the construction of the project.
In accordance with the SRF Policy requirements for water conservation, SAWPA has certified to the Division that the water purveyor, Western Municipal Water District, is a signatory to the California Urban Water Conservation Council's Memorandum of Understanding Regarding Urban Water Conservation in California (MOU) and the MOU covers at least 75 percent of the water connections within the applicant's project service area.
SAWPA has provided the Division with a schedule containing project milestones. These dates are included in the Division's facilities plan approval letter of February 5, 1999. In accordance with Section IX (I) of the SRF Policy, the draft resolution includes June 28, 1999, as the deadline to initiate construction for Reach IV of the TVRI line (first SRF loan contract will be for Reach IV). The Division may approve up to a 90-day extension for good cause.
SAWPA prepared a Mitigated Negative Declaration and supporting Initial Study which were distributed to the public and circulated through the State Clearinghouse (SCH# 98091001) for a 30-day review beginning August 31, 1998, and ending September 30, 1998. During the review period, SAWPA did not receive any comments regarding environmental issues or adequacy of the environmental document. On October 13, 1998, SAWPA's Commission adopted the Mitigated Negative Declaration and on October 15, SAWPA filed a Notice of Determination with the Riverside County Clerk and the Governor's Office of Planning and Research.
SAWPA has applied for the full estimated eligible SRF loan amount of $21.7 million for the entire 22 miles of pipeline. However, due to the current funding cap of $10 million per year per agency, SAWPA requests the SWRCB approve a loan of $10 million for this project for federal fiscal year 1999, with a 20-year repayment period and with the first SRF loan repayment due one year after completion of construction. The construction schedule indicates the following dates of initiation of construction for the four phases of construction: (1) June 28, 1999 for Reach IV; (2) November 23, 1999, for Reaches II & III; (3) December 13, 1999, for Reach I; and (4) January 3, 2000, for Reach V. It is therefore clear that for federal fiscal year 1999, SAWPA will need funding for the construction of Reach IV only, at an estimated total eligible cost of $5 million.
POLICY ISSUE: Should the SWRCB approve SRF loan funding for the proposed project, including a 20-year repayment period, with the first repayment due one year after completion of construction? Should the SWRCB, in accordance with Section IX (I) of the SRF Policy, condition this approval by requiring expiration of the preliminary loan commit-ment if construction of Reach IV of the TVRI line is not initiated by June 28,1999?
RWQCB IMPACT: Santa Ana Regional Water Quality Control Board (SARWQCB). The SARWQCB's current Basin Plan has identified the use of groundwater desalters and the export of brine and saline wastewaters outside the Basin as key elements in the management of salt impaired groundwater bodies in the Santa Ana Watershed. The TVRI project will aid in attaining the Basin Plan's total dissolved solids (TDS) objectives for the groundwaters of the San Jacinto Basin and other impacted subbasins within the upper Santa Ana Watershed.
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 April 1999 are as follows:
| FFY | FFY | FFY | FFY | FFY | FFY | |
|---|---|---|---|---|---|---|
| 1998-99 | 1999-00 | 2000-01 | 2001-02 | 2002-03 | 2003-04 | |
| SRF Account | Repayment | Repayment | Repayment | Repayment | Repayment | |
| Repayments per Res. 99-011: | $67,037,595 | $76,374,255 | $85,349,780 | $85,351,354 | $85,351,354 | $85,351,354 |
| 125% Repayments: | 95,467,819 | 106,687,225 | 106,689,193 | 106,689,193 | 106,689,193 | |
| FFY 98 Carryover: | 28,133,901 | |||||
| FFY 98 Fed. Cap. Grant: | 22,146,937 | |||||
| FFY 99 Fed. Cap. Grant: | 92,461,850 | |||||
| CWG funds trans. per Res. 99-011: | 8,161,062 | |||||
| WQCF funds trans. per Res. 99-011 | 1,632,212 | |||||
| 1996 Bond Funds: | 39,825,821 | |||||
| SMIF Interest (Estimated) | 12,000,000 | |||||
| Local Match equivalent: | 15,837,226 | |||||
| Previous Commitments: | 255,337,180 | 93,280,341 | 74,135,205 | 65,810,000 | 48,036,000 | 0 |
| Subtotal: | $31,899,423 | 2,187,478 | 32,552,020 | 40,879,193 | 58,653,193 | 106,689,193 |
| Santa Ana River W. P. A. 4452-110 | $5,000,000 | $0 Footnote1 | $10,000,000 | $6,700,000 | ||
| Adopt-a-Watershed 6059-110 | $600,000 | |||||
| Napa River F.C. & W.C.D. 6061-110 | $7,000,000 | $0 Footnote2 | $17,000,000 | $5,000,000 | $5,000,000 | |
| Balance: | $19,299,423 | $2,187,478 | $5,552,020 | $29,179,193 | $53,653,193 | 106,689,193 |
STAFF RECOMMENDATION: That the SWRCB adopt a resolution approving a
SRF loan of $21.7 million for the TVRI, with $5 million from the FFY 1999
account for construction of Reach IV of the TVRI, with a repayment period
of 20 years, and with the first repayment due one 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 date for initiation of construction
for Reach IV is not met.
STATE WATER RESOURCES CONTROL BOARD
RESOLUTION NO. 99 -
APPROVAL OF A STATE REVOLVING FUND (SRF) LOAN FOR SANTA ANA WATERSHED
PROJECT AUTHORITY (SAWPA) TEMESCAL VALLEY REGIONAL INTERCEPTOR (TVRI) STATE
REVOLVING FUND LOAN PROJECT NO. C-06-4452-110
WHEREAS:
1. The State Water Resources Control Board (SWRCB), on February 16, 1995, adopted the "Policy for Implementing the State Revolving Fund for Construction of Wastewater Treatment Facilities," and revised it on June 18, 1998;
2. The SWRCB, on June 18, 1998, adopted the state fiscal year 1998/99 SRF Loan Program Priority List which included the TVRI project for SAWPA in Priority Class B;
3. The Division of Clean Water Programs (Division) has approved the Facility Plan for SAWPA's Project; and
4. SAWPA adopted a Negative Declaration (State Clearinghouse No. 98091001) prepared for the project, 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 $21.7 million with $5 million from the federal fiscal year 1999 account for Reach IV, to SAWPA for construction of the TVRI project, with a repayment period of 20 years, and the first repayment due one year after completion of construction;
2. Will withdraw this preliminary SRF loan commitment if SAWPA does not initiate construction of Reach IV of the TVRI by June 28, 1999. The Division may approve up to a 90 day extension for good cause; and
3. The Division may allocate the remaining $16.7 million consistent with the construction schedule and availability of funds.
CERTIFICATION
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 April 29, 1999.
Maureen Marché
Administrative Assistant to the Board