ITEM 4: APPROVAL OF A STATE REVOLVING FUND (SRF) LOAN FOR THE CITY OF ALAMEDA (CITY), INFLOW AND INFILTRATION CORREC-TION PROJECT, PHASE 7, SRF LOAN PROJECT NO. C-06-4007-510

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 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.

On April 26, 1999, the Division issued Facilities Plan Approval to the City for the Inflow and Infiltration (I/I) Correction Project, Phase 7, and the City agreed in writing with the approval on April 29, 1999.

The City is located on the east side of the San Francisco Bay. It serves a population of approximately 76,000 and the East Bay Municipal Utility District (EBMUD) provides the treatment for the wastewater generated in the City.

The sewer system in the City works well in the dry seasons. In wet weather, the older deteriorated sewers allow stormwater to infiltrate and overload the wastewater system. This causes overflows in the collection and interceptor systems. The overflows create public health hazards and poor water quality. It is necessary to correct the I/I problem to meet the San Francisco Bay Regional Water Quality Control Board’s (SFBRWQCB) waste discharge requirements, and Cease and Desist Order No. 93-134.

An extensive Sewer System Evaluation Survey (SSES) was conducted during the early 1980’s covering the collection systems within all of the seven east bay communities served by EBMUD treatment. This extensive SSES resulted in many proposed improvements phased over a period of up to 20 years to reduce I/I and improve transport facilities.

This project is Phase 7 for the City and is to construct 5500 feet of relief sewers, from eight inches to 15 inches, to replace the existing sewers, and necessary manholes in subbasins 93B and 96C. The sewers are located in High Street, Lincoln Avenue, Versailles Avenue, and Central Avenue within the City limits.

The domestic water supply for the City is provided by the EBMUD which is a signatory to the Memorandum of Understanding Regarding Urban Water Conservation in California. Water supplies are adequate for the 20-year project life because there is no growth associated with completion of the project.

The EBMUD prepared a Draft Program Environmental Impact Report (PEIR) for the EBMUD Special District No. 1 I/I Correction Program, which included environmental analysis for this project. The PEIR was distributed to the public and circulated through the State Clearinghouse (SCH# 85110505) for review from January 24 through March 10, 1986. The City held a public meeting on February 18, 1986. During the review period, The EBMUD received two oral comments and eight comment letters from local, state, and federal agencies. The EBMUD prepared a Final PEIR in April 1986 which included text revisions, additions, and written responses to the comments. The EBMUD’s Board of Directors approved the project and certified the Program EIR on April 8, 1986.

The City prepared an Environmental Checklist for the project on December 16, 1998, finding that the PEIR could be used to satisfy CEQA requirements for this project. The City Council adopted a Resolution of Adequacy and approved the project on January 5, 1999. A Notice of Determination was filed with the Alameda County Clerk on January 20, 1999. The Division will file a Notice of Determination with the Governor’s Office of Planning and Research following SWRCB funding approval.

The SWRCB will be using an EIR that is more than five years old. However, it has been determined that the information and analysis in the EIR, regarding the proposed project, is still valid and complete.

The City has provided the Division with a schedule for the submittal of 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 IX(J) of the SRF Policy, the resolution will include an expiration date for the preliminary loan commitment if the milestone schedule for commencement of construction is not met. The Division may approve up to a 90 day extension for good cause.

The estimated construction cost for this phase of the project is $1.5 million, and the estimated loan eligible cost is also $1.5 million. The City requests the SWRCB approves a loan of $1.5 million 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 20 year repayment period, with the first repayment due one 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 construction is not initiated by October 30, 1999.

RWQCB IMPACT: SFBRWQCB. Completion of this project will improve the City’s ability to comply with the SFBRWQCB’s goal of reducing the untreated wastewater overflows to the San Francisco Bay.

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 June 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:	$66,682,399	$76,362,610	$85,218,573	85,220,131	84,882,690	84,882,690
125% Repayments per Res. 97-001:		95,453,263	106,523,216	106,525,164	106,103,363	106,103,363
FFY 98 Carryover:	37,905,581
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:	17,503,926
Previous Commitments:	251,695,225	$68,280,341	101,135,205	$99,510,000	$78,036,000	0
Subtotal:	$46,624,563	$27,172,922	$5,388,011	$7,015,164	$28,067,363	106,103,363
City of Alameda 4007-510	$1,500,000
Balance:	$45,124,563	$27,172,922	$5,388,011	$7,015,164	$28,067,363	$106,103,363

STAFF RECOMMENDATION: That the SWRCB adopt a resolution approving a SRF loan of $1.5 million from the FFY 1999 account for the proposed project, 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 schedule for commencement of construction is not met.

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 amended it on June 18, 1998;

2. The SWRCB, on June 18, 1998, adopted the FFY 1998 SRF Loan Program Priority List which included the Inflow and Infiltration Correction Project, Phase 7, City of Alameda in Priority Class A;

3. The Division of Clean Water Programs has approved the project report, environmental documents, and draft revenue program;

4. The East Bay Municipal Utility District (EBMUD) is the water purveyor for the service area and which is a signatory to the Memorandum of Understanding Regarding Urban Water Conservation in California;

5. The EBMUD has certified a Program EIR (State Clearinghouse No. 85110505) and the City has adopted a Resolution of Adequacy, both of which have been reviewed and considered, and it has been determined that changes or alterations have been required in, or incorporated into the project which avoid or reduce to less than significant levels potentially significant environmental effects identified in the Program EIR and environmental checklist. These changes or alterations are not within the responsibility and jurisdiction of the SWRCB and have been adopted or should be adopted by other agencies.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board

1. Approves a SRF loan of $1.5 million from the FFY 1999 account to the City of Alameda for construction of the Inflow and Infiltration Correction Project, Phase 7, with a repayment period of 20 years, and the first repayment due one year after completion of construction; and

2. Will withdraw this preliminary SRF loan commitment if construction is not initiated by October 30, 1999. The Division may approve up to a 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 June 17, 1999.
 

Maureen Marché
Administrative Assistant to the Board