STATE WATER RESOURCES CONTROL BOARD

WORKSHOP SESSION -- DIVISION OF CLEAN WATER PROGRAMS

JUNE 30, 1999

ITEM 7: APPROVAL OF A STATE REVOLVING FUND (SRF) LOAN FOR THE CITY OF BRENTWOOD (CITY), WASTEWATER TREATMENT PLANT EXPANSION, STATE REVOLVING FUND (SRF) LOAN PROJECT NO. C-06-4585-110

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 last 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 June 2, 1999, the Division issued Facilities Plan Approval to the City for the Wastewater Treatment Facility Expansion, and the City agreed in writing with the approval June 3,1999.

The City is located in the Sacramento-San Joaquin River Delta area, approximately 50 miles east of San Francisco in Contra Costa County. The City’s present wastewater treatment facilities were originally constructed in 1973. In late 1997 and early 1998, some major improvements to the disposal area were completed. The City owns and operates the facility that serves a current population of about 17,000. The current wastewater flow to the facility is about 1.8 million gallons per day (mgd). The facility discharges the treated effluent to nine percolation ponds covering approximately 32 acres. A groundwater extraction system around the perimeter of the plant site collects a mix of the effluent from the ponds and the groundwater, and discharges the combined water to Marsh Creek. The current wastewater flows to the plant are at the design capacity for both treatment and disposal causing concerns for present and future reliability with permit compliance. The proposed project expansion to 5 mgd will provide necessary treatment and disposal capacity to meet projected demands of growth till the year 2020. The Association of Bay Area Government population projections for Brentwood expect the population to more than double in that period.

The City has determined that an expansion and upgrade of the existing treatment and disposal system is the cost-effective solution for maintaining compliance reliably with Central Valley Regional Water Quality Control Board’s standards. The proposed project would also include improvements to the headworks, addition of a new oxidation ditch treatment system, a secondary clarifier, return sludge pumping facilities, tertiary filters, and chlorination and de-chlorination facilities. The filters and disinfection facilities will be needed to meet expected more stringent NPDES requirements. The estimated SRF loan eligible project cost including engineering and administration is $35 million.

The City receives its water supply from East Contra Costa Irrigation District (ECID), a publicly owned utility company and from the groundwater supply within the City limits. The City has indicated that it has enough water resources available to serve the projected population.

In accordance with the Policy requirements for water conservation, the City became a signatory to the "Memorandum of Understanding Regarding Urban Water Conservation in California" on May 27, 1999.

The City has provided the Division with a schedule of submittal dates for 100 percent plans and specifications and other milestones for the wastewater treatment project. These submittal dates are contained in the milestone schedule in the Division’s facility plan approval letter. In accordance with Section IX (J) of the SRF Policy, the draft resolution includes July 10, 2000, as the deadline for initiation of construction. The Division may approve up to a 90-day extension for good cause.

The City prepared a Draft Environmental Impact Report (EIR) for the proposed project which was distributed for public review and circulated through the State Clearinghouse (SCH# 98012058) from June 29, 1998 through August 13, 1998. The City Council held a public hearing on July 28, 1998. During the review period, the City received three oral comments and 12 comment letters from local, state and federal agencies. In November 1998, the City prepared a Final EIR which included comments, responses, and text revisions based on comments received. The City Council certified the Final EIR on November 24, 1998, and filed a Notice of Determination with the Contra Costa County Clerk and the Governor’s Office of Planning and Research on March 8, 1999.

The total project cost is $35 million. The City requests the SWRCB approve a loan of $35 million for this project with a 20-year repayment period and with the first loan repayment due one year after completion of construction.

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 July 10, 2000?

RWQCB IMPACT: Central Valley Regional Water Quality Control Board. The proposed expansion will provide a reserve treatment capacity for 20 years and the capability of meeting the future National Pollution Discharge Elimination System permit requirements.

FISCAL IMPACT: The SWRCB adopted Resolution 99-40 on May 20, 1999, which changed the method for determining the amount of funding available for new loans to system based on the availability of cash to make disbursements to the project under consideration by the SWRCB. The SRF account balances, anticipated repayment amounts, and the project approvals under consideration by the SWRCB are as follows:
 
   
SFY
SFY
SFY
SFY
SFY
   
1999-00
2000-01
2001-02
2002-03
2003-04
Beginning Balance  
$611,806,927
$475,381,593
$280,452,690
$200,753,381
$248,505,191
Repayments:  
$83,636,078
$80,080,786
$97,848,007
$111,435,140
$130,511,124
Cap Grants  
$0
$66,000,000
$66,000,000
$66,000,000
$66,000,000
Disbursements  
($198,641,412)
($324,509,689)
($239,187,316)
($128,263,330)
($146,961,593)
             
City of Escondido 4156-110
$9,000,000
($5,670,000)
($2,700,000)
($360,000)
($270,000)
  
City of Brentwood 4585-110
$25,000,000
($15,750,000)
($7,500,000)
($1,000,000)
($750,000)
  
City of Brentwood 4585-110
$10,000,000
  
($6,300,000)
($3,000,000)
($400,000)
($300,000)
Ending SRF Balance  
$475,381,593
$280,452,690
$200,753,381
$248,505,191
$297,754,722
             
Cash Status            
Repayment Fund
$235,271,750
          
Undrawn Cap Grant Cash*
$376,535,177
          
Total
$611,806,927
          
* 1989 Thru 2000 Cap Grants

STAFF RECOMMENDATION: That the SWRCB adopt a resolution approving a SRF loan of $35 million 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, Policy, amended on June 18, 1998, the proposed resolution includes an expiration date for this preliminary loan commitment if the date of initiation of construction is not met.


Draft June 21, 1999
STATE WATER RESOURCES CONTROL BOARD
RESOLUTION NO. 99 -__
APPROVAL OF A STATE REVOLVING FUND (SRF) LOAN FOR THE CITY OF BRENTWOOD (CITY), WASTEWATER TREATMENT FACILITY EXPANSION
STATE REVOLVING FUND LOAN PROJECT NO. C-06-4585-130

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 June18, 1998;

2. The SWRCB, on June 18, 1998, adopted the FFY 1999 SRF Loan Program Priority List which included the Wastewater Treatment Facility Expansion for the City in Priority Class D;

3. The Division of Clean Water Programs (Division) has approved the facilities plan for the City’s project; and

4.. The City of Brentwood certified an EIR (State Clearinghouse No. 98012058) which has been reviewed and considered, and it has been determined that:

a)Changes or alterations have been required in, or incorporated into the proposed project which avoid or reduce to less than significant levels potentially significant environmental effects identified in the EIR with respect to: (i) water quality impacts which will be mitigated by implementing a source control program and complying with RWQCB permit requirements; and (ii) cultural resources impacts which will be mitigated by stopping work in the area if unknown cultural resources are unearthed.   b) With respect to other potentially significant environmental impacts identified in the environmental document, appropriate changes or alterations are not within the responsibility and jurisdiction of the SWRCB. Such other changes or alterations 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 commitment of $35 million to the City of Brentwood for the construction of the Wastewater Treatment Facility Expansion, 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 the City of Brentwood does not initiate project construction by July 10, 2000. The Division may approve up to a 90 days extension for good cause.

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 July 15, 1999.

Maureen Marché
Administrative Assistant to the Board