ITEM 4

SUBJECT

APPROVAL OF A STATE REVOLVING FUND LOAN FOR THE TOWN OF WINDSOR (TOWN) FOR THE WASTEWATER TREATMENT PLANT EXPANSION, STATE REVOLVING FUND LOAN PROJECT NO. C-06-4704-110

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 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 Town is located roughly 75 miles North of San Francisco in Sonoma County. The Town’s wastewater treatment facility serves a population of 20,000 with a current average dry weather flow (ADWF) of 1.4 million gallons per day (mgd). The ADWF capacity is 1.5 mgd. The Town projected that the population within its service area will be roughly 36,000 by the year 2015. It is necessary to increase the treatment plant capacity now to handle the projected growth. Construction has begun and the expansion includes additions for secondary treatment, tertiary treatment, UV disinfection, and sludge handling. The estimated cost of the expansion is roughly $9.5 million.

The Town produces and distributes domestic water from Town owned water wells. Water supplies for the service area are adequate for the next 20 years. In accordance with the SRF Policy requirements for water conservation, the Town is a signatory to the Memorandum of Understanding Regarding Urban Water Conservation in California.

The Town prepared a Mitigated Negative Declaration/Initial Study (MND/IS) for the proposed project which was distributed to the public and circulated through the State Clearinghouse (SCH #98052032) for review from May 13, 1998, through June 11, 1998. No written comments were received during the review period. The Town Council approved the project and adopted the Mitigated Negative Declaration on July 1, 1998. The Town filed a Notice of Determination with the Sonoma County Clerk and the Governor’s Office of Planning and Research on July 2, 1998.

On September 14, 1999, the Division issued Facilities Plan Approval to the Town for the wastewater treatment plant expansion project, and the Town agreed in writing with the approval on the same day. The Town requests the SWRCB to approve a loan of $9.5 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?

RWQCB IMPACT

North Coast Regional Water Quality Control Board (NCRWQCB) – completion of this project will improve the Town’s ability to meet the NCRWQCB’s Waste Discharge Requirements as wastewater flows increase with planned future growth.

FISCAL IMPACT

The SWRCB adopted Resolution No. 99-40 on May 20, 1999, which changed the method for determining the amount of funding available for new loans to a system based on the availability of cash to make disbursements to the project under consideration by the SWRCB. A minimum cash balance of $25,000,000 will be maintained. The SRF account balances, anticipated repayment amounts, and project approvals under consideration by the SWRCB in November 1999 are as follows:

	SFY	SFY	SFY	SFY	SFY
	1999-00	2000-01	2001-02	2002-03	2003-04
	___________	__________	__________	_________	_________
Beginning Balance:	$517,428,413	$318,201,877	$123,383,215	$62,771,438	$111,822,255
Est. Repayments:[1]	73,959,359	92,267,142	102,320,609	118,288,293	145,490,205
Cap Grants:[2]	112,520,000	0	0	0	0
Est. SMIF Interest:	10,000,000	6,000,000	1,000,000	1,000,000	1,000,000
Est. Disbursements:[3]	-389,505,895	-279,325,804	-161,532,386	-70,237,476	-0
Subtotal:	$324,401,877	$137,143,215	$65,171,438	$111,822,255	$258,312,460
L.A. County – Malibu Tmt 4498-110		-860,000
City of American Canyon 4666-110	-2,400,000	-7,200,000	-2,400,000
Town of Windsor 4704-110	-3,800,000	-5,700,000



Balance:	$318,201,877	$123,383,215	$62,771,438[4]	$111,822,255	$258,312,460

STAFF RECOMMENDATION

The SWRCB adopts a resolution approving a SRF loan for the proposed project, with a repayment period of 20 years, and with the first repayment due one year after completion of construction.

_______________________________________________________________________________________

DRAFT October 25, 1999

STATE WATER RESOURCES CONTROL BOARD

RESOLUTION NO. 99-__

APPROVAL OF A STATE REVOLVING FUND LOAN

FOR THE WASTEWATER TREATMENT EXPANSION

TOWN OF WINDSOR (TOWN)

STATE REVOLVING FUND LOAN PROJECT NO. C-06-4704-110

WHEREAS:

1. The State Water Resources Control Board (SWRCB), on February 16, 1995, adopted the Policy for Implementing the State Revolving Fund (SRF) for Construction of Wastewater Treatment Facilities, and revised it on June 18, 1998;

2. The SWRCB, on June 17, 1999, adopted the FY 1999/00 SRF Loan Program Priority List which included the Wastewater Treatment Plant Expansion Project in Priority Class C;

3. The Division of Clean Water Programs has approved the project report, environmental documents, and draft revenue program for the Wastewater Treatment Plant Expansion Project;

4. The Town is a signatory to the Memorandum of Understanding Regarding Urban Water Conservation in California; and

5. The Town Council adopted a Mitigated Negative Declaration for the proposed project (State Clearing House No. 98052032) which has been reviewed and considered, and it has been determined that the proposed project will not result in significant negative environmental impacts.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board approves a SRF loan of $9.5 million to the Town of Windsor for the construction of the Wastewater Treatment Plant Expansion, with a repayment period of 20 years, and the first repayment due one year after completion of construction.

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 November 18, 1999.

________________________________

Maureen Marché

Administrative Assistant to the Board

[1] Est. repayments include repayments from existing loans and from loans expected to be executed in the next few years for projects with existing commitments.

[2] An EPA Capitalization Grant of $97,000,000 for SFY 2000 is anticipated (the federal budget is not approved at this time) plus State match funds of $19,400,000. $3,880,000 is deducted for administrative costs.

[3] Estimated disbursements includes disbursements remaining on existing loans as well as disbursements anticipated on loans executed for projects with existing commitments (including FY2000 commitments). The Division will revise the estimated disbursements total each month as cash draw forecasts are updated.

[4] The cash balance on June 30, 2002, is estimated to be $37,771,438 above the level needed to maintain a $25,000,000 reserve.