STATE
WATER RESOURCES CONTROL BOARD
BOARD
MEETING SESSION – DIVISION OF CLEAN WATER PROGRAMS
OCTOBER
21, 1999
APPROVAL OF A STATE
REVOLVING FUND (SRF) LOAN FOR THE CITY OF ESCONDIDO (CITY) FOR CONSTRUCTION OF TERTIARY
TREATMENT IMPROVEMENTS AT THE HALE AVENUE RESOURCE RECOVERY FACILITY, SRF LOAN
PROJECT
NO. C-06-4156-310
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 Statewide priority list need SWRCB approval to
receive a SRF loan. Pursuant to SRF
Policy Section IV.E.3, the Statewide priority list may be adjusted or amended
by the SWRCB at any time for good cause subject to approval by Environmental
Protection Agency. 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 August 17, 1999, the Division issued
Facilities Plan Approval to the City for construction of the tertiary treatment
improvements at the Hale Avenue Resource Recovery Facility (HARRF) and the City
agreed in writing with the approval on August 26, 1999.
The City is located in southern California north
of San Diego. Escondido and the City of
San Diego jointly own and operate the HARRF, an 18 million gallon per day (MGD)
secondary wastewater treatment plant.
The HARRF treats an average daily flow of about 15.5 MGD originating
from the City and Rancho Bernardo area of San Diego County, and discharges its
effluent to the Pacific Ocean through a 16 mile land and ocean outfall.
The existing HARRF outfall system has adequate
capacity for conveying treated wastewater during dry months and periods of
moderate precipitation. The outfall
system consists of a 14 mile land section from the HARRF to a pressure
regulating station just upstream of a connection with the San Elijo Joint
Powers Authority (JPA) land and ocean outfall.
The purpose of the pressure regulating station is to attenuate flows in
the San Elijo JPA outfall during peak flow periods, so that hydraulic pressure
does not exceed the outfall design pressure in the sections downstream of the
station. Due to the pre-set pressure,
Escondido’s flow is limited to 19.2 MGD.
When effluent flow exceeds 19.2 MGD, the HARRF is forced to discharge
secondary effluent to Escondido Creek in violation of the current Waste
Discharge Requirements.
As a result, unpermitted discharges of secondary
effluent occurred in the early 1990’s during heavy rainfall periods. The City undertook a Sewer System Evaluation
Survey and implemented an Infiltration and Inflow (I/I) correction program in
the mid 1990’s which helped attenuate peak flows during storm events. However, while peaks have been attenuated
since the I/I correction, it is impossible to completely eliminate I/I cost
effectively. Unpermitted discharges to
Escondido Creek will occur because of continuing population growth coupled with
peak wet weather flows.
The City’s design engineer determined that the
cost effective solution to this problem is to build tertiary treatment
facilities at the HARRF. The tertiary
plant would be capable of providing 9 MGD of Title 22 filtered and disinfected
water for discharge to Escondido Creek.
The City may only discharge when flow exceeds the capacity of the
outfall and all storage capability has been utilized. On September 9, 1998, the San Diego Regional Water Quality
Control Board (SDRWQCB) adopted Order No. 98-10, which permits intermittent wet
weather discharge to Escondido Creek.
The discharge requirements describe the conditions which must be met
before the City can discharge. The
proposed tertiary facilities consist mainly of filters, ultraviolet radiation
disinfection, and various improvements to the secondary plant which would
enable the production of Title 22 effluent.
The City has provided the Division with a
milestone schedule containing a construction start date (Notice to Proceed) of
October 18, 1999. In accordance with
the SRF Policy Section IX.(I), the sunset date for beginning construction is
hereby established as October 18, 1999.
The Division may approve up to a 90 day time extension of this date for
good cause.
The City meets about 70 percent of its water
needs through purchases of imported water from the San Diego County Water
Authority (Water Authority). The Water
Authority is a member agency of the Metropolitan Water District of Southern
California, which imports water from the State Water Project and the Colorado
River. The remaining 30 percent of the
domestic water supply demand is provided by local surface water and/or
watershed reservoirs. The water sources
are secured through contracts and agreements and City water right ownership. Additionally, the City is planning to
implement a water recycling program which will initially provide about 3,200
acre-feet per year. Both the Water
Authority and the Metropolitan Water District have adopted long term plans
designed to ensure the adequacy and reliability of water supplies to their
service areas beyond the next 20 years.
The City is a signatory to the “Memorandum of Understanding Regarding
Urban Water Conservation in California”, and therefore meets the SRF Policy
requirements for water conservation.
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# 98031083) from March 16, 1998, through May 4,
1998. The City held two public meetings:
one in the City of Encinitas on April 20, 1998, and the other in the City of
Escondido on April 27, 1998. During the
review period, the City received eight oral comments and 18 comment letters
from individuals and local, state and federal agencies. In July 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 July 22, 1998, and filed a Notice of Determination with the
San Diego County Clerk and the Governor’s Office of Planning and Research on
July 28, 1998.
The estimated SRF loan
eligible project cost is $26.8 million.
The City requests the SWRCB approve a loan of $26.8 million for this
project and agrees to pay back the loan in accordance with the SRF Policy.
POLICY ISSUE
1. Should the SWRCB place the City’s Tertiary Treatment Plant
Improvement Project at the Hale Avenue Resource Recovery Facility on the
fundable portion of the FY 1999/2000 Statewide Project Priority List?
2. Should the SWRCB approve SRF loan funding for the proposed
project, including a 20 year period for repayment, with the first repayment due
one year after completion of construction?
3. Should the SWRCB condition this approval by
requiring expiration of the preliminary loan commitment if Notice to Proceed
for the start of construction is not issued by October 18, 1999?
SDRWQCB. The project will enable the City to meet the
SDRWQCB discharge requirements by eliminating unpermitted discharges of
secondary effluent during wet weather periods.
The discharge of Title 22 effluent when necessary meets the Basin Plan
requirements for discharge of treated wastewater to surface waters.
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 October 1999 are as follows:
|
|
SFY |
SFY |
SFY |
SFY |
SFY |
|
|
1999-00 |
2000-01 |
2001-02 |
2002-03 |
2003-04 |
|
|
___________ |
__________ |
__________ |
_________ |
_________ |
|
Beginning
Balance: |
$527,645,913 |
$273,799,338 |
$88,764,928 |
$30,297,438 |
$83,190,774 |
|
Est.
Repayments:[1] |
74,275,604 |
92,681,564 |
102,745,219 |
116,211,062 |
139,765,070 |
|
Cap
Grants:[2] |
55,000,000 |
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] |
-379,722,179 |
-254,015,974 |
-142,112,709 |
-64,317,726 |
-0 |
|
Subtotal: |
$287,199,338 |
$118,464,928 |
$50,397,438 |
$82,690,774 |
$223,455,844 |
|
City
of Escondido
4156-310 |
-5,400,000 |
-10,800,000 |
-10,600,000 |
|
|
|
City
of Patterson
4508-110 |
0 |
|
|
|
|
|
Bodega
Bay PUD
4615-110 |
|
-1,900,000 |
|
|
|
|
Elsinore Valley MWD 4686-110 |
-8,000,000 |
-17,000,000 |
-8,500,000 |
|
|
|
Glenn Co. Res. Con.
Dist. 6063-110 |
|
|
-1,000,000 |
|
|
|
|
|
|
|
|
|
|
Balance: |
$273,799,338 |
$88,764,928 |
$30,297,438[4] |
$83,190,774 |
$223,955,844 |
That the SWRCB place the
City’s Tertiary Treatment Plant Improvement Project at the Hale Avenue Resource
Recovery Facility on the FY 1999/2000 Statewide project Priority List, and that
the SWRCB adopt a resolution approving a SRF loan of $26.8 million for the
proposed project, with a period of 20 years, and with the first repayment due
one year after completion of construction.
In accordance with Section IX.(I) the February 16, 1995, SRF Policy
amended on June 18, 1998, the proposed resolution includes an expiration date
for this preliminary loan commitment if Notice to Proceed for construction is
not issued by October 18, 1999.
_______________________________________________________________________
DRAFT September 27, 1999
STATE WATER RESOURCES CONTROL BOARD
RESOLUTION NO. 99-__
APPROVAL
OF A STATE REVOLVING FUND (SRF) LOAN FOR THE CITY OF ESCONDIDO
(CITY) FOR
CONSTRUCTION OF TERTIARY IMPROVEMENTS AT THE HALE AVENUE RESOURCE RECOVERY
FACILITY, SRF LOAN PROJECT NO. C-06-4156-310
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 2, 1999, adopted the Federal Fiscal Year (FFY)
1999/2000 SRF Loan Program Priority List, and also may adjust or amend its
Statewide Project Priority List at any time to include new projects;
3. The
Division of Clean Water Programs (Division) has approved the facilities plan;
4. The City is signatory to the “Memorandum of Understanding
Regarding Urban Water Conservation in California”; and
5. The City certified an EIR (State Clearinghouse No. 98031083)
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 opening the San Elijo lagoon
mouth to provide tidal flushing if discharges occur when the lagoon mouth is
closed, and (ii) impacts to identified historic properties which will be
avoided by fully delineating the archaeological site boundary, creating a
buffer zone between the archaeological site and the graded staging area, and
using orange construction fencing to definitively and noticeably mark the
archaeological site boundary and buffer zone.
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:
1. The
State Water Resources Control Board places the City of Escondido’s Tertiary
Treatment Plant Improvement Project at the Hale Avenue Resource Recovery
Facility on the FY 1999/2000 Statewide Project Priority List, and
2. Approves a SRF loan of $26.8 million to the
City of Escondido for the construction of the tertiary treatment improvements
at the Hale Avenue Resource Recovery Facility.
The repayment period shall be 20 years, and the first repayment due one
year after completion of construction.
3. Will withdraw this preliminary SRF loan
commitment if Notice to Proceed for construction is not given by October 18,
1999. The Division may approve up to a
90 day time 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 October 21, 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 $55,000,000 for SFY 2000 is anticipated. However, the federal budget is not approved at this time.
[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 $5,297,438 above the level needed to maintain a $25,000,000 reserve.