STATE WATER RESOURCES CONTROL BOARD

WORKSHOP SESSION – DIVISION OF CLEAN WATER PROGRAMS

FEBRUARY 2, 2000

 

ITEM  4

 

SUBJECT

 

APPROVAL OF A STATE REVOLVING FUND LOAN FOR THE TEMPLETON COMMUNITY SERVICES DISTRICT (DISTRICT) FOR THE WASTEWATER TREATMENT PLANT EXPANSION, STATE REVOLVING FUND (SRF) LOAN PROJECT NO. C-06-4486-110

 

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.

 

On December 21, 1999, the Division issued Facilities Plan Approval to the District for the wastewater treatment plant expansion project, and the District agreed in writing with the approval on January 3, 2000.

 

The District is located approximately 25 miles North of the City of San Luis Obispo and along Highway 101.  The District serves a population of approximately 3,000.  Wastewater generated within the District is being sent to Meadowbrook Wastewater Treatment Plant and Paso Robles Wastewater Treatment Plant for treatment and disposal.  At present, approximately 0.04 mgd of the dry weather flow (DWF) is being sent to the Meadowbrook Wastewater Treatment Plant for treatment and disposal.  The remainder, approximately 0.34 mgd of the DWF, is being sent to Paso Robles Wastewater Treatment Plant for treatment and disposal.  Wet weather flow is approximately 0.76 mgd.  District conveyance facilities are currently at or near their carrying capacity for transporting the sewage to the Paso Robles Wastewater Treatment Plant in the winter months and the District’s agreement with the City of Paso Robles for wastewater treatment is limited to 0.44 mgd based on annual flow.  The District determined that the more economical method to remedy the lack of wastewater conveyance and treatment capacity is to expand the treatment capacity at Meadowbrook Wastewater Treatment Plant from 0.04 mgd DWF to 0.3 mgd DWF to accommodate the wet weather flows and the population growth projected for the next 20 years.  The District will continue to utilize its treatment capacity at Paso Robles Wastewater Treatment Plant to treat the Eastside portion of the sewage until the next expansion at Meadowbrook Wastewater Treatment Plant which is planned for sometime after 2010.

 

The Meadowbrook Wastewater Treatment Plant was operated under the Central Coast Regional Water Quality Control Board (CCRWQCB) Permit No. 92-108 for 0.04 mgd DWF.  The District requested new waste discharge requirements (WDR) for the proposed Meadowbrook Wastewater Treatment Plant Expansion and the CCRWQCB issued WDR Order No. 98-74 for the proposed increase flow 0.3 mgd DWF at Meadowbrook Wastewater Treatment Plant on October 23, 1998.

 

The District produces and distributes domestic water from District owned water wells and from surface water taken from Salinas River under SWRCB water right Permit No. 8964.  The District is also a participant in the Lake Nacimiento Water Pipeline Project and has requested allocation of 1,475 acre-feet per year (AFY) of this water through San Luis Obispo County which has an entitlement to 17,500 AFY of the Lake Nacimiento water.  Water supplies for the service area are adequate for the next 20-years.  In accordance with the SRF Policy requirements for water conservation, the District is a signatory to the Memorandum of Understanding Regarding Urban Water Conservation in California.

 

The District prepared a Mitigated Negative Declaration/Initial Study (MND/IS) for the proposed project, which was distributed for public review and circulated through the state clearinghouse (SCH# 98031084) from March 16, 1998, through April 15, 1998.  The District held a public meeting on May 5, 1998.  During the review period, the District received comments from four state agencies, and one county agency.  The District considered the comments and made minor changes to the MND/IS in response to the comments.  The District‘s Board of Directors approved the project and adopted the MND/IS on May 5, 1998.  The District filed a Notice of Determination with the San Luis Obispo County Clerk and the Governor’s Office of Planning and Research on December 1, 1998.

 

The District requests the SWRCB to approve a loan of $2.5 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 final plans and specifications are not submitted by October 30, 2000.

 

RWQCB IMPACT

 

CCRWQCB – completion of this project will improve the District’s ability to avoid wet weather overflows and to meet the CCRWQCB’s WDRs 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 February 2000 are as follows:

 

 

SFY

SFY

SFY

SFY

SFY

 

1999-00

2000-01

2001-02

2002-03

2003-04

 

___________

__________

__________

_________

_________

Beginning Balance:

$517,435,127

$302,775,117

$132,694,161

$115,392,944

$170,666,449

Est. Repayments:[1]

74,109,438

91,176,831

101,709,851

120,022,664

145,926,377

Cap Grants:[2]

111,300,181

63,800,000[3]

63,800,000

0

0

Est. SMIF Interest:

10,000,000

6,000,000

1,000,000

1,000,000

1,000,000

Est. Disbursements:[4]

-400,869,629

-313,157,787

-174,111,068

-65,749,159

-0

     Subtotal:

$311,975,117

$150,594,161

$125,092,944

$170,666,449

$317,592,826

City of Thousand Oaks               4429-120

-7,100,000

-13,000,000

-9,700,000

 

 

Templeton Comm Serv Dist        4486-110

 

-2,500,000

 

 

 

Stege Sanitary District                 4665-110

 

-2,400,000

 

 

 

City of Westmorland                    4705-110

-2,100,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance:

$302,775,117

$132,694,161

$115,392,944

$170,666,449

$317,592,826

 

STAFF RECOMMENDATION

 

The SWRCB adopt a resolution approving a SRF loan commitment 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 June 18, 1998, SRF Policy, the proposed resolution includes an expiration date for this preliminary loan commitment if the final plans and specifications are not submitted by October 30, 2000.

 

__________________________________________________

DRAFT  January 21, 2000

 

STATE WATER RESOURCES CONTROL BOARD

RESOLUTION NO. 2000 - ___

 

APPROVAL OF A STATE REVOLVING FUND LOAN FOR THE WASTEWATER TREATMENT EXPANSION TEMPLETON COMMUNITY SERVICES DISTRICT (DISTRICT)

STATE RESOLVING FUND LOAN PROJECT NO. C-06-44864-110

 

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 State Year 1999/00 SRF Loan Program Priority List which

included the District’s Wastewater Treatment Plant Expansion Project in Priority Class D;

 

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

 

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

 

5.  The District has adopted a Mitigated Negative Declaration for the proposed project (State Clearing House No. 98031084) 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:

 

1.  Approves a SRF loan commitment of $2.5 million to the Templeton Community Services District 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; and

 

2.  Will withdraw this preliminary SRF loan commitment if final plans and specifications are not submitted by October 30, 2000.  The Division may approve up to a 90-day 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 February 17, 2000.

 

                                                            ______________________________

                                                            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 $95,948,432 for SFY 2000 is anticipated (the final 0.38% reduction in the federal budget is not approved at this time) plus State match funds of $19,189,686.  $3,837,937 is deducted for administrative costs.

[3] An EPA Capitalization Grant of $55,000,000 for SFY’s 2001 and 2002 is forecast.  The 20% state match is added and the 4% administrative allowance is deducted

[4] Estimated disbursements include 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.