STATE WATER RESOURCES CONTROL BOARD

WORKSHOP SESSION -- DIVISION OF CLEAN WATER PROGRAMS

FEBRUARY 4, 1998

ITEM 8: RECOMMITMENT OF STATE REVOLVING FUND (SRF) LOAN FOR THE CITY OF ALAMEDA FOR THE CONSTRUCTION OF PHASE VI OF THE INFILTRATION AND INFLOW CORRECTION PROGRAM, SRF LOAN PROJECT NO. C-06-4007-410

DISCUSSION: On June 22, 1995, the State Water Resources Control Board (SWRCB) approved a $3.6 million loan for the City of Alameda (City) for the construction of Phase V and VI of the Infiltration and Inflow Correction Program as given in SWRCB Resolution No. 95-26 (Attachment 1). The Resolution stated that the preliminary loan commitment would expire if biddable plans and specifications (P&S) for Contract No. 1 (Phase V) and No. 2 (Phase VI) were not approved by the Division of Clean Water Programs (Division) by October 1, 1995, and January 1, 1996, respectively. The City received P&S approval and loan funding for Phase V. The City did not meet the Phase VI schedule and the Division notified the City that the preliminary loan commitment was automatically withdrawn. The City was unable to submit the P&S to the Division for approval due to project engineering staff changes and an increase in work load in the City's Public Works Department. The City's October 30, 1997, letter (Attachment 2) requests that the SWRCB recommit the loan funding for Phase VI of the Infiltration and Inflow Correction Program, SRF Project No. C-06-4007-410. The City submitted the biddable P&S on December 10, 1997.

POLICY ISSUE: Should the SWRCB recommit $2.3 million of SRF loan funding from the FFY 1998 SRF account for the proposed project, including a twenty (20) year repayment period, with the first repayment due one (1) 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 biddable P&S are not approved by March 16, 1998?

RWQCB IMPACT: None

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 February 1998 are as follows:

 


 Loan No. 1998 1999 2000
SRF Account Repayment Repayment



Repayments:
$69,327,530 $68,384,074 $68,994,744
125% Repayments:

$85,480,092 $86,243,430
FFY 97 Carryover:
$28,689,092

FFY 98 Fed. Cap. Grant:
$77,774,121 $14,679,936
1996 Bond Funds:

$47,292,822
Previous Commitments:
-$141,356,982 -$147,452,850 -$84,895,000
Subtotal:
$34,433,761 -0- $1,348,430



City of Escondido 4156-110 +$8,500,000

City of Alameda 4007-410 -$2,300,000

La Canada - Flintridge 4252-310 -$7,100,000

City of Benicia 4528-110 -$26,000,000 ____________ ___________



Balance:
$7,533,761 -0- $1,348,430

STAFF RECOMMENDATION: That the SWRCB adopt a resolution recommitting loan funding for the proposed project, with a repayment period of twenty (20) years, and with the first repayment due one (1) year after completion of construction. In accordance with the SRF Policy, the proposed resolution includes an expiration date for this preliminary loan commitment based on the submittal and approval of biddable P&S.

[Attachments not available electronically but can be obtained by calling Patrick Lam at (916) 227-4569.]

DRAFT 1/26/98

STATE WATER RESOURCES CONTROL BOARD

RESOLUTION NO. 98 -

RECOMMITMENT OF A STATE REVOLVING FUND LOAN FOR CONSTRUCTION OF PHASE VI OF THE INFILTRATION AND INFLOW CORRECTION PROGRAM -- CITY OF ALAMEDA STATE REVOLVING FUND LOAN PROJECT NO. C-06-4007-410

WHEREAS:

1. The State Water Resources Control Board, on February 16, 1995, adopted the "Policy for Implementing the State Revolving Fund (SRF) for Construction of Wastewater Treatment Facilities (SRF Policy)" and amended it on January 18, 1996;

2. The State Water Resources Control Board, on June 22, 1995, approved a $3.6 million loan for the construction of Phases V (and VI) of the Infiltration and Inflow Correction Program, City of Alameda;

3. The preliminary loan commitment contained the requirement from Section IX(J) of the SRF Policy and specified that the expiration date for the preliminary loan commitment be January 1, 1996 for Contract No. 2 (Phase VI);

4. The City was unable to submit the plans and specification for Phase VI to the Division for approval by the expiration date for the preliminary loan commitment due to engineering staff changes and an increase in work load in the City's Public Works Department; and

5. The City submitted the biddable plans and specifications on December 10, 1997 and is requesting a recommitment of loan funding for Phase VI of the Infiltration and Inflow Correction Program.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board

1. Recommits SRF loan funding of $2.3 million from the FFY 1998 account to the City of Alameda for the construction of Phase VI of the Infiltration and Inflow Correction Program, with a repayment period of twenty (20) years, and the first repayment due one (1) year after completion of construction; and

2. Will withdraw this preliminary SRF loan commitment if biddable plans and specifications are not approved by the Division by March 16, 1998.

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 19, 1998.

______________________________

Maureen Marché

Administrative Assistant to the Board