ITEM 2 : APPROVAL OF A STATE REVOLVING FUND LOAN FOR THE NIPOMO COMMUNITY SERVICES DISTRICT, SOUTHLAND WASTEWATER TREATMENT PLANT EXPANSION, STATE REVOLVING FUND LOAN PROJECT NO. C-06-4501-110
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 January 18, 1996, 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 January 8, 1998, the Division issued Facilities Plan Approval to Nipomo Community Services District (District) for the Southland Treatment Plant Expansion Project, and the District agreed in writing with the approval on January 9, 1998.
The District is located in the southern portion of the San Luis Obispo County, The District currently serves a population of 3,000 and the treatment plant average flow is about 0.3 million gallons per day. The proposed project is a two-phase expansion of the existing treatment plant facilities in order to increase capacity to serve existing development within the service area, and to allow the District to serve complete built-out population within the District boundary. The estimated project cost is $1.9 million, and the estimated loan eligible cost is $1.5 million.
The domestic water supply for the District is provided by groundwater pumping. Water supplies are adequate for the 20-year project life because adequate supplies of groundwater and pumping capacity is available. On May 28, 1997, the District submitted an acceptable water conservation plan which complies with the SRF Policy for water conservation requirements.
The District has provided the Division with a schedule for the submittal of final plans and specifications and other milestones. These dates are contained in the milestone schedule in the Division's facilities plan approval letter. In accordance with Section VIII (J) of the SRF Policy, the Division will add eight (8) weeks to complete its review and approval process. The Division may approve up to a ninety (90) day extension for good cause.
The Nipomo Community Services District prepared a draft Negative Declaration/Initial Study (ND/IS) which was distributed to the public and circulated through the State Clearinghouse House (SCH# 96081004) for review from August 1, 1996, through August 30, 1996. During the review period, the District received two comment letters: 1) San Luis Obispo Department of Planning and Building comments related to the document's analysis on water use, noise and archaeology; 2) The SWRCB comments were related to federal consultation requirements and potential impacts to cultural resources. The District considered the comments, approved the project, and adopted the Negative Declaration on October 2, 1996. A Notice of Determination was filed with the San Luis Obispo County Clerk and the Governor's Office of Planning and Research on October 3, 1996.
The District requests the SWRCB approve a loan of $1.5 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 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 plans and specifications are not submitted by May 15, 1998 for Phase I, and December 15, 1998 for Phase II of the project.
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 March 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: | $32,466,561 | |||
| FFY 98 Fed. Cap. Grant: | $77,774,121 | $14,679,936 | ||
| 1996 Bond Funds: | $47,292,822 | |||
| Previous Commitments: | -$168,256,982 | -$147,452,850 | -$84,895,000 | |
| Subtotal: | $11,311,230 | -0- | $1,348,430 | |
| City of Wasco | 4243-110 | -$5,100,000 | ||
| City of Nipomo | 4501-110 | -$1,500,000 | ||
| Balance: | $4,711,230 | -0- | $1,348,430 |
STAFF RECOMMENDATION: That the SWRCB adopt a resolution approving a SRF loan of $1.5 million from the FFY 1998 account 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 February 16, 1995, SRF Policy, amended on January 18, 1996, the proposed resolution includes an expiration date for this preliminary loan commitment if the submittal date of final plans and specifications is not met.
DRAFT March 2, 1998
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," and revised it on January 18, 1996;
2. The State Water Resources Control Board, on September 18, 1997, adopted the FFY 1998 SRF Loan Program Priority List which included the Southland Wastewater Treatment Plant Expansion, Nipomo Community Services District in Priority Class D;
3. The Division of Clean Water Programs has approved the project report, environmental documents, draft revenue program, and water conservation plan for the Nipomo Community Services District Project; and
4. The Nipomo Community Services District has approved and adopted a Negative Declaration (State Clearinghouse No. 96081004) which has been reviewed and considered and it has been determined that the project will not result in any significant impacts.
THEREFORE BE IT RESOLVED THAT:
The State Water Resources Control Board
1. Approves a SRF loan commitment of $1.5 million to the Nipomo Community Services District for construction of the Southland Wastewater Treatment Plant Expansion, 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 submitted to the Division of Clean Water Programs by May 15, 1998 for Phase I, and December 15, 1998 for Phase II of the project. The Division may approve up to a ninety (90) day extension for good cause.
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 March 25, 1998.
Maureen Marché
Administrative Assistant to the Board