ITEM 6: APPROVAL OF A STATE REVOLVING FUND LOAN FOR THE CITY OF PLACERVILLE, HANGTOWN CREEK WASTEWATER TREATMENT PLANT PHASE IIB PROJECT, STATE REVOLVING FUND LOAN PROJECT NO. C-06-4505-110

DISCUSSION: The State Water Resources Control Board (SWRCB) adopted Resolution No. 97-59 on July 17, 1997. Resolution No. 97-59 approved a zero percent interest SRF loan of $3,500,000 to the City of Placerville (City) for the construction of the Hangtown Creek Wastewater Treatment Plant Phase IIB project. The City has requested in writing that the loan commitment approved by Resolution No. 97-59 be changed to a standard low interest SRF loan. The City would like to retain their reserve funds for infrastructure improvements.

The City of Placerville requests the SWRCB approve a loan of $3,500,000 for this project and agrees to pay back the loan in accordance with the SRF Policy.

POLICY ISSUE Should the SWRCB approve SRF loan to replace the zero percent interest SRF loan for the proposed project, including a twenty (20) year repayment period, with the first repayment due one (1) year after completion of construction?

RWQCB IMPACT: None.

FISCAL IMPACT: None. The loan commitment has previously been accounted for when the proposed project was approved for the zero percent interest SRF loan on July 17, 1997.

STAFF RECOMMENDATION: That the SWRCB adopt a resolution approving a SRF loan to replace the zero percent interest SRF loan 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.

DRAFT March 16, 1998

WHEREAS:

The State Water Resources Control Board, on July 17, 1997, adopted Resolution No. 97-59;

2. Resolution No. 97-59 approved a zero percent interest SRF loan of $3,500,000 to the City of Placerville for construction of the Hangtown Creek Wastewater Treatment Plant Phase IIB project, and

3. The City of Placerville has requested that its application request be changed from a zero percent interest loan to a low interest loan.

THEREFORE BE IT RESOLVED THAT

The State Water Resources Control Board:

Approves a low interest SRF loan of $3,500,000 to the City of Placerville for construction of the Hangtown Creek Wastewater Treatment Plant Phase IIB project as a replacement for the zero percent interest SRF loan approved by Resolution No. 97-59, with the following provisions:

1. the repayment period is twenty (20) years; and
2. the first repayment due one (1) year after completion of construction.

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