ITEM 4: APPROVAL OF AMENDMENTS TO THE STATE REVOLVING FUND (SRF) LOAN CONTRACTS BETWEEN THE STATE WATER RESOURCES CONTROL BOARD (SWRCB) AND THE CITY OF CLOVERDALE AND THE SWRCB AND PADRE DAM MUNICIPAL WATER DISTRICT TO MODIFY PROVISIONS FOR SUBMITTAL OF PROJECT PERFORMANCE CERTIFICATION REPORTS.

DISCUSSION: The SWRCB's Policy for Implementing the State Revolving Fund (SRF) for Construction of Wastewater Treatment Facilities (Policy) requires loan recipients to submit project performance certification reports and signed certification forms stating whether the loan funded facilities meet performance standards and loan conditions. The Policy, amended January 21, 1993, and Section 7 of loan contracts issued under that Policy, state: "failure to submit an affirmative certification within thirteen (13) months or a negative certification with a corrective action report ... within fifteen (15) months, of the project completion date will result in an interest penalty of 0.1 percent per day being assessed on the outstanding loan balance due."

Two loan recipients are late in submittal of project performance certification reports as follows:
 

Loan Recipient	Loan Contract Number	Due Date for  Project Performance Certification	Amount of  Penalty as of  April 14, 1999
City of Cloverdale	C-06-4301-110	September 4, 1998	$ 249,204.35
Padre Dam Municipal Water District	C-06-4245-110	September 6, 1998	$2,256,621.40

Staff of the Division of Clean Water Programs (DCWP) had not reminded the loan recipients of the pending requirement for submitting the project performance certification reports, as is the usual practice. On March 12, 1999, DCWP staff notified the loan recipients that they were late in submitting project performance certification reports, and that they had accrued penalties. Once reminded, both loan recipients were responsive. New due dates of April 14, 1999 were established for submittal of the project performance certification reports. Staff of the DCWP recommends that if the project performance certification reports are received by April 14, 1999, no penalties for late submittal should be assessed.

POLICY ISSUE: Should the SWRCB approve amendments to the provisions contained in Section 7 of the loan contracts for the City of Cloverdale and Padre Dam Municipal Water District to extend the due dates for submittal of project performance certification reports to April 14, 1999?

RWQCB IMPACT: None

FISCAL IMPACT: None

STAFF RECOMMENDATION: That the SWRCB approve amendments to the provisions contained in Section 7 of the loan contracts for the City of Cloverdale and Padre Dam Municipal Water District to extend the due dates for submittal of project performance certification reports to April 14, 1999.

1. The State Water Resources Control Board, on August 18, 1988, adopted the "Policy for Implementing the State Revolving Fund (SRF) for Construction of Wastewater Treatment Facilities," and amended it on September 20, 1990, and on January 21, 1993;

2. The State Water Resources Control Board and Padre Dam Municipal Water District entered into Loan Contract No. 5-803-550-0, Loan No. C-06-4245-110, on August 8, 1995, for construction of publicly owned treatment works;

3. The State Water Resources Control Board and the City of Cloverdale entered into Loan Contract No. 5-817-550-0, Loan No. C-06-4301-110, on June 13, 1996, for construction of publicly owned treatment works;

4. The City of Cloverdale and Padre Dam Municipal Water District are late in submittal of project performance certification reports and, unless the deadlines for submittal are extended, have incurred penalties as specified in Section 7 of their Loan Contracts;

5. The City of Cloverdale and Padre Dam Municipal Water District individually came to an agreement with the Division of Clean Water Programs to a revised deadline of April 14, 1999, for submittal of project performance certification reports.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board approve amendments to the provisions contained in Section 7 of the loan contracts for the City of Cloverdale and Padre Dam Municipal Water District to extend the deadline for submittal of project performance certification reports to April 14, 1999.

Maureen Marché
Administrative Assistant to the Board