HomeMy WebLinkAbout04.c. Receive update on State Revolving Fund (SRF) Loan Status for Solids Handling Facilities Improvements Project Page 1 of 3
Item 4.c.
CENTRAL SAN
September 24, 2019
TO: FINANCE COMMITTEE
FROM: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION
MANAGER
REVIEWED BY: JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL
SERVICES
ROGER S. BAILEY, GENERAL MANAGER
SUBJECT: RECEIVE UPDATE ON STATE REVOLVING FUND (SRF) LOAN STATUS
FOR SOLIDS HANDLING FACILITIES IMPROVEMENTS PROJECT
An announcement was provided at the June 20, 2019 Board meeting that the State Water Resources
Control Board approved the SRF Intended Use Plan, which included $89.625 million in funding for Central
San's District Project 7348, Solids Handling Facility Improvements (Solids Project). The SRF funding
program provides low interest loans, currently at 1.30%. An optional program allows for a 0.25% discount
by reducing the loan term from 30 years to 20 years, which would equate to a 1.05% interest rate.
The application was deemed complete by the Division of Financial Assistance (DFA) but is subject to the
review process outlined in the attachment. The DFA is currently reviewing the environmental package and
Central San's California Environmental Quality Act for the Solids Project. The next step is for the design
documents to be completed and reviewed by the DFA in order to have an I nitial Financial Agreement
signed, after which the project could be put out to bid, currently planned in spring 2020.
Strategic Plan re-In
GOAL THREE: Be a Fiscally Sound and Effective Water Sector Utility
Strategy 1 - Conduct long-range financial planning
GOAL FIVE: Maintain a Reliable Infrastructure
Strategy 2- Facilitate long-term capital renewal and replacement
ATTACHMENTS:
1. SRF Process Timeline
2. SRF Interest Rate History
September 24, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 102 of 128
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Page 3 of 3
ATTACHMENT 2
California Drinking Water State Revolving Fund
Interest Rate History
YEAR RATE*
2019 1.9007
2018 1 .800%
2017 1 .7000%
2016 1 .6000%
2015 1 .6630%
2014 2.0850%
2013 1 .7875%
2012 2.0933%
2011 2.3035%
2010 2.5707%
2009 2.5017%
2008 2.3086%
2007 2.2836%
2006 2.2923%
2005 2.4517%
2004 2.6000%
2003 2.3400%
2002 2.3900%
P22001 2.5132%
000 2.3200%
*The State Water Resources Control Board's interest rate for Drinking Water State
Revolving Fund financing is 50 percent of California's average general obligation
bond rate obtained by the State Treasurer for the previous calendar year.
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Water Boards I.
September 24, 2019 Regular FINANCE Committee Meeting Agenda Packet- Page 104 of 128