HOLTVILLE — A so-called sewer fund will be used to repay loans for this city’s wastewater treatment plant rehabilitation project and the outfall main pipeline project, the City Council decided Monday.
A resolution to commit revenue is a requirement to apply for loans sought by the city through the Clean Water State Revolving Funds, according to a report to the council. The city intends to use revenues from the so-called sewer fund for both projects, the same report notes.
“Both of the applications have been submitted in full,” said City Planner Justina Arce.
The total cost of the wastewater treatment plant rehabilitation is about $7.5 million, and roughly $4.3 million for the outfall main project, according to a report to the council.
Up to 50 percent of the projects’ costs may be provided by the financial division of the State Water Resources Control Board, the same report notes.
In addition, the city could get 75 percent of the financing forgiven if it can demonstrate that it doesn’t have enough sewer fund for the project, said Arce to the Council.
And if considered “severely disadvantaged,” up to 100 percent of the loans not exceeding $6 million could be forgiven, according to a report to the council.
“What can we do to show that?” asked Mayor Jerry Brittsan, referring to the city being severely disadvantaged.
“We are in a battle about that as we speak,” responded Arce.
According to statistics submitted to the state, the city is considered disadvantaged, said Arce, but the state is using a credit consultant whose data is pushing the city to get the 75 percent loan subsidy.
But “even at 75 percent we are talking about a significant portion of subsidy,” she said.
The outfall main pipeline project would run from the intersection of Olive Avenue and Ninth Street to a new manhole located near the wastewater treatment plan.
Two sewer lines along residential blocks that have poor or nonexistent sewage would also be built in the alley of Ninth Street and Tenth streets.
Meanwhile, the 60-year-old wastewater treatment plant needs to be refurbished and main sewer pipelines need to be replaced, Finance Manager Nick Wells said in a previous interview.
Holtville already has a so-called cease and desist order from the California Regional Water Quality Control Board over ammonia discharges. If ammonia discharges are not reduced by 2014, the state will fine the city.
<b>Water tank deal is filed to comply with state</b>
The city’s 1.5 million gallon water tank project’s design and bidding agreement with The Holt Group was approved and filed Monday by the City Council.
The Easter 2010 earthquake damaged the water tank that was later demolished, and since then the city has been cited for noncompliance by the California Department of Public Health over water sanitation.
“The reason we need a contract is simply to ensure that when we are audited in the future that we have a fix amount for engineering,” Arce said.
Federal Emergency Management Agency and California Emergency Management Agency allocated nearly $3 million for the replacement of the tank, according to a report to the council. The agencies also agreed to pay for the inclusion of a disinfection system that would bring the city in compliance with CDPH.
About $274,000 will be paid to The Holt Group for the design, bidding and construction administration of the project, according to a report to the council.
City engineer Jack Holt has been working on the design of the project, which is already 80 percent complete, the same report reads.
Construction will commence in April, Holt said, and completion is expected in October.
Staff Writer Alejandro Davila can be reached at email@example.com or 760-337-3445.