(5)AR 092110 STATE WATER RESOURCES CONTROL BOARD

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DATE: TO: FROM: PREPARED BY: SUBJECT: ITEM NO. 05 STAFF REPORT SEPTEMBER 21, 2010 HONORABLE MAYOR AND CITY COUNCIL ROD FOSTER, CITY MANAGER/GENERAL MANAGER JAMES EARHART, INTERIM UTILITY SERVICES DIRECTO APPROVAL TO AMEND THE STATE REVOLVING FUND OAN BETWEEN THE STATE WATER RESOURCES CONTROL BOARD AND THE CITY OF COLTON WASTEWATER DEPARTMENT TO INCLUDE THE SERVICE CHARGE LANGUAGE. RECOMMENDED ACTION 1. Staff recommends that the City Council approve to amend the State Revolving Fund Loan with the State Water Resources Control Board to include the service charge language. 2. It is recommended that the Colton Utility Authority Board review, ratify and to the extent necessary, direct the City Council to take the above action(s). GOAL STATEMENT To amend the SRF Loan between the State Water Resources Control Board and the City of Colton Wastewater Department. BACKGROUND On April 7, 1995, the Regional Water Quality Control Board (RWQCB) adopted Cease and Desist Order No. 95-36, ordering the City of Colton to make certain improvements to the City's Secondary Wastewater Treatment Plant. As a result of the Cease and Desist Order, the Council and Utilities Commission moved quickly to determine a course of action to comply with the RWQCB directives. On September 18, 1997, the State Water Resources Control Board approved the City of Colton's application for a State Revolving Fund Loan for the Wastewater Treatment Plant Expansion and Renovation for Hydraulic Reliability. On March 24, 1998, the State Water Resources loaned the City of Colton's Wastewater Department $8,114,108 (Contract No.: 7-817-550-0, Loan No.: C-06-4251-110); the first loan payment began on July 2, 2002 and the final payment due on July 2, 2022.