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April 9, 1990 <br />00 Tyler Stneet, Suite 207, Rit�er� <br />City of Colton <br />650 North La Cadena Drive <br />Colton, California 92324 <br />Attention: Mr. John Hutton <br />Mr. Soco Reyes <br />Calif. 92503 (714) 785-5411 <br />COMMISSION FOR THE PROJECT AUTHORITY <br />CHINO BASIN MUNICIPAL WATER OISTRICT <br />EASTERN MUNICIPAL WATER DISTRICT <br />ORANGE COUNTY WATER DISTRICT <br />SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT <br />WESTERN MUNICIPAL WATER DISTRICT <br />Subject: Colton/San Bernardino Tertiary <br />Treatment Project <br />Gentlemen: <br />FAX 785-7076 <br />The three-fold purpose of this letter is to provide a report on the <br />status of the subject project, obtain a current confirmation of the <br />project funding arrangement and an acknowledgement of the proposed <br />sales schedule for the financing instruments. <br />BACRGROUND <br />In 1986, when the cities of San Bernardino and Colton were faced <br />with the Regional Water Quality Control Board's order that they <br />upgrade their wastewater treatment, the two cities joined with <br />SAWPA to study approaches to tertiary treatment. Since that time, <br />a feasibility study has been conducted which determined that the <br />least costly approach would be development of a regional treatment <br />plant to serve both the cities using the rapid infiltration (RIX) <br />method. This method uses rapid infiltration of wastewater through <br />natural soils followed by extraction by wells, disinfection and <br />discharge into the Santa Ana River. Before approving this <br />approach, the Regional Board and the State Department of Health <br />Services are requiring that a demonstration project be constructed <br />and operated for one year. The financing plan for the <br />demonstration project, adopted by SAWPA and the two cities, calls <br />for SAWPA to issue lease bonds (or certificates of participation) <br />for the project, secured by leases with the two cities. <br />The two cities and SAWPA entered into a series of agreements last <br />July and August dealing with the implementation and financing of <br />the project. Under these agreements, San Bernardino and Colton <br />agree to share the costs of the project 75 percent and 25 percent, <br />respectively; SAWPA is directed to secure financing for the project <br />