Inter-Departmental Correspondence

Department of Public Works



May 1, 2009


May 19, 2009







Honorable Board of Supervisors


James C. Porter, Director of Public Works


Adopt a Resolution Authorizing the Director of Public Works to Submit a Financial Assistance Application and Execute Financing Agreement(s) with the State Water Resources Control Board for Clean Water State Revolving Funds



Acting as the governing board of the ten County Sewer Maintenance/Sanitation Districts (Districts), adopt a resolution authorizing the Director of Public Works to submit a Financial Assistance Application to the State Water Resources Control Board for Clean Water State Revolving Funds (CWSRF) to fund construction of improvements to the sanitary sewer facilities in the various Districts, and to negotiate and execute financial assistance agreement(s) from the State Water Resources Control Board and any amendments or change orders thereto, and certify financing agreement disbursements on behalf of the Districts.



Commitment: Ensure basic health and safety for all.

Goal (7): Maintain and enhance the public safety of all residents and visitors.


Authorizing the Director of Public Works to enter into financial agreement(s) with the SWRCB can result in the Districts receiving the necessary funds, at a low fixed interest rate, to improve existing sewer facilities, which will benefit the public.



The Sewer Master Plans prepared in 1999/2000 for nine of the ten Districts recommended Capital Improvement Program (CIP) projects estimated to cost over $11 Million to correct sewer facility issues related to: lack of capacity, structural deficiencies (cracked pipes), or excessive operation and maintenance expenses. The Edgewood Sewer Maintenance District did not exist at that time, has a recently constructed sewer system, and does not require capital improvements.



The operation, maintenance, repair, and replacement of the Districts’ sanitary sewer facilities are funded by the annual sewer service charges collected from property owners in the Districts. Some CIPs have been postponed because the annual sewer service charge rates the Districts had been able to set were not sufficient to fund the identified CIPs. The identified improvements are needed to maintain the systems and minimize sanitary sewer overflows (SSOs), which could potentially contaminate water bodies adjacent to sanitary sewer systems.


Recent developments have highlighted the need to access funding to make the repairs. The San Francisco Bay Regional Water Quality Control Board has recently issued a Cease and Desist Order and an Administrative Civil Liability complaint to the Crystal Springs County Sanitation District for the SSOs that have occurred in that District. In addition, San Francisco Baykeeper has filed a civil suit against the Burlingame Hills Sewer Maintenance District, which includes requirements for system improvements and reductions of SSOs.


We believe it is prudent and cost effective to obtain funds to pay for identified CIP projects within the nine districts and to realize the effectiveness of economies of scale. In order for projects to receive CWSRF funding, local agencies must submit applications to the SWRCB. A resolution authorizing a representative to submit the financial assistance application and negotiate and execute financing agreement(s) is required to be adopted by the governing board of an agency.


Plans and specifications for the projects will be prepared by the Department. The resolution has been approved as to form by County Counsel.



The projects are estimated to cost approximately $11,000,000. The CWSRF will be in the form of low interest loans, which will be repaid by the District revenue from the sewer service charges levied on properties receiving sewer service from the Districts.


There is no impact to the General Fund.