FROM:
Engineering
SUBJECT:
Title
Authorization to Apply for the Clean Water State Revolving Fund (“CWSRF”) with California State Water Resources Control Board
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RECOMMENDATION:
Recommendation
1. Authorize the Public Works & Engineering Department to apply for CWSRF with the California State Water Resources Control Board.
2. Authorize the City Manager, or City Manager’s designee, to enter into and transmit any documents necessary or desirable to ensure the City's timely submittal of the CWSRF.
3. Adopt Resolution No. 2026-089, delegating the City Manager with signing authority to enter into the financial assistance agreement, if awarded, and any amendments or changes thereto, and enter into all certifications, commitments, disbursement requests, and other documents necessary to secure and administer the financial assistance.
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COUNCIL GOALS:
• To practice sound fiscal management by pursuing grant opportunities.
• To invest in the City’s infrastructure (streets, sewers, parks, etc.) by maintaining and improving the city's existing infrastructure.
• To invest in the City’s infrastructure (streets, sewers, parks, etc.) by providing for the development of new infrastructure.
DISCUSSION:
The California State Water Resources Control Board administers the Clean Water State Revolving Fund (“CWSRF”) program, which provides financial assistance for eligible wastewater and water-quality infrastructure projects. CWSRF assistance may include below-market financing and, depending on project eligibility and available funding, principal forgiveness or other forms of additional subsidy.
The City is pursuing CWSRF financial assistance for the Septic-to-Sewer Conversion Project. The proposed project is located in the eastern portion of the City, generally north of Merrill Avenue and west of Maple Avenue, with portions of the proposed sewer main extending south to connect to the existing sewer infrastructure. The project area generally encompasses the area identified as F08 in Inland Empire Utilities Agency's Septic-to-Sewer Feasibility Study dated May 2026.
The project primarily consists of 8-inch sewer mainlines, with larger trunk sewer lines up to 12 inches in diameter. In total, the project would construct several miles of new sewer infrastructure to facilitate the future conversion of properties currently served by septic systems to the public sewer system.
As part of the CWSRF application process, the State Water Resources Control Board requires the City's governing body to designate an Authorized Representative. The State's required resolution identifies the Authorized Representative as the individual authorized to sign and file the Financial Assistance Application on behalf of the City and to provide the assurances, certifications, and commitments required by the State.
The proposed resolution designates the City Manager as the City's Authorized Representative. Consistent with the State's required authorization, the City Manager would also be authorized to enter into a financial assistance agreement with the State Water Resources Control Board, including amendments or changes thereto, and to carry out the City's responsibilities under the agreement, including certification of disbursement requests and compliance with applicable State and federal requirements.
Approval of the resolution will allow staff to proceed with the CWSRF application and complete the State's financial assistance review process. If the project is approved for funding, the final financing package may consist of a combination of repayable CWSRF financing and principal forgiveness, depending on the City's and project's eligibility under the applicable CWSRF funding policies and availability of funds. The final financing terms, including the total assistance amount, principal forgiveness, repayable principal, interest rate, financing term, and repayment requirements, will be established through the State Water Resources Control Board's review and financing process.
FISCAL IMPACT:
There is no fiscal impact to the City associated with submitting the application. The preliminary project cost is estimated to be approximately $30 million to $40 million. If the project is selected for funding, staff will evaluate the final financing package, including any principal forgiveness, financing terms, and repayment obligations, and return to the City Council with the proposed funding terms for consideration and approval.
MOTION:
Approve staff recommendation.