_{Thumbnail photo by James Brooks}

Crescent City met the deadline to apply for a $50 million forgivable loan to bring its sewer plant into compliance with updated National Pollutant Discharge Elimination System requirements.

But the likelihood the city will receive $50 million from the State Water Resources Control Board is questionable, City Manager Eric Wier told councilors on Monday.

“The total amount of funding that is available in this round has been reduced significantly,” he said. “The $50 million will represent a significant portion of the total funding that they have overall. Hopefully we’ll know in the next six months.”

The $50 million forgivable loan is for the wastewater treatment plant’s next big project — to ensure it can meet new NPEDS permit requirements governing total Coliform bacteria limits. The goal is to replace the plant’s 50-year-old rotating biological contractors with new technology and ensure its newer membrane biological reactor has the redundancy needed to meet wet weather demand.

Crescent City’s sewer plant is currently operating under a time schedule order from the State Water Resources Control Board. Last year, the state issued a $228,000 fine due to the city’s inability to comply with new NPDES requirements. 

At a March 2 meeting, Wier said the time schedule order gives the city five years to bring the plant into compliance with the new permit requirements. It can be extended for another five years if necessary, he said. 

At that meeting, the City Council adopted a basis-of-design report from Jacobs Engineering, a necessary step to applying for the $50 million loan from the Clean Water State Revolving Fund.

The City Council on Monday approved an amendment to a contract the city has with Jacobs Engineering that, Wier said, would align its scope of work to an agreement the city entered into with the state in June.

On June 1, councilors approved a contract with the state that allows Crescent City to use about $2.1 million in forgivable loan dollars from the state for a project report and an infill and infiltration study. That study will determine where storm water is encroaching into the sewer system, according to Wier.

The contract also included funding for preliminary plans, specifications and a cost estimate for the project. 

On Monday, Wier said Crescent City is working to procure a consultant to complete the infill and infiltration study using about $500,000 provided by the Water Quality Control Board. 

The amended contract with Jacobs will cost about $1.25 million, which means there’s funding left over. According to the city’s staff report, $358,000 will be used to complete 30% of the project’s design work.

According to Wier, there is also enough money for a request for proposals to find a consultant who could complete the project’s design.

On Monday, Councilman Jason Greenough asked about other funding sources the city could pursue should it not receive the entire $50 million it’s seeking. Wier said the Clean Water State Revolving Fund is the best option.

“Once we find out what our funding looks like, we’re going to have to sharpen our pencils and see how we can best address the new requirements that have been placed on us,” Wier said. “Our RBCs are at the end of their useful life. We need to be as forward facing as we possibly can.”

Councilor Ray Altman was absent.