Ridgecrest approves engineering amendment to support $110M SRF loan application for new wastewater plant
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Summary
Council approved augmenting the city’s contract with Provost & Pritchard to prepare documents for a Clean Water State Revolving Fund (SRF) loan application and related deliverables for the new wastewater treatment plant; staff said the loan would be $110 million at about 2.1% interest and that the work is budgeted.
Ridgecrest
The Ridgecrest City Council on Nov. 5 authorized staff to amend its engineering agreement with Provost & Pritchard to include preparation of documents and technical support needed for a Clean Water State Revolving Fund (SRF) loan application for a proposed new wastewater treatment plant.
Staff reported the SRF loan request would be for approximately $110,000,000 with an estimated interest rate of about 2.1 percent, roughly half of higher market bond rates. The SRF application requires detailed technical and environmental documentation that the city said will take roughly 400 hours of consultant time; staff recommended using Provost & Pritchard because the firm already holds the existing design agreement and has relevant experience.
City Manager and staff said funds for the consultant work were included in the budget and that the amendment is intended to improve the city’s chance of securing low‑cost SRF financing. The city noted design work is nearing completion for most elements, with remaining design related primarily to electrical/power interfaces and coordination with the Navy for airfield upgrades. Several public speakers asked whether the plant’s design includes water reclamation; staff replied reclamation design is not included in the current scope, though future expansion could be accommodated.
Council voted 4–0 (one member absent) to approve the resolution and amend the engineering agreement.
Why it matters
Securing SRF financing at the lower interest rate would reduce long‑term financing costs for the wastewater project’s construction and could lower ratepayer impacts compared with higher‑cost borrowing. Staff stressed coordinating the final design, environmental work and electrical upgrades with the U.S. Navy so the city can meet SRF application requirements and bid timelines.
Next steps
Staff expects to complete the SRF application materials with the consultant according to SRF deadlines and to continue coordinating with the Navy on electrical and environmental issues. The council approved the contract amendment and directed staff to proceed with the SRF application work.
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