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SFPUC authorizes state revolving fund loans and replacement credit facilities to support Westside recycled water and SSIP work
Summary
The commission approved multiple State Revolving Fund loan and grant agreements and replacement bank credit facilities to fund recycled water and sewer system improvement projects, citing favorable terms versus alternatives.
The San Francisco Public Utilities Commission approved a package of financing measures on July 11 to support major capital work including the West Side Recycled Water Project and several Sewer System Improvement Program (SSIP) projects.
CFO Eric Sandler described four SRF (State Revolving Fund) agreements the commission approved, totaling hundreds of millions of dollars in loans and grants. The package includes a highly subsidized loan plus a $15,000,000 grant for the San Francisco West Side Recycled Water Project and three additional SRF agreements to support SSIP projects such as primary/secondary clarifier upgrades and Southeast plant disinfection and outfall rehabilitation. Sandler said SRF pricing and amortization terms compare favorably to alternatives in the market.
Commissioners also approved replacement credit facility agreements for the Water and Wastewater commercial paper programs. The water interim funding program will be supported by three replacement facilities: a $100,000,000 letter of credit from Bank of America, a $100,000,000 letter of credit from Barclays Bank, and a $100,000,000 direct loan from U.S. Bank. The wastewater interim funding program will be supported by a $75,000,000 direct loan from U.S. Bank. Sandler said direct loans offer cost advantages compared with traditional commercial paper when factoring fees.
The commission voted by voice for the SRF loans and the bank facility approvals. Staff said the SRF loans are reimbursement‑based (construction funded with commercial paper first and later reimbursed by the state) and historical reimbursements have been timely. A non‑substantive staff report edit to the fee calculation for direct loans was noted and corrected prior to the vote.
Commissioners said the measures support SSIP construction and regional projects and praised staff for securing favorable terms. Tallies were recorded as voice votes; no individual roll‑call tallies were presented in the meeting record.
