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Council authorizes up to $8 million SRF loan for lead service line inventory and investigation
Summary
The council approved an ordinance authorizing a Drinking Water State Revolving Fund loan of up to $8 million to fund a citywide lead service line inventory and investigation; staff said the loan will be interest-free with a 10-year repayment and could be partially forgiven if work covers disadvantaged communities.
The City Council authorized an ordinance on Oct. 29 to accept a Drinking Water State Revolving Fund loan of up to $8,000,000 to fund a lead service line inventory and investigation for the City of San Diego's water system.
Jyoti Pantalu, assistant director in the Department of Finance, and city project staff explained the inventory will include field investigations of customer-side service lines, environmental studies and public noticing. Staff said the federal EPA's 2021 Lead and Copper Rule revisions required a complete initial inventory by October 2024 and that the city estimated the inventory work would cost about $8 million.
A presentation by financing staff noted the loan is expected to be 0% interest with a 10-year repayment term beginning in 2027; if the city draws the full $8 million, the annual cost would be roughly $800,000 per year. Staff also said the state may convert work done in disadvantaged communities into principal forgiveness and the city will pursue such forgiveness where eligible.
Remote public commenters raised broader water-quality concerns during the item, including comments advocating copper piping and questioning additives such as fluoride. City staff limited public comment to the item and proceeded to council discussion. Councilmember Lee moved the staff recommendation and the council approved the ordinance.
