The city council decided last week to move ahead on the plan to have the council president, Todd Gloria, agree to a loan funding agreement with the California Department of Public Health. Loan money the city will use to fund work on below standard water infrastructure will come from the Safe Drinking Water State Revolving fund.
The money will pay the cost on the Alvarado second extension pipeline and the Morena Boulevard cast iron pipe replacement. State funds go into the local funds planned for work on safe drinking water.
Locals will repay the state loan. Part of the price locals pay to regularly pay off the water rates the city will take to pay California. Additional loan cost payments depend on money in the Water Enterprise Fund.
Cities can claim California's low interest loans set up by the Safe Drinking Water Act. The local governments can do the work needed on their public water systems.
The loan funds are set aside for projects that do not have a cost for mitigating an environmental impact. Councilmembers okayed the CEQA exemption cities get for projects that have no significant effect onthe environment.
Discount state aid prevents San DIego from running short on the money needed for the ongoing work on replacing old and weakened water infrastructure.
THis is a Center Line Policy Alert.