FPUD to refinance debt for wastewater treatment plant

The Fallbrook Public Utility District will be refinancing its debt for the wastewater treatment plant.

A 5-0 FPUD board vote, Aug. 24, approved the development of a financing plan and debt documents. FPUD expects to reduce its payments by $1.1 million over a 15-year period, or approximately $73,000 annually.

“With the current low interest rate environment, we had the opportunity to save a substantial amount of money,” Jack Bebe, FPUD general manager, said.

The State Water Resources Control Board has a Drinking Water State Revolving Fund which provides 20-year loans at interest rates between 1.5% and 3.0%. FPUD obtained a $28.7 million State Revolving Fund loan, which will be paid back over 20 years at a rate of approximately 2.2%, to finance the construction along with oversight and administrative costs for the wastewater treatment plant.

The wastewater treatment plant was rehabilitated to increase the facility’s reliability and improve compliance with regulatory requirements, and the upgrades also allowed for storage of recycled water.

The new dechlorination facility ensures compliance with FPUD’s National Pollutant Discharge Elimination System permit issued by the Regional Water Quality Control Board in 2012. Improved control and automation of the facility allows for remote monitoring and troubleshooting which minimizes disruptions and failures.

Arcadis was awarded a $690,500 construction management services contract in August 2012 and Archer Western Contractors received a $25,507,000 construction contract in May 2013. Construction began in July 2013 and was completed in December 2015. The upgrades were the first for the treatment plant since 1985.

FPUD expects a formal resolution along with the authorization of transactional documents to take place at the Oct. 26 board meeting. All transaction fees associated with the refinancing will be paid from the new bond issuance.

Joe Naiman can be reached by email at [email protected].