Where:  Lewiston, CA

Issue:  Two small water/wastewater systems need to merge in order to be sustainable.

Outcome:  RCAC’s Loan Fund provided a $558,000 line of credit so the sponsoring organization, Lewiston Community Services District, could access state funding to connect and improve the sewer systems.

For many years, when small water and wastewater districts acquire funding from the State of California, the funds are not available in a timely manner to meet the cash flow needs of the projects.  RCAC’s loan fund has regularly provided the interim financing to bridge the time when contractors must be paid until the time when funds are received from the state.

Such was the case for the project sponsored by the Lewiston Community Services District project to connect with the Lewiston Park Mutual Water Company and form one water system.  Lewiston Community Services District (LCSD) and Lewiston Park Mutual Water Company (LPMWC) have adjacent service areas and provide water and wastewater services to their customers. Both organizations have noncompliance issues with their sewer treatment systems. In order to access state funding for sewer system improvements, the State Water Board has advised the two entities to merge.

LPMWC has already been awarded Prop 84 funds to construct an intertie line that will connect it with LCSD. However because LCSD has a higher capacity level to undertake this major project, the grant funds will be transferred to LCSD. RCAC’s Loan Fund loaned LCSD $558,000 to cover the project costs while the organization awaits DWR disbursements, which can take up to 120 days.

The intertie project has already been bid and is expected to take about 60 days to complete. Once the connection is finished, the two organizations will begin to merge assets and operations.