IBank Board Approves $26 Million Loan to Help City of Santa Cruz Finance Critical Wastewater Improvement Projects

Replacement of aging equipment will save money, improve water quality, and minimize the risk of damage to the surrounding environment

SACRAMENTO - The California Infrastructure and Economic Development Bank (IBank) board of directors approved $26 million in loan financing for the city of Santa Cruz for two wastewater system improvement projects that will replace and upgrade decades-old equipment - preventing costly repairs, protecting pipelines from corrosion, improving water quality, and minimizing the risk of damage to the coastline, ocean, and other surrounding waterways.

The board approved the $26 million Infrastructure State Revolving Fund loan for the Front-Spruce-Pacific 54-Inch Sewer Rehabilitation Project ($5.3 million), and the Headworks Rehabilitation Project for the Santa Cruz Wastewater Treatment Facility ($20.6 million).

The Front-Spruce-Pacific 54-Inch Sewer, in downtown Santa Cruz, was installed in 1966. A 2022 inspection revealed surface damage, concrete damage, and corroded reinforcement within the pipeline and its related structures. The project focused on fixing deteriorating pipes, the rehabilitation of seven manholes, demolition, sewage flow control, and excavation support and protection. This has restored the structural integrity of the city's eastside sewer interceptor pipeline, preventing further deterioration and failure, and will also extend the pipeline's lifespan by at least 50 years.

The Headworks Wastewater Treatment Facility, located on California Street in Santa Cruz, was originally constructed in 1965, and went through major upgrades in 1988. However, those infrastructure upgrades are now approaching the end of their useful life and require rehabilitation and replacement. This project will upgrade the headworks vault, influent vault, screen room, influent wet well, influent pump station, and replace two influent pumps with submersible pumps to increase facility resiliency in the event of an extreme weather event or flood. This project will also upgrade the ventilation system at the facility to improve air quality within the screen room, which will increase worker comfort, health, and safety. The useful life of this project is also at least 50 years.

"The average person may take for granted the quality of their local sewer and wastewater treatment facilities. When these facilities operate well, we have the things we've come to expect every day - clean water to drink and bathe, a clean environment, clean beaches and oceans where we take our families to fish and swim," said IBank Executive Director Scott Wu. "By financing these pipeline replacements and upgrades, IBank is helping to ensure we all continue to enjoy life as we know it - for both residents and tourists who vacation at the Santa Cruz coast."

"As stewards of the Monterey Bay National Marine Sanctuary, the City of Santa Cruz is committed to protecting our invaluable coastal ecosystem," said Kevin Crossley, assistant director and engineer for the City of Santa Cruz. "Our latest wastewater treatment projects are a vital part of this effort, ensuring that we not only meet, but exceed, environmental standards. By investing in sustainable and innovative wastewater management solutions, we are safeguarding the health of the Bay for future generations and enhancing the resilience of our local environment."

Construction began in summer 2024 and the Front-Spruce-Pacific project has been completed. The Headworks project is expected to be complete in December 2025.