IBank Board Approves $8.5 Million Loan to Help Sunset Beach Sanitary District Finance Critical Sewer Improvement Project

Feb 12, 2024

Replacement of aging equipment will save money, improve public safety, and protect ocean and waterways from sewage spills in event of flooding or earthquakescategories

SACRAMENTO (February 12, 2024) — The California Infrastructure and Economic Development Bank (IBank) board of directors approved $8.5 million in loan financing for the Sunset Beach Sanitary District of Orange County for a sewer improvement project that will replace decades-old equipment to help keep the surrounding waterways clean in case of a flood or earthquake.

The board approved the $8.5 million Infrastructure State Revolving Fund loan for the Broadway Pump Station Bypass Sewer Project. The Broadway Sewage Pump Station, located at Broadway and North Pacific Avenue in Huntington Beach, is an underground station that pumps sewage for about 90 percent of the district’s service area. The pump station, which was built in 1935, discharges to a pressure-force main. Both the pump station and the pressure-force main have reached the end of their useful lives and need replacement.

The pump station also has two major operating flaws. The first is, as an underground station, it has electrical equipment below grade. If the streets flood from high tides or storm surges, the pump station could flood and fail, spilling sewage into the ocean, harbors, and estuaries. While this has never happened, it is considered a greater risk now because of climate change. The second flaw is because of the pump station’s age, it is out of compliance with current earthquake standards for critical infrastructure.

The $8.5 million loan from IBank will assist with financing the $10.3 million project cost to shut down the existing Broadway Sewer Pump Station and replace it with a new gravity sewer main to bypass the station. The updates will minimize the risks associated with climate change and seismic activity, as well as to save on maintenance costs. The sanitation district also estimates an annual savings of $266,500, by reducing the cost of repairs, utilities, and maintenance, while making the district’s sewage collection system much safer.

“The increased risks caused by climate change elevate the importance of this project,” said IBank Executive Director Scott Wu. “Aging sewer systems are never top of mind, until an earthquake or flood comes along, causing a sewage spill that shuts down your favorite beach and creates a public safety issue for the community. IBank is proud to play a role in protecting the people in Orange County by helping it head off such a disaster.”

The project is expected to create 43 temporary construction jobs and will retain four permanent jobs. Once completed, the useful life of the new sewer pump station bypass will be approximately 50 to 100 years. Construction is expected to begin in early spring 2024 and will be complete by Memorial Day 2025.

About the California Infrastructure and Economic Development Bank: IBank was created in 1994 to finance public infrastructure and private development that promote a healthy climate for jobs, contribute to a strong economy, and improve the quality of life for Californians and communities throughout the state. IBank is located within the Governor’s Office of Business and Economic Development and is governed by a five-member board of directors.

IBank issues tax-exempt and taxable revenue bonds, provides financing to public agencies, provides credit enhancements, acquires and leases facilities, leverages state and federal funds, and provides loan guarantees and other credit enhancements for small businesses. Visit us at ibank.ca.gov.

Karen C. Naungayan
Deputy Director of External Affairs
Email Karen, HERE
Office: 916.447.8474
Mobile: 916.207.9132