The project would connect Wheatland’s aging wastewater treatment system to the Olivehurst Public Utility District treatment plant through a new regional sewer system serving southern Yuba County. Designed by Magnific

MARYSVILLE, CA (MPG) - The Yuba County Board of Supervisors has approved a memorandum of understanding supporting a proposed county loan of up to $10 million for the South County Infrastructure Project, a regional sewer expansion effort officials said is critical to both existing residents and regional growth.

The memorandum outlines the framework for the proposed loan, but final loan terms and a required budget adjustment will be returned to supervisors for final approval.

The project would connect Wheatland’s aging wastewater treatment system to the Olivehurst Public Utility District treatment plant through a new regional sewer system serving southern Yuba County.

Yuba County Administrator Kevin Mallen told supervisors the partnership has been under development for more than five years between Yuba County, the City of Wheatland, Olivehurst Public Utility District, Yuba Water Agency and development partners.

“The city of Wheatland’s sewer treatment plant is near end of life,” Mallen said. “It’s a rather old facility.”

Mallen said the regional approach positioned the project to secure a $75 million state grant because the State Water Resources Control Board favors projects reducing the number of treatment plants statewide.

Officials said the project still faces an estimated $40 million local funding gap after construction bids were finalized. Wheatland plans to contribute more than $5 million while development partners are expected to advance approximately $15 million in future connection fees. The county loan and a separate proposed $10 million contribution from Enterprise Rancheria would help close the remaining gap.

Enterprise Rancheria representatives said the sewer project is tied to the proposed sports and entertainment zone planned near Hard Rock Hotel & Casino Sacramento at Fire Mountain. Tribal officials said plans for the area include sports, retail, hospitality and entertainment uses on 342 acres between the casino and Toyota Amphitheatre.

Supervisor Gary Bradford, who represents the Wheatland area, said the project carries broader implications for southern Yuba County beyond the proposed entertainment district.

“Some people may view this project as primarily about future development, but that’s only part of the story,” Bradford said. “There are significant immediate benefits for existing residents in Wheatland, Plumas Lake and Olivehurst, even if no additional development ever occurred.”

Bradford emphasized Wheatland’s existing wastewater treatment plant no longer meets state standards and warned replacing it independently could drive sewer rates for city residents to more than $1,000 per month.

He also said the Olivehurst Public Utility District facility has excess treatment capacity and expanding the customer base could help stabilize rates for existing customers in Olivehurst and Plumas Lake.

“Development in the city of Wheatland, the sports and entertainment zone and the employment village simply doesn’t move forward if we don’t approve this project,” Bradford said.

The board approved the memorandum unanimously. Officials said the project still requires the remaining local funding package to secure the $75 million state grant and move forward. The county’s proposed loan would be repaid through future connection and conveyance fees tied to development in southern Yuba County.