DRAFT APRIL 23, 2001

Sri IyerBryan Brock2997STATE WATER RESOURCES CONTROL BOARD MEETING

WORKSHOP SESSION -- DIVISION OF CLEAN WATER PROGRAMSSACRAMENTO, CALIFORNIA

MAY 172, 2001

ITEM 2

SUBJECT

VENTURA COUNTY’S (COUNTY) REQUEST TO WAIVE THE STATE WATER RESOURCES CONTROL BOARD’S (SWRCB) IMPLEMENTATION POLICY FOR THE SMALL COMMUNITIES GRANT (SCG) PROGRAM’S (POLICY) FIRST-COME FIRST-SERVE REQUIREMENT FOR THE EL RIO SEWER COLLECTION AND DISPOSAL SYSTEM PROJECT (PROJECT), PROJECT NO. SCG-805

APPROVAL OF A SMALL COMMUNITIES GRANT (SCG) FOR THE SATICOY SANITARY DISTRICT (DISTRICT), SEWER COLLECTION AND DISPOSAL SYSTEM PROJECT (PROJECT), PROJECT NO. SCG-806

DISCUSSION

In accordance with the SWRCB’s SCG Policy, adopted on January 23, 1997, and amended and reauthorized on June 15, 2000, projects on the adopted Small Community Grant (SCG) priority list are funded on a first-come first-serve basis. Three types of grants are associated with SCG Program: Planning Grants, Design Grants, and Construction Grants.

The Division of Clean Water Programs (Division) offers Planning Grants to applicants that are in fundable categories on the SCG Priority List and have approved Planning Grant Application packages. After the Division approves all documents associated with the planning process including: California Environmental Quality Act (CEQA) documents, a revenue program, and the project report, Concept Approval is issued. The applicant is then eligible for a Design Grant. Once the applicant has completed the final plans and specifications (P&S) for the project, the Division issues Ffinal P&S approval and earmarks needed SCG funds for the project in anticipation of the SWRCB approving Cconstruction Ggrants. An agenda item is then prepared for the next SWRCB Workshop, typically one to two months in advance, so that the SWRCB can consider approving an applicant’s construction grant. All of these Grant offers are dependent upon the availability of SCG funds.

Division staff processes all project documents based on a first -received first -processed basis, and once these documents are approved, grants are awarded on a first -approved basis. There are projects in all three phases of the SCG program. Six projects received Final P&S approval in March 2001, and are being considered for SCG Construction Grants at the SWRCB’s May Workshop. These six projects will expend all but $76,343 of the SCG funds.

The County’s $26.3 million Project is currently eligible for funding, in Category B, on the SCG Priority List. However, the County has not completed the planning process yet and is scheduled to submit necessary documentation and receive Concept Approval in late April or early May, well after the six communities received final P&S approval. The County is requesting the BoardSWRCB to waive the Policy’s first-come first-serve requirement, and not allow the Division to earmark construction funds after final P&S approval. The County contends that the action of reserving or committing construction grants can only be done by the SWRCB at a scheduled Board Meeting, in this case May17,2001. If the BoardSWRCB followed this course of action, sufficient money would be available to fund the County’s $1,079,068 design grant; however, SCG funds are not available at this time to fund construction of the Project. Approval of the County’s request will also result in one or more of the six projects receiving partial or no construction grant funds.

In accordance with the State Water Resources Control Board's (SWRCB) Implementation Policy for the Small Communities Grant Program (Policy), adopted on January 23, 1997, and amended and reauthorized on June 15, 2000, projects on the adopted priority list need SWRCB approval to receive a SCG construction grant. The SWRCB can authorize construction grants after the Division of Clean Water Programs (Division) approves the final plans and specifications (P&S). The Division approved the final P&S for the District’s Project on March 28, 2001.

The Project area is located within the unincorporated area of Ventura County. The Saticoy community lies within the Santa Clara River Valley. The population of the community is approximately 940 and the 1996 median household income was $16,275. Based on the Policy’s funding formula, the District qualifies for a 97.5 percent SCG.

The District operates and maintains wastewater conveyance and treatment facilities for 220 connections. The District’s treatment plant provides only primary treatment for wastewater. The Los Angeles Regional Water Quality Control Board (LARWQCB) adopted Resolution No. 99-13 in August 1999, prohibiting new septic systems and mandating all septic systems, in the Oxnard Forebay area, to cease operation by January 1, 2008. The proposed project will enable the District to comply with Resolution No. 99-13.

The District prepared an Initial Study/Mitigated Negative Declaration (IS/MND) for the proposed project in November 2000, which was distributed to the public and circulated through the State Clearinghouse (SCH# 2000111139) for review from November 22, 2000 through December 21, 2000. During the review period the District received comment letters from the Ventura County’s Resources Management Agency, Air Pollution Control District and Agricultural Commissioner, and State Water Resources Control Board’s Division of Clean Water Programs, California Department of Conservation, California Department of Transportation and California Department of Health Services. Environmental issues identified included water quality, cultural resources, air quality and traffic. The District provided responses to all comments and made appropriate changes to the Draft IS/MND. The District approved the project, and adopted the MND and a Mitigation Monitoring and Reporting Program on January 8, 2001. The District filed a Notice of Determination with the Ventura County Clerk’s Office on January 9, 2001 and the Governor’s Office of Planning and Research on February 1, 2001.

POLICY ISSUE

Should the SWRCB waive the SCG Policy’s first-come first-serve requirementapprove a $2,310,000 to accommodate the District’s request to fund the design phase of the SCG construction grant for the District’s proposed Project?

RWQCB IMPACT

Yes - Los Angeles Regional Water Quality Control Board (RWQCB):

Approval of this item will enable the County to receive a Design Grant. However, SCG funds are not available at this time to fund Project construction, which would enable compliance with Resolution No. 99-13 requiring elimination of all septic tank discharges in the El Rio Community.

Potentially - North Coast, Los Angeles, Central Valley, and Lahontan RWQCBs:

Projects from some or all of the RWQCBs listed above will receive partial or no grant funds to complete construction of their water quality capital improvement projects.

The LARWQCB adopted Resolution No. 99-13 in August 1999, prohibiting new septic systems and mandating all septic systems, in the Oxnard Forebay area, to cease operation by January 1, 2008. The District’s project will enable compliance with this resolution.

FISCAL IMPACT

Approval of this waiver will reduce the projected May 2001 balance from $9,690,000 to $8,610,932 resulting in one or more of the listed projects receiving partial or no construction grants.

Current Projected SCG fund balance as of May 2001:$9,6900,000000

Garberville Sanitation District SCG-801 $1,155,001,155,000

Saticoy Sanitation DistrictSCG-806$2,310,000

City of Live OakSCG-809$2,557,580

Markleeville Public Utility DistrictSCG-810$120,000

Calaveras County Water DistrictSCG-813$705,000

Linda County Water DistrictSCG-815$2,766,077

New SCG fund balance, if all the

May 2001 proposals are approved

by the SWRCB:$76,34376,343

STAFF RECOMMENDATION

That the SWRCB deny the request by the County of Ventura to waive the Policy’s first-come first-serve requirement. adopt a resolution approving a $2,310,000 SCG construction grant for the District’s Project.

Policy Review______

Legal Review______

Fiscal Review______

DRAFT APRIL 23, 2001

STATE WATER RESOURCES CONTROL BOARD

RESOLUTION NO. 2001 - # __

REQUEST FROM THE COUNTY OF VENTURA (COUNTY) TO WAIVE THE POLICY’S FIRST-COME FIRST-SERVE REQUIREMENT FOR SMALL COMMUNITIES GRANT (SCG) FUNDING APPROVAL OF A SMALL COMMUNITIES GRANT (SCG)

FOR OF THE EL RIO SEWER COLLECTION AND DISPOSAL SYSTEM PROJECT (PROJECT)

SATICOY SANITARY DISTRICT (DISTRICT)

PROJECT NO. SCG-8056

WHEREAS:

  1. The Implementation Policy for the Small Communities Grant Program(Policy) was adopted by the State Water Resources Control Board on January 23, 1997, and amended and reauthorized on June 15, 2000;
  1. The policy requires SCG funding approvals on a first-come first-serve basis;
  2. The SWRCB can approve a construction grant after the Division has issued Ffinal Pplans and Sspecification (P&S) Approval;
  1. Six projects have received P&S Approval prior to completion of the planning phase for the County’s project;

2.District’s The Division of Clean Water Programs (Division) approved the Facilities Plan, which includes the project report, environmental documents, and draft revenue program, by issuing Concept Approval on March 20, 2001, for the District’s Project;

  1. The six projects will expend all but $76,343 of the available SCG funds; and

3.The Division approved the plans and specifications, on March 28, 2001, for the District’s Project; and

  1. The County requests the SWRCB to waive the Policy’s first-come first-serve requirement for SCG fundingDistrict adopted a Initial Study/Mitigated Negative Declaration (State Clearinghouse No. 2000111139) prepared for the Sewer Collection and Disposal System Project, which has been reviewed and considered and it has been determined that the project will not result in any significant environmental impacts; and
  2. Approval of the county’s request would take funding away from the other six projects..

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board denies the County’s request to waive the Policy’s first-come first-serve requirement for SCG funding. approves a $2,310,000 Small Communities Grant to construct the Saticoy Sanitary District’s Project.

CERTIFICATION

The undersigned, ClerkAdministrative Assistant to the Board, does hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the State Water Resources Control Board held on May 17, 2001.

Maureen Marché

ClerkAdministrative Assistant to the Board