ITEM 7: APPROVAL OF A SMALL COMMUNITIES GRANT (SCG) FOR THE CLEARLAKE OAKS COUNTY WATER DISTRICT, FACILITIES IMPROVEMENTS AND EFFLUENT PIPELINE, PROJECT NO. SCG-614

DISCUSSION: 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 on April 30 and May 14, 1997, projects on the adopted priority list need SWRCB approval to receive a SCG for construction. Construction grants can be approved by the SWRCB after the Division of Clean Water Programs (Division) has approved the facilities plan and the final plans and specifications. The Division approved the final plans and specifications, on April 21, 1998, and the Clearlake Oaks County Water District (District) submitted a written agreement with the Division's decisions on May 4, 1998.

The estimated total project cost per household is $2,540. Therefore, the proposed project is not a high cost project, as defined by the Policy.

The District borders the southeast portion of Clear Lake along Highway 20. The District serves a population of 4,100 and the 1996 median household income is $19,598. Based on the Policy's funding formula, the District qualifies for a SCG for 97.5 percent of the eligible costs.

The District's sewage collection system experiences substantial inflow and infiltration (I/I). When the level of Clear Lake rises approximately two feet above its normal surface elevation, much of the District's sewage collection system lies below lake level causing I/I induced flows to exceed the capacity of the effluent disposal system (evaporation/percolation ponds). This has resulted in discharges of treated effluent to Clear Lake, which violates the District's waste discharge requirements. The Central Valley Regional Water Quality Control Board issued Cease and Desist Order No. 94-029 on January 28, 1994, requiring the District to correct the problem. The project is included in Priority Class A on the SCG Statewide Priority List adopted on May 14, 1997, by the SWRCB.

The selected project alternative will pump treated effluent, which exceeds the existing disposal capacity, to the Lake County Sanitation District's South East Regional Wastewater Treatment Facility. The effluent will ultimately be disposed as part of the Geysers Recharge Project. The SWRCB participated financially in the Geysers Recharge Project in 1996, through the State Revolving Fund loan program. The Geysers Recharge Project recently initiated operation.

The purpose of the proposed project is to:

• eliminate effluent discharges to Clear Lake; and
• increase wastewater treatment capacity and reliability.

The project consists of:

• construction of effluent pump station;
• construction of effluent pipeline, approximately 20,000 linear feet;
• replacement of comminutor;
• construction of dual-powered, multicellular aerated lagoon treatment system;
• upgrade of existing chlorine disinfection system;
• construction of additional sludge drying beds; and
• rehabilitation of collection system at select locations.

The estimated total project cost is $3.6 million. This estimate includes construction, contingencies, engineering, and administration. The estimated eligible SCG amount is $3 million. The local share project costs will be funded by the District's reserves. The District has already received a Planning Grant of $109,189 and a Design Grant of $171,227.

The District prepared a Mitigated Negative Declaration/Initial Study (MND/IS) for the proposed project which was distributed to the public and circulated through the State Clearinghouse (SCH #96122079) for review from December 24, 1996, through January 23, 1997. During the review period, the District received comments from three public agencies regarding encroachment permit requirements, dust abatement provisions, and adequacy of proposed mitigation measures. The District considered the comments, approved the project, and adopted the Mitigated Negative Declaration on February 5, 1997. The District filed a Notice of Determination with the Lake County Clerk on February 12, 1997 and with the Governor's Office of Planning and Research on July 17, 1997.

The District requests the SWRCB approve a construction grant of $2,719,584 for this project.

POLICY ISSUE: Should the SWRCB approve a construction grant for the proposed project?

RWQCB IMPACT: None

FISCAL IMPACT: Availability of SCG funds for this project depends on other SCG proposals being considered and to be approved by the SWRCB in June 1998.

Current SCG fund balance as of May 1998: $12.1 million

Project approvals under consideration by the SWRCB in June 1998:

Chester Public Utility District SCG-611 $765,211

Clearlake Oaks County Water District SCG-614 $2,719,584

City of Portola SCG-644 $2,742,895

City of Weed SCG-664 $2,743,318

New SCG fund balance, if all the

June 1998 proposals are approved by the SWRCB: $3,128,992

STAFF RECOMMENDATION: That the SWRCB adopt a resolution approving a construction grant for the proposed project.

DRAFT May 22, 1998

WHEREAS:

1. The Implementation Policy for the Small Communities Grant Program was adopted by the State Water Resources Control Board on January 23, 1997, and amended on April 30 and May 14, 1997;

2. The State Water Resources Control Board, on May 14, 1997, adopted the Small Communities Grant Program Priority List which included the Clearlake Oaks County Water District, Facilities Improvements and Effluent Pipeline Project in Priority Class A;

3. The Division of Clean Water Programs approved the Facilities Plan, which includes the project report, environmental documents, and draft revenue program, on February 4, 1998, for the Clearlake Oaks County Water District, Facilities Improvements and Effluent Pipeline Project;

4. The Division of Clean Water Programs approved the plans and specifications, on April 21, 1998, and the District submitted a written agreement with the Division's decisions on May 4, 1998; and

5. The Clearlake Oaks County Water District adopted a Mitigated Negative Declaration for the proposed project (State Clearinghouse No. 96122079) which has been reviewed and considered, and it has been determined that the proposed project will not result in significant negative environmental impacts.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board approves a Small Communities Grant of $2,719,584 to the Clearlake Oaks County Water District for construction of the Facilities Improvements and Effluent Pipeline Project.

The undersigned, Administrative 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 June 18, 1998.

Maureen Marché

Administrative Assistant to the Board