ITEM 2: APPROVAL OF A SMALL COMMUNITIES GRANT (SCG) FOR THE CITY OF MOUNT SHASTA, WASTEWATER SYSTEM IMPROVEMENTS, PROJECT NO. SCG 637

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 90 percent design submittal.

The estimated total project cost per household is $1000. Therefore, the proposed project is not considered a high cost project as defined by the Policy.

On March 5, 1998, the Division issued Concept Approval to the City of Mount Shasta (City) for the Wastewater System Improvements project, and the City agreed with the Concept Approval on March 31, 1988, and on April 6, 1998, the Division approved the 90 percent plans and specifications.

The City is located about 65 miles north of the City of Redding, off Interstate 5, adjacent to 14,162 foot Mount Shasta. The City serves a population of 4,475 and the 1996 median household income is $23,142. The treatment plant average flow is about 55,000 gallons per day.

The Regional Water Quality Control Board issued a Cease and Desist Order (No. 97-092) to the City for inadequate residence time in the chlorine contact chamber, excessive foam at the effluent surge tank, insufficiently filtered effluent, and raw sewage overflows from the collection system. The proposed project includes expansion of the chlorine contact chamber, repairs to the surge tank, construction of a dissolved air floatation unit, and rehabilitation to specific manholes and collection lines.

The estimated project cost is $2,200,000, and the estimated total grant eligible cost is $1,916,943. The City has already received a Planning Grant of $50,281 and will receive a Design Grant of $102,798. Therefore, the Construction Grant requested is $1,763,864.

The City prepared a draft Mitigated Negative Declaration for the proposed project which was distributed to the public and circulated through the State Clearinghouse (SCH# 97052083) for review from May 20, 1997, through June 19, 1997. The only comment received during the review period was from the Siskiyou County Health Department supporting the project. The City's Planning Commission approved the project and adopted the Mitigated Negative Declaration at their regular meeting held on July 15, 1997. The City filed a Notice of Determination with the Siskiyou County Clerk and the Office of Planning and Research on August 28, 1997.

The City requests the SWRCB approve a construction grant of $1,763,864 for this project.

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

RWQCB IMPACT: None

FISCAL IMPACT: SCG funds are available for this project and the other SCG proposals being considered for approval by the SWRCB in May 1998.

Current SCG fund balance as of March 31, 1998: $21,861,711

Project approvals under consideration by the SWRCB in May 1998:

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

DRAFT May 4, 1998

WHEREAS:

1. The State Water Resources Control Board, on January 23, 1997, adopted the "Implementation Policy for the Small Communities Grant Program," and revised it 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 Wastewater System Improvements project for the City of Mount Shasta in Priority Class B;

3. The Division of Clean Water Programs approved the project report, environmental documents, and draft revenue program, on March 5, 1998, for the City of Mount Shasta project;

4. The Division of Clean Water Programs approved the plans and specifications on April 6, 1998 for the City of Mount Shasta project; and

5. The City of Mt. Shasta has approved and adopted a mitigated Negative Declaration (State Clearinghouse No. 97052083) which has been reviewed and considered and it has been determined that the project will not result in any significant environmental impacts.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board approves a Small Communities Grant of $1,763,864 to the City of Mount Shasta for construction of the Wastewater System Improvements 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 May 27, 1998.

Maureen Marché,Administrative Assistant to the Board