ITEM 3: APPROVAL OF A SMALL COMMUNITIES GRANT (SCG) FOR THE TRINITY COUNTY WATERWORKS DISTRICT NO. 1, HAYFORK SEWER SYSTEM AND TREATMENT PLANT, PROJECT NO. SCG 659

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 $8,220. Therefore, the proposed project is not considered a high cost project as defined by the Policy.

On February 9, 1998, the Division issued Concept Approval to the Trinity County Waterworks District No. 1 (District) for the Hayfork Sewer System and Treatment Plant project, and the District agreed with the Concept Approval on February 19, 1998, and the Division approved the 90 percent plans and specifications.

The District is located about 40 miles west of the City of Redding and 20 miles south of Weaverville. The District serves a population of 1270 and the 1996 median household income is $19,783. The treatment plant design average flow will be 243,000 gallons per day.

The District serves the unincorporated community of Hayfork. Hayfork is unsewered and has experienced septic system failures which have caused periodic pollution of local waterways. These occurrences have resulted in a Regional Water Quality Control Board resolution including a time schedule requiring the construction of a sewer system for Hayfork. The proposed project consists of a collection system and treatment plant. The treatment plant includes an influent bar screen, headworks, two aerated primary ponds, a secondary pond, and two wetland-polishing ponds. The effluent will be discharged to percolation ponds.

The estimated project cost is $8,375,000, and the estimated total grant eligible cost is $3,000,000. The District has already received a Planning Grant of $178,196 and will receive a Design Grant of $340,019. Therefore, the Construction Grant request is $2,481,785. The balance of the project will be funded primarily by a combination grant/loan from the U. S. Department of Agriculture (USDA).

The Trinity County Planning Department (Department) prepared a Mitigated Negative Declaration/Initial Study (MND/IS) which was distributed to public agencies and made available to the public on March 6, 1997. A public hearing was held on March 19, 1997. The MND/IS was not circulated through the State Clearinghouse during the first review period. The MND/IS was circulated through the State Clearinghouse (SCH# 97102028) for review from October 8, 1997, through November 7, 1997. During the first review period the Department received 13 comment letters: four from state agencies, four from local entities, and five from individuals. The Department considered the comments, approved the project and adopted the Mitigated Negative Declaration on March 19, 1997. A Notice of Determination (NOD) was filed with the Trinity County Clerk on March 21, 1997. One comment letter was received during the second review period. The Department determined that the document did not require any substantial changes so the document was not re-adopted. The Department filed an NOD with the Governor's Office of Planning and Research on January 5, 1998.

Because the Department is also requesting a Community Development Block Grant from the U.S. Department of Community Housing and Development and funding from the USDA, an Environmental Assessment and Finding of No Significant Impact was also prepared for this project.

The District requests the SWRCB approve a SCG Construction Grant of $2,481,785 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 Hayfork Sewer System and Treatment Plant project for the Trinity County Waterworks District No. 1 in Priority Class B;

3. The Division of Clean Water Programs approved the project report, environmental documents, and draft revenue program, on February 9, 1998, for the Trinity County Waterworks District No. 1 project;

4. The Division of Clean Water Programs approved the plans and specifications for the Trinity County Waterworks District No. 1 project; and

5. The Trinity County Planning Department adopted a Mitigated Negative Declaration for the proposed project (State Clearinghouse No. 97102028) which has been reviewed and considered by the SWRCB, 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 $2,481,785 to the Trinity County Waterworks District No. 1 for construction of the Hayfork Sewer System and Treatment Plant 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