ITEM: 10

SUBJECT: CONSIDERATION OF APPROVAL OF A RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE, EXECUTE, AND AMEND CONTRACTS TO IMPLEMENT THE PROPOSITION 204 DELTA TRIBUTARY WATERSHED PROGRAM AND TO RELEASE A SECOND REQUEST FOR PROPOSALS (RFP) FOR PROJECTS

DISCUSSION: On November 6, 1996, California voters approved the "Safe, Clean, Reliable Water Supply Act"--Proposition 204 (Act). Article 5 of the Act allocated $15,000,000 to the State Water Resources Control Board (SWRCB) for the Delta Tributary Watershed Program (Program). Of this amount, $14,550,000 is available to fund watershed rehabilitation projects in eligible watersheds. A Program RFP to initiate project proposal solicitation was released in August 1997 with a submittal deadline of January 9, 1998. Thirty-three project proposals were submitted. As specified in the RFP, project proposals were reviewed by three advisory groups: (1) Resources Agency and its departments; (2) Delta Tributary Advisory Committee; and (3) Regional Water Quality Control Board (RWQCB) staffs. These three groups have reached full consensus on the attached list of 16 projects and amounts that are recommended for funding under the first phase of the Program (Attachment 1). These projects total approximately $10.2 million subject to contract negotiations between the project proponents and SWRCB/RWQCB contract managers. In addition, the three groups strongly recommended that all projects funded under the Program must meet the following three conditions:

1. SWRCB contract negotiations should include technical peer review to assure appropriateness of the proposal's technical components.

2. SWRCB contract negotiations should assure inclusion of a comprehensive project monitoring and evaluation quality assurance plan.

3. SWRCB contract negotiations should assure that the project budget is specified in sufficient detail, especially large budget line items such as construction and consulting.

The advisory groups also recommended that the SWRCB reissue a slightly modified RFP to solicit a second phase of project proposals for the remaining uncommitted funds (about $4.3 million). The groups recommended that the RFP be revised to specify that planning and development projects that satisfy the purposes of the Program are eligible for funding up to $200,000. As stated in the initial RFP, implementation projects would continue to be considered for amounts up to $1,000,000. Attachment 2 specifies the changes proposed for the revised RFP.

POLICY ISSUE: Should the SWRCB authorize the Executive Director to:

1. Negotiate, execute, and amend contracts for projects listed in Attachment 1 to implement the Program?

2. Release a second RFP in order to award the remaining funds under the Program?

FISCAL IMPACT: Expenditure authority has been established for the Proposition 204 Program bond funded projects as follows: FY 1997-98--$152,000 for administrative/technical SWRCB staff and FY 1998-99--$10,169,501 for projects and $150,000 for administrative/technical SWRCB staff, and FY 1999-2000--$4,330,499 for projects and $198,000 for administrative/technical SWRCB staff.

RWQCB IMPACT: North Coast and Central Valley Regional Water Quality Control Boards.

STAFF RECOMMENDATION: That the SWRCB authorizes the Executive Director to:

1. Negotiate, execute, and amend contracts for projects listed in Attachment 1 to implement the Program.

2. Release a second RFP in order to award the remaining funds under the Program.

WHEREAS:

1. The voters of the State of California passed Proposition 204 on November 6, 1996 providing $15 million in bond funds for the Delta Tributary Watershed Program (Program).

2. The funding is available for watershed rehabilitation projects in the Trinity, Sacramento, and San Joaquin River watersheds.

3. The State Water Resources Control Board (SWRCB) released an RFP for the Program in August 1997 and closed the solicitation on January 9, 1998.

4. The project proposals were reviewed by the Resources Agency, Delta Tributary Advisory Committee, and the Regional Water Quality Control Board staffs in accordance with the RFP.

5. The three advisory groups' reached full consensus on the recommended list of sixteen projects and funding levels for the first phase of the Program.

6. The SWRCB will not execute any contract until the applicant documents that projects subject to the California Environmental Quality Act (CEQA) have completed that process.

THEREFORE BE IT RESOLVED THAT:

The SWRCB authorizes the Executive Director or his designee to:

1. Negotiate, execute, and amend contracts for projects listed in Attachment 1 to implement the Program.

2. Release a second RFP in order to award the remaining funds under the Program.

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

MARCH 27, 1998

1/Projects and recommended funding level based on consensus of Advisory Groups.

**Advisory groups recommend that the SWRCB consider lower funding levels depending on the applicant's budget justification during contract negotiation.

ATTACHMENT 2

The following changes will be made to the Request for Proposals:

1. PROPOSALS MUST BE RECEIVED BY THE SWRCB NO LATER THAN CLOSE-OF-BUSINESS ON AUGUST ___, 1998.

2. FUNDING LEVELS AND CONDITIONS

Section 2. b. The total grant allocation for the second phase of the Delta Tributary Watershed Program project funding is approximately $4.3 million.

Section 2. c. The maximum funding provided under this RFP for any single project is $1,000,000. Planning projects, or planning elements of comprehensive projects, will not be funded for more than $200,000.

3. ELIGIBILITY

b. What Activities Qualify?

ADD: Eligible activities include development of watershed rehabilitation plans or other planning functions designed to resolve actual or potential water quality issues identified in Section 3.b.(2) of the RFP Planning/design projects may include a water quality monitoring component, but such monitoring must contribute directly to the planning objective of the project. Proponents must show that a coordinated approach with relevant agencies and stakeholders will be employed.