ITEM 3: WATER RECYCLING FACILITIES PLANNING GRANT PROGRAM, APPROVAL OF GRANT FOR FACILITIES PLANNING STUDY FOR SAN SIMEON WATER RECLAMATION PROJECT, SAN SIMEON COMMUNITY SERVICES DISTRICT

DISCUSSION: The Safe, Clean, Reliable Water Supply Act (1996 Bond Law) established the Water Recycling Subaccount and provided $60 million for low-interest loans for design and construction of water recycling projects and for grants for facilities planning of recycling projects.

On April 17, 1997, the State Water Resources Control Board (SWRCB) approved the Water Recycling Funding Guidelines (Guidelines) governing the Water Recycling Facilities Planning Grant Program (FPGP). Planning grants are authorized to cover 50 percent of eligible costs up to a maximum grant of $75,000.

San Simeon Community Services District has applied for a FPGP grant for the San Simeon Water Reclamation Project planning study. The estimated eligible cost of the study is $40,000 and the grant requested is $20,000. The study will investigate providing a recycled water source to Caltrans to irrigate the Highway 1 landscape corridor, community parks, existing and new landscaping, and to recharge groundwater.

The Guidelines provide that costs for planning are not eligible for a grant unless incurred after the date of execution of the grant contract. The Division of Clean Water Programs staff has concluded that costs should be eligible if incurred after SWRCB approval of the grant commitment. This would allow an agency to begin eligible work about two months earlier. A change in the Guidelines will be requested the next time that the Guidelines are brought before the SWRCB for revision. In the meantime, the Division is requesting that the SWRCB approve funding for the costs incurred after SWRCB approval of the grant commitment for this project.

POLICY ISSUE: Should the SWRCB approve FPGP grant funding in the amount of $20,000 for the San Simeon Community Services District water reclamation facilities planning study? Should the SWRCB approve funding for costs incurred after approval of the grant commitment?

RWQCB IMPACT: None

FISCAL IMPACT: A total of $47.4 million is available for water recycling loans or facilities planning grants. The SWRCB's approval of the $20,000 grant will leave a balance of $47.3 million.

STAFF RECOMMENDATION: That the SWRCB adopt a resolution approving the $20,000 FPGP grant to San Simeon Community Services District for the subject study and authorizing eligibility for costs incurred after approval of the grant commitment.

DRAFT June 29, 1998

WHEREAS:

1. The Safe, Clean, Reliable Water Supply Act (1996 Bond Law) established the Water Recycling Subaccount and provided $60 million for low interest loans for the design and construction of water recycling projects, and for planning grants;

2. The State Water Resources Control Board established the Water Recycling Facilities Planning Grant Program (FPGP) by adoption of the Water Recycling Funding Guidelines (WRF Guidelines) on April 17, 1997, which implemented provisions of the 1996 Bond Law as well as other bond laws;

3. A grant application was submitted by San Simeon Community Services District requesting funding for the San Simeon Reclamation Project planning study;

4. The Office of Water Recycling staff has reviewed the application, Plan of Study, and other supporting information for the facilities planning study and has determined that the submitted documents comply with the WRF Guidelines; and

5. The WRF Guidelines provide that eligible costs are costs incurred after execution of the grant contract, and the Office of Water Recycling staff has concluded that it is desirable to allow costs incurred after approval of the grant commitment to be eligible.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board:

1. Approves a FPGP grant of 50 percent of the eligible costs but not to exceed $20,000 to San Simeon Community Services District for the San Simeon Reclamation Project planning study;

2. Approves a condition requiring submittal of the final facilities planning report by February 11, 2000. The Office of Water Recycling may approve up to a 12-month extension for good cause; and

3. Approves funding for costs incurred after July 23, 1998.

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 July 23, 1998.

______________________________

Maureen Marché

Administrative Assistant to the Board