ITEM 7: APPROVAL OF A SMALL COMMUNITIES GRANT (SCG) FOR THE LAKE COUNTY SANITATION DISTRICT (DISTRICT), SOUTHEAST (SE) REGIONAL INFILTRATION/INFLOW REDUCTION MEASURES PROJECT, PROJECT NO. SCG-671

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 May 15, 1998, and the District submitted written agreement with the Division's decisions on May 27, 1998.

The SE Regional System is located on the SE shore of Clear Lake. The Lake County Sanitation District (District) operates and maintains the SE Regional Wastewater Collection System and Wastewater Treatment Facility. The District consists of several Assessment Districts (AD's), each financially responsible for their sewer system capital improvements. Seven of the AD's, which discharge to the SE Regional Wastewater Treatment Facility, meet the requirements for funding under the SCG program. The combined 1996 median household income of the seven AD's, weighted by population, is $19,655. Based on the Policy's funding formula, the District qualifies for a SCG for 97.5 percent of the eligible costs.

The approximate number of households within the service area is 5,768, making an estimated total project cost per household of $560. Therefore, the proposed project is not a high cost project (greater than $15,000 per household), as defined by the Policy.

The State Water Resources Control Board (SWRCB) included seven AD's, which discharge to the SE Regional Wastewater Treatment Facility, on the SCG Statewide Projects Priority List, adopted on May 14, 1998. The total funding provided to these AD's cannot exceed $3 million, as required by SWRCB Resolution No. 97-046. One SCG project number (SCG-671) is being used to streamline administrative procedures. (Project includes the following SCG project numbers: SCG-671, SCG-680, SCG-681, SCG-682, SCG-684, SCG-685, and SCG-686.)

The SE Regional Sewer Collection System experiences excessive infiltration and inflow (I/I) which is severely affected by the level of Clear Lake. As the lake level rises, the surrounding groundwater level rises causing tremendous infiltration. The increased flows exceed the capacity of the collection system and cause sewer system overflows. The Central Valley Regional Water Quality Control Board amended Cease and Desist Order No. 91-202 on December 6, 1996, which requires the District to eliminate these sewer system overflows.

The purpose of proposed project is to:

• reduce I/I by surcharging collection system;
• eliminate sewer system overflows; and
• provide data for cost-effective implementation of I/I reduction measures.

The project consists of:

• installation of a supervisory control and data acquisition (SCADA) system;
• upgrades to several pump stations to include variable speed drives, groundwater level monitoring wells, and flow meters;
• upgrade pump station No. 3 and pump station No. 4 to increase capacity; and
• piping improvements to increase collection system capacity between pump stations No. 3 and No. 2 and between pump stations No. 2 and No. 1.

The estimated total project cost is $3.23 million. This estimate includes construction, contingencies, engineering, and administration. The estimated eligible SCG amount is $3 million. The District is funding the local share of the project costs with cash on hand. The District has already received a Planning Grant of $79,767 and a Design Grant of $158,296.

The District prepared a Negative Declaration/Initial Study (ND/IS) for the proposed project which was distributed to the public and circulated through the State Clearinghouse (SCH# 97082054) for review from August 18, 1997, through September 17, 1997. During the review period, the District received one comment letter. The Division commented regarding SCG documentation requirements. The Lake County Board of Supervisors approved the project, and adopted the Negative Declaration on September 9, 1997. A Notice of Determination (NOD) was filed with the Lake County Clerk's Office and the Governor's Office of Planning and Research on September 16, 1997.

The District requests the SWRCB approve a construction grant of $2,761,937 for this project. However, $2,667,760 is remaining in the SCG account.

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 July 1998.

Current SCG fund balance as of June 1998: $4,902,227

Project approvals under consideration by the SWRCB in July 1998:

Pajaro County Sanitation District SCG-710 $1,110,615

City of Firebaugh SCG-623 $1,123,852

Lake County Sanitation District - SE Regional System SCG-671 $2,667,760

New SCG fund balance, if all the July 1998 proposals are approved by the SWRCB: $0

There are eight additional projects which have submitted the necessary information to be considered for a construction grant commitment. However, the SCG funds have been depleted. The above projects were selected based on a first-come-first-served basis (for submittal of "substantially complete" plans and specifications) in accordance with the Policy.

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

DRAFT June 29, 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, 1998, adopted the Small Communities Grant Program Priority List that included seven existing sewer assessment districts, which discharge to the Southeast Regional Wastewater Treatment Facility, in Priority Class B;

3. The Division of Clean Water Programs approved the Facilities Plan, which includes the project report, environmental documents, and draft revenue program, on April 29, 1998, for the Lake County Sanitation District, Southeast Regional Infiltration/Inflow Reduction Measures Project;

4. The Division of Clean Water Programs approved the Final Plans and Specifications on May 15, 1998, and the Lake County Sanitation District submitted written agreement with the Division's decisions on May 27, 1998; and

5. The Lake County Board of Supervisors adopted a Negative Declaration for the proposed project (State Clearinghouse No. 97082054) 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 $2,667,760 to the Lake County Sanitation District for construction of the Southeast Regional Infiltration/Inflow Reduction Measures 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 July 23, 1998.

Maureen Marché

Administrative Assistant to the Board