ITEM 1: APPROVAL OF A SMALL COMMUNITIES GRANT (SCG) FOR THE LE GRAND COMMUNITY SERVICES DISTRICT, WASTEWATER FACILITIES IMPROVEMENT, PROJECT NO. SCG 630

DISCUSSION: In accordance with the State Water Resources Control Board's (SWRCB) Implementation Policy for the Small Community 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 $3,900. Therefore, the proposed project is not considered a high cost project as defined by the policy.

On January 14, 1997, the Division received final plans and specifications from the District for the Wastewater Facilities Improvement project. Construction bids were opened on January 29, 1997.

The District is located in Merced County, approximately 13 miles southeast of the City of Merced and 7 miles north of the City of Chowchilla (see attached map). The District serves a population of 1205 and the 1996 median household income is $29,417. Based on the Policy's funding formula, the District qualifies for a SCG for 60.22 percent of the eligible costs.

The treatment plant average flow is about 0.162 million gallons per day. The average flow to the treatment plant is approximately 20 percent greater than the treatment capacity and there is currently a District imposed moratorium on sewer connections. This project will increase the treatment plant capacity to 0.35 million gallons per day. Aeration will be added to the existing treatment ponds providing a higher level of treatment. The project is included in Priority Class B on the SCG Statewide Priority List adopted on May 14, 1997, by the SWRCB.

The total cost of the project is estimated at $1,857,000 and the estimated grant eligible cost is $1,000,000 including engineering and administration allowances. The balance of the costs will be funded through a combined grant/loan from the United States Department of Agriculture, Rural Development program.

The District prepared a Mitigated Negative Declaration and supporting Initial Study which were distributed to the public and circulated through the State Clearinghouse (SCH # 96102015) for a 30-day review period ending on November 4, 1996. During the review period, the District received comments from the six public agencies and one private consulting firm. Environmental issues were raised regarding air quality, irrigation facilities, road construction impacts; hydrology; growth inducement; and transportation. The District considered the comments, adopted the Mitigated Negative Declaration and a Mitigation Monitoring and Reporting Progam, and approved the project on November 7, 1996. The District filed a Notice of Determination with the Governor's Office of Planning and Research on November 20, 1996.

The District requests the SWRCB approve a construction grant of $1 million for this project. This amount reflects an adjustment to include the planning grant and the design allowance.

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

RWQCB 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 June 1997:

Current SCG fund balance May 14, 1997: $29.1 million

(Reflects deduction of 3 percent of $30 million for administration.)

Project approvals under consideration by the SWRCB in June 1997:

Le Grand CSD SCG 630 $1 million

Goshen CSD SCG 695 $3 million

New SCG fund balance, if all the June 1997 proposals are approved by the SWRCB: $25.1 million

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

June 10, 1997 DRAFT

WHEREAS:

1. The State Water Resources Control Board, on January 23, 1997, adopted the "Implementation Policy for the Small Communities Grant Program," and amended 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 Le Grand Community Services District, Wastewater Facilities Improvement Project in Priority Class B;

3. The Division of Clean Water Programs approved the Facilities Plan on May 19, 1997, for the Le Grand Community Services District, Wastewater Facilities Improvement Project;

4. The Division of Clean Water Programs approved the plans and specifications on May 30, 1997; and

5. The Le Grand Community Services District approved and adopted a Mitigated Negative Declaration (State Clearinghouse No. 96102015) which has been reviewed and considered and it has been determined that the project will not result in any significant impacts.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board approves a Small Communities Grant of $1 million to the Le Grand Community Services District for construction of the Wastewater Facilities Improvement 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 June 19, 1997.

Maureen Marché

Administrative Assistant to the Board