ITEM 10: DECOMMITMENT OF SRF FUNDING FOR THE FORESTVILLE COUNTY SANITATION DISTRICT AND GRATON COUNTY SERVICE AREA, STATE REVOLVING FUND PROJECT NOs. C-06-4013-110 & C-06-4014-110

DISCUSSION: The State Water Resources Control Board (SWRCB) provided State Revolving Fund (SRF) loan funding commitments of $1.6 million per project ($3.2 million total) to Forestville County Sanitation District (Forestville) and Graton County Service Area (Graton) by Resolution Nos. 94-57 (Forestville) & 94-58 (Graton). The projects would have increased the level of treatment from secondary to tertiary without increasing the flow capacity at either plant. Project construction would have enabled compliance with North Coast Regional Water Quality Control Board (Region 1) discharge requirements as mandated by both Region 1's Basin Plan and Regional Board Orders.

Construction estimates of $2.5 million per project were included with the prelimin-ary designs submitted in March of 1995. Annual Operation and Maintenance (O&M) costs of $230,000 per treatment plant were also estimated at that time. The total annual cost per Equivalent Single Family Dwelling (ESD) for Forestville would have been approximately $878 and $660 for Graton. The difference in annual costs is because Graton has a larger population.

Because of these high annual costs, Sonoma County Water Agency, which oversees both the Forestville and Graton projects, determined that the proposed projects were unaffordable. The Sonoma County Water Agency directed staff to consider alternative methods for complying with the Regional Board Orders.

Forestville and Graton were issued NPDES permits for their treatment facilities, Orders Nos. 95-54 and 95-56 respectively. Included in these permits are requirements for the completion of studies and preparation of a specific plan for compliance by February 1998. The current plan indicates the use of off-site irrigation with secondary treated effluent until an affordable means of disposal is possible. SRF loan funds will not be used to fund the irrigation project, in fact, SRF loan funds will not be requested until an affordable, permanent solution is achieved.

The Division of Clean Water Programs (DCWP) notified the Sonoma County Water Agency with certified letters, dated December 10, 1997, of the plan to decommit the funds at the February 1998 workshop. The Sonoma County Water Agency indicated that this plan is acceptable, because of the uncertain project time schedule.

POLICY ISSUE: Should the SWRCB decommit the SRF loan funds from FFY 1994?

RWQCB IMPACT: None

FISCAL IMPACT: This decommitment of funding, will make $3.2 million of FFY 1994 SRF funding available immediately to fund other eligible SRF projects ready to proceed with construction.

STAFF RECOMMENDATION: That the SWRCB adopt a resolution decommiting SRF loan funds for both the Forestville and Graton projects.

[Attachments not available electronically but can be obtained by calling Bryan Brock at (916) 227-4574.]

DRAFT 1/26/98

WHEREAS:

1. On July 21, 1994, the State Water Resources Control Board (SWRCB) adopted Resolution Nos. 94-57 and 94-58 approving State Revolving Fund (SRF) loan commitments of $1.6 million to Forestville County Sanitation District (Forestville) and $1.6 million to Graton Community Service Area (Graton);

2 Presently the project is almost four years behind the schedule included in the facilities plan approval letter dated June 29, 1994;

3. The current schedule indicates an unforeseen time to complete the project described in the facilities plan dated April 14, 1994; and

4. This decommitment of funding, will make $3.2 million of FFY 1994 SRF funding available, immediately, to fund other eligible projects ready to proceed.

THEREFORE BE IT RESOLVED THAT

The State Water Resources Board rescinds Resolution Nos. 94-57 and 94-58, thereby decommiting both of the $1.6 million State Revolving Fund loan commitments from FFY 1994, which makes the funds available for other projects that are ready to start construction.

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 February 19, 1998.

_______________________________

Maureen Marchè

Administrative Assistant to the Board