ITEM 6 :APPROVAL OF A SMALL COMMUNITIES GRANT (SCG) FOR THE PAJARO COUNTY SANITATION DISTRICT (DISTRICT), WATSONVILLE WASTEWATER TREATMENT PLANT BUY-IN, PROJECT NO. SCG-710

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 project. The Division issued a Concept Approval for the District's Watsonville Wastewater Treatment Plant Expansion Project Buy-in on June 1, 1998, and the District submitted written agreement with the Division's decisions on June 2, 1998.

The Community of Pajaro is located about one mile south of the City of Watsonville along the northern edge of Monterey County. The Community of Pajaro has a population of approximately 3,500 and the 1996 median household income is $29,075. Based on the Policy's funding formula, the Community of Pajaro qualifies for a SCG for 61.58 percent of the eligible costs.

The approximate number of households within the service area is 613, making an estimated total project cost per household of $2,942. Therefore, the proposed project is not a high cost project (greater than $15,000 per household), as defined by the Policy.

The District provides wastewater collection services to the Community of Pajaro, as well as several other distinct communities in the north Monterey County area. Treatment for wastewater collected by the District is provided by the City of Watsonville Wastewater Treatment Plant, which is a regional treatment facility serving the City of Watsonville, the District, and unincorporated communities in south Santa Cruz County. The Memorandum of Agreement for the Monterey Bay National Marine Sanctuary requires the Watsonville plant to be upgraded to full secondary treatment levels by November 1998. This SCG will provide funding for the community of Pajaro's share of the upgrade costs of the Watsonville plant to secondary treatment standards. SCG Program funds will not be used to assist any of the other communities served by the District for their share of the treatment plant improvements. The Community of Pajaro's project has been assigned a class "B" priority on the SCG Projects Statewide Priority List, which was adopted on May 14, 1997.

The Community of Pajaro's share of the upgrade projects cost is $1,803,532. The estimated eligible SCG amount is $1,110,615.

The District filed a Notice of Exemption (NOE) with the Monterey County Clerk and with the Governor's Office of Planning and Research (OPR) on August 25, 1997, for the "buy-in" portion of the City of Watsonville's Secondary Treatment Plant Upgrade project. A categorical exemption from CEQA requirements was applied to the City of Watsonville's project because the project consisted of the replacement or reconstruction of an existing facility which was located on the same site, with substantially the same purpose, and involved a negligible or no expansion of capacity [CEQA Guidelines, Section 15302(c)]. The District used the same Class 2 Categorical Exemption (15302 - Replacement or Reconstruction of Existing Structures or Facilities) as used by the City of Watsonville.

The District requests the SWRCB approve a construction grant of $1,110,615 for this project.

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, 1997, adopted the Small Communities Grant Program Priority List which included the Pajaro County Sanitation District 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 June 1, 1998; and

4. The Pajaro County Sanitation District has filed a Notice of Exemption which has been reviewed and considered and it has been determined that the project qualifies for a Class 2 Categorical Exemption from CEQA requirements and will not result in any significant environmental impacts.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board approves a Small Communities Grant of $1,110,615 to the Pajaro County Sanitation District for the Community of Pajaro's share of the City of Watsonville Secondary Treatment Plant Upgrade 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