REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  November  7, 2017
CATEGORY:  Consent - Public Works-18.

SUBJECT:

CSA No. 2-Sugarloaf Water – Grant Signature Authority

Supervisorial District No. :  4

DEPARTMENT CONTACT:  Pat Minturn, Public Works Director, (530) 225-5661

STAFF REPORT APPROVED BY:  Pat Minturn, Public Works Director

RECOMMENDATION

Take the following actions on behalf of County Service Area (CSA) No. 2-Sugarloaf Water: (1) Adopt a resolution which authorizes the Public Works Director to submit funding applications to the California State Water Resources Control Board and to execute any resulting funding agreements and that finds the funding application and any subsequent funding agreement to be exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15262, 15306, and 15261(b)(3) related to potential water supply improvements for CSA No. 2-Sugarloaf Water; and (2) authorize the fund to be in a negative cash position for short periods while awaiting reimbursement from the State during the project.

SUMMARY

Grant and loan applications are proposed for potential improvements to CSA No. 2-Sugarloaf Water.

DISCUSSION

CSA No. 2-Sugarloaf Water provides potable water to 47 homes in Lakehead.  Water is supplied from a well and a spring.  Well treatment has been upgraded to meet drinking water standards but yield is limited.  The spring is offline due to water quality concerns.  On February 24, 2017, the Shasta County Water Agency submitted a grant application to the State Revolving Fund (SRF) to fund an exploratory well for additional supply.  SRF may also fund distribution system improvements.  SRF would prefer to provide the grant to CSA No. 2-Sugarloaf Water so a new application is proposed.  The new grant application will mirror the February 24, 2017 grant application.

ALTERNATIVES

The Board may decline to pursue SRF funding at this time.  Funding alternatives are severely limited.

OTHER AGENCY INVOLVEMENT

County Counsel has approved the resolution as to form. The Community Advisory Board has been advised of this development.  The County Administrative Office has reviewed this recommendation.

FINANCING

The SRF Planning Grant is for $500,000 in exploratory drilling and design.  Adequate funds are included in the Adopted FY 17/18 CSA budget.  The ultimate project may entail up to $2,400,000 in improvements.  The CSA may experience negative cash flow during the Planning Grant work, pending reimbursement by SRF.  There is no General Fund impact.