REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  January  24, 2017
CATEGORY:  Consent - Public Works-11.

SUBJECT:

CSA #17 - Cottonwood Sewer Grant Application

Supervisorial District No. :  5

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

STAFF REPORT APPROVED BY:  Pat Minturn, Public Works Director

RECOMMENDATION

Take the following actions for the County Service Area No. 17-Cottonwood System Upgrade Project: (1) Adopt a resolution which authorizes the Public Works Director to execute and submit grant and loan applications and related documents; (2) adopt a resolution which pledges revenues and funds for repayment of Clean Water State Revolving Fund and/or water recycling fund; and (3) adopt a resolution which authorizes expenditures paid prior to the issuance of obligations or the approval by the State Water Board of the project funds.

SUMMARY

Two separate projects are proposed to upgrade the Cottonwood sewer system.

DISCUSSION

In 1985, County Service Area #17 – Cottonwood Sewer (CSA #17) was constructed.  In 2015, the County executed a Settlement Agreement in which we agreed to make certain improvements to CSA #17. Environmental and engineering studies have since commenced.  On August 16, 2016 the Board approved a Funding Reimbursement Resolution for a $6,425,000 project.  Such a project would be eligible for a $6,000,000 Clean Water State Revolving Fund grant.  This is roughly the cost of the proposed treatment upgrades.  Two separate projects would be eligible for a total of $8,000,000.  The additional funds would be used to improve the collection system.  The proposed actions would facilitate two separate projects, instead of just one as previously envisioned.

ALTERNATIVES

The Board may decline to pursue additional grant funding. Collection system deficiencies would remain.

OTHER AGENCY INVOLVEMENT

County Counsel has approved the resolutions as to form.  The County Administrative Office has reviewed this recommendation.

FINANCING

Two projects are proposed totaling $8.969 million.  Adequate funds to prepare and submit the funding application were included in the Adopted 2016/17 budget for CSA #17.  A rate increase was approved June 23, 2015, to repay the loan portion.  A state planning grant has provided $434,000 for work to date.  There is no General Fund impact.