REPORT TO SHASTA COUNTY WATER AGENCY

BOARD MEETING DATE:  January  24, 2017
CATEGORY:  Shasta County Water Agency Item - Consent-1.

SUBJECT:

CSA 2 (Sugarloaf) – Engineering Services

Supervisorial District No. :  4

DEPARTMENT CONTACT:  Pat Minturn, Chief Engineer, (530) 225-5661

STAFF REPORT APPROVED BY:  Pat Minturn, Chief Engineer

RECOMMENDATION

Take the following actions related to potential water supply improvements for County Service Area No. 2-Sugarloaf:  (1) Adopt a resolution which authorizes the Chief Engineer 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 §§15262, 15306, and 15261(b)(3); and (2) approve and authorize the Chairman to sign an amendment with Pace Engineering, Inc., to facilitate application and execution of funding agreements with the California State Water Resources Control Board for a new total not to exceed $40,800 and extending the term to March 30, 2018.

SUMMARY

Grant and loan applications are proposed for potential improvements to CSA 2 - Sugarloaf.

DISCUSSION

County Service Area No. 2 – Sugarloaf provides potable water to 47 homes in Lakehead.  Water is supplied from a well and a spring.  These sources were severely strained during the recent drought.  On June 28, 2016, the County entered into a personal services agreement (PSA) with Pace Engineering, Inc. (Pace).  Pace was to prepare a Preliminary Engineering Report and explore potential grant and loan opportunities with the U.S. Department of Agriculture – Rural Development.  Maximum compensation not to exceed $39,808 with a term to June 28, 2017.

The State Revolving Fund (SRF) has emerged as a potential funding source.  They may fund an exploratory well for eventual use as a supplemental water supply.  SRF may also fund distribution system improvements.  Their funding processes can be lengthy.  The proposed resolution is a required first step in their process. 

ALTERNATIVES

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

OTHER AGENCY INVOLVEMENT

County Counsel has approved the resolution and amendment as to form. Risk Management has reviewed and approved the amendment. County Counsel will review funding agreements prior to execution. The County Administrative Office has reviewed this recommendation.

FINANCING

The initial cost to complete the SRF Planning applications is less than $6,000.  The ultimate project may entail up to $2,400,000 in improvements.  Adequate funds are included in the Adopted 2016/17 Water Agency budget for proposed consultant work.  There is no General Fund impact.