ITEM 3: SEAWATER INTRUSION CONTROL LOAN PROGRAM GUIDELINES

DISCUSSION: In November 1996, the voters passed the Safe, Clean, Reliable Water Supply Act (Act). The Act provided $10 million in low interest loans for seawater intrusion control ($9.7 million for loans and $0.3 million for administration).

All potentially interested agencies known to the Division of Clean Water Programs (Division) staff were invited to attend a meeting on December 12, 1996 to discuss the implementation of the Act. Three agencies sent representatives who recommended that interested agencies be surveyed to ascertain their level of interest and identify the particulars of each project. On December 24, 1996, a questionnaire was mailed out with a return date of February 15, 1997. Six agencies returned the questionnaire, and these agencies were invited to a meeting on March 27, 1997 to discuss proposed program guidelines. A summary of questionnaire findings is attached. (Proposed Guidelines and questionnaire summary not available electronically. Contact: Jim Putman at (916) 227-4355.

There appears to be a great demand for the funds, with no clear way to distinguish between the projects. Therefore, the Division has developed proposed Seawater Intrusion Control Loan Program Guidelines (Guidelines), which are similar to other loan program guidelines administered by the Division, that provides for loans to be approved by the State Water Resources Control Board (SWRCB) on a first-come first-served basis. There is $9.7 million available for loans ($10 million - 3% for administration). One million dollars would be available for design only loans. This limit on funds will provide a minimum of one design loan and two construction loans. Each project would be limited to $4.35 million in total loans. A copy of the proposed Guidelines is attached. The proposed Guidelines will implement the program quickly, reduce staff cost, and provide repayments quickly to revolving account.

POLICY ISSUE: Should the SWRCB approve the proposed Guidelines?

REGIONAL BOARD IMPACT: None

FISCAL IMPACT: There are enough funds budgeted to pay for administration cost.

STAFF RECOMMENDATION: That the SWRCB adopt the proposed Guidelines.

WHEREAS:

1. The voters passed the Safe, Clean, Reliable Water Supply Act (Act) in November 1996;

2. The Act provided $10 million for seawater intrusion control loans;

3. The Division of Clean Water Programs (Division) staff has determined that there are several agencies interested in receiving a loan;

4. The apparent needs greatly exceed the funds available; and

5. The Division staff has prepared proposed Guidelines.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board adopts the Seawater Intrusion Control Loan Program Guidelines.

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 May 14, 1997.