ITEM 6: CONSIDERATION OF APPROVAL OF A RESOLUTION TO AUTHORIZE COMBINING THE STATE REVOLVING FUNDS (SRF) FOR THE LAKE TAHOE REGREEN PROJECT (SRF LOAN NO. C-06-6039-11) AND THE LAKE TAHOE BEST MANAGEMENT PRACTICES (BMP) RETROFIT PROJECT (SRF LOAN NO. C-06-6038-11) INTO A SINGLE PROJECT FOR ADMINISTRATIVE PURPOSES

DISCUSSION: The State Water Resources Control Board (SWRCB) authorized two projects in the Lake Tahoe Basin that are to be funded through the linked deposit program. The first project is the Lake Tahoe Regreen Project, authorized by SWRCB Resolution No. 96-036. This Project will provide assistance to landowners for the removal of dead and dying trees that are a fire hazard and may result in massive sedimentation to Lake Tahoe (Lake). The amount of SRF funding for this Project is $5 million. The Project will be implemented by the California Resources Agency and the Tahoe Resource Conservation District.

The second project is the Lake Tahoe BMP Retrofit Project, authorized by SWRCB Resolution No. 96-037. This Project will provide assistance to landowners to retrofit their properties with BMPs to reduce sedimentation to the Lake. The amount of SRF funding for this Project is $3 million. The Project will be implemented by the Tahoe Regional Planning Agency and the Tahoe Resource Conservation District.

Normally, each SRF project is limited to the authorized funds in the SWRCB resolution. However, this restriction will create difficulties in administering the two Projects jointly. For example, a single landowner may receive authorization to participate in both Projects. In some cases, it would be more efficient and less costly for the bank to issue one loan rather than two separate loans in this scenario. The requirement to keep costs separated according to authorized Project will be cumbersome for the bank, the contractor, and the local agencies.

It is proposed that the SWRCB allow the two Projects to be administered jointly. Individual property owners could qualify under criteria for either the Lake Tahoe Regreen Project or the Lake Tahoe BMP Retrofit Project as previously authorized by the SWRCB. This will also simplify and lower administrative costs for the SWRCB by requiring the investment into only one time deposit. One possible concern of this proposal is that one Project will receive more than what it was originally authorized while the other Project will receive less. However, it may benefit water quality by allowing the individual linked deposit projects that are ready to proceed to receive funding on a first come-first served basis.

POLICY ISSUE: Should the SWRCB allow the Lake Tahoe Regreen Project which is authorized for $5 million and the Lake Tahoe BMP Retrofit Project which is authorized for $3 million to be combined into a single project for $8 million for administrative purposes?

FISCAL IMPACT: None.

RWQCB IMPACT: None.

STAFF RECOMMENDATION: That the SWRCB authorizes the $5 million in SRF funds approved for the Lake Tahoe Regreen Project and the $3 million in SRF funds approved for the Lake Tahoe BMP Retrofit Project to be combined into a single $8 million Project where the criteria for either Project previously approved in SWRCB Resolutions 96-036 and 96-037 can be used to qualify for linked deposit loans.

April 21, 1997 Draft

WHEREAS:

1. The State Water Resources Control Board (SWRCB) authorized $5 million for a linked deposit program for the Lake Tahoe Regreen Project (SRF Loan No. C-06-6039-11) in Resolution No. 96-036 implemented by the California Resources Agency and the Tahoe Resource Conservation District.

2. The SWRCB authorized $3 million for a linked deposit program for the Lake Tahoe BMP Retrofit Project (SRF Loan No. C-06-6038-11) in Resolution No. 96-037 implemented by the Tahoe Regional Planning Agency and the Tahoe Resource Conservation District.

3. There will be less administration and cost if the two Projects are implemented jointly.

THEREFORE, BE IT RESOLVED THAT:

The SWRCB authorizes the $5 million in SRF funds approved for the Lake Tahoe Regreen Project and the $3 million in SRF funds approved for the Lake Tahoe BMP Retrofit Project to be combined for administrative purposes into a single $8 million Project where the criteria for either Project previously approved in SWRCB Resolutions 96-036 and 96-037 can be used to qualify for linked deposit loans.

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.