ITEM 4: MEMORANDUM OF UNDERSTANDING REGARDING ADMINISTRATION AND FUNDING OF SMALL COMMUNITY PROJECTS SEEKING FINANCIAL ASSISTANCE FROM MULTIPLE FUNDING SOURCES

DISCUSSION: During development of the Small Communities Grant (SCG) Program Implementation Policy and adoption of the SCG Project Priority List, the Division of Clean Water Programs (DCWP) was asked to insure that local agencies explored the option of obtaining financial assistance from other state and federal programs before award of grant funding from the SCG Program.

The Division explored this with the United States Department of Agriculture Rural Utilities Service (RUS), and the California Department of Housing and Community Development (HCD). During discussions of agency programs and their funding sources, both RUS and HCD expressed a willingness to cooperate on funding coordination and to find ways to make the process easier for local government. The California Department of Health Services (DHS) also expressed interest because their new State Revolving Fund (SRF) Drinking Water Loan Program applicants can also receive funding from RUS and HCD.

Representatives from the four agencies have been meeting periodically over the past nine months. It was agreed that a Memorandum of Understanding (MOU) between the funding agencies could greatly increase intergovernmental cooperation, reduce paperwork for local agencies, increase state and federal administration efficiency, and provide a forum for resolving problems that in the past caused project delays for joint funded projects.

The attached proposed MOU states these goals and provides for the later adoption (by appendices to the MOU) of program review elements designed to address specific program areas where cooperation will be a benefit for all parties. The appendices outline existing state and federal requirements that will allow applicants asking for multiple funding to prepare one document that will be accepted by the funding agencies signatory to this MOU. The MOU also commits the agencies involved to providing staff necessary to coordinate funding requests, resolve problems, and increase cooperation between the funding agencies.

The proposed MOU is supported by each of the agencies involved and we anticipate support from local government.

POLICY ISSUE: Should the State Water Resources Control Board (SWRCB) authorize the Chairman to sign the MOU, and future appendices, on behalf of the SWRCB?

FISCAL IMPACT: Approval of the MOU should result in reduced project review time for the DCWP. The implementation of the MOU will enable the DCWP to make more efficient use of the $900,000 allotted in the Bond Act for administration. The staff commitment necessary to coordinate this effort will be minimal and can be accomplished within the Division's existing budgeted resources for the SCG Program.

RWQCB IMPACT: None.

STAFF RECOMMENDATION: That the SWRCB authorize the Chairman to sign the MOU, and future appendices to the MOU, on behalf of the SWRCB.

[Proposed MOU not available electronically but can be obtained by calling Eric Torguson at (916) 227-4449.]

October 27, 1997 DRAFT

WHEREAS:

1. Representatives from the Division of Clean Water Programs have met periodically with the United States Department of Agriculture, the California Department of Health Services, and the California Department of Community Development over the past nine months;

2. It was found that project reviews conducted by each agency on funding applications were very similar in many cases;

3. Problems facing local government could be greatly reduced through cooperation and coordination of project reviews by the funding agencies;

4. The best mechanism for assuring cooperation and coordination of these funding programs was through a Memorandum of Understanding (MOU);

5. All parties to this effort are in agreement that an MOU will be of substantial benefit to their program; and

6. Appendices are being developed to implement a set of standard requirements for local applicants to meet that will be acceptable to the funding agencies.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board (SWRCB) authorizes the Chairman to sign the MOU, and future appendices to the MOU, on behalf of the SWRCB.

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 November 18, 1997.

Maureen Marché

Administrative Assistant to the Board