ITEM: 4

SUBJECT: 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.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 State Water Resources Control Board (SWRCB) on a first-come-first-served basis. Each applicant would be limited to $2.5 million in total loans. A copy of the proposed Guidelines is attached.

The SWRCB has been deeply involved in the Salinas-Monterey groundwater situation. In order to maintain momentum towards resolution, it is recommended that $2.5 million be reserved for the Pajaro Valley project.

POLICY ISSUE: Should the SWRCB approve the proposed Guidelines?

RWQCB IMPACT: None

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

STAFF RECOMMENDATION: That the SWRCB adopt the proposed Guidelines, and reserve $2.5 million until January 1, 2000, for the Pajaro Valley Water Management Agency. If Pajaro Valley has not submitted a complete application by that date, any of the $2.5 million that remains uncommitted would become available for other projects.

Guidelines not available electronically but can be obtained by calling Jim Putman at (916) 227-4355.)

September 29, 1997 DRAFT

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;

5. The Division staff has prepared proposed Guidelines;

6. The State Water Resources Control Board (SWRCB) has been deeply involved in the Salinas-Monterey groundwater situation; and

7. The SWRCB desires to maintain momentum towards resolution.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board:

1. Adopts the Seawater Intrusion Control Loan Program Guidelines;

2. Reserves $2.5 million, until January 1, 2000, for the Pajaro Valley Water Management Agency; and

3. If Pajaro Valley has not submitted a complete application by that date, any of the $2.5 million that remains uncommitted by the SWRCB shall become available to other projects.

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 October 23, 1997.

______________________________

Maureen Marché

Administrative Assistant to the Board