ITEM: 1

SUBJECT: CONSIDERATION OF APPROVAL OF A RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR OR HIS DESIGNEE TO NEGOTIATE, EXECUTE, AND AMEND CONTRACTS TO IMPLEMENT THE PROPOSITION 204 DELTA TRIBUTARY WATERSHED PROGRAM--PHASE II

DISCUSSION: On November 6, 1996, California voters approved the "Safe, Clean, Reliable Water Supply Act"--Proposition 204 (Act). Article 5 of Chapter 5 of the Act (Water Code sections 78647-78647.16) allocated $15,000,000 in bond funds to the State Water Resources Control Board (SWRCB) for the Delta Tributary Watershed Program (Program). Of this amount, $14,550,000 was available to fund watershed rehabilitation projects in eligible watersheds ($15,000,000 less three percent for administrative expenses). A Program Request for Proposal (RFP) to solicit project proposals for Phase I of the Program was released in August 1997. Under Phase I, 16 projects were approved for a total of $10,169,501. Contract negotiations for these projects are underway.

A Program RFP to solicit Phase II project proposals was released in June 1998 with a submittal deadline of August 14, 1998. Thirty-two project proposals were submitted. As specified in the RFP, project proposals were reviewed by three advisory groups: (1) Resources Agency and its departments; (2) Delta Tributary Advisory Committee; and (3) North Coast and Central Valley Regional Water Quality Control Board (RWQCB) staffs. These three groups thoroughly reviewed the proposals and have reached full consensus on the attached list of 15 projects and their funding levels that are recommended for SWRCB approval under Phase II of the Program (Attachment 1). The funding for these projects totals $4,380,499 and is subject to contract negotiations between the project proponents and SWRCB/RWQCB contract managers. In addition, the three advisory groups strongly recommended that all projects funded under the Program must meet the following three conditions:

1. SWRCB contract negotiations should include technical peer review to assure appropriateness of the proposal's technical components;

2. SWRCB contract negotiations should assure inclusion of a comprehensive project monitoring and evaluation quality assurance plan; and

3. SWRCB contract negotiations should ensure that the project budget is detailed, especially large budget line items such as construction and consulting services.

POLICY ISSUE: Should the SWRCB authorize the Executive Director or his designee to negotiate, execute, and amend contracts for projects listed in Attachment 1 to implement Phase II of the Program?

FISCAL IMPACT: Expenditure authority has been established for the Program bond funded projects as follows: Fiscal Year (FY) 1997-98--$102,000 for administrative expenses, FY 1998-99--$10,169,501 for projects and $150,000 for administrative/technical SWRCB staff, and FY 1999-2000--$4,380,499 for projects and $198,000 for administrative/technical SWRCB staff.

RWQCB IMPACT: Yes, North Coast and Central Valley Regional Water Quality Control Boards.

STAFF RECOMMENDATION: That the SWRCB authorize the Executive Director or his designee to negotiate, execute, and amend contracts for projects listed in Attachment 1 to implement Phase II of the Program.

December 28, 1998 Draft

WHEREAS:

1. The voters of the State of California passed Proposition 204 on November 6, 1996 providing $15 million in bond funds for the Delta Tributary Watershed Program (Program).

2. Under Phase I of the Program, the State Water Resources Control Board (SWRCB) approved funding of $10,169,501 for 16 projects.

3. Phase II of the Program will provide $ 4,380,499 to perform watershed rehabilitation projects in the Trinity, Sacramento, and San Joaquin River Watersheds and with the $450,000 in adminstrative funds will fully commit the remaining project funding for the Program.

4. The SWRCB released a Request for Proposal (RFP) in June 1998 for the Phase II Program and closed the solicitation on August 14, 1998.

5. The Phase II project proposals were reviewed by the Resources Agency,
Delta Tributary Advisory Committee, and North Coast and Central Valley Regional Water Quality Control Board staffs in accordance with the RFP.

6. The three advisory groups reached full consensus on the attached recommended list (Attachment 1) of 15 projects and funding levels for Phase II of the Program.

7. For each approved project, the SWRCB will not provide funding for any activity that is subject to the California Environmental Quality Act (CEQA) until the applicant documents that the CEQA process has been satisfied.

THEREFORE BE IT RESOLVED THAT:

The SWRCB authorizes the Executive Director or his designee to negotiate, execute, and amend contracts for projects listed in Attachment 1 to implement Phase II of the Program

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 January 21, 1999.

_____________________________________

Maureen Marché

Administrative Assistant to the Board