REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE BOARD GOVERNED COUNTY SERVICE AREAS
AND RECORD OF ACTION
March 10, 2020
FROM
LUTHER SNOKE, Interim Director, Special Districts Department
SUBJECT
Title v
Grant Agreement with California State Water Resources Control Board for the County Service Area 70, W-4 (Pioneertown) and Hi Desert Water District Interconnection Pipeline Project
End
RECOMMENDATION(S)
Recommendation
Acting as the governing body of County Service Area 70, W-4 (Pioneertown):
1. Approve grant funding agreement with the California State Water Resources Control Board, under the Drinking Water State Revolving Fund, to receive $5.4 million as reimbursement for construction costs associated with the installation of an interconnection pipeline (Project) that transfers water from the Hi Desert Water District to County Service Area 70, W-4 (Pioneertown).
2. Designate the Chair of the Board of Supervisors, the Chief Executive Officer, or the Interim Director of Special Districts Department to execute the grant funding agreement and other documents, including any non-substantive amendments, in relation to the grant funding agreement upon review and approval of County Counsel.
3. Direct the Interim Director of the Special Districts Department to transmit all documents and non-substantive amendments in relation to the grant funding agreement to the Clerk of the Board of Supervisors within 30 days of execution.
(Presenter: Luther Snoke, Interim Director, 386-8811)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
Pursue County Goals and Objectives by Working with Other Agencies.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The grant award of $5.4 million will be used to repay most of the $5.6 million loan received by County Service Area 70, W-4 (CSA 70 W-4) from the County General Fund for the Project. The Board of Supervisors (Board) approved this loan on November 6, 2018 (Item No. 73). The remaining loan balance of $200,000, plus accrued interest totaling approximately $125,000, will be paid by funds available in the CSA 70 W-4 Capital Improvement Program. Appropriation for repayment of the loan is included in the 2019-20 CSA 70 W-4 budget.
BACKGROUND INFORMATION
The domestic water system of CSA 70 W-4, which has been maintained and managed under the Special Districts Department’s Water and Sanitation Division since 1980, currently provides water to 120 service connections in the desert community of Pioneertown north of Yucca Valley. CSA 70 W-4’s well water sources historically contained naturally occurring high levels of fluoride, arsenic, and uranium that either exceeded or approached the Maximum Containment Levels (MCLs) set by the Environmental Protection Agency (EPA) and the California Department of Public Health.
In response to drinking water deficiencies, the Board approved submittal of a grant application to the California State Water Resources Control Board (State Water Board) seeking funding under the Drinking Water State Revolving Fund on September 1, 2015 (Item No. 45).
On October 10, 2018, CSA 70 W-4 was informed by the State Water Board - Division of Financial Assistance of the identification of $5.4 million in funding for the Project. To allow construction to start immediately before the grant funds were completely secured, the Board approved a $5.6 million loan from the County General Fund on November 6, 2018 (Item No. 73). The loan was needed to ensure compliance with a Federal Administrative Order on Consent issued by the EPA to comply with the requirements of the federal Safe Drinking Water Act (SDWA). Non-compliance with this order would have subject CSA W-4 to potentially significant fines from the EPA.
The Project, which was completed in July 2019, included installation of approximately 21,000 linear feet of eight-inch diameter water pipeline and 42,000 feet of two-inch fiber optics conduit aligned with Pioneertown Road. The Project also included two 10,000 reservoirs and two booster stations to transport water from the Hi Desert Water District (HDWD) Well 2w site in the town of Yucca Valley on Sunland Drive to CSA 70 W-4 connecting with the existing pipe infrastructure in the vicinity of Mane Street and Curtis Road in Pioneertown.
On August 4, 2019, after exclusively using the imported water from HDWD Well 2w, CSA 70 W-4 staff received water quality reports evidencing compliancy with federal SDWA MCLs for arsenic, fluoride, and state MCLs for uranium. Since then, staff has continued to conduct periodic water sampling and maintain water quality compliancy.
The State Water Board finalized the grant award on February 13, 2020 and requires CSA 70 W-4 to approve and execute the grant funding agreement within 30 calendar days for receipt of the $5.4 million.
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Dawn Martin, Deputy County Counsel, 387-5455) on February 20, 2020; Finance (Tom Forster, Administrative Analyst, 387-4635) on February 21, 2020; and County Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423) on February 25, 2020.