In September 2013, the County was awarded $851,900 from the State of California Department of Housing and Community Development Department (HCD) Community Development Block Grant (CDBG) for Water/Sewer Improvements for the Westucky Water & Sewer Project.
The Water/Sewer Project was originally approved by HCD to abandon/demolish the current privately-owned system and install a new well system and connect up to 15 properties to it. Health and safety issues, along with numerous citations and high cost repairs, were prevalent with the current system, making this a high priority project with County's Environmental Health Division and the State Water Resources Control Board.
2014
County was notified that a backup well must be available in order to expend the grant funds. Since the current well was in such disrepair, it couldn’t serve as a backup well, therefore the State was contacted to explore other options for the project.
2015
Yolo County Housing (YCH) was assigned the project. YCH and County Administrator's Office approached the City of Woodland regarding the option of having Association properties connect to City water and sewer. HCD was also consulted to determine if the scope of the project could be changed to accommodate connection to a municipality.
2016
LAFCO worked with the City and County to create and sign an Out of Area Service Agreement. YCH completed the National Environmental Policy Act (NEPA) review and coordinated all landowner signed agreements with the City, allowing for new easements associated with the project. State HCD asked to modify the scope due to a re-review of project. They determined that the “businesses” (three properties/2 owners), who were also part of the Association, did not qualify to be assisted under this grant. In addition, they determined that the work (laterals) on private properties would not qualify under the “Public Improvements” component.
2017
The above HCD change required us to re-analyze the project and meet with HCD to negotiate and eventually re-scope the project yet again. Laugenour and Meikle was awarded the Engineering contract. The original approved project was one component covering all aspects of the project. HCD later required changes to the project, which resulted in 3 different projects. The three projects were split out as shown below:
1) The Public Facilities water/sewer project funded by the CDBG grant included the main lines and infrastructure that went into the street. This was the first component of the construction process.
2) The residential connections, under the CDBG residential rehabilitation program, requires individual households to submit an application and comply with an income verification process to qualify for financial assistance for the actual connections to the home. This was the second component of the construction process. For those who did not income qualify, the County proposed a property bill financing option for those who could not get separate financing.
3) Commercial customers – those who had a commercial connection, must pay all costs or could ask for special economic development funding for the costs based on low to moderate income jobs that would be retained and not lost. This was the third component of the construction process.
All Association members were required to connect to the City Woodland water and sewer services and abandon their existing well and septic tanks. Numerous resident meetings were held to explain project, get buy-in and agreements signed and advise continued monthly bill payments to support ongoing repairs and tests.
The project budget, NEPA notice revisions, project set up documents, guidelines and general clearances, all had to be revised and split into three separate sets of documents. In addition, agreement extensions had to be requested and approved by the State for the grant and by the Board of Supervisors for the Engineering agreement. Final State and Board approvals were obtained. In the meantime, the water tank was rapidly deteriorating with pump issues and almost 20 irreparable leaks. With the project completion slated for a year away, County Environmental Health contacted State Water Resources and was approved for an emergency new tank (paid for by the State) which was successfully installed.
2018
Design submittals were sent to City and County with permits obtained. Construction bid opening (Component 1) occurred with award to Swierstok Enterprises, Inc. dba Pro Builders finalized after Board of Supervisors approval of budget increases due to high bid amounts. Property owner and tenant income eligibility (Component 2) took months. Component 1 Construction work began and Notices to Bid (Component 2 and 3) were sent out. Property Owners chose their contractor, permits and easement changes were obtained, agreements signed, and work began.
2019
Contractors experienced many rain delays in all project components-Component 1 had 22 rain days, Component 2 & 3 had 12 rain days. This required contract revisions for all contractors, the Engineer and HCD to extend the project by 3 months (i.e. construction and all expenditures completed by the end on June 30, 2019). The deadline was met by all. The last HCD deadline was September 30, 2019 for draw requests and project close out. This deadline was met as well.
People/Properties Served
| People |
# |
% |
Household Income |
# |
% |
Total
Adults
Children
Disabled
Elderly
Female Head |
35
25
10
8
2
2
|
71%
29%
23%
6%
6%
|
Total
Extremely Low – <30%
Low - 31%-50%
Moderate - 51%-80%
Non-Low/Moderate - Above 80%
|
11
3
1
3
4
|
27%
9%
27%
37%
|
| Ethnicity |
# |
% |
Properties |
# |
% |
Hispanic
White
|
21
14 |
60%
40%
|
Total
Owner
Tenant
Business
Empty Lot
|
15
5
6
2
2
|
34%
40%
13%
13% |
Four households (7 people) were not income eligible under the second component to qualify for grant funding to cover the cost of construction and City connection fees. Without CDBG funding, the four residences and two ineligible businesses were required to pay for the total costs. Costs ranged from bid estimates of $8,210 to $24,500. Residence owners were notified that they must apply for funding from a traditional finance company or bank first, if they don’t have the current ability to pay the costs directly. They were also notified that if they were declined credit, or received only partial approval for the amount needed, the County would consider offering a rehabilitation loan for the full or partial amount needed upon proof of denial. The Board of Supervisors approved a rehabilitation loan program option in April 2019, with repayment made through on bill property tax payments with no penalties for early or frequent payments. Loans would be offered at a three percent (3%) fixed rate amortized over a 5-year term. Payments would began with the November 1, 2019 installment payment.
Three of the four (2 people, 1 vacant) households were able to cash pay the Contractor and the City of Woodland by the end of construction. One household (5 people) was able to pay the City but requested a loan from the County to pay the contractor. A loan was approved for $11,850 and dispersed directly to the contractor for payment.
Budgets/Actuals
| Component 1 |
Budget |
Actual |
Difference |
| Public Improvements |
|
|
|
| |
|
|
|
| Total Expenses |
$1,143,498 |
$929,616 |
-$213,882 |
| Project Costs |
$1,143,498 |
$929,616 |
-$213,882 |
| |
|
|
|
| Total Revenues |
$1,143,498 |
$929,616 |
-$213,882 |
| CDBG Grant |
$792,465 |
$577,227 |
-$215,238 |
| Program Income |
$287,706 |
$352,389 |
$64,683 |
| County General Fund |
$63,327 |
$0 |
-$63,327 |
| Component 2 |
Budget |
Actual |
Difference |
| Residential Rehabilitation |
|
|
|
| |
|
|
|
| Total Expenses |
$184,195 |
$193,803 |
$9,608 |
| Project Costs |
$184,195 |
$193,803 |
$9,608 |
| |
|
|
|
| Total Revenues |
$184,195 |
$193,803 |
$9,608 |
| CDBG Grant |
$0 |
$165,198 |
$165,198 |
| Program Income |
$10,850 |
$28,605 |
$17,755 |
| County General Fund |
$173,345 |
$0 |
-$173,345 |
Outstanding Items
· Monitoring/audit by HCD CDBG team this week.
· Westucky Water and Sewer Association to sell water well land, dissolve bank accounts and disband as a Water Association.
Outcomes
· Averted septic waste disaster with 11 septic tanks at full capacity. 15,000 gallons drained from tanks before demolition.
· Two businesses and 11 properties (42 people total for both) now drinking tested and treated, safe water.
· Environmental Health burden relief re: monitoring, reporting, noticing, test follow up, permit fees, site visits, for this at-risk project.
· Westucky Water Association system was removed from the State Water Resources Board highest risk, critical watch list.
· Water and sewer system brought from substandard to above standard condition.
· Zero General Funds spent on project. |