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Consent-General Government # 10.
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| Board of Supervisors |
County Administrator |
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| Subject |
| Authorize Chair to sign agreement authorizing a loan totaling up to $1,373,000 to Knights Landing Community Services District for replacement of Well #4 and a comprehensive community water system evaluation and associated engineers report, and adopt budget resolution increasing appropriations in the Demeter fund for this purpose. (Demeter fund impact $1,373,000) (4/5 vote required) (Blacklock/Sabatini) |
| Recommended Action |
- Authorize the Chair to sign agreement with the Knights Landing Community Services District for a 3-year loan, starting March 1, 2018, of up to $1,373,000 from the Demeter Fund (Attachment A), and
- Adopt a budget resolution increasing appropriations in the Demeter Fund for this purpose (Attachment C).
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| Strategic Plan Goal(s) |
Operational Excellence
Thriving Residents
Safe Communities
Sustainable Environment
Flourishing Agriculture |
| Reason for Recommended Action/Background |
Background
In 2015, the unincorporated community of Knights Landing experienced the loss of two of the three wells that comprise their community drinking water system. This loss of approximately two-thirds of the water supply led to severe water use curtailments for the 1,100 people who depend on the District for water service. News articles from 2105 that describe the water system emergency are attached as Attachment B. The drinking water system ("system") is owned and operated by the Knights Landing Community Services District ("District"). The District Board adopted a declaration of water supply emergency at their December 2016 Board meeting. The District is funded through fees and assessments in accordance with Proposition 218.
Through the Rural Community Investment program, formerly known as the Rural Initiatives program, County staff have worked collaboratively with the District to develop an action plan based on securing outside grant funding to replace lost water well capacity and plan for future water system improvements.
As a direct result of the 2016 Rural Community Investment program investment by the County, Knights Landing CSD has been awarded three grants for upgrades to the community water system:
| Funding Source |
Grant Amount |
Grant Recipient |
Purpose |
USDA Construction Grant Drought Emergency Assistance Program
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$500,000 |
KLCSD |
Well #4 Drilling and Equipping |
DWR Construction Grant Program
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$400,000 |
KLCSD |
Well #4 Drilling and Equipping |
| SWRCB – Drinking Water State Revolving Fund |
$473,000 |
KLCSD |
Well #4 Design and Water System Evaluation |
These grants total $1.373 million dollars and require no matching funds or in kind contributions by the District or the County. The United States Department of Agriculture (USDA) and Department of Water Resources (DWR) grants are executed. The District is the contracting phase with the State Water Resources Control Board (SWRCB) grant. Grant documentation is provided as attachments C-E to this staff report.
Requested Action
While these grants do not require matching funds, the District requires financial assistance in implementing the grants. All three of the grants operate on a reimbursement basis meaning that the District has to expend revenues and then seek reimbursement from the grantor on a quarterly basis. Reimbursement can take as long as three to six months to receive, depending on the state or federal agency, creating cash flow issues for the District.
For this reason, staff is recommending that the Board authorize the Chair to enter into an agreement with the District authorizing a loan totaling up to $1,373,000 to the District, and adopt the associated budget resolution. The District uses the County Treasury as its bank/fiscal agent. The Department of Financial Services will have the ability to transfer funds back to the County treasury when reimbursements are received, plus a modest amount of interest. |
| Collaborations (including Board advisory groups and external partner agencies) |
| Externally, staff has worked collaboratively with the Board of the Knights Landing Community Services District, District 5, the USDA, DWR, and the SWRCB. Internally, staff has collaborated with County Counsel and the Department of Financial Services. |
| Competitive Bid Process |
| The requested action does not trigger purchasing policies. |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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