COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

May 20, 2004

BOARD MEETING DATE:

June 8, 2004

TO:

Honorable Board of Supervisors

FROM:

Neil R. Cullen, Director of Public Works

SUBJECT:

Declining Grant Funding from the United States Department of Agriculture and Rescinding an Agreement for a General Fund Loan to Finance a New Well for County Service Area No. 11 - Pescadero Area

Recommendation

Adopt resolutions:

1.

Authorizing the Director of Public Works to submit a letter to the United States Department of Agriculture (USDA) declining grant funding to help fund the construction of a new well for County Service Area No. 11 (CSA11) that was previously approved by the USDA; and

2.

Rescinding the previously executed agreement between CSA11 and the County that provided a General Fund loan in an amount up to $165,000 to CSA 11 to help finance the construction of a new well.

Previous Board Action

1.

Authorized the Director of Public Works to submit an application for Federal Assistance to the USDA for a grant to help fund the construction of a new well for CSA11.

2.

Adopted Resolution No. 66230 which approved an agreement for a General Fund loan in an amount up to $165,000 to help finance the construction of a new well.

3.

Directed staff to hold a public information meeting with the ratepayers in CSA11 to discuss the need and costs of the proposed new well for CSA11.

Key Facts

1.

A consultant's analysis of the long-term reliability of CSA11's existing wells conducted in 2001 concluded that:

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the existing wells could fail due to the draw down of the aquifer in 8 to 15 years.

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installation of a new deeper well in the vicinity of the existing wells would extend the life of the CSA11 water supply to at least 38 years.

2.

USDA approved a $135,000 grant to help fund construction of a new well under the Federal Water and Waste Disposal Loan and Grant Program.

3.

We sent information to the customers about the proposed project, held a public meeting to explain the need for the project, obtained feedback from the customers, and answered questions about the water system and the project.

4.

We also surveyed the customers and property owners at the request of the ratepayers that attended the information meeting, as there was concern that a new well was not needed at this time.

5.

Approximately ninety-two percent (92%) of the returned surveys were not in favor of constructing a new well.

Discussion

The majority of the attendees did not believe a new well was necessary at this time. They requested, and we agreed to send a survey to the customers and the property owners who had been assessed for a connection to the CSA11 water system, in order to determine if the rate payers or future rate payers wanted to move forward with the construction of a new well at this time.

Approximately ninety two percent (92%) of the returned surveys were not in favor of constructing a new well. The responses to the survey are summarized below:

Response

Percent Based on Returned Surveys

Percent Based on Total Surveys Sent

Do not move forward with construction of a new well at this time.

91.6 %

59.8%

Move forward with construction of a new well at this time.

7.2 %

4.7 %

Undecided, needed more information.

1.2%

.8%

No Response.

--

34.7%

Total

100%

100%

We are recommending, based on the survey results, that the USDA grant be declined and the loan as previously approved be rescinded, as there does not appear to be community support for a new well.

We will continue to monitor the water levels in the existing wells to determine when there is further justification for a deeper well.

Vision Statement

We believe our recommendation is consistent with Shared Commitment to "responsive, effective and collaborative government" as an inclusive process was used to determine the desire of the community regarding the proposal to install a new well for CSA11.

Fiscal Impact

The USDA grant or the General Fund loan is not needed if the well is not constructed. We will continue to investigate the implementation of a tiered rate structure for CSA11 and will also continue to monitor the elevation of the water in the existing wells. The staff time involved in these activities will be financed by CSA11. There is no impact to the General Fund.

We have notified the ratepayers and property owners who have purchased a connection right in CSA11 of the date when your Board is tentatively scheduled to consider our recommendations.

Forms of resolutions have been reviewed and approved by County Counsel.