California Drought Grants
California Drought Grants

San Diego County reaches settlement for misappropriation of nearly $2.9 million state grant funds

The State Water Resources Control Board has reached a settlement with San Diego County after allegations of misuse of funds were uncovered by the San Diego Regional Water Board staff as they conducted a routine inspection in 2013.

During the inspection it was found that 118,000 square-feet of porous pavement, funded by state grants had been, or was, in the process of being destroyed at the San Diego County Operations Center. The project was supposed to be maintained for at least 20 years per the grant terms. Staff conducting the inspection concluded that the county failed to advise the State Water Board that it was unable to maintain the project.

San Diego County was advised that failing to maintain a project funded by state bond funds can result in the grant recipient having to reimburse the State Water Board for all funds granted, plus interest and penalties. The settlement will require restoration work by San Diego County for the demolition; the project was originally funded through Proposition 13 and 40 bond funds issued to the county by the state in 2003 and 2006.

Also part of the settlement, the county is required to construct three replacement projects that will ultimately provide more than five times the infiltration benefits and 20 times the water quality benefits of the original project. The three projects are Edgemoor Skilled Nursing Facility, Santee; Lindo Lake County Park, Lakeside; and, Cactus County Park, Lakeside. San Diego County is also required to pay a $25,000 penalty and reimburse the State Water Board for staff oversight costs.

“The State Water Board provides billions of dollars in funding to help those we regulate meet their permit requirements and improve the environment,” said Darrin Polhemus, director of the State Water Board’s Division of Financial Assistance. “The recipients of our funds generally understand their obligation to be good stewards of the people of California’s money. Unfortunately in this instance, San Diego County did not fulfil this obligation and its contractual commitments for this project. Through the diligent efforts of the San Diego Regional Water Quality Control Board inspectors and this settlement, we are making sure the people of California are getting more than what they originally paid for.”

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