AGENDA
ITEM
8 ALBA
AGENDA
CALEXICO California ITEM
WHERE CALIFORNIA AND
8 CITY COUNCIL
AGENDA STAFF REPORT
DATE: July 15, 2026
TO: Mayor and City Council
APPROVED BY: Benjamin A. Martinez, City Manager
PREPARED BY: Laura Bowen, Grants Manager
SUBJECT: Approval of Resolution Authorizing the Submission of an Application to the Imperial Irrigation District (IID) Funding Local Opportunities for Water (FLOW) Grant Program for the 12-Inch Water Pipeline Interconnection: East Sector Distribution System to Cole Road Storage Tank Project.
C=========
Recommendation:
1. Adopt Resolution No. 2026- authorizing the submission of an application to the Imperial Irrigation District (IID) Funding Local Opportunities for Water (FLOW) Grant Program for the 12-Inch Water Pipeline Interconnection: East Sector Distribution System to Cole Road Storage Tank Project.
2. Authorize the City Manager, or designee, to submit the FLOW Grant application and all supporting documents required by the grant program.
3. Direct staff to return to the City Council, if the application is selected for funding, with a request to accept the grant award, approve the required local cost share, if applicable, and authorize execution of the grant agreement and any related documents necessary to implement the project.
Background:
The Imperial Irrigation District (IID) has announced the Funding Local Opportunities for Water (FLOW) Grant Program, a competitive grant program established to assist local public agencies with water infrastructure projects that provide broad public benefits within IID's water service area. The City of Calexico is eligible to apply for funding under this program. The FLOW Grant Program supports projects that improve water system reliability, resiliency, operational efficiency, and other water-related infrastructure improvements.
Discussion and Analysis:
City staff has identified the 12-Inch Water Pipeline Interconnection: East Sector Distribution System to Cole Road Storage Tank as a priority infrastructure project that is consistent with the objectives of the FLOW Grant Program. The proposed project consists of constructing approximately 7,500 linear feet of 12-inch water transmission pipeline to establish a second connection between the City's East Sector distribution system and the Cole Road Storage Tank.
The project is intended to improve system reliability by creating distribution system redundancy, enhancing operational flexibility, improving water pressure, strengthening emergency response capabilities, and increasing the overall resilience of the City's potable water distribution system.
The proposed project is estimated to have a total cost of approximately $3.5 million. The FLOW Grant Program requires applicants to provide a minimum 50 percent cost share from eligible non-ID funding sources. Staff is currently evaluating potential funding sources for the required cost share. Any proposed financial commitment by the City associated with a grant award will be presented to the City Council for consideration as part of a future action.
The project is also intended to provide long-term public benefits by strengthening water infrastructure serving the eastern portion of Calexico and supporting the reliability of the City's water distribution system. The proposed pipeline connection would improve the interconnection between the East Sector distribution system and the Cole Road Storage Tank and provide an additional connection within the City's water system. Staff is currently preparing the grant application in accordance with the FLOW Program Guidelines, including the required technical documentation, project exhibits, commitment letters, support letters, and other supporting materials. The FLOW Program requires funded projects to be fully implemented and constructed within two years of execution of the grant agreement. Staff is developing the application and proposed implementation schedule consistent with this program requirement.
Approval of the attached resolution will authorize staff to submit the grant application on behalf of the City. If the project is selected for funding, staff will return to the City Council with a future agenda item requesting authorization to accept the grant award, approve the required local cost share, if applicable, and authorize the execution of the grant agreement and any other documents necessary to implement the project.
Fiscal Impact:
Approval of this resolution authorizes submission of a grant application only and does not obligate the City to expend funds. Should the project receive funding, staff will return to the City Council with the grant award amount, the proposed funding source(s) for the required local cost share, and any necessary budget actions for Council consideration.
Coordinated With:
City Manager's Office.
Public Works Department.
2 Attachments):
1. Resolution No. 2026-
2. FLOW Grant Program Guidelines
ATTACHMENT 1
RESOLUTION NO. 2026-—
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALEXICO
AUTHORIZING THE SUBMISSION OF AN APPLICATION TO THE IMPERIAL
IRRIGATION DISTRICT FUNDING LOCAL OPPORTUNITIES FOR WATER (FLOW) GRANT PROGRAM FOR THE 12-INCH WATER PIPELINE INTERCONNECTION:
EAST SECTOR DISTRIBUTION SYSTEM TO COLE ROAD STORAGE TANK
PROJECT
WHEREAS, the Imperial Irrigation District (IID) has established the Funding Local Opportunities for Water (FLOW) Grant Program to assist eligible public agencies with water infrastructure projects that provide broad public benefits within IID's water service area; and WHEREAS, the City of Calexico desires to submit an application for funding through the FLOW Grant Program for the 12-Inch Water Pipeline Interconnection: East Sector Distribution System to Cole Road Storage Tank Project; and
WHEREAS, the proposed project is intended to improve the reliability, resiliency, and operational efficiency of the City's potable water distribution system through the construction of approximately 7,500 linear feet of 12-inch water transmission pipeline connecting the East Sector distribution system to the Cole Road Storage Tank; and
WHEREAS, submission of a grant application does not obligate the City to accept grant funds or expend local funds; and
WHEREAS, should the City receive a grant award, staff will return to the City Council for approval to accept the grant, approve the required local cost share, if applicable, authorize execution of the grant agreement, and approve any necessary budget actions.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Calexico as follows:
Section 1. The City Council hereby authorizes the submission of an application to the Imperial Irrigation District Funding Local Opportunities for Water (FLOW) Grant Program for the 12-Inch Water Pipeline Interconnection: East Sector Distribution System to Cole Road Storage Tank Project.
Section 2. The City Manager, or designee, is hereby authorized to prepare, execute, and submit the grant application and all documents required for application submission.
Section 3. If the grant is awarded, City staff shall return to the City Council for authorization to accept the grant award, approve the required local cost share, if applicable, execute the grant agreement and related documents, and approve any necessary budget appropriations prior to implementation of the project.
Section 4. This Resolution shall take effect immediately upon its adoption. / PASSED, APPROVED, AND ADOPTED this 15th day of July, 2026.
Victor Legaspi, Mayor
Attest:
Veronica Alvardo, City Clerk
Resolution No. 2026-XX
Approved as to Form:
Laura Estrada, City Attorney
State of California)
County of Imperial) ss.
City of Calexico
I, Veronica Alvarado, City Clerk of the City of Calexico do hereby certify the above Resolution No. 2026- _ was approved at a regular City Council meeting held on the 15" day of July 2026, by the following vote to-wit:
AYES:
NOES:
ABSTAIN:
Veronica Alvardo, City Clerk
ATTACHMENT 2
FUNDING LOCAL OPPORTUNITIES FOR WATER (FLOW)
Grant Program Guidelines
1.1 Purpose. In honor of the 125th anniversary of water flowing to the Imperial Valley, IID seeks to advance additional water and agricultural-related infrastructure improvements that provide broad community benefits by establishing a cost-share grant program in partnership with local public agencies within IID's water service area. The District has set aside a one-time $7.5 million funding allocation from Water Department non-rate revenue to support this cost-share grant program, Funding Local Opportunities for Water (FLOW). The program's intent and purpose is to leverage public entity funding to implement eligible projects and/or programs with IID grant funds.
1.2 Program Decision-Making. The FLOW grant program is administered at IID's sole discretion, the District will determine eligibility and funding consistent with these guidelines, based on the District's review and evaluation of information provided in the attached application (Attachment A), and any accompanying support materials. All funding decisions are final once authorized by the board.
1.3 Program Solicitation. The FLOW solicitation period will be initiated in calendar year 2026, with all awards anticipated to be approved by October 1, 2026. To meet this goal, IID will initiate a solicitation process of at least four weeks in duration in the second quarter of 2026.
The solicitation period will be advertised on lID's webpage and social media accounts, with a link to lID's website where the application and Program guidelines may be accessed by all interested parties.
1.4 Program Eligibility Criteria. Upon submission of a FLOW application form and any support material, IID will evaluate the proposed project and/or program to determine if it meets the eligibility criteria. FLOW grant awards are limited to local public entities (city, special district, school, or county entities); non-governmental organization (NGO's), state or federal agencies are not eligible for funding. The public entity sponsor and proposed project and/or program shall meet all of the following criteria:
a. Project and/or program must be located wholly within IID's water service area; b. Public entity must commit to a minimum cost-share of 50% of project and/or program costs;
c. Project and/or program must have a water nexus and/or support the agricultural FLOW Program Guidelines Page 1 of 4
June 2026
industry, and;
d. Project and/or program must provide a public benefit. e. FLOW funding must be utilized for project and/or program implementation.
Planning and/or feasibility studies are not eligible for funding. Projects/programs must demonstrate that they will be fully implemented/constructed within two years of grant contract execution.
1.5 Program Prioritization. All project and/or program applications meeting the minimum eligibility criteria stipulated under Section 1.4 will be considered for funding. Eligible projects and/or programs will be prioritized for funding based on the following parameters, as determined by IID to either be low satisfactory, satisfactory or high performing under each category:
a. Cost-Share Ratio - Projects and/or programs proposing a non-IID cost-share contribution greater than 50% may be prioritized over those with a lower cost- share percentage.
b. Longevity of Investment - Infrastructure projects and/or programs that have longer-term or broader public benefits, may be prioritized over shorter-term programs.
c. Project/Program Readiness - Projects and/or programs with immediate or near- term construction or implementation schedules may be prioritized over longer- term projects that are less likely to utilize FLOW funding in a timely manner.
Ready - A project and/or program is considered to have readiness if it meets the following conditions: exempt from CEQA, requires no permits, and is fully funded (including grant award) and "shovel-ready" or has a certified CEQA document, all permits issued, and fully funded (including any FLOW grant award)
ii. Near-Ready - A project and/or program is considered to be near-ready if the proposal demonstrates less potential for delay due to pending environmental clearance, permits or gap financing.
d. Reach of Public Benefit - Projects and/or programs that have a wider, regional benefit may receive additional consideration.
e. Water or Agricultural Nexus -Projects and/or programs that have more direct water or agricultural nexus or benefits, may receive additional consideration.
FLOW Program Guidelines Page 2 of 4
June 2026
f. Entity Application Prioritization - Public entities with more than one project application should identify their priorities (i.e., 1, 2, 3, and so on) on the application.
1.6 FLOW Restrictions. The following restrictions apply for the FLOW Program participation:
a. While there are no restrictions to the number of FLOW grant applications that a single public entity can submit, applicants should identify any minimum FLOW grant funding levels that would be required in order for a project or program to proceed, if applicable.
b. IID anticipates a maximum grant award of $500,000 per project and/or program application, however IID reserves the right to make exceptions, particularly for larger infrastructure projects with broad community benefit c. Entity cost-share may not be as in-kind contribution. Contributions may include other awarded grant sources or verifiable partnership funding, including private funding.
Awarded FLOW monies are non-transferrable to any other project or to any other program.
e. Awarded projects and/or programs must comply with the California Environmental Quality Act (CEQA). IID will require CEQA compliance documentation. The IID Board may, or may not, need to adopt Responsible Agency findings for the proposed project, prior to distribution of funds.
1.7 Participating Entities. Public entities with projects and/or programs selected for award and participation in the FLOW shall authorize the District to have their projects) and/or program(s) featured in IID publications, press releases and/or any other public forums.
1.8 Agreements. Participation in the FLOW grant program requires an agreement between the awarded public entity and IID (see Attachment B "Funding Local Opportunities for Water Agreement"). After eligibility verification, IID staff will prioritize proposals for participation in the FLOW program and develop funding recommendations for Board consideration. Funds will not be released until a grant agreement is executed and proof of project and/or program conditions are verified, including compliance with CEQA. IID may partially fund some or all offers that meet the FLOW eligibility requirements at its sole discretion based on the number of eligible applications received, available funding and project prioritization.
FLOW Program Guidelines Page 3 of 4
June 2026
1.9 Payment to Awarded Entities. Awarded funds will be distributed on a reimbursement basis unless otherwise authorized by lID's General Manager. Awarded entities must comply with the grant agreement terms that may include the submittal of project invoices and/or program costs incurred, costs paid to date, and/or the achievement of defined milestones in order to receive FLOW funding. For projects with a binding construction contract in place, the full FLOW grant award amount or up to 50% of construction contract value may be disbursed by the District.
FLOW Program Guidelines Page 4 of 4
June 2026