Agenda Report
Fullerton City Council
MEETING DATE: APRIL 18, 2023
TO: CITY COUNCIL / CITY MANAGER
SUBMITTED BY: STEPHEN BISE, CITY ENGINEER / ASSISTANT PUBLIC WORKS DIRECTOR PREPARED BY: yvette hanna, principal water engineer
TIFFANY FOO, SENIOR CIVIL ENGINEER
SUBJECT: MAIN PLANT PFAS WATER TREATMENT PLANT PROJECT GRANT FUNDING AND CEQA EXEMPTION
SUMMARY
Application submission, acceptance and execution of a State Water Resources Control Board grant under the Drinking Water State Revolving Fund to obtain $5,000,000 funding for the Fullerton Main Plant per- and polyfluoroalkyl substances (PFAS) Water Treatment Plant Project and determining CEQA exemption.
RECOMMENDATION
Adopt the following resolutions:
RESOLUTION NO. 2023-XXX – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, AUTHORIZING A REPRESENTATIVE TO SIGN AND FILE A FINANCIAL ASSISTANCE APPLICATION AND TO ACCEPT AND EXECUTE A FINANCING AGREEMENT WITH THE STATE WATER RESOURCES CONTROL BOARD FOR CITY OF FULLERTON MAIN PLANT PFAS WATER TREATMENT PLANT RESOLUTION NO. 2023-XXX – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, DETERMINING THE FULLERTON MAIN PLANT PFAS WATER TREATMENT PLANT PROJECT EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT Accept grant award and appropriate receipt and use of grant funds.
CITY MANAGER REMARKS
None.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Infrastructure and City Assets.
FISCAL IMPACT
The Orange County Water District (OCWD) will finance the design and construction of the Main Plant PFAS Water Treatment Plant Project per Agreement. The project budget totals $13,190,000, with construction costing approximately $10,800,000. The City of Fullerton (City) will support and assist OCWD to obtain any grants that OCWD may use to fund construction per Agreement. The grant application requests $5,000,000 and, if awarded, will cover some of the construction costs. This project would general no financial impact to the City.
DISCUSSION
The Bipartisan Infrastructure Law sets aside $5 billion through the Drinking Water State Revolving Fund administered by the State Water Resources Control Board (SWRCB) to reduce exposure to PFAS and other emerging contaminants (EC). The SWRCB will provide one hundred percent as principal forgiveness and up to $5,000,000 for each applicant. Eligible projects include construction of a new treatment facility that addresses EC and PFAS such as the Fullerton Main Plant PFAS Water Treatment Plant Project.
OCWD has financed design and construction of the Main Plant PFAS Water Treatment Plant Project per the PFAS Treatment Facilities and Program Agreement (Agreement), scheduled for completion in winter 2023. The overall project costs around $13.19 million with construction costing approximately $10.8 million.
The City will support and assist OCWD in pursuit of any grants that may fund construction, per Agreement. Receiving this grant would minimize future replenishment assessment (i.e., groundwater fee) increases, hence fees which the City passes through to the customer in the City’s water rates.
Should the City execute the grant funding agreement, the City would be receive the grant funds as owner and operator of the water treatment plant. OCWD would submit invoice(s) to the City that total the grant amount. The City would need to pay OCWD as “proof of payment” before seeking and receiving reimbursement from SWRCB. The City would serve as a “pass through” agency between SWRCB and OCWD with a net zero financial impact to the City of Fullerton.
The application requires the City adopt a grant application resolution in order to execute a grant agreement with the State Water Resources Control Board. Staff included the grant application resolution as Attachment 1.
In addition, this item requires exempting the Fullerton Main Plant PFAS Water Treatment Plant Project from CEQA pursuant to CEQA guidelines Section 15303. Attachment 2 includes the resolution. The Project is consistent with Categorical Exemption Class 3 of Section 15303 because it consists of the construction and operation of a small treatment plant at a previously disturbed site representing the development of limited numbers of new, small facilities or structures and it would not result in any significant impacts to the environment. Attachment 3 includes the draft version of the Notice of Exemption.
Attachments:
Attachment 1 – Resolution No. 2023-XXX Grant
Attachment 2 – Resolution No. 2023-XXX CEQA
Attachment 3 – Notice of Exemption (Draft)
cc: City Manager Eric J. Levitt
Grant Funding for Main Plant PFAS Water Treatment Plant Project April 18, 2023 - Page 3