Agenda Item
City Council
Item #: 3.26. 6/13/2023 File #: 23-0345
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Authorize the Public Works Director to sign and file a financial assistance application for a financing agreement with the California State Water Resources Control Board for the City of Orange Wells 20, 21, and 22 PFAS Treatment Systems, and finding of CEQA exemption. Resolution Nos. 11457 and 11458.
2. SUMMARY
In 2019, The Orange County Water District (OCWD), who manages the groundwater basins of north and central Orange County, conducted a study to address treatment of per- and polyfuoroalkyl substances (PFAS) as required by the California State Water Resources Control Board (SWRCB) Division of Drinking Water (DDW). Water quality sampling of City of Orange wells indicated elevated levels of PFAS species with concentrations exceeding the DDW’sResponse Levels (RLs) for PFAS at seven wells which require treatment systems. The design and construction of PFAS treatment system facilities is being fully funded by the OCWD. To date, four treatment systems have been completed, and the wells have been put back into operation. Adoption of Resolution No. 11457 and Resolution No. 11458 is necessary to support OCWD’seffort in applying for available grants for the construction of the treatment systems at the remaining three wells.
3. RECOMMENDED ACTION
1. Adopt Resolution No. 11457. A Resolution of the City Council of the City of Orange authorizing a representative to sign and file a financial assistance application for a financing agreement with the State Water Resources Control Board (SWRCB) for the City of Orange Wells 20, 21, and 22 PFAS Treatment Systems.
2. Adopt Resolution No. 11458. A Resolution of the City Council of the City of Orange adopting the exemption from the California Environmental Quality Act (CEQA) for Wells 20, 21, and 22 PFOA and PFOS Treatment Plants Construction and Operation.
4. FISCAL IMPACT
None.
5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
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Item #: 3.26. 6/13/2023 File #: 23-0345
b: Provide and maintain infrastructure necessary to ensure the safety of the public.
Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.
6. DISCUSSION AND BACKGROUND
Under the Bipartisan Infrastructure Law (BIL), $5 billion has been set aside through the Drinking Water State Revolving Fund (DWSRF) Program administered by the SWRCB to reduce people’s exposure to PFAS and other emerging contaminants (EC). The SWRCB will provide one hundred percent as principal forgiveness (i.e., a Federal grant) and up to $5,000,000 for each qualified applicant. Eligible projects include the construction of a new treatment facility that addresses EC/PFAS such as the City of Orange Wells 20, 21 and 22 PFAS Treatment Systems Project. OCWD is not considered as a qualified applicant for the PFAS grant because OCWD does not own nor operate any PFAS-contaminated well in its service area. Therefore, OCWD is requesting assistance from the City of Orange (City) to apply for the PFAS grant.
Per the PFAS Treatment Facilities and Program Agreement, OCWD has financed, in its entirety, the technical feasibility study, design and construction of the City of Orange Wells 20, 21 and 22 PFAS Treatment Systems Project which is scheduled to be completed in 2024. The total project budget is approximately $14,000,000, with construction costing $9,566,800. Also, per the Agreement, the City is to support and assist OCWD in the pursuit of any PFAS grants that may be used to fund the project construction. Receiving this grant would minimize future replenishment assessment (i.e., groundwater fees) increases, fees which are passed through to the customer in the City’s water rates.
If the PFAS grant funding agreement were executed, the City would be the recipient of grant funds as the owner and the operator of the PFAS water treatment systems. OCWD would submit invoice(s) to the City that total to the grant amount. The City would need to pay OCWD as “proof of payment” before seeking and receiving grant reimbursement from the SWRCB. The City would be serving as a “passthrough”agency between SWRCB and OCWD, and the net financial impact to the City would be zero.
The City’sadoption of an Authorization Resolution is a requirement of the PFAS grant application and is needed in order to execute a grant funding agreement with the SWRCB.
7. ENVIRONMENTAL REVIEW
The City of Orange Wells 20, 21 & 22 Project is exempt from the California Environmental Quality Act pursuant to Section 15303 of the CEQA Guidelines because it consists of the construction and operation of small treatment plans and associated connection facilities at previously disturbed sites representing the development of limited numbers of new small facilities and structures intended to improve water quality by removing pollutants from groundwater and would not result in any significant impacts to the environment.
8. ATTACHMENTS
· Resolution No. 11457
· Resolution No. 11458
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Item #: 3.26. 6/13/2023 File #: 23-0345
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