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Staff Report - Application for Environmental Protection Agency (EPA) Community Grant Funding Appropriations

Sacramento City Council
October 11, 2022

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Staff Report - Application for Environmental Protection Agency (EPA) Community Grant Funding Appropriations
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October 11, 2022
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Sacramento City Council
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Text extracted from the city's file for reading and search. Open the original on sacramento.granicus.com. That file is the official record.

City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01638 10/11/2022 Consent Item 13.

Application for Environmental Protection Agency (EPA) Community Grant Funding Appropriations
File ID: 2022-01638
Location: Citywide
Recommendation: Adopt a Resolution authorizing the City Manager or City Manager’s designee to:
a) apply for federal appropriations through the FY2022 Consolidation Act (P.L. 117-103) Environmental Protection Agency Section; b) if awarded, sign the agreement, and documents of compliance, prepare the necessary data, and execute all reporting, payment requests applicable to the federal appropriations and completion of the program; c) adjust the revenue and expenditure budget in the Well Rehabilitation Program (Z14110100, Fund 6205) for an amount not-to-exceed $1.7 million, and d) adjust the revenue and expenditure budget in the Combined Collection System R&R Program (X14170100, Fund 6206) for an amount not-to-exceed $3.5 million.

Contact: William O. Busath, Director, (916) 808-1434, [email protected], Chuong (Ryan) Pham, Business Services Manager, (916) 808-8995, [email protected], Dean Fujimoto, Program Manager, (916) 808-6645, [email protected], Tyler Stratton, Program Specialist, (916) 808-1284, [email protected], Department of Utilities Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
Description/Analysis
Issue Detail: The Department of Utilities (DOU) is requesting authority to apply for federal appropriation funding through from the Environmental Protection Agency (EPA) Community Grant Federal Appropriations Act of FY 2022. Congress identified three of the City’s projects for appropriations, 24
th Street Combined Sewer System Storage Pipe, Combined Sewer System Improvement, and the Fairbairn Water Treatment Plant Groundwater Well project.

Policy Considerations: Council Resolution 2022-0198 requires City Council approval to apply for operating grants for more than $250,000.

Economic Impacts: Not applicable.

City of Sacramento Page 1 of 3
File ID: 2022-01638 10/11/2022 Consent Item 13.

Environmental Considerations:

California Environmental Quality Act (CEQA): Application for a Federal appropriation funds is an administrative activity that will not have a significant effect on the environment and does not constitute a “project” as defined by the California Environmental Quality Act (CEQA) Guidelines Sections 15378(b)(2 and 5) and is therefore, not subject to CEQA Guidelines Section 15060(c)(3).

Sustainability: The City is committed to developing an efficient and dependable groundwater supply that will increase the City’s water supply reliability and support a surface water/groundwater conjunctive use program. This recommendation is consistent with the City’s Strategic Plan Goals of achieving sustainability, livability, and expanding economic development throughout the City.

Commission/Committee Action: Not applicable.

Rationale for Recommendation: In order to comply with federal clean water law, the City must upgrade the Combined Sewer System (CSS) significantly. The 24th street CSS Storage Pipe and Combined Collection System (CCS) projects are part of the City's "CSS Long-Term Control Plan" which is the path forward to upgrade the City's CSS System.

The Fairbairn Water Treatment Plant Groundwater Well (FWTP) will be a high producing well and will provide equivalent capacity to three to four of the City’s existing wells. These appropriations would allow DOU to expedite the projects, further ensuring the City’s long-term resilience to drought by increasing the reliability of water supplies. Without this additional funding, the projects will be delayed and put on hold until further funds can be identified.

Financial Considerations:

DOU is seeking up to $5.2 million in Federal appropriations through the FY2022 Consolidation Act (P.L. 117-103) Environmental Protection Agency Section. There is a 20% match requirement for these appropriations. There are sufficient funds in the Well Rehabilitation Program (Z14110100, Fund 6005) to cover the Fairbairn Groundwater Well Project, and there are sufficient funds in the Combined Collection System R&R Program (X14170100, Fund 6006) to cover the 24th Street Combined Sewer System Storage Pipe Project, and the Combined Sewer System Improvement Project.

If awarded staff recommends, adjusting the revenue and expenditure budgets in the Well Rehabilitation Program (Z14110100, Fund 6205) for the amount of the award not-to-exceed $1.7 million and in the Combined Collection System R&R Program (X14170100, Fund 6206) for the amount of the award not-to-exceed $3.5 million.

City of Sacramento Page 2 of 3
File ID: 2022-01638 10/11/2022 Consent Item 13.

There are no General Funds allocated for this project
Local Business Enterprise (LBE): Not applicable.

Background: The existing infrastructure is aging and many of the wells are at or near the end of useful life, necessitating new locations to be identified for design and construction. Recommendation for replacing existing groundwater wells had previously been noted in the 2013 Water Master Plan and most recently in the 2017 Groundwater Master Plan.

On March 15, 2022, President Biden signed into law the FY 2022 Consolidated Appropriations Act (P.L. 117-103). In this law, Congress renewed the practice of funding specifically named community infrastructure projects, referred to the Senate as Congressionally Directed Spending (CDS) and in the House of Representatives as Community Project Funding (CPF). Identified were 483 projects, these projects are collectively funded at a level of $443,639,051 from the Clean Water State Revolving Fund (CWSRF) and $397,766,044 from the Drinking Water State Revolving Fund (DWSRF). The Environmental Protection Agency (EPA) was identified as the section of the Consolidated Appropriations Act 2022 to award and administer the CPF Grants. Out of the 483 Congress identified projects, three were City named projects, the 24 th Street Combined Sewer
System Storage Pipe Project for $1.5 million, Combined Sewer System Improvement Project $2 million, and the Fairbairn Groundwater Well Project $1.7 million.

With these appropriations the City is set to receive $5.2 million which will aid the City to conserve, use water more efficiently; increase the production of hydropower; mitigate conflict risk in areas at a high risk of future water conflict and flood; and accomplish other benefits that contribute to water supply reliability.

The revived attention to completing the FWTP well and improving the CSS will be an important asset to the City’s water supply reliability.

City of Sacramento Page 3 of 3
RESOLUTION NO. 2022 –

Adopted by the Sacramento City Council

October 11, 2022

Application for the Environmental Protection Agency (EPA) Community Grant Funding Appropriations

BACKGROUND
A. On March 15, 2022, President Biden signed into law the FY 2022 Consolidated Appropriations Act (P.L. 117-103). In this law, Congress renewed the practice of funding specifically named community infrastructure projects, referred to the Senate as Congressionally Directed Spending (CDS) and in the House of Representatives as Community Project Funding (CPF). The E nvironmental Protection Agency (EPA) was identified as the section of the Consolidated Appropriations Act 2022 to award and administer the Community Project Funding Grants.

B. EPA’s Community Grant Appropriations are State and Tribal Assistance Grant s (STAG) infrastructure grants to improve water infrastructure and water quality through funding for drinking water, wastewater, and stormwater projects. Congress identified 483 congress directed community grants in the FY 2022 Consolidated Appropriations Act . These 483 projects are collectively funded at a level of $443,639,051 from the Clean Water State Revolving Fund (CWSRF) and $397,766,044 from the Drinking Water State Revolving Fund (DWSRF).

C. Out of the 483 Congress identified projects, the following three were City named projects: the 24th Street Combined Sewer System Storage Pipe Project for $1.5 million; Combined Sewer System Improvement Project for $2 million; and the Fairbairn Groundwater Well Project for $1.7 million.

D. The City’s Department of Utilities (DOU) is seeking approval to apply for an amount not-to-exceed $5.2 million in grant funding. There is a 20% match requirement for these appropriations and there are sufficient funds in the Well Rehabilitation Program (Z14110100, Fund 6005) to cover the Fairbairn Groundwater Well Project match, and there are sufficient funds in the Combined System R&R Program (X14170100, Fund 6006) to cover the 24 th Street C ombined Sewer System Storage Pipe Project and the Combined Sewer System Improvement Project match.

E. If awarded, staff recommends adjusting the revenue and expense budgets in the Well Rehabilitation Program (Z14110100, Fund 6205) for the amount of the grant award not -to-exceed $1.7 million and in the Combined Collection System R&R Program (X14170100, Fund 6206) for the amount of the grant award not-to-exceed $3.5 million.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

Section 1 The City Manager or the City Manager’s designee, is authorized to:

A. Apply for the appropriation funding through the Environmental Protection Agency (EPA) Community Grant Funding Appropriations Act 2022 in an amount not- to- exceed $5.2 million.

B. If awarded, sign the funding agreement, and documents of compliance, prepare the necessary data, and execute all reporting, payment requests, and documentation of compliance applicable to the grant and completion of the program.

C. If awarded, adjust the revenue and expenditure budgets in the Well Rehab Program (Z14110100, Fund 620 5) for the amount of the grant award not- to-exceed $1.7 million and in the Combined Collection System R&R Program (X14170100, Fund 6206) for the amount of the grant aw ard not- to-exceed $3.5 million.

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