Sacramento City Council
October 24, 2023

City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01269 10/24/2023 Consent Item 6.

Agreement: Department of Utilities (DOU) Regional Water Authority Project: Urban Multibenefit Drought Relief Grant Program for the Leak Free Sacramento Project File ID: 2023-01269
Location: Citywide
Recommendation: Adopt a Resolution authorizing the City Manager or City Manager’s designee to:
1) sign a Grant Funding Agreement for the Leak Free Sacramento Project with the Regional Water Authority; 2) transfer the revenue and expenditure budgets from the Fiscal Year (FY) 2022/23 DOU Operating Grants Program (G14230100, fund 6205) to the FY2023/24 DOU Operating Grant Program (G14240100, fund 6205) in the amount of $300,000; and 3) prepare the necessary data, and execute all reporting, payment requests, and documentation of compliance applicable to the grant and completion of the project.

Contact: Pravani Vandeyar, Director (916) 808-3765, [email protected], Chuong (Ryan) Pham, Business Services Manager (916) 808-8995, [email protected], Tyler Stratton, Program Specialist, (916) 808-1284, [email protected], Alaina Jordan, Administrative Analyst, (916) 808-5801, Department of Utilities Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
3-Draft Agreement
Description/Analysis
Issue Detail: On April 4, 2023, City Council adopted Resolution No. 2023-0087, authorizing a Grant Funding Agreement between the City of Sacramentov (City), Department of Utilities and Sierra Institute for Community and Environment, for the City’s Leak Free Sacramento program in the amount of $300,000. The California Department of Water Resources (DWR) awarded the grant program to Sierra Institute for Community and Environment with the City as a subrecipient.

However, on August 23, 2023, the City received notification from the DWR that the Sierra Institute for Community and Environment was terminating the agreement with the City of Sacramento,

File ID: 2023-01269 10/24/2023 Consent Item 6.

Department of Utilities effective August 31, 2023.

DWR has recommitted the funds to the awarded projects through a direct agreement with Regional Water Authority (RWA), and RWA will be the administrator of the awarded funds.

To receive and utilize the City’s share of the grant funding, in the amount of $300,000 for the Leak Free Sacramento Program, the City needs to enter into a Grant Funding Agreement with RWA and take related actions.

Policy Considerations: Council Resolution 2023-0205 requires Council approval for grant agreements and transfers of more than $250,000.

Economic Impacts: None.

Environmental Considerations:

California Environmental Quality Act (CEQA): It has been determined that the proposed fiscal activity is not a project pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15378(b)(4). The activity is not subject to CEQA. [CEQA Guidelines Section Number 15060(c)(3)]
Sustainability: The project is consistent with the City's Sustainability Master Plan goal by enabling DOU to continue to improve flood protection and provide public safety to the residents.

Commission/Committee Action: Not applicable.

Rationale for Recommendation: The funding will be used in the continuous effort to reduce water leakage in the Leak Free Sacramento program.

Financial Considerations: The Funding Agreement with RWA awards the City of Sacramento an amount up to $300,000 in grant funding as a sub-recipient. Acceptance of this funding agreement necessitates establishment of revenue and expenditure budgets in the FY2023/24 DOU Operating Grant Program (G14240100, Fund 6205). However, through resolution 2023-0087 City Council authorized revenue and expenditure budgets for the Sierra Institute Grant Application and staff recommends transferring the established budgets from the FY2022/23 DOU Operating Grant Program (G14230100, Fund 6205) to the FY2023/24 DOU Operating Grant Program (G14240100, Fund 6205).

There is no match required for this grant funding.

File ID: 2023-01269 10/24/2023 Consent Item 6.

There are no impacts to the General Fund for this Agreement.

Local Business Enterprise (LBE): Not applicable.

RESOLUTION NO. 2023 –

Adopted by the Sacramento City Council

October 24, 2023

AUTHORIZING A PROJECT AGREEMENT WITH REGIONAL WATER AUTHORITY PROJECT: Urban Multi-benefit Relief Program

BACKGROUND

A. On April 4, 2023 , City Council adopted Resolution No. 2023-0087, authorizing a Grant Funding Agreement between the City of Sacramento, Department of Utilities and Sierra Institute for Community and Environment , for the City’s Leak Free Sacramento program in the amount of $3 00,000. The California Department of Water Resources (DWR) awarded the grant to the Sierra Institute for Community and Environment with the City of Sacramento as a sub-recipient.

B. However, on August 23, 2023, the City received notification from DWR that th e Sierra Institute for Community and Environment was terminating the agreement with the City of Sacramento, Department of Utilities effective August 31, 2023.

C. DWR has recommitted the funds to the awarded projects through a direct agreement with Regional Water Authority (RWA), and RWA will be the administrator of the awarded funds.

D. The City is entering into a Grant Funding Agreement with RWA allowing the City to receive an amount up to $300,000.

E. If approved, staff recommends transferring the established budgets from the FY2022/23 DOU Operating Grant Program (G14230100, 6205) to the FY2023/24 DOU Operating Grant Program (G14240100, 6205).

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. Sign the Funding Agreement between the City and Regional Water Authority to receive funding for the City’s Leak Free Sacramento Program.

B. Transfer $300,000 in revenue and expenditure budgets from the FY2022/23 Operating Grant Program (G14230100, 6205) to the FY2023/24 DOU Operating Grant Program (G14240100, 6205).

C. Prepare the necessary data and execute all reporting, payment request, and documentation of compliance applicable to the grant.

EXHIBIT A

WORK PLAN
PROJECT 1: Leak Free Sacramento
IMPLEMENTING AGENCY: City of Sacramento, Department of Utilities (City) PROJECT DESCRIPTION: Homeowners and small multi-family residential customers such as duplexes within the City with residential leaks will be able to apply to have a City contracted plumber repair leaks and replace inefficient fixtures. The program through this grant will focus on customers in disadvantaged community areas, multi-family residential customers as defined by the DWR mapping tool census tracks, including the top 25% DAC census tracts. Project will result in approximately 89 acre-feet per year of conserved water.

Budget Category (a): Project Administration
Task 1: Project Management
Manage Grant Agreement including compliance with grant requirements, and preparation and submission of supporting grant documents. Prepare invoices including relevant supporting documentation for submittal to DWR via the Grantee. This task also includes administrative responsibilities associated with the project such as coordinating with partnering agencies and managing consultants/contractors.

Deliverables:
 Invoices and associated backup documentation
Task 2: Reporting
Prepare progress reports detailing work completed during reporting period as outlined in Exhibit F of this Agreement. Submit reports to DWR.

Prepare Project Completion Report and submit to DWR no later than 90 days after project completion for DWR Project Manager’s comment and review. The report shall be prepared and presented in accordance with guidance as outlined in Exhibit F.

Deliverables:
 Quarterly Project Progress Reports
 Project Completion Report/Grant Completion Report
 Documentation (e.g., photo) of “Acknowledgment of Credit & Signage” per Standard Condition D.2 Budget Category (b): Land Purchase/Easement
Task 3: Land Purchase
Not applicable
Budget Category (c): Planning/Design/Engineering/Environmental Documentation Task 4: Feasibility Studies
Not Applicable
Task 5: CEQA Documentation
Not Applicable
Task 6: Permitting
Grant Agreement No. 4600014849 – Amendment 1

No permits are anticipated for this project. Participants will have to sign an agreement that authorizes work done on their property.

Deliverables:
 Permits as required
 Authorizing agreements from participants
Task 7: Design
Planning and design have been completed for this project. City of Sacramento staff will create a step by step document of tasks required to complete the Sacramento Leak Free program from outreach to repair.

Deliverables:
 Step by Step documentation of tasks
Task 8: Project Monitoring Plan
Develop and submit a Project Monitoring Plan per Paragraph 11 for DWR’s review and approval.

Deliverables:
 Project Monitoring Plan
Budget Category (d): Construction/Implementation
Task 9: Contract Services
This task must comply with the Standard Condition D.10 – Competitive Bidding and Procurements. Activities necessary (as applicable) to secure a contractor and award the contract, including: develop bid documents, prepare advertisement and contract documents for construction contract bidding, conduct pre-bid meeting, bid opening and evaluation, selection of the contractor, award of contract, and issuance of notice to proceed.

Deliverables:
 Bid Documents
 Proof of Advertisement
 Award of Contract
 Notice to Proceed
Task 10: Construction Administration
This task includes managing contractor submittal review, answering requests for information, and issuing work directives. A Water Conservation Specialist from the City of Sacramento’s Department of Utilities will be on site for the duration of the repair work. This Water Conservation Specialist has duties that include documenting of pre-construction conditions, meeting with the contractor conducting the repairs, communicating with the City’s Water Conservation Coordinator if conditions warrant an increase in estimated expenses and communicating changes and delays to the homeowner. Other duties will include reviewing/ updating project schedule, reviewing contractor log submittals and pay requests, forecasting cash flow, and notifying contractor if work is not acceptable. Upon completing the project, the DWR Certificate of Project Completion will be provided to DWR.

Deliverables:
 DWR Certificate of Project Completion
Task 11: Implementation
Grant Agreement No. 4600014849 – Amendment 1

Implementation will include:

Targeted outreach shall include at least a monthly review of single-family customers with long standing leaks and reaching out to these customers over the phone or in person, as warranted. Through the City’s leak notification program, single-family customers with longstanding leaks have already received at least one letter notifying them of the leak and encouraging them to reach out to schedule a leak investigation. Those customers who live within designated disadvantaged areas or are registered customers with SMUD’s Sacramento Utility Rate Assistance Program are eligible for this program. Leak investigations are conducted first before the contracted plumber is involved, The project will conduct both leak investigation and repair and replace fixtures including supply lines, pre-1992 toilets, and leaking water heaters.

Deliverables:
 Photographic Documentation of Progress
 Worksheet of single-family accounts with long standing leaks and documentation of efforts to contact the customer, schedule the leak investigation, and make the repairs.  Monthly reports will document leak size just before leak is repaired, duration of leak, address, description of repairs made or fixtures replaced or repaired and cost to make repair.

Grant Agreement No. 4600014849 – Amendment 1

PROJECT 2: Sacramento Regional Indoor Direct Install Project IMPLEMENTING AGENCY: Regional Water Authority
PROJECT DESCRIPTION: The Sacramento Regional Indoor Direct Install Project will address the region's disadvantaged communities’ (DAC) need to replace high-water-using with U.S.Environmental Protection Agency’s WaterSense-labeled efficient fixtures through a regionally managed consultant implemented direct installation program. This program provides both the labor and physical high efficiency fixtures directly to customers free of charge. The program focuses on multifamily and commercial/institutional properties located in DACs areas, as defined by the DWR mapping tool census tracks. With an overall goal of replacing over 2,140 fixtures to achieve an estimated water savings of 281 million gallons (MG)/862 acre feet (AF) over a 25- year lifetime benefits period or 11.24 MG/34.49 AF per year will be saved in the region's disadvantaged communities.

Budget Category (a): Project Administration
Task 1: Project Management
Manage Grant Agreement including compliance with grant requirements, and preparation and submission of supporting grant documents. Prepare invoices including relevant supporting documentation for submittal to DWR via the Grantee. This task also includes administrative responsibilities associated with the project such as coordinating with partnering agencies and managing consultants/contractors.

Deliverables:
 Invoices and associated backup documentation
Task 2: Reporting
Prepare progress reports detailing work completed during reporting period as outlined in Exhibit F of this Agreement. Submit reports to DWR.

Prepare Project Completion Report and submit to DWR no later than 90 days after project completion for DWR Project Manager’s comment and review. The report shall be prepared and presented in accordance with guidance as outlined in Exhibit F.

Deliverables:
 Quarterly Project Progress Reports
 Project Completion Report
 Documentation (e.g., photo) of “Acknowledgment of Credit & Signage” per Standard Condition D.2 Budget Category (b): Land Purchase/Easement
Task 3: Land Purchase
Not applicable
Task 4: Feasibility Studies
Not Applicable
Task 5: CEQA Documentation
Not Applicable
Task 6: Permitting
Grant Agreement No. 4600014849 – Amendment 1

Not applicable
Task 7: Design
RWA staff will create a step by step document of tasks required to complete replacement of high water using fixtures that will be based on previous RWA direct installation programs (ex: 2014 CALFED Grant, 2014 DWR Water Energy Grant and 2011 DWR Proposition 84 Grant). This document will be incorporated into the bid document released under Task 9.

Task 8: Project Monitoring Plan
Develop and submit a Project Monitoring Plan per Paragraph 11 for DWR’s review and approval.

Deliverables:
 Project Monitoring Plan
Budget Category (d): Construction/Implementation
Task 9: Contract Services
This task must comply with the Standard Condition D.10 – Competitive Bidding and Procurements. Activities necessary (as applicable) to secure a contractor and award the contract, including: develop bid documents, prepare advertisement and contract documents for construction contract bidding, conduct pre-bid meeting, bid opening and evaluation, selection of the contractor, award of contract, and issuance of notice to proceed.

Deliverables:
 Bid Documents
 Proof of Advertisement
 Award of Contract
 Notice to Proceed
Task 10: Construction Administration
This task includes managing the direct installation project contractor, answering requests for information, and approving selected sites for fixture upgrades. Specific tasks include: coordinate with the direct installer to set up regional program, create list of approved efficiency fixtures, establish replacement procedures and finalize targeted customer outreach strategies.

Deliverables:
 List of requests for information
 Approved site information
Task 11: Implementation
Implementation will include:
 Target Audience and Marketing. The direct installer consultant and RWA will identify customers located in DACs areas with pre-1992 constructed housing units, businesses or institutions without indoor fixture upgrades and will outreach to these customers via direct phones and/or flyers about the program and encourage participation.
 Water Survey/Audit. For those customers that choose to participate, the next step is signing all the applicable participation forms and legal documents. Then the direct installer consultant will conduct an audit for each participating property. The water audit includes verifying the flow rates of the each toilet, Grant Agreement No. 4600014849 – Amendment 1

showerhead, faucet and urinal (as applicable), checking for leaks and providing the customer with water saving tips and suggestions.
 Purchase New Efficient Fixtures for Participating Customers. The direct installer consultant will purchase new efficient fixtures for each particpating property including WaterSense-labeled high efficiency toilets, showerheads, aerators and urinals based on the needs identified in the Water Survey/Audit (i.e., number of toilets, number of showerheads, etc.) at no cost to the customer.  Remove Existing Fixtures and Install New Efficient Fixtures. Based on the results of the Water Survey/Audit, the direct installer consultant will remove the existing inefficient fixtures and will install the new efficient fixtures (e.g., toilets, showerheads, aerators and urinals) for each participating property. The direct installer will verify the fixtures are working properly prior to leaving the property.

The direct installer will also be responsible for the disposal of the removed inefficient fixtures at no cost to the customer. Removed fixed will be recycled when possible.  Report. Direct installer consultant will keep track the audit, number of fixtures removed and disposed of, and number of fixtures installed for each participating property and communicate all applicable information to RWA on a regular basis to assist in project manager and to support submitted invoices for work performed.

Deliverables:
 Photographic Documentation of Progress
 Participation forms and legal documents

Grant Agreement No. 4600014849 – Amendment 1

EXHIBIT B
BUDGET

AGREEMENT BUDGET SUMMARY

PROJECTS Grant Amount All Other
Cost
Total Cost
Grant Administration $0 $0 $0
1 Leak Free Sacramento $300,000 $15,000 $315,000
2 Sacramento Regional Indoor Direct
Install Project
$500,000 $9,460 $509,460
GRAND TOTAL $800,000 $24,460 $824,460

Grant Agreement No. 4600014849 – Amendment 1

PROJECT 1: Leak Free Sacramento
Implementing Agency: City of Sacramento, Department of Utilities BUDGET CATEGORY Grant Amount All Other Cost* Total Cost (a) Project Administration $0 $15,000 $15,000
(b) Land Purchase / Easement $0 $0 $0
(c) Planning / Design / Engineering /
Environmental Documentation $0 $0 $0
(d) Construction / Implementation $300,000 $0 $300,000
TOTAL COSTS $300,000 $15,000 $315,000

NOTES:
*All administration costs from the City of Sacramento will be provided in-kind.

PROJECT 2: Sacramento Regional Indoor Direct Install Project Implementing Agency: Regional Water Authority
BUDGET CATEGORY Grant Amount All Other Cost* Total Cost (a) Project Administration $15,000 $9,460 $24,460
(b) Land Purchase / Easement $0 $0 $0
(c) Planning / Design / Engineering /
Environmental Documentation $5,000 $0 $5,000
(d) Construction / Implementation $480,000 $0 $480,000
TOTAL COSTS $500,000 $9,460 $509,460
NOTES:

Cost Share will come from the staff budget from the RWA Water Efficiency Program, which is 100% funded by local water suppliers.

Grant Agreement No. 4600014849 – Amendment 1

EXHIBIT C

SCHEDULE

Grant Administration
BUDGET CATEGORY Start Date End Date
a Project Administration 7/1/2022 4/1/2025

PROJECT 1: Leak Free Sacramento
BUDGET CATEGORY Start Date End Date
a Project Administration 7/1/2022 1/1/2025
b Land Purchase / Easement
c Planning / Design / Engineering / Environmental Documentation 7/1/2022 10/1/2022 d Construction / Implementation 10/1/2022 10/1/2024

PROJECT 2: Sacramento Regional Indoor Direct Install Project BUDGET CATEGORY Start Date End Date
a Project Administration 7/1/2022 1/1/2025
b Land Purchase / Easement NA NA
c Planning / Design / Engineering / Environmental Documentation 7/1/2022 10/1/2022 d Construction / Implementation 10/1/2022 10/1/2024