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Item 05 2024-01813 Agreement - The Water Forum’s Department of Interior, Bureau of Reclamation WaterSMART Aquatic Ecosystem Restoration Grant

Sacramento City Council
November 12, 2024

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Item 05 2024-01813 Agreement - The Water Forum’s Department of Interior, Bureau of Reclamation WaterSMART Aquatic Ecosystem Restoration Grant
Meeting
November 12, 2024
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Sacramento City Council
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3
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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: 2024-01813 11/12/2024 Consent Item 5.

Agreement: The Water Forum’s Department of Interior, Bureau of Reclamation WaterSMART Aquatic Ecosystem Restoration Grant
File ID: 2024-01813
Location: Citywide
Recommendation: Adopt a Resolution authorizing the City Manager, or the City Manager’s designee to: 1) sign a Grant Funding Agreement for the Department of the Interior, Bureau of Reclamation WaterSMART Aquatic Ecosystem Restoration Grant; 2) prepare the necessary data, and execute all reporting, payment requests, and documentation of compliance related to the grant through completion of the project; 3) create a new project USBR WaterSMART Grant (G14250200); and 4) establish revenue and expenditures budgets for the USBR WaterSMART Grant Project (G14240200, fund 7105) for an amount not-to-exceed $650,000, or the amount awarded and transferring the grant match from the HME Fund (fund 7104) in the amount of $195,000.

Contact: Anne Sanger, Interim-Executive Director, (916) 808-5378, [email protected]; Penny Buchman, Supervising Financial Analyst, (916) 808-1481, [email protected]; Department of Utilities; Erica Bishop, Program Manager, (916) 808-1997, [email protected]; Emily Lee, Administrative Analyst, (916) 808-1993, [email protected]; Water Forum Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
3-Department of the Interior, Bureau of Reclamation’s WaterSMART Award Letter Description/Analysis
Issue Detail: The Water Forum applied for and has been approved for the Department of the Interior, Bureau of Reclamation’s WaterSMART Aquatic Ecosystem Restoration Grant for an amount up to $650,000. City Council authority is necessary to execute the contract, accept the funding, manage the grant, open the project, and establish the revenue and expenditure budgets.

Since 2008, the Water Forum has partnered with State and Federal agencies to implement vitally

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File ID: 2024-01813 11/12/2024 Consent Item 5.
important salmonid habitat improvements in the Lower American River (LAR). The habitat projects serve Water Forum’s coequal objective to “Preserve and protect the fishery, wildlife, aesthetic and recreational resources of the Lower American River”. These improvements also support the potential funding agency’s (Reclamation’s) plans to work cooperatively with states, Tribes, and other entities as they study, design and construct aquatic ecosystem restoration projects that are collaboratively developed, have widespread regional benefits, and result in the improvement of the health of fisheries, wildlife, and aquatic habitat through restoration and improved fish passage.

Restoring and protecting aquatic ecosystems offers wide-ranging benefits for people and wildlife.

Functioning aquatic ecosystems provide habitat for fish and wildlife, improve water quality, and store excess carbon, mitigate the impacts of drought and flood events, and support multiple water uses.

The Bureau of Reclamation’s Aquatic Ecosystem Restoration Projects funding opportunity provides support for priorities identified in Presidential Executive Order (E.O.) 14008: Tackling the Climate Crisis at Home and Abroad.

The Grant solicitation supports entities, like the Water Forum, aiming to plan and construct habitat improvements to the rivers of the Central Valley of California populations of fall run chinook, spring run chinook, and winter run chinook salmon (Oncorhynchus tshawytscha) and Steelhead Trout (O.

Mykiss). Water resources development, stream channel manipulation, and other anthropogenic actions have drastically reduced and modified historical salmonid habitats. Gravel is regularly transported from spawning sites on the river and there is less available rearing habitat, due to natural processes and flood operations on the American River.

In the past 5 years, Water Forum has leveraged almost $13 million in State/Federal grant funding to implement 32 acres of spawning habitat to serve adult salmonids and 21 acres of instream rearing habitat improvements, consisting of over two miles of perennial side channels and adjacent seasonally inundated floodplain benches and alcoves that are activated for juvenile salmonid use at varying river flows. These activities serve Water Forum goals under the Habitat Management Element (HME) and also the goals of our funding partners.

The goal of activities funded under this agreement would be to leverage previous habitat construction planning and design, and ongoing fisheries and physical habitat conditions monitoring data to undertake the Programmatic Evaluation and Design of Juvenile Salmonid Rearing Habitat Restoration Sites on the American River Project. This project would support advancing a portion of Water Forum’s previously identified conceptual rearing habitat sites to a “shovel ready” condition, utilizing a holistic, programmatic, and proven approach to planning that has previously been employed for other work in our habitat program. The project would include a collaborative stakeholder process, background/baseline resource surveys, and a robust alternatives analysis and design process to develop 60% level of design for approximately 30 acres of rearing habitat in the American River. If awarded, project activities would take place from December 2024 - September 2027.

Policy Considerations: Council Resolution 2024-0193 requires City Council approval for grant

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File ID: 2024-01813 11/12/2024 Consent Item 5.
agreements and budget transfers of more than $250,000.

Economic Impacts: None.

Environmental Considerations: California Environmental Quality Act (CEQA): The activity to apply for grant funds and execute all agreements and documents of compliance related to the grant is not a project pursuant to California Environmental Quality Act (CEQA) Guidelines 15378(b)(4). The activity is the creation of government funding mechanisms which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and is not subject to CEQA. CEQA Guidelines 15060©(3).

Sustainability: Implementation of salmonid habitat improvement projects that benefit the lower American River ecosystem is a fundamental element of the Water Forum Agreement and a central component of the Water Forum’s Habitat Management Element, which is supported by the City’s General Plan Goals, specifically Natural and Open Space Protection (E.R. 2.1).

Commission/Committee Action: Not applicable.

Rationale for Recommendation: Since 2008, Water Forum has partnered with State and Federal agencies to plan, design, permit, construct, and monitor restoration activities in the LAR. To date, over 30 acres of spawning habitat and 21 acres of instream rearing habitat, including perennial side channels and seasonally inundated floodplain areas have been created or enhanced, with demonstrated success. Application for this funding would facilitate the Water Forum’s ability to continue this partnership.

Financial Considerations: The Water Forum will receive up to $650,000, from this grant award with the Bureau of Reclamation. The total project costs are estimated at $1,000,000 over the next three years. There is a 35% cost match of $350,000. To meet the cost share requirement, there is an in- kind match of staff time for $155,000 included in the approved Water Forum Operating Budget for the applicable fiscal year. There is also a cash match of $195,000, to be funded from the Habitat Management Element (HME) Fund (fund 7104).

Staff recommends opening a new project USBR WaterSMART Grant Project (G14240200), establishing revenue and expenditure budgets in the City-County Office of Metropolitan Water Planning (CCOMWP) Reimbursable Fund (fund 7105) for an amount up to $650,000, or the grant award, and transferring the grant match from the HME Fund (fund 7104) available fund balance in the amount of $195,000.

There are no General Fund obligations for this project.

Local Business Enterprise (LBE): Not applicable.

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RESOLUTION NO. 2024-
Adopted by the Sacramento City Council
November 12, 2024
Authority to Accept the Department of the Interior, Bureau of Reclamation WaterSMART Aquatic Ecosystem Restoration Grant, Manage the Grant, Open the Project, and Establish Revenue and Expenditure Budgets

BACKGROUND
A. The Department of Interior, Bureau of Reclamation has announced the WaterSMART Aquatic Ecosystem Restoration Grant for $650,000, to be awarded in Fiscal Year 2025.

B. The Water Forum seeks approval to accept the WaterSMART Aquatic Ecosystem Restoration Grant and work with the granting agency or its designee to meet established deadlines for entering into a grant or cooperative agreement.

C. Staff recommend opening the WaterSMART Aquatic Ecosystem Restoration Grant (G14240200) and adjusting revenue and expense budget in the project for a not-to-exceed amount of $650,000, or the grant award. There is a 35% cost match of $350,000. To meet the cost share requirements of the solicitation, there is a proposed in-kind (staff time) cost share of $155,000 total, and a proposed cash cost share of $195,000 total, over the term of the agreement.

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. Execute the grant agreement and accept grant funding through the Department of Interior, Bureau of Reclamation for the
WaterSMART Aquatic Ecosystem Restoration Grant.

B. Work with the granting agency or its designee to establish deadlines for entering into a grant or cooperative agreement, prepare the necessary data, and execute all reporting, payment requests, and documentation of compliance applicable to the grant and completion of the project.

C. Create the WaterSMART Aquatic Ecosystem Restoration Project (G14240200), establish revenue and expenditure budgets in the City-County Office of Metropolitan Water Planning (CCOMWP) Reimbursable Fund (fund 7105), for a not-to-exceed amount of $650,000, or the grant award, and transferring the grant match from the HME Fund (fund 7104) in the amount of $195,000.

84-27133

1.3.11 September 24th, 2024

VIA ELECTRONIC MAIL ONLY

City of Sacramento, Water Forum
Attn: Erica Bishop
1330 21st St, Suite 103
Sacramento, CA 95811-4320

Subject: Notice of Funding Opportunity No. R23AS00106 – GRANT14049545 – WaterSMART Aquatic Ecosystem Restoration Projects for Fiscal Year 2023 and 2024 – Application Review Status, for Project Titled, “Programmatic Evaluation and Design of Juvenile Salmonid Rearing Habitat Restoration Sites on the American River”

Dear Ms. Bishop:

The Bureau of Reclamation is pleased to inform you that your application was among those receiving the highest ratings and is now being considered for award of a financial assistance agreement. Your application included a request for $650,000 to complete your project titled, Programmatic Evaluation and Design of Juvenile Salmonid Rearing Habitat Restoration Sites on the American River. Reclamation anticipates awarding Federal funds in the amount of $650,000 for your proposed project.

In working with you to develop your financial assistance agreement, Reclamation will closely review the activities outlined in your proposal to ensure that all activities are eligible for funding and that the proposed costs are allowable under financial assistance regulations and the Notice of Funding Opportunity (NOFO). If some costs or activities are determined to be ineligible or unallowable, Reclamation will work with you to refine the scope of work and budget for the project. Please be advised that revisions to the scope of the project identified in your application can be made only after Reclamation determines that revisions would not impact the overall ranking or the expected benefits of the project. In addition, Reclamation must have sufficient evidence prior to award that non-Federal cost share will be available. The final funding amount may be adjusted if necessary to meet cost-share requirements.

All projects being considered for award of funding are required to comply with all Federal environmental and cultural resource requirements, including the National Environmental Policy Act, Endangered Species Act, Clean Water Act, and the National Historic Preservation Act. Ground- disturbing activities of any type, including fieldwork, monitoring or other activities may not occur until

Reclamation has determined that all environmental and cultural resource compliance is complete and a Notice to Proceed is issued by a Reclamation Grants Officer.

Please note that for costs, including pre-award costs, to be eligible for inclusion in the agreement, the costs must meet the applicable administrative and cost principles criteria established in 2 Code of Federal Regulations (CFR) Part 200. In particular, the procurement of goods and/or services must be compliant with the Procurement Standards (2 CFR §200.317 through §200.326) and contract costs must be compliant with 2 CFR §200.323 – Contract Cost and Price. The Federal financial assistance regulations can be found online at www.ecfr.gov.

In addition, please be advised that as stated in Section F.6 of the NOFO, Reclamation intends to post copies of successful Aquatic Ecosystem Restoration Project applications as examples on Reclamation’s website. While this generally does not raise any issues, it is prudent to provide successful grant applicants with an opportunity to redact any sensitive information from their proposals prior to posting them on Reclamation’s website. As a rule, the SF-424s are removed; however, if there are any other items you would like redacted, please email Michelle Wolford, [email protected] by October 11th, 2024. Should we not hear from you by this date we will assume that there are no objections to posting the full application.

A post-selection webinar to discuss the process for development of financial assistance agreements and next steps with you and all other new recipients will be held on Thursday October 3rd, at 1:00 p.m.

MST. Please join the webinar by clicking here to join the Microsoft Live Event. It is anticipated that you will be notified of the grants management specialist assigned to your agreement in the next two weeks and that your agreement should be awarded in February 2025 or earlier. In the meantime, if you have any questions regarding the process or your agreement, please contact me, Ned Weakland, Reclamation Grants Management Specialist, at 303-445-3757 or at [email protected]. Thank you for your interest and participation in the WaterSMART Program. We look forward to working with you.

Sincerely,

/s/ Ned Weakland

Ned Weakland
Grants Officer

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