City Council Report
City Council Meeting: January 11, 2022
Agenda Item: 3.D
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To: Mayor and City Council
From: Rick Valte, Acting Public Works Director, Public Works, Water Resources Subject: Adoption of a Resolution to Apply for Grant Funds from the California State Department of Water Resources Urban and Multibenefit Drought Relief Grant Program for the Santa Monica Charnock Wells #13 and #18 Replacement Project and Santa Monica Basin Groundwater Replenishment Wells Project Recommended Action
Staff recommends that the City Council:
1. Adopt the attached resolution authorizing the application for grant funds from the California State Department of Water Resources in the amount of $7,303,923 for the Charnock Wells #13 and #18 Replacement Project and up to $8,178,887 for the Santa Monica Basin Groundwater Replenishment Wells Project in the Public Works Department; and
2. Authorize the City Manager and his or her designee to execute all necessary documents to apply for the grant, accept the grant, if awarded, and accept all grant renewals, if awarded.
Summary
The City of Santa Monica is undertaking a series of projects to help increase our water self-sufficiency, as adopted by City Council in the 2018 Sustainable Water Master Plan (SWMP) Update. The SWMP provides a roadmap to enhance local resiliency of our water supply and ensure access to safe reliable water long-term.
Staff in the Public Works’ Water Resources Division have identified two projects that qualify for grant funding from the California Department of Water Resources (DWR) Urban and Multibenefit Drought Relief Grant Program: the Charnock Wells #13 and #18 Project and the Santa Monica Basin Groundwater Replenishment Wells Project.
These two projects would enhance the resiliency and sustainability of the City’s local water supply. As part of the grant application submittal, the DWR requires the City’s 2 of 4
governing body to authorize the City Manager to file an application for funding. If funding is awarded, the DWR also requires a resolution authorizing the City Manager to negotiate and enter into an agreement with the DWR.
Discussion
On October 24, 2014, the Santa Monica City Council adopted the SWMP to achieve water self-sufficiency from local water resources. The SWMP was updated in November 2018 to refine the pathway to achieve water self-sufficiency to account for changes in drinking water regulations and new findings from feasibility studies. The SWMP lays out a set of goals and projects to ensure a long-term sustainable water supply and to enhance local control of the City water supply.
Guided by the SWMP, staff have identified a set of water self-sufficiency projects designed to ensure a sustainable, locally controlled water supply. These projects are fully funded by a mix of grants, loans, and bond revenues designed to mitigate the cost impacts to ratepayers as well as stabilize water rates over the long-term. Staff continues to seek outside grant opportunities for water self-sufficiency projects as it would free up water funds that could be used to accelerate future water infrastructure projects and/or stabilize future water rates. Staff seeks authorization to apply for grant funding that would significantly subsidize the costs of two projects that will help Santa Monica reach water self-sufficiency. They are:
Charnock Wells #13 and #18 Project
Project Cost: $8.7 million | Grant Request: Up to $7.3 million The Charnock Wells #13 and #18 Project would replace two aging groundwater wells that are near the end of their useful lives and have lost significant pumping capacity over time. Constructed in the 1980s in the City’s largest well field, Charnock well field, these wells have lost more than half their original pumping capacity due to age. Replacing the two Charnock Wells would restore them to full production capacity, which accounts for approximately 35% of the City’s groundwater supply.
Santa Monica Basin Groundwater Replenishment Wells Project 3 of 4
Project Cost: $9.1 million | Grant Request: Up to $8.1 million The Basin Groundwater Project would install two new groundwater recharge wells that would use water from the Sustainable Water Infrastructure Project (SWIP) to replenish local groundwater supplies. The replenishment wells would be used to inject advanced treated recycled water from the City’s SWIP into the Olympic Well Field groundwater aquifer and enhance sustainability of the local groundwater supply. The SWIP is currently under construction and is scheduled to be completed in 2022.
Although this grant funding opportunity does not require a local match, the City has committed to a local match of 10% of the total project cost, and potentially up to 40%, to increase the City’s chances of receiving the grant. The City’s local match would be funded by Water Revenue Bonds. These match funds are included in the Water Fund budget and would not impact ratepayers.
Past Council Actions
Meeting Description
10/28/14 (Attachment A) City Council adopted the Sustainable Water Master Plan. 11/27/18 (Attachment B)
City Council directed staff to proceed with an update to the Sustainable Water Master Plan and the recommended
pathway to water self-sufficiency.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended action. Staff only seeks authorization to apply for the grants at this time.
Should the grants be awarded, the necessary revenue and expenditure budget changes would be included in the FY 2022-23 Exception Based Operating Budget and FY 2022- 24 Capital Improvement Program Budget. The matching fund requirement for the grant is already accounted for in the Water Fund and would not have any impacts on the current water rates adopted for 2020 through 2024.
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Prepared By: Sunny Wang, Water Resources Manager
Approved Forwarded to Council
Attachments:
A. October 28, 2014 Staff Report - SWMP Adoption (Web Link) B. November 27, 2018 Staff Report - SWMP Update (Web Link) C. Multibenefit Drought Grant Resolution_120221