City Council
Report
City Council Meeting: September 24, 2024
Agenda Item: 5.E
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Water Resources Subject: Adoption of Resolution Authorizing the Application for Grant Funds from the U.S. Department of Interior - Bureau of Reclamation FY 2025 WaterSMART Drought Response Program for the Santa Monica Groundwater Well SM-4 Replacement Project
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines;
2. Adopt the attached resolution authorizing the application for grant funds in the amount of up to $3,000,000 from the U.S. Department of Interior - Bureau of Reclamation for the SM-4 Groundwater Well Replacement Project for the Public Works Department; and
3. Authorize the City Manager 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’s Olympic Well Field is the City’s second largest source of groundwater after the Charnock Well Field. One of the groundwater production wells in the well field, Santa Monica Well No. 4 (SM-4), is over 40 years old and needs to be replaced as it is no longer operable. Replacing groundwater production well SM-4 would restore pumping capacity at the Olympic Well Field and maintain groundwater remediation activities at the well field. The well replacement of SM-4 is eligible for grant funding from the U.S. Department of the Interior - Bureau of Reclamation. Staff is requesting authorization to apply for grant funding to help offset 50% of the well replacement cost.
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Discussion
The U.S. Department of the Interior - Bureau of Reclamation’s WaterSMART Drought Response Program provides grant funding for projects that build resiliency to drought by increasing the reliability of water supplies, improving water management, and/or providing benefits for fish and wildlife and the environment. The replacement of groundwater production well SM-4 at the Olympic Well Field meets the objectives under Task B of the grant opportunity - Increasing the Reliability of Water Supplies Through Groundwater Recovery.
The replacement well would be located in the Olympic Well Field, approximately 50 feet east of SM-4 near the intersection of Olympic Boulevard and Stewart Street. Restoring the production capacity at the Olympic Well Field would enhance local water supply reliability and aid in restoring groundwater quality. SM-4 was situated in the center of the contamination plume at the Olympic Well Field and replacing SM-4 would continue to draw contaminated groundwater for treatment to restore the groundwater basin. The project would include drilling and constructing a replacement groundwater well and equipping the well with a new pump, chemical feed system, communication, and metering equipment after the well is constructed.
Production of local groundwater has historically been 30% cheaper than purchasing imported water supplies for potable use in the city. Replacing the aging groundwater production well would reduce costs and assist the City in enhancing its drought resiliency by maximizing groundwater production within sustainable yield limits. In doing so, it would also reduce the City’s reliance on imported water supplies, whose availability and reliability has been impacted during prolonged droughts.
The estimated cost of the project is $4,750,000. The grant requires a 50 percent local match equaling $2,375,000. $235,000 is available in account C5008560.68000 and $235,000 is available in account C5008570.689000 and would be reallocated to a new CIP account. The remaining $1,905,000 of local match would be budgeted from funds 3 of 4
received from the Gillette and Boeing settlements to clean up the groundwater contamination.
Construction is anticipated to begin in October 2025 and end in September 2026. The term of the grant is from October 31, 2024, through September 1, 2027. On-going operation costs would be paid for out of the operating budget for the Water Fund. There would be no further operational costs associated with SM-4 as it would be decommissioned after the replacement well is placed in operation.
Environmental Review
Authorization of the application for grant funding from the U.S. Department of the Interior – Bureau of Reclamation’s WaterSMART Drought Response Program would have no possibility of significant effect on the environment, and therefore, is exempt pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines. If awarded, the use of the grant funding for replacement of groundwater production well SM-4 would be subject to environmental review at the time the project is proposed.
Financial Impacts and Budget Actions
Staff seeks authority to apply for a grant from the United States Bureau of Reclamation for drought resiliency projects. There is no immediate financial impact or budget action necessary as a result of the recommended action. The grant is reimbursement-based and requires a 50% match by the City. Staff would return to Council with budget changes if the grant is awarded.
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Prepared By: Chris Aguillon, Water Resources Protection Specialist Approved Forwarded to Council
Attachments:
A. Resolution - FY 2025 USBR WaterSMART DRP