City Council
Report
City Council Meeting: October 14, 2025
Agenda Item: 4.D
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Water Resources Subject: Adoption of a Resolution Authorizing the Application for Grant Funds from the Federal Emergency Management Agency’s Hazard Mitigation Grant Program for the Riviera Reservoir Seismic Retrofit 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 approximately $8,209,000 from the Federal Emergency Management Agency for the Riviera Reservoir Seismic Retrofit Project in the Public Works Department – Water Resources Division; 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 Water Resources Division aims to rehabilitate the City’s four water storage reservoirs over the next 5-6 years. These potable water storage reservoirs provide roughly 40 million gallons in storage capacity and range in age from 60 to over 100 years old. The City’s largest potable water reservoir, Riviera Reservoir, has a storage capacity of 25 million gallons and is a critical component in the City’s ability to meet day-to-day peak water demands, as well as provide storage for emergency response. The Riviera Reservoir is in need of rehabilitation and structural upgrades to maintain reliable service. Design is currently in progress to structurally reinforce the reservoir to align with current code and mitigate the risk of earthquake damage. Structural upgrades to retrofit the Riviera Reservoir are eligible for grant 2 of 4
funding from the Federal Emergency Management Agency (FEMA) Hazard Mitigation Grant Program (HMGP). Staff requests authorization to apply for grant funding to help offset the cost of rehabilitating the reservoir.
Discussion
The Riviera Reservoir was constructed in 1962 and is located beneath tennis courts at the Riviera Country Club. It is the City’s largest reservoir, accounting for over 60% of the City’s total water storage capacity. The Water Resources Division recently retained Stantec Consulting Services Inc. to perform a seismic assessment and structural analysis of the reservoir. The analysis found that structural components of the reservoir — including elements of the foundation, walls, and roof —need to be upgraded to meet current seismic standards outlined in the 2022 California Existing Building Code (CEBC). In addition, rehabilitation of the Riviera Reservoir must comply with standards set by the California Department of Water Resources – Division of Safety of Dams, given the size and capacity of the reservoir. Stantec Consulting Services Inc. is currently developing technical design drawings and specifications to rehabilitate and upgrade the Riviera Reservoir, along with the City’s other potable water storage reservoirs.
The seismic upgrades for the Riviera Reservoir currently in development are eligible for grant funding under FEMA’s Hazard Mitigation Grant Program (HMGP). HMGP provides up to 75 percent grant funding for projects that reduce the risk and impact of disasters such as wildfires, earthquakes, drought, and flooding. The current estimated cost of the project to rehabilitate the Riviera Reservoir is approximately $16,500,000. The grant amount being requested is approximately $8,200,000, with a local match of $8,300,000.
The matching funds would be available from the Water Enterprise Fund balance, which could include a future water revenue bond when design of the reservoir rehabilitation project is completed in 2026. Staff increased the local match percentage above the minimum grant requirements to increase the possibility of being selected for funding.
The funding strategy to rehabilitate the four potable water reservoirs was presented to City Council during the recently adopted five-year water and wastewater rate study. 3 of 4
Grant award is anticipated in 2027/2028, and construction is expected to begin in 2028/2029. The grant award schedule aligns with anticipated construction schedule for the Riviera Reservoir, to occur after the 2028 Olympics are completed, as the Riviera Country Club is hosting the Olympic golf event. The term of the grant is 48 months from grant execution. Ongoing operation costs would be paid out of the operating budget for the Water Fund.
At the September 30, 2025 City Council meeting, Councilmembers expressed concern that FEMA grants could be conditioned on the City agreeing to assist federal immigration enforcement or dismantling DEI programs. Multiple lawsuits have been filed challenging such conditions on FEMA grants, including one in which the City is a Plaintiff (Santa Clara County v. Noem, 5:25-cv-08330-EJD (N.D. Cal.)). Staff expects the court will issue rulings well before the City would be required to execute a grant agreement for this project, if awarded, and that the court’s ruling will address whether the challenged conditions apply to this funding or not.
Environmental Review
Authorization of the application for grant funding from FEMA’s Hazard Mitigation Grant Program (HMGP) is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines which states that CEQA does not apply “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” If awarded, the use of the grant funding to structurally retrofit the Riviera Reservoir would be subject to environmental review at the time the project is proposed.
Therefore, the application for grand funding would not result in adverse physical impacts on the environment and, as such, is exempt from CEQA.
Past Council Actions
Meeting Date Description
8/22/23 (Attachment A) Award RFP to Stantec Consulting Services, Inc., for Water Reservoir Upgrades Engineering Design Services
3/25/25 (Attachment B) Five-Year Water and Wastewater Rate Study Session 6/10/25 (Attachment C) Public Hearing and Adoption of a Resolution Establishing 4 of 4
Scheduled Five-Year Water Service Rate Adjustments
Financial Impacts and Budget Actions
Staff seeks approval from City Council to adopt a resolution authorizing the application for grant funds, accept the grant, if awarded, and accept all grant renewals, if awarded from the Federal Emergency Management Agency. There is no immediate financial impact or budget action necessary as a result of the recommended action. If the grant is awarded, staff would return to Council with budget changes including appropriation of funds for the local match of approximately $8.3 million (to be funded by either the Water Enterprise Fund and/or a water revenue bond) as part of one of the upcoming budget cycles.
Prepared By: Sunny Wang, Water Resources Manager
Approved Forwarded to Council
Attachments:
A. August 22, 2023 Staff Report (Web Link)
B. March 25, 2025 Staff Report (Web Link)
C. June 10, 2025 Staff Report (Web Link)
D. Resolution - FEMA HMGP