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Attachment A - Draft Staff Report

Council Water Committee
June 9, 2022

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Attachment A - Draft Staff Report
Meeting
June 9, 2022
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Council Water Committee
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Text extracted from the city's file for reading and search. Open the original on legistar1.granicus.com. That file is the official record.

ADOPT A RESOLUTION APPROVING SUBMITTAL OF A GRANT APPLICATION TO THE DEPARTMENT OF WATER RESOURCES DELTA WATER QUALITY AND FISH FACILITIES PROGRAM

RECOMMENDATION
It is recommended that the City Council adopt a resolution approving submittal of a grant application to the Department of Water Resources for the Delta Water Quality and Fish Facilities Program.

It is also recommended that the City Manager be authorized to take all necessary and appropriate actions to carry out the purpose and intent of this resolution.

Summary
The Department of Water Resources (DWR) Division of Multi-Benefit Initiatives has received funding from Proposition 50, the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002 (Program). The Program will award grant funding to agencies with projects that meet specific criteria aimed at improving the water quality of the Delta, protecting fish habitat, and managing water levels and diversion.

The Municipal Utilities Department (MUD) is requesting approval to prepare and submit a grant application for $10 million to help finance the investigation, design, and construction of a portion of the Regional Wastewater Control Facility Modifications Project (RWCF Project); and the construction of an official DWR monitoring station in the San Joaquin River at the Delta Water Supply Intake Pump Station on Empire Tract.

Staff recommends that the City Council adopt a resolution approving the submission of a $10 million grant application to the DWR Delta Water Quality and Fish Facilities Program.

DISCUSSION
Background
The Program will award grant funding to agencies with projects that meet specific criteria aimed at improving the water quality, protecting fish habitat, and managing water levels and diversion of the Sacramento-San Joaquin Delta, the largest estuary on the Pacific Coast of the United States.

Awards will be granted only to those projects with the greatest feasibility and public benefit value, and which are at least generally consistent with local and state adopted plans for Delta water quality and ecosystem enhancement.

The MUD is requesting approval to prepare and submit a grant application for $10 million. If approved, this funding will help finance the investigation, design, and construction of a portion of the RWCF Project that will include the new wastewater discharge outfall into the San Joaquin River (Eastside Outfall); and the construction of an official DWR monitoring station in the San Joaquin River at the Delta Water Supply Intake Pump Station on Empire Tract.

Present Situation
The Program application period is now open, with application packets from eligible agencies due by June 30, 2022. There are several criteria for determining eligible projects under the Program, including constructing facilities to control waste discharges that contribute to low dissolved oxygen and other water quality problems in the lower San Joaquin River and the South Delta.

If approved by the DWR, grant funding worth $10 million will finance two projects: 1) the investigation, design, and construction of the Eastside Outfall ($9.5 million); and 2) construction of a new DWR monitoring and gauging station in the San Joaquin River at the Delta Water Supply Project Intake Pump Station ($500,000). The outfall project is underway and will become part of the RWCF Project. If awarded, the grant will reimburse monies already spent on the outfall project, reduce overall Project expenditures, and lessen the burden on rate payers.

Consistent with the grant program guidelines, applicants are required to adopt resolutions authorizing the application for the Program grants and designating a representative to execute all necessary documentation.

Staff recommends that the City Council adopt a resolution approving the submission of a $10 million grant application to the Department of Water Resources Delta Water Quality and Fish Facilities Program and identifying the City Manager as the authorized representative.

FINANCIAL SUMMARY
Grant funding will be available July 1, 2022 through June 30, 2025. If approved for the Program, funding payments will be made in arrears. The outfall project is currently funded through the MUD Capital Improvement Program (CIP). The grant will reimburse investigation, design, and construction costs. The gauging station project will be funded by the CIP and approved by the City Council through the annual CIP budget process.

There is no impact to the General Fund, or any other unrestricted fund, from this action.

Attachment A

DRAFT STAFF REPORT

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