REPORT TO THE CITY COUNCIL
FROM: BROCK D. BUCHE, PE, PLS, Director
Department of Public Utilities
BY: CHERYL BURNS, MPA, Senior Management Analyst
Department of Public Utilities - Administration
SUBJECT
Title
Actions pertaining to the submission of grant applications for the California Department of Water Resources 2022 Urban Community Drought Relief Program:
1. ***RESOLUTION - Authorizing the submission of a 2022 Urban Community Drought Relief Grant Program grant application to the California Department of Water Resources for the Critical Wells for Drought Relief Project, and authorizing the Director of Public Utilities or designee to accept grant funds and execute all application and grant agreement documents on behalf of the City of Fresno (Council Districts 5, 6, and 7) (Subject to Mayor’s Veto)
2. ***RESOLUTION - Authorizing the submission of a 2022 Urban Community Drought Relief Grant Program grant application to the California Department of Water Resources for the Leaky Acres Groundwater Recharge Improvements Project, and authorizing the Director of Public Utilities or designee to accept grant funds and execute all application and grant agreement documents on behalf of the City of Fresno (Council District 4) (Subject to Mayor’s Veto)
Body
RECOMMENDATION
Staff recommends that City Council:
1. Approve a Resolution authorizing the submission of a 2022 Urban Community Drought Relief Grant Program grant application to the California Department of Water Resources (DWR) for the Critical Wells for Drought Relief Project and authorizing the Director of Public Utilities or designee to accept grant funds and execute all application and grant agreement documents on behalf of the City of Fresno; and
2. Approve a Resolution authorizing the submission of a 2022 Urban Community Drought Relief Grant Program grant application to the California Department of Water Resources for the Leaky Acres Groundwater Recharge Improvements Project and authorizing the Director of Public Utilities or designee to accept grant funds and execute all application and grant agreement documents on behalf of the City of Fresno.
EXECUTIVE SUMMARY
In June 2022, the State of California Legislature allocated $545 million to DWR to deliver grants for drought relief to urban communities. The City of Fresno (City) Department of Public Utilities (DPU) proposes to utilize available DWR grant funding to (1) construct wellhead treatment systems at three critical well locations to treat contaminated groundwater to potable drinking water standards and (2) to construct improvements at the Leaky Acres Recharge Facility to increase surface water recharge during non-drought years.
Council approval of this resolution cannot be delayed, as the first round of grant awards are expected to be announced on a rolling basis. It is therefore imperative that Council approve this authorizing resolution without delay in order to improve the likelihood that the projects will receive consideration in the early rounds of funding.
BACKGROUND
In the Budget Act of 2021, the State of California allocated $300 million to the DWR to deliver grants for interim and immediate drought relief to urban communities for multibenefit projects, which DWR administers via the Urban Community Drought Relief Grant Program (Program). Grants awarded under the Program are intended to provide water to communities that face the loss or contamination of their water supplies, to address immediate impacts on human health and safety, and to protect fish and wildlife resources. An amendment to the Budget Act of 2021 in June 2022 allocated an additional $545 million to the DWR for the Program.
The City provides potable water supply service to residents, businesses, industries, and institutions within a geographic area that extends across approximately 110 square miles. As drought conditions have continued to worsen in California, the City has been actively engaged in efforts to maintain the City’s water supplies and ensure the reliability of its potable water system.
The Critical Wells for Drought Relief Project will construct wellhead treatment systems at three City wells, identified as PS 1B (Council District 7), PS 319 (Council District 6), and PS 341 (Council District 5) to remove 1,2,3-Trichloropropane (TCP) from the pumped contaminated groundwater so it meets potable drinking water standards. The three wells have been inactive since 2018 due to exceedance of the TCP Maximum Contaminant Level (MCL) for drinking water, which had only been promulgated by the State of California at the end of 2017. Since the regulation was implemented, approximately thirty-four (34) wells have been impacted by TCP, with about twenty-six (26) of these wells taken offline, resulting in a significant loss of available potable water supplies. The design of the wellhead treatment systems for Pump Stations 1B, 319, and 341 were completed via a Sustainable Groundwater Planning Grant funded through the State Water Resources Control Board.
The City continues efforts to recover costs for TCP-related impacts from the responsible parties, but no timelines have been established or can be forecasted regarding resolution at this time. In order to ensure water system viability in this critical time of drought, it is important to proceed with the installation of wellhead treatment systems at the three critical wells as soon as possible. DPU has identified the opportunity to utilize Program funds for this Project to ensure reliability of the potable water system and minimize potential health and safety impacts to water customers.
The Leaky Acres Groundwater Recharge Improvements Project entails the design and construction of various infrastructure improvements at the Leaky Acres Recharge Facility to increase the percolation rate and maximize the capture of surface water deliveries for groundwater recharge. The conceptual designs and potential beneficial impacts were first presented in the August 2022 Leaky Acres Master Plan. DPU requires a qualified engineering consultant to prepare the construction plans and specifications prior to putting the project out to bid. Selected improvements include modifications to the silt basins, installation of conveyance piping to individual basins, and installation of remote sensors and valves to automatically fill individual percolations basins when levels drop. The improvements are estimated to restore the groundwater recharge rate from the current 0.2 ft/day rate to approximately 0.4 ft/day.
Council approval of this resolution cannot be delayed, as the first round of grant awards are expected to be announced on a rolling basis. It is therefore imperative that Council approve this authorizing resolution without delay in order improve the likelihood that the projects will receive consideration in the early rounds of funding.
ENVIRONMENTAL FINDINGS
Submission of grant applications and execution of subsequent grant agreements involve the creation of a government funding mechanism and do not involve a commitment to a specific project which may result in a potentially significant physical impact on the environment. Therefore, pursuant to California Environmental Quality Act (CEQA) Guidelines section 15378, submission of these grant applications is not a project for the purposes of CEQA.
LOCAL PREFERENCE
Local preference was not implemented because this action does not include a bid or an award of a construction or services contract.
FISCAL IMPACT
This resolution will have no impact on the General Fund. Should the grants be awarded, the funds will be accounted for in separate funds to be designated specifically for (1) the installation of wellhead treatment systems at three critical well sites and (2) the Leaky Acres Groundwater Recharge Improvements Project.
Attachments:
Attachment 1 - Resolution for Critical Wells for Drought Relief Project
Attachment 2 - Resolution for Leaky Acres Groundwater Recharge Improvement Project
Attachment 3 - Sample Agreement