REPORT TO THE CITY COUNCIL
FROM: BROCK BUCHE, Assistant Director
Department of Public Utilities - Utilities Planning & Engineering
BY: CHERYL BURNS, MPA, Senior Management Analyst
Department of Public Utilities - Administration
SUBJECT
Title
***RESOLUTION - Authorizing the submission of a grant application to the California Department of Water Resources through its Urban and Multibenefit Drought Relief Grant Program for the Critical Well Rehabilitation for Drought Response Project and authorizing the Director of Public Utilities or designee to execute all application and grant agreement documents on behalf of the City of Fresno (Council Districts 5 and 6) (Subject to Mayor’s veto).
Body
RECOMMENDATION
Staff recommends City Council adopt a Resolution authorizing submission of a grant application to the California Department of Water Resources (DWR) through its Urban and Multibenefit Drought Relief Grant Program for installation of advanced wellhead treatment systems at three critical wells in order to return those wells to service, and authorizing the Director of Public Utilities or designee to execute all application and grant agreement documents on behalf of the City.
EXECUTIVE SUMMARY
As drought conditions have continued to worsen in California, the City of Fresno (City) has been actively engaged in efforts to maintain the City’s water supplies and ensure reliability of the potable water system. Three City wells, identified as PS1B, PS319 and PS341, are currently offline due to impacts of the groundwater contaminant 1,2,3-Trichoropropane (TCP). During drought conditions, these three wells are critical to maintain the system pressure necessary for adequate fire flows and to protect public health. In order to bring these wells back online, the City must install Granular Activate Carbon (GAC) treatment systems at each wellsite to treat the TCP-impacted groundwater prior to distribution throughout the City’s potable water system. The Department of Public Utilities (DPU) proposes to utilize available DWR grant funding to proceed with the construction and installation of advanced wellhead treatment systems at the three critical TCP-impacted wells (Project).
Council approval of this resolution cannot be delayed, as acceptance of funds is contingent upon approval of this resolution. Phase II of the grant application process closes on January 14, 2022, and awards are expected to be announced shortly thereafter. It is imperative that Council approve this authorizing resolution without delay in order for DPU to accept the grant funds, if awarded, and move forward with the project.
BACKGROUND
The City of Fresno 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.
In 2017, the State of California notified the City of upcoming groundwater regulations for the contaminant TCP that set the Maximum Contaminant Level (MCL) at 5 parts per trillion. The regulations required that wells with detections of TCP above the MCL either have advanced wellhead treatment systems to remove the contaminant or be taken offline. Since the regulations were implemented in 2018, approximately 40 of the City’s 267 drinking water wells have been impacted by TCP. Of those TCP-impacted wells, 31 have been taken offline, resulting in a significant loss of available potable water supplies.
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. In October 2021, the DWR issued the Guidelines and Proposal Solicitation Package establishing the process, procedures, and criteria that the DWR will use to implement the Urban and Multibenefit 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.
In March 2017, soon after the City was notified of the upcoming regulations for TCP, the City entered into a funding agreement with the State Water Resources Control Board for a Sustainable Groundwater Planning Grant that funded the design of advanced wellhead treatment systems for these three critical wells in order to return those wells to service. The work under that planning grant is now nearly complete and the project is ready to move forward to construction.
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 sustainability 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.
Council approval of this resolution cannot be delayed, as acceptance of funds is contingent upon approval of this resolution. Phase II of the grant application process closes on January 14, 2022, and awards are expected to be announced shortly thereafter. It is imperative that Council approve this authorizing resolution without delay in order for DPU to accept the grant funds, if awarded, and move forward with the project.
ENVIRONMENTAL FINDINGS
Environmental assessments were previously completed for all three well sites.
Mitigated Negative Declaration No. C-10-006 was completed on March 5, 2010 and a Notice of Determination was filed with the Fresno County Clerk’s Office on July 2, 2010. Wellhead treatment systems for Water Well Pump Station No. 1B, including the construction of a GAC treatment system, was included in the Project Description and environmentally assessed in the initial study resulting in the finding of a Mitigated Negative Declaration. Staff has performed an analysis and determined that there is no change to the project, no substantial changes have occurred with respect to the circumstances under which Mitigated Negative Declaration No. C-10-006 was adopted, and that no new information, which was not known and could not have been known at the time Mitigated Negative Declaration No. C-10-006 was adopted has become available. Therefore, all necessary environmental review required by CEQA has been completed for Water Well Pump Station No. 1B.
Mitigated Negative Declaration No. C-02-045 was completed on May 14, 2002 and a Notice of Determination was filed with the State of California Office of Planning and Research on March 3, 2003. Wellhead treatment systems for Water Well Pump Station No. 319, including the construction of a GAC treatment system, was included in the Project Description and environmentally assessed in the initial study resulting in the finding of a Mitigated Negative Declaration. Staff has performed an analysis and determined that there is no change to the project, no substantial changes have occurred with respect to the circumstances under which Mitigated Negative Declaration No. C-02-045 was adopted, and that no new information, which was not known and could not have been known at the time Mitigated Negative Declaration No. C-02-045 was adopted has become available. Therefore, all necessary environmental review required by CEQA has been completed for Water Well Pump Station No. 319.
Mitigated Negative Declaration No. C-06-009 was completed on March 9, 2006 and a Notice of Determination was filed with the Fresno County Clerk’s Office on May 24, 2006. Wellhead treatment systems for Water Well Pump Station No. 341, including the construction of a GAC treatment system, was included in the Project Description and environmentally assessed in the initial study resulting in the finding of a Mitigated Negative Declaration. Staff has performed an analysis and determined that there is no change to the project, no substantial changes have occurred with respect to the circumstances under which Mitigated Negative Declaration No. C-06-009 was adopted, and that no new information, which was not known and could not have been known at the time Mitigated Negative Declaration No. C-06-009 was adopted has become available. Therefore, all necessary environmental review required by CEQA has been completed for Water Well Pump Station No. 341.
Based upon these findings, it has been determined that no further environmental assessment is required.
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 immediate impact on the General Fund. Should the grant be awarded, the funds will be deposited into the Water Enterprise Fund and designated specifically for this project. The project wells are located in Council Districts 5 and 6.
Attachment:
Resolution