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 related to acceptance of a WaterSMART Water Energy and Efficiency Grant award from the United States Department of the Interior, Bureau of Reclamation:
1. Adopt a finding of Categorical Exemption pursuant to Section 15301(a)/Class 1 of the California Environmental Quality Act (CEQA) Guidelines
2. ***Approve an Assistance Agreement with the United States Department of the Interior, Bureau of Reclamation and accept receipt of a $379,390 WaterSMART grant for the Smart Irrigation Timers Direct Install Project (subject to Mayor’s veto)
Body
RECOMMENDATIONS
Staff recommends that City Council adopt a finding of Categorical Exemption pursuant to Section 15301(a)/Class 1 of the California Environmental Quality Act (CEQA) Guidelines; approve an Assistance Agreement with the United States Department of the Interior, Bureau of Reclamation and accept receipt of a $379,390 WaterSMART grant for the Smart Irrigation Timers Direct Install Project; and authorize the Director of Public Utilities, or designee, to sign and execute all documents on behalf of the City of Fresno (City).
EXECUTIVE SUMMARY
As drought conditions have continued to persist in California, the City has been actively engaged in efforts to promote water conservation. The Water Conservation Program has proposed a Smart Irrigation Controller Direct Install Program, which will allow the City to provide water customers with free smart irrigation controllers on a first-come, first-served basis. Water Conservation staff will install the controllers at individual properties and program the timers to maximize the efficiency of the specific irrigation system.
On October 28, 2021, the Fresno City Council approved Resolution 2021-281 authorizing the Department of Public Utilities (DPU) to submit an application to the United States Department of the Interior, Bureau of Reclamation (USBR) for a WaterSMART Grant: Water Energy and Efficiency Grant (WaterSMART WEEG) for Fiscal Year 2022 in an amount not to exceed 500,000 for the Smart Irrigation Controller Direct Install Project (Project). DPU applied for the WaterSMART WEEG grant and was recently notified that the Project was selected for a grant award in the amount of $379,390.
DPU has been working with USBR staff to prepare the grant agreement for the Project. DPU is now requesting that City Council authorize acceptance of the grant award agreement and accompanying funds in the amount of $379,390.
BACKGROUND
The City of Fresno provides potable water supply service to approximately 135,000 residential, commercial, industrial, and institutional customers within a geographic area that extends across approximately 110 square miles. As drought conditions have continued to persist in California, the City has been actively engaged in efforts to promote water conservation throughout the City.
The largest volume of potable water used in the City of Fresno is for landscaping. Residential outdoor water use in the City of Fresno accounts for nearly 70 million gallons of water per day, mainly for landscape irrigation. It is estimated that as much as 50 percent of this water is wasted due to overwatering caused by inefficiencies in irrigation methods and systems. WaterSense-labeled, weather-based irrigation “smart” controllers can significantly reduce overwatering by applying water only when plants need it, using local weather and landscape conditions to tailor watering schedules for a specific property’s needs. With proper installation, programming, and maintenance, homeowners can use WaterSense labeled controllers instead of clock-based controllers on their irrigation systems and no longer worry about wasted water.
The Water Conservation Program has proposed a Smart Irrigation Controller Direct Install Program, which will allow the City to provide water customers with free smart irrigation controllers on a first-come, first-served basis. To be eligible, customers must have a City of Fresno water account, must have a clock irrigation timer currently installed, must have Wi-Fi available, and must have use of a smart phone, tablet, or computer. Water Conservation staff will install the controllers at individual properties and program the timers to maximize the efficiency of the specific irrigation system. Through this program, the City expects to purchase approximately 1500 smart irrigation controllers to be distributed through the Smart Irrigation Controller Direct Install Program. The project is estimated to reduce total potable water consumption by approximately 360 acre-feet per year (AFY).
On October 28, 2021, the Fresno City Council approved Resolution 2021-281 authorizing DPU to submit an application to USBR for a WaterSMART WEEG Grant for Fiscal Year 2022 in an amount not to exceed 500,000 for the Smart Irrigation Controller Direct Install Program (Project). DPU applied for the WaterSMART WEEG grant and was recently notified that the Project was selected for a grant award in the amount of $379,390.
The total estimated cost for the Project is $772,485. The Federal share of Project costs is $379,290 and the DPU share of costs is $393,095. The City’s portion of the Project funding is included in the Water Enterprise FY 2023 budget.
DPU has been working with USBR staff to prepare the grant agreement for the Project. DPU is now requesting that City Council authorize acceptance of the grant award agreement and accompanying funds in the amount of $379,290. The proceeds from the WaterSMART WEEG will be used to purchase, distribute, and install smart irrigation timers to City of Fresno water customers on a first-come, first-served basis to reduce potable water demands on the City’s public water system.
The agreement has been approved as to form by the City Attorney’s Office.
ENVIRONMENTAL FINDINGS
Staff performed a preliminary environmental assessment for this Project and determined that it falls within Section 15301(a)/Class 1 Categorical Exemptions set forth in CEQA Guidelines.
National Environmental Policy Act (NEPA) review is underway, and the City will be authorized to begin work on the Project once that process is complete. City Council may take action on this item prior to USBR’s completion of the NEPA process. For purposes of complying with NEPA, a federal agency must serve as the lead agency for every proposed action. Section F.2.1 of the WaterSMART WEEG Grant Program Guidelines states that USBR is the lead federal agency for NEPA compliance and “will be responsible for evaluating technical information and ensuring that natural resources, cultural, and socioeconomic concerns are appropriately addressed. As the lead agency, USBR is solely responsible for determining the appropriate level of NEPA compliance. USBR is responsible to ensure that findings under NEPA, and consultations, as appropriate, will support USBR’s decision on whether to fund a project.”
LOCAL PREFERENCE
Local preference is not applicable to this Project, as the agreement to receive Federal money specifically prohibits local preference in procurement for the Project.
FISCAL IMPACT
This Project will have no impact on the General Fund. The total estimated cost for the Project is $772,485. The Federal share of Project costs is $379,290 and the DPU share of costs is $393,095. The City’s portion of the Project costs is included in the Water Enterprise FY 2023 budget. The City will submit Requests for Reimbursement to USBR as funds are expended for the Project. The reduction in potable water use will result in energy and chemical savings from reduced groundwater pumping and water treatment.
Attachments:
Attachment 1 - CEQA Categorical Exemption Environmental Assessment
Attachment 2 - United States Department of the Interior Assistance Agreement