DATE: October 9, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Water Utilities Department
TITLE: RESOLUTION AUTHORIZING THE WATER UTILITIES DEPARTMENT TO APPLY FOR GRANT FUNDS FROM THE CALIFORNIA DEPARTMENT OF WATER RESOURCES FOR THE MISSION BASIN BRINE OPTIMIZATION AND WELL EXPANSION PROJECT
RECOMMENDATION
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Staff recommends that the City Council adopt a resolution authorizing the City to apply for and receive grant funds, in an amount up to $1,000,000, from the California Department of Water Resources (DWR) Water Desalination Grant Program Round 6 for the Mission Basin Brine Optimization and Well Expansion Project; appropriate funds to the Water Utilities Department; and authorize the Water Utilities Director, or designee, to act on behalf of the City as signatory to accept grant funds.
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BACKGROUND AND ANALYSIS
In alignment with Administrative Directive 01, which establishes the proactive pursuit of grant funding consistent with the City’s goals and objectives, the Water Utilities Department has identified an opportunity to secure funding from DWR. The funding closely aligns with the Mission Basin Brine Optimization and Well Expansion Project (Project), a significant capital initiative planned by the Department. Securing this grant would alleviate the financial burden on ratepayers while advancing the City’s water sustainability efforts.
The Project will enhance the City’s local water supply by constructing an additional production well within the Mission Basin Aquifer and incorporating optimization technologies to existing wells. The Project also includes the replacement of two existing treatment trains and the introduction of a third-stage treatment process at the Mission Basin Groundwater Purification Facility. These improvements will increase the facility’s water production capacity and reduce the volume of brine discharged to the Land Outfall.
DWR posted the Water Desalination Grant Program Round 6 competitive funding opportunity in June 2024. The opportunity requires agencies that are awarded state funds to adopt a resolution designating an authorized representative to submit the application, execute an agreement, and amendments, as well as certify grant funding disbursements with the State of California. If awarded, this grant will help fund the design and construction of the Project. Notice of award to applicant agencies is expected in November 2024.
State grant funds can be cost shared with Federal grant funds. The City was previously awarded $3,684,500 and is recommended for an award of $5,285,714, for a total amount of $8,970,214, through the United State Bureau of Reclamation’s WaterSMART Desalination Construction Projects grant program.
FISCAL IMPACT
The estimated grant award is up to $1,000,000. Should the City be awarded funding, it will be deposited into account 836195624272-DWR - Desalination Grant. All grant funding received will be directly offset project costs.
The City must provide a minimum of 50 percent in cost share. The required non-state match is $1,000,000 for a $1,000,000 grant award. The cost share would be paid out of Well Expansion/Brine Minimization project account 908158419712, which has a programmed budget of $13,524,884 for the next two fiscal years 2024-25 and 2025-26. Therefore, sufficient funds will be available.
COMMISSION OR COMMITTEE REPORT
The Utilities Commission approved staff’s recommendation at its regularly scheduled meeting on September 17, 2024.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
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Prepared by: Mabel Uyeda, Principal Water Engineer
Reviewed by: Lindsay Leahy, Water Utilities Director
Submitted By: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Resolution