SR-01-27-2015-3H - 505-001/505-004City Council Meeting: January 27, 2015
Agenda Item: 3 H
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Application for Grant Funds from the California State Water Resources
Control Board's Clean Beaches Initiative Grant Program and the California
Department of Water Resources' Water- Energy Grant Program
Recommended Action
Staff recommends that the City Council:
1. Adopt the attached resolution authorizing the application for grant funds in the
amount of $3,785,866 from the California State Water Resources Control Board's
Clean Beaches Initiative Grant Program for the Santa Monica Clean Beaches
Project.
2. Adopt the attached resolution authorizing the application for grant funds in the
amount of $1,980,770 from the California Department of Water Resources'
Water - Energy Grant Program for the Santa Monica Water- Energy Project.
3. Authorize the City Manager to execute all necessary documents to apply for both
grants, accept grants, if awarded, and accept all grant renewals, if awarded.
4. Authorize budget changes as outlined in the Financial Impacts and Budget
Actions section of this report in the event that the grants are awarded.
Executive Summary
Staff recently submitted two separate grant applications to increase the reuse of
stormwater and other non - potable resources. Both grants require that the City Council
authorize the City Manager to negotiate, execute and accept a grant agreement in
advance of any funds being awarded, and commit to operate and maintain the project
equipment for the grant's specified lifetime.
The first application is for the California State Water Resources Control Board's Clean
Beaches Initiative Grant Program. The objective of this project is to improve beach
water quality by reducing or eliminating the volume of stormwater discharges to the
ocean. The estimated Clean Beaches Project cost is approximately $5,165,638,
consisting of a grant request of $3,785,866, and a City matching cost of approximately
$1,379,772 (27 %) to be funded through Measure V, the Clean Beaches and Oceans
Parcel Tax Fund.
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The second grant application is for the California Department of Water Resources'
Water- Energy Grant Program. The objective of this project is to reduce the water -
energy intensity associated with utilizing imported supply for supplemental recycled use
and to improve beach water quality. The estimated Water- Energy Project cost is
approximately $2,647,955, consisting of a grant request of $1,980,770, and a City
matching cost of approximately $667,185 (25 %), to be funded by the Water Fund and
the Measure V, Clean Beaches and Oceans Parcel Tax Fund.
Background
Federal, State and local regulations require the City to reduce urban runoff pollution
from storm drain discharges into the Santa Monica Bay. Recent regulatory changes
adopted by the Los Angeles Regional Water Quality Control Board to the Los Angeles
County Municipal Separate Storm Sewer System (MS4) discharges have also set more
stringent limits on ocean water quality. Added to these issues are concerns about
sustainable potable water supply during the extended drought, the effects of the City's
early commitment to water conservation that has reduced readily available dry weather
urban runoff for reuse, and the City's commitment to end its reliance on imported water
through self- sufficiency by 2020. When completed, the proposed Clean Beaches and
Water- Energy projects would help the City meet the goals of the Sustainable Water
Master Plan while simultaneously helping to meet beach water quality requirements and
conserve valuable potable supply by diverting and treating more stormwater for reuse
as well as extracting ponded stormwater and brackish groundwater from the beach at
the Pico - Kenter outfall for treatment and recycling.
Discussion
The California State Water Resources Control Board Clean Beaches Initiative (CBI)
Grant Program was promulgated in response to poor beach water quality and significant
exceedances of bacterial indicators detailed in monitoring at California beaches
[Assembly Bill (AB) 411 ( Stats. 1997,Ch.765)]. The Budget Act of 2001 appropriated
$32,298,000 from Proposition 13 to implement projects at 38 specific beaches. These
funds were subsequently supplemented by the State with $46 million in September
2002 (AB 2543), and again by the State in November 2006 with $90 million (Water
Security, Clean Drinking Water, Coastal and Beach Protection Act). The current grant
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program is designed to fund projects that restore and protect the water quality and the
environment of coastal waters, estuaries, bays, and near shore waters. Funding priority
is given to projects that reduce bacterial concentrations on California public beaches
The California Department of Water Resources Water- Energy Grant Program funding
was approved by the Governor in March 2014 through Senate Bill (SB) 103, which
appropriated $19 million from the Greenhouse Gas Reduction Fund. The purpose of the
grant program is to fund projects that support residential, commercial, and institutional
water - efficiency programs or projects that reduce greenhouse gas emissions, as well as
water and energy usage.
City of Santa Monica Clean Beaches Project — Grant Application 9
To improve beach water quality, conserve potable water, and recycle valuable non -
potable water resources, the City proposes to capture all wet weather runoff from the
90 -acre Pier Drainage Area generated by a 1 -inch, 24 hour storm event that would
normally be discharged to the ocean at the Pier Outfall, and capture a portion of so
called "first flush" stormwater discharges to the beach at the Pico - Kenter Outfall.
Specifically, the City would install a set of modular subgrade storage tanks near the Pier
(Deauville Parking Lot) capable of holding approximately 1.2 million gallons of runoff.
A set of ready -made tanks capable of holding approximately 80,000 gallons of runoff is
proposed at the existing Pico - Kenter Outfall pump station. Captured stormwater and /or
dry weather runoff from both locations would be piped to the City's nearby SMURRF
plant for treatment and recycled non - potable use. Other selected project elements
include a flow diversion structure to divert stormwater from the Pier Drainage Area to
the modular storage tanks located near the Pier, a flow meter to better quantify Pico -
Kenter discharges, and various pumps, piping, and monitoring equipment.
The total estimated project cost is $5,165,638. The requested grant funding is
$3,785,866. The estimated City local match is $1,379,772 (27 %) with local match
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commitments met by funds appropriated from Measure V, Clean Beaches and Ocean
Parcel Tax. The grant specified lifetime for this project is 20 years.
City of Santa Monica Water - Energy Project — Grant Application 2
The objective of this project is to reduce the water - energy intensity associated with
utilizing imported supply for supplemental recycled use and to improve beach water
quality by capturing more wet weather runoff as well as ponded runoff at the Pico -
Kenter Ouffall. This water, if left unattended, attracts birds, pets and other sources of
fecal bacteria, and creates nuisance odors related to algae growth and other concerns
such as increased insect vectors.
The City would install a containerized off - the -shelf brackish water reverse osmosis unit
at the SMURRF capable of advanced treating approximately 500,000 gallons of water
per day, install approximately 2,050 square feet of modular solar panels at three
locations to help offset water treatment equipment energy demand, and complete an
angle -bored beach shallow groundwater extraction well at the Pico - Kenter OutFall
pumping station. These elements would work in concert with the SMURRF.
Once completed, the project will allow the City to meet its contractual obligations for
runoff water and eliminate the use of alternate sources. In so doing, the project would
generate an estimated lifetime water savings of 2.5 billion gallons and an estimated
lifetime energy savings of 8.9 million kWh by reducing the City's reliance on imported
water. Additionally, the quality of the advanced treated water would potentially allow for
expanded reuse options such as re- injection for aquifer maintenance and indirect
potable water supply, when properly certified. Other selected project elements include
associated monitoring equipment, piping, pumps, and tanks.
The total estimated project cost is $2,647,955. The requested grant funding is
$1,980,770. The estimated City local match is $667,185 (25 %). City local match
commitments would be met by funds appropriated from Measure V, Clean Beaches and
Ocean Parcel Tax, and the Water Fund. The grant specified lifetime for this project is
30 years.
A California Environmental Quality Act (CEQA) evaluation conducted by the Planning
and Community Development Department has determined that the combined projects
meet the requirements for CEQA exemption. A Notice of Exemption (NOE) will be filed
with the State Clearinghouse pursuant to the respective grant program requirements.
Financial Impacts & Budget Actions
The total amount of grant funds requested from the California State Water Resources
Control Board for the Clean Beaches Initiative (CBI) Grant Program is $3,785,866. If
awarded, the grant requires an estimated 27 percent local match, which requires an
additional appropriation. If awarded, establish revenue and expenditure budgets in
division 20402 for FY 2014 -15 for the awarded grant amount; and appropriate
$1,379,772 to division 06402 in FY 2014 -15 to fund the local match (expenditures will
be budgeted in the capital budget). Grant award is anticipated in FY 2014 -15, but if
funding awards are delayed, budgets would be appropriated in FY 2015 -16. If renewals
are awarded, budget changes will be included in subsequent year budgets, contingent
on Council budget approval.
The total amount of grant funds requested from the California Department of Water
Resources for the Water- Energy Grant Program is $1,980,770. If awarded, the grant
requires an estimated 25 percent local match, requiring an additional appropriation. If
awarded, establish revenue and expenditure budgets in division 20671 for FY 2014 -15
for the awarded grant amount; and appropriate $667,185 to fund the local match,
including $500,389 to division 25671 and $166,796 to division 06402 (expenditures will
be budgeted in the capital budget). Grant award is anticipated in FY 2014 -15, but if
funding awards are delayed, budgets would be appropriated in FY 2015 -16.
Maintenance of the project equipment for the required project lifetimes would be funded
by existing operating budgets in the Measure V Fund for the Clean Beaches Project (20
year project lifetime), and by the Wastewater Fund for the Water- Energy Project (30
year project lifetime), contingent on Council budget adoption.
Prepared by: Tom Watson, Water Resources Protection Program Coordinator
Approved:
Forwarded to Council:
Martin Pastucha Rod Gould
Director of Public Works City Manager
Attachments:
1 — Resolution — Clean Beaches Initiative Grant Program
2 — Resolution — Water- Energy Grant Program
3 — Pier Drainage Area
4 — Aerial View of Project Area
5 — SMURRF Reverse Osmosis Location
6 — Pico Kenter Groundwater Extraction Well Location
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Reference:
Resolution No. 10857
(CCS)
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Resolution No. 10858
(CCS)