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SR 01-26-2016 3L City Council Report City Council Regular and Special Joint Meeting: January 26, 2016 Agenda Item: 3.L To: Mayor and City Council From: Martin Pastucha, Director, Public Works, Water Resources Subject: Application for Funding for the Santa Monica Sustainable Water Infrastructure Project (SWIP), California Clean Water State Revolving Fund and Proposition 1 Funding Programs Recommended Action Staff recommends that the City Council: 1. Adopt the attached resolution authorizing the application for funding consideration from the California State Water Resources Control Board (State Water Board) in the amount of approximately $57,050,000 from the Clean Water State Revolving Fund and Proposition 1 Funding Programs. 2. Authorize the City Manager to execute all necessary documents to apply and negotiate for funding. Executive Summary The attached resolution would authorize an application for the State Water Board Clean Water State Revolving Fund and Proposition 1 funding programs. The proposed Sustainable Water Infrastructure Project (SWIP) improves drought resiliency, increases water supply for reuse, and enh resources by installing a containerized reverse osmosis unit at the Santa Monica Urban Runoff Recycling Facility (SMURRF), constructing a below grade municipal wastewater treatment facility, and installing two below grade stormwater harvest tanks. The proposed project cost is approximately $57,050,000. This SWIP project would be eligible for financial assistance in the form of grants and low interest financing repaid over 30 years. Background The State Water Board is committed to assisting its stakeholders build resiliency to drought and climate change. Similarly, the City has established among its sustainability goals the objective of reaching water self-sufficiency by the year 2020, concurrent with addressing the proposed SWIP would align with these objectives, while simultaneously helping to improve drought resiliency, increase water supply for reuse, and enhance flexibility in the 1 of 3 brackish/saline groundwater, municipal wastewater, and stormwater. Discussion The Clean Water State Revolving Fund and Proposition 1 funding programs were promulgated in response to the unprecedented drought conditions currently afflicting California. The State has allocated over $900 million for various response programs, including grants, and low interest financing. City of Santa Monica Sustainable Water Infrastructure Project (SWIP ) The SWIP is comprised of three integrated project elements to improve drought resiliency, resources. Project Element 1 is the installation of a containerized, off-the-shelf saline reverse osmosis unit at the SMURRF. When operational, the reverse osmosis unit will be utilized to advance treat non-potable water resources such as urban and wet weather runoff harvested by the recently funded Clean Beaches Initiative Project storage tanks to be constructed at the Deauville Parking Lot. These tanks will capture runoff from the 90-acre Pier Drainage Area that would normally be discharged to the ocean at the Pier Outfall. When runoff is scarce, the tanks would be replenished with brackish/saline groundwater from a proposed shallow groundwater well located at the Beach Maintenance Yard. Project Element 2 includes the construction of a below grade recycled water treatment plant beneath the Civic Center parking lot. The recycled water plant would advance treat approximately 1.0 million gallons/day (MGD) of municipal wastewater for reuse. Project Element 3 consists of two below grade stormwater harvest tanks. One tank would be constructed beneath Memorial Park, and the other adjacent to the below grade recycled water treatment facility. Project elements to be located under the Civic Center Parking lot would be constructed to accommodate future development on the site. Benefits provided by the stormwater harvest tanks include capturing stormwater and urban runoff for treatment and reuse, improving beach water quality and complying with State Water Board Enhanced Watershed Management Plan (EWMP) requirements. Together, the Project elements would produce approximately 1.5 MGD (1,680 acre-feet/year) of new water for immediate non-potable reuse, and when properly permitted, for indirect potable reuse via aquifer 2 of 3 recycled water system. The preliminary project cost is approximately $57,050,000. As part of the State Water Board funding application process, the preliminary costs will be refined and an initial funding agreement for the full amount consisting of a combination of grants and low interest financing will be provided by the State Water Board to the City for consideration and finalization. If the proposed funding package is acceptable, staff will return to Council with a separate funding resolution for adoption. Environmental Analysis California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA) evaluations are pending. The studies are required to be completed prior to the State Water Board approving the project final funding agreement. Financial Impacts & Budget Actions There are no financial impacts or budget actions required at this time. Prepared By: Chris Aguillon, Water Resources Protection Specialist Approved Forwarded to Council Attachments: A. Attachment 1 - SWIP Resolution B. Attachment 2 - SWIP Project Locations 3 of 3 Attachment 2: SWIP Project Element Locations SWIP Element 3 SWIP Element 1 SWIP Element 2 Pico-Kenter Outfall wĻŅĻƩĻƓĭĻʹ wĻƭƚƌǒƷźƚƓbƚ͵ЊЉВЌЉ Λ//{Μ