SR 02-14-2017 3H
Ci ty Council
Report
City Council Meeting : February 14, 2017
Agenda Item: 3.H
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To: Mayor and City Council
From: Susan Cline, Director , Public Works, Water Resources
Subject: Authorization to Negotiate Funding for the Santa Monica Sustainable Water
Infrastructure Project (SWIP), California Clean Water State Revolving Fund
and Propos ition 1 Funding Programs
Staff recommends that the City Council:
1. Authorize the negotiation of funding from the C alifornia State Water Resources
Control Board (State Water Board) in the amount of approximately $57,050,000;
and
2. Adopt a resolution a uthorizing the City Manage r to execute all necessary
documents to apply and negotiate for funding and if successful, carry out the
City’s responsibilities under the project financing/funding agreement.
Executive Summary
The attached resolution would autho rize the negotiation of funding agreements between
the City and the State of California. The proposed Sustainable Water Infrastructure
Project (SWIP) improves drought resiliency, increases water supply for reuse, and
enhances flexibility in the management of the City’s water 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 ha rvest tanks. The proposed project cost is
approximately $57,050,000. Staff will return to Council for project approval once a
funding / financing package is finalized.
Background
The State Water Board is committed to assisting its stakeholders build re siliency 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 (Attachment 1),
concurrent with addressing the water conservation requirements mad e necessary by
the current drought. The City’s proposed SWIP would align with these objectives, while
simultaneously helping to improve drought resiliency, increase water supply for reuse,
and enhance flexibility in the management of the City’s water reso urces by allowing for
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the treatment and reuse of brackish/saline groundwater, municipal wastewater, and
stormwater. City Council previously adopted the project environmental documentation
on September 27, 2016 (Attachment 2). On December 6, 2016 City Coun cil adopted a
resolution approving pledged revenues and reimbursement of any State Clean Water
State Revolving Fund (CWSRF) financing accepted by the City (Attachment 3).
Discussion
The CWSRF financing program and Proposition 1 grant funding program were
promulgated in response to the unprecedented drought conditions that have afflicted
California. The preliminary project cost is approximately $57,050,000. The State has
allocated over $900 million dollars for various response programs, including grants, an d
low interest financing. The State Water Board has indicated strong support for funding
of the SWIP project via CWSRF low interest financing for up to the full project cost. As
part of the State Water Board funding application and negotiation process, the
preliminary costs will be refined and an initial funding agreement for the full amount of
financing will be provided by the State Water Board to the City for consideration and
finalization. Separate from the CWSRF financing, the City has requested for gr ant
funds from round two of Proposition 1, which if successful would reduce the amount of
financing required. The results of this application are pending. The State Water Board
requires that the agency requesting funding provides a resolution (Attachments 4 and 5)
authorizing the negotiation of funding agreements between the Water Board and the
applicant agency (City of Santa Monica). Adoption of the resolution would not commit
the City to accept any funding.
City of Santa Monica Sustainable Water Infrast ructure Project (SWIP )
The SWIP is comprised of three integrated project elements to improve drought
resiliency, increase water supply, and enhance flexibility in the management of the
City’s water resources. Project Element 1 is the installation of a con tainerized, off -the -
shelf saline reverse osmosis unit at the SMURRF. When operational, the reverse
osmosis unit would be utilized to advance treat non -potable water resources such as
urban and wet weather runoff harvested by the recently funded Clean Beach es Initiative
(CBI) Project storage tanks to be constructed at the Deauville Parking Lot. These tanks
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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 t anks would be
replenished with brackish/saline groundwater from shallow horizontal subdrains
installed beneath the CBI stormwater tanks. Project Element 2 includes the
construction of a below grade recycled water treatment plant proposed 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 sto rmwater 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 pr oduce 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 recharge. All treated water would be distributed via the City’s
existing purple pipe syste m. The proposed locations of project elements 1, 2, and 3 are
shown in Attachment 6.
Environmental Analysis
California Environmental Quality Act (CEQA) and National Environmental Policy Act
(NEPA) documents for the project were certified by the Santa Mon ica City Council on
September 27, 2016 (Attachment 2).
Financial Impacts and Budget Actions
There are no financial impacts or budget actions required at this time. Staff has
determined, however, that the Wastewater Fund has the capacity to accommodate the
maximum debt service that may be required. If a proposed funding package is
acceptable, staff will return to Council with a separate funding resolution for adoption.
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Prepared By: Thomas Watson, Water Resources Protection Programs
Coordinator
Approved
Forwarded to Council
Attachments:
A. Attachment 1 - March 8, 2011 Staff Report
B. Attachment 2 - September 27, 2016 Staff Report
C. Attachment 3 - December 6, 2016 Staff Report
D. Attachment 4 - Resolution
E. Attachment 5 - State Water Board Financial Assistance Form F4 (Authorizing
Resolution)
F. Attachment 6 - Project Location
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City Council Meeting : February 14, 2017 Santa Monica, California
RESOLUTION NUMBER _________ (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA TO AUTHORIZE FUNDING NEGOTIATION FOR
THE SUSTAINABLE WATER INFRASTRUCTURE PROJECT (SWIP) FROM THE
CALIFORNIA CLEAN WATER STATE REVOLVING FUND AND PROPOSITION 1
FUNDING PROGRAMS
WHEREAS, t he California Water Action Plan and the City of Santa Monica’s
(Ci ty) Sustainable Water Master Plan recognize that drought resiliency and a
sustainable and secure water fut u re must include the reuse of all locally available water
resources , including non -traditional resources such as municipal waste water,
brackish /saline groundwater, and urban and storm water runoff; and
WHEREAS, the City has established among its sustainability goals the objective
of reaching water self -sufficiency by the year 2020, concurrent with addressing the
water conservation requirements made necessary by the current drought; and
WHEREAS, in response to the current drought, the City has adopted a Water
Shortage Response Plan, declared a Stage 2 Water Supply S hortage, and set a
deadline of December 31, 2016 to achieve a 20% reduction in water use; and
WHEREAS, the City seeks funding to construct certain public facilities and
improvements relating to its water and wastewater system as part of the Sustainable
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Wat er Infrastructure Project (SWIP), including certain treatment facilities, pipel ines, and
other infrastructure; and
WHEREAS, the City seeks grants or low interest financing provided by the State
of California acting by and through the California State Water Resources Control Board
f or its Sustainable Water Infrastructure Project .
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The City Manager or his designee (s) is hereby authorized and
directed to sign and file, for and on behalf of the City , a Financial Assistance Application
for a financing agreement from the State Water Resources Control Board for the
planning, design, and construction of the Sustainable Water In frastructure Project (“the
Project”).
SECTION 2. Th e City Manager , or his designee (s), is designated to provide the
assurances, certifications, and commitments required for the financial assistance
application, including executing a financial assistance a greement from the State Water
Resources Control Board and any amendments or changes thereto.
SECTION 3. The City Manager , or his designee (s), is designated to represent
the City in carrying out the City ’s responsibilities under the financing agreement,
in cluding certifying disbursement requests on behalf of the City and compliance with
applicable state and federal laws.
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SECTION 4. If the City is awarded financial assistance, staff shall return to the
City Council for approval to enter into any final agree ment with the State Water
Resources Control Board .
SECTION 5. The City Clerk shall certify to the adoption of this Resolution, and
henceforth and thereafter the same shall be in full force and effect .
APPROVED AS TO FORM:
_________________________
Joseph Lawrence
Interim City Attorney
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CERTIFICATION
I do hereby certify that the foregoing is a full, true, and correct copy of a resolution duly
and regularly adopted at a meeting of the Santa Monica City Council held on February
14, 2017.
______________________________
Denise Anderson -Warren , City Clerk
Financial Assistance Application Page 9 of 11 Financial Security Package
(Rev. 0 8 /201 5 )
Attachment F4
AUTHORIZING RESOLUTION/ORDINANCE
RESOLUTION NO: _____________________
WHEREAS __________________________RESOLVED BY THE ___________________________________
(insert appropriate findings) (insert name of Governing Board of the Entity)
OF THE ________________________________________ (the “Entity”), AS FOLLOWS:
(insert Entity name)
The ________________________________________ (the “Authorized Representative”) or designee is
(insert Title of Authorized Representative)
hereby authorized and directed to sign and file, for and on behalf of the Entity, a Financial Assistance
Application for a financing agreement from the State Water Resources Control Board for the planning, design,
and construction of ____________________________________________________________ (the “Project”).
(insert Project Name)
This Authorized Representative, or his/her designee, is designated to provide the assurances, certifications,
and commitments required for the financial assistance application, including executing a financial assistance
agreement from the State Water Resources Control Board and any amendments or changes thereto.
The Authorized Representative, or his/her designee, is designated to represent the Entity in carrying out the
Entity’s responsibilities under the financing agreement, including certifying disbursement requests on behalf of
the Entity and compliance with applicable state and federal laws.
CERTIFICATION
I do hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted
at a meeting of the __________________________________________ held
(insert name of Governing Board of the Entity)
on ______________________.
(Date)
(Name, Signature, and Seal of the Clerk or Authorized Record Keeper of the Governing Board of the Agency)
SWIP Project Elements
SWIP
Element 1
SWIP
Element 3
SWIP
Element 2
Pico -Kenter
Outfall
Reference:
Resolution No. 11021
(CCS)