SR 12-18-2018 3K
City Council
Report
City Council Meeting: December 18, 2018
Agenda Item: 3.K
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To: Mayor and City Council
From: Susan Cline, Director, Public Works, Water Resources
Subject: Application for Grant Funds from the California State Department of Water
Resources Proposition 1 Grant Program for the Santa Monica Sustainable
Water Infrastructure Project and Closed Circuit Reverse Osmosis Project
Recommended Action
Staff recommends that the City Council:
1. Adopt the attached resolution authorizing the application for grant funds in the
amount of $2,800,000 for the Sustainable Water Infrastructure Project and up to
$10,000,000 for the Closed-Circuit Reverse Osmosis Project from the California
State Department of Water Resources.
2. Authorize the City Manager to execute all necessary documents to apply for the
grant, accept the grant, if awarded, and accept all grant renewals, if awarded.
3. Authorize budget changes as outlined in the Financial Impacts and Budget
Actions section of this report, in the event that the grant is awarded.
Summary
The Sustainable Water Infrastructure Project (SWIP) and Arcadia Water Treatment
Plant Closed Circuit Reverse Osmosis (CCRO) Project support the City’s goal of
achieving water self-sufficiency by 2023. Both the SWIP and CCRO Project include
elements that qualify for grant funding from the California Department of Water
Resources’ Desalination Grant Program. As part of the grant application submittal, the
Department of Water Resources requires the City’s governing body to authorize the City
Manager to file an application for funding. If awarded, the City Manager would be
authorized to negotiate and enter into an agreement with the California Department of
Water Resources.
Discussion
On January 25, 2011, the City Council directed staff to develop a plan to achieve 100%
self-sufficiency from local water sources (Attachment A). To help achieve this goal, City
Council approved the SWIP and CCRO Project. CCRO is a technical name for
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Component 2 of the Sustainable Water Master Plan, incorporating alternative water
supply and increasing production efficiencies. Council directed staff to proceed with
funding strategies on November 27, 2018. As part of the SWIP, the existing Santa
Monica Urban Runoff Recycling Facility (SMURRF) will be upgraded with a reverse
osmosis treatment system to treat shallow brackish (salty) groundwater that will be
collected at the nearby Clean Beaches storage tank. The upgrades at SMURRF will
provide consistent recycled water production of up to 560 acre-feet per year (AFY) for
non-potable reuse such as irrigation and toilet flushing, which is estimated to be
approximately 4% of the City’s total water supply in 2023. SWIP is estimated to be
completed in 2020. The CCRO Project would upgrade the existing Arcadia Water
Treatment Plant with a closed-circuit reverse osmosis system that will enable the City to
treat the reverse osmosis concentrate that is left over after the water is treated and
currently discharged to the sewer. This project would increase the amount of potable
water produced from the same amount of groundwater by approximately 10%, by
increasing plant efficiency from the current 82% to approximately 92%. Completion of
the CCRO Project is estimated to be in 2023.
The SWIP Project budget is $69 million, and the CCRO Project is estimated to cost $30
million. To help offset cost to the City, staff is actively pursuing state and federal funding
to help pay for these projects. One of these funding sources is the California
Department of Water Resources, which provides funding to support brackish water
projects. If successful, the City could obtain up to $2.8 million to help fund the SWIP and
up to $10 million for the CCRO Project. The grant requires a 50% match from the City
and has a ceiling of $10 million for grants to fund construction costs.
Past Council Actions
01/25/11 (Attachment A) City Council directs staff to develop a plan to reach water
self-sufficiency
09/12/17 (Attachment B) City Council authorizes the City Manager to accept a
funding agreement from the California Water Resources
Control Board’s Clean Water State Revolving Fund
Program for the Sustainable Water Infrastructure Project
(SWIP)
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11/27/18 (Attachment C) City Council directs staff to proceed with an update to
the Sustainable Water Master Plan and the
recommended a pathway to water self-sufficiency
Financial Impacts and Budget Actions
Staff seeks authority to apply for grants from the California Department of Water
Resources. If any grant is awarded through this funding program, a 50% match is
required from the City. The SWIP project is currently budgeted in the CIP. Any grant
funds received would result in savings to the receiving CIP project budget.
Prepared By: Sunny Wang, Principal Civil Engineer
Approved
Forwarded to Council
Attachments:
A. January 25, 2011 Staff Report (Web Link)
B. September 12, 2017 Staff Report (Web Link)
C. November 27, 2018 Staff Report - Sustainable Water Master Plan Update and
Pathway to Water Self Sufficiency (Item 8.C)
D. Resolution - PW - Water Resources - Desalination Grants - 12182018
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City Council Meeting: December 18, 2018 Santa Monica, California
RESOLUTION NUMBER (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA AUTHORIZING THE CITY MANAGER TO
NEGOTIATE AND ENTER INTO CALIFORNIA STATE DEPARTMENT OF WATER
RESOURCES WATER DESALINATION GRANT PROGRAM AGREEMENTS FOR
THE SANTA MONICA SUSTAINABLE WATER INFRASTRUCTURE PROJECT AND
CLOSED CIRCUIT REVERSE OSMOSIS PROJECT
WHEREAS, on January 25, 2011, the City Council directed staff to develop a plan
to achieve 100% self-sufficiency on local water sources; and
WHEREAS, the City recognizes that a sustainable and secure water future must
include the coordinated and conjunctive reuse of all locally available water resources
including traditionally non-potable sources such as brackish groundwater and
wastewater; and
WHEREAS, pursuant and subject to all of the terms and provisions of the Water
Quality, Supply, and Infrastructure Improvement Act of 2014 (Proposition 1, California
Water Code Section 79700 et seq.), the California Department of Water Resources is
sponsoring Round 4 funding of the Water Desalination Grant Program; and
WHEREAS, such grants provide much needed funding to carry out activities, such
as construction of desalination projects that help meet the water resources needs of the
state.
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The City Council of the City of Santa Monica hereby authorizes the
City Manager or his or her designee, on behalf of the City of Santa Monica, to sign and
file an application for funding from the Department of Water Resources for an amount not
to exceed $2,800,000 for the Sustainable Water Infrastructure Project, and for an amount
not to exceed $10,000,000 for the Closed Circuit Reverse Osmosis Project, under the
terms and provisions of the Water Desalination Grant Program .
SECTION 2. The City of Santa Monica hereby agrees and further does authorize
the aforementioned representative or his or her designee to certify that the City of Santa
Monica has and will comply with all applicable state and federal statutory and regulatory
requirements related to any federal and state funds received.
SECTION 3. The City Manager or his or her designee is hereby authorized to
negotiate and execute a funding agreement and any amendments or change orders
thereto, and to certify funding disbursement on behalf of the City of Santa Monica.
SECTION 4. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
_________________________
LANE DILG
City Attorney
REFERENCE:
Resolution No. 11156
(CCS)