SR 02-23-2021 3B
City Council Report
City Council Meeting: February 23, 2021
Agenda Item: 3.B
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To: Mayor and City Council
From: Rick Valte, Acting Public Works Director, Public Works, Water Resources
Subject: Adoption of Resolution to Negotiate and Execute Water Desalination Grant
with the State of California Department of Water Resources
Recommended Action
Staff recommends that the City Council:
1. Adopt the amended resolution to authorize the City Manager to execute all
necessary documents to accept a $10 million water desalination grant from the
California Department of Water Resources’ Water Desalination Grant Program
for the Arcadia Water Treatment Plant Production Efficiency Enhancement
Project and accept all grant renewals; and
2. Authorize budget changes as outlined in the Financial Impacts & Budget Actions
section of this report.
Summary
The City of Santa Monica has consistently taken a strategic approach to keeping water
and wastewater services affordable to our community while adequately investing in
long-term water quality, reliability, resiliency, and sustainability. The City Council
adopted the 2018 Sustainable Water Master Plan Update aimed to provide long-term
cost benefits for water ratepayers and establish a diverse, sustainable and drought
resilient local water supply. To support the goal of providing long-term cost benefits to
the City’s water ratepayers, the Water Resources Division applied for and received $10
million in grant funding from the California Department of Water Resources’ Water
Desalination Grant Program for the Arcadia Water Treatment Plant Production
Efficiency Enhancement Project (Component 2 of the 2018 Sustainable Water Master
Plan Update). The Water Resources Division is requesting to amend the resolution
adopted previously by the City Council to update the project name in the resolution
(Attachment A), to accept the grant funds, and appropriate the grant funds to the
budget.
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Discussion
On November 27, 2018, the City Council adopted the Sustainable Water Master Plan
Update and directed staff to proceed with implementing water self-sufficiency projects
as well as pursue state and/or federal funding opportunities to help offset capital costs.
Staff applied for grant funding from the California Department of Water Resources’
Water Desalination Grant Program for the City’s Sustainable Water Infrastructure
Project (SWIP) and the Arcadia Water Treatment Plant Production Efficiency
Enhancement Project (or the Closed-Circuit Reverse Osmosis Project). The Water
Desalination Grant Program is funded through Proposition 1, approved by California
voters in November 2014 as part of the Water Quality, Supply, and Infrastructure
Improvement Act of 2014. A resolution was adopted by the City Council on December
18, 2018 to authorize the City Manager to negotiate and enter into a grant program
agreement with the California State Department of Water Resources for the SWIP and
the Closed-Circuit Reverse Osmosis Project.
The grant application for the SWIP was not successful. On December 6, 2019, however,
the City of Santa Monica was awarded $10 million in grant funding from the California
Department of Water Resources for the Closed-Circuit Reverse Osmosis Project
(Attachment C). The grant requires a 50% match from the City and has a ceiling of $10
million for grants to fund construction costs. Qualifying matching funds must satisfy the
criteria outlined by the Department of Water Resources and be directly related to the
project. The matching funds would be from the Olympic Well Field Restoration Project,
which includes two groundwater wells and the Olympic Pipeline as well as other
improvements at the Arcadia Water Treatment Plant. The required matching funds are
available and already budgeted. The project aims to reduce reverse osmosis
concentrate waste discharge and increase overall production efficiency and treatment
capacity at the Arcadia Water Treatment Plant.
The Arcadia Water Treatment Plant’s multi-barrier treatment process includes the use of
reverse osmosis filtration to produce high-quality potable water for the community. The
current reverse osmosis filtration process has a production efficiency of approximately
82 percent. In other words, for every 100 gallons of water treated through the reverse
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osmosis filtration process, 82 gallons of drinking water is produced and approximately
18 gallons of concentrated waste stream is discharged to the sewer system. The
Closed-Circuit Reverse Osmosis Project would increase the overall production
efficiency to 90 percent or greater and would offset imported water purchases from
Metropolitan Water District by up to 1,200 acre-feet per year or roughly 8 percent of the
City’s water supply.
Concurrently with preparing the grant application, the Water Resources Division
conducted pilot testing of the closed-circuit reverse osmosis technology and an
alternative technology, flow reversal reverse osmosis to compare capital and life-cycle
costs between the two technologies to increase the production efficiency at the Arcadia
Water Treatment Plant. Due to the proprietary nature of the two technologies, the City,
in discussion with the California Department of Water Resources, requested to change
the Water Desalination Grant Program funded project name from the “Closed-Circuit
Reverse Osmosis Project” to the “City of Santa Monica Brackish Desalter Production
Efficiency Enhancement Project.” The proposed new project name is generic and does
not directly endorse a proprietary technology and is also consistent with language used
in the City’s 2018 Sustainable Water Master Plan Update and environmental
documents.
The grant would fully fund phase one of the Olympic Well Field Restoration and Arcadia
WTP Expansion Project to increase local water supplies for the City. Phase one of the
project includes restoration of the Olympic Well Field (two groundwater wells, Olympic
Pipeline, and new Olympic Advanced Water Treatment Facility) and retrofitting two out
of the four reverse osmosis system at the Arcadia Water Treatment Plant. Phase two of
the project would retrofit the remaining reverse osmosis systems and expand overall
production capacity of the Arcadia Water Treatment Plant. Phase two is pending
additional outside funding that the Water Resources Division is pursuing.
This project is one of many investments being made to enhance sustainability, drought
resiliency, and long-term cost benefits to rate payers. The Water Resources Division will
be returning to Council soon to request authorization to apply for the United States
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Environmental Protection Agency’s Water Infrastructure Finance and Innovation Act
(U.S. EPA WIFIA) Loan to fund phase two of the project. The City was one of 55
cities/municipalities across the United States that were invited to apply for the low
interest US EPA WIFIA loan.
Past Council Actions
Meeting Date Description
11/27/2018 (Attachment B) City Council directed staff to proceed with the
Sustainable Water Master Plan Update and pursue
outside grant funding for water self-sufficiency projects.
12/18/2018 (Attachment C) City Council authorized the City Manager to negotiate
and enter into a grant funding agreement, if awarded,
with the California State Department of Water
Resources for the SWIP and Closed-Circuit Reverse
Osmosis Project.
Financial Impacts and Budget Actions
Staff seeks authority to accept a grant from the California Department of Water
Resources appropriate funding and recommends the following budget changes. Existing
CIP budgets for the Olympic Wells Equipping Project and Olympic Well Field
Restoration Project would fund the required 50% local match.
FY 2021- 2022 Grant Budget Changes
Establish Revenue Budget Appropriate Funds
Account Number(s) Amount Account Number(s) Amount
20500008.416190 $10,000,000 C2007740.689000 $10,000,000
Total $10,000,000 Total $10,000,000
Prepared By: Chris Aguillon, Water Resources Protection Specialist
Approved
Forwarded to Council
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Attachments:
A. November 27, 2018 Staff Report (Web Link)
B. December 18, 2018 Staff Report (Web Link)
C. December 6, 2019 Department of Water Resources Desalination Grant Award
Announcement (Web Link)
D. Proposed Resolution
E. Written Comments
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1
City Council Meeting: February 23, 2021 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
CITY OF SANTA MONICA BRACKISH DESALTER PRODUCTION EFFICIENCY
ENHANCEMENT PROJECT, AND ANY AMENDMENTS THERETO
WHEREAS, on January 25, 2011, the City Council directed staff to develop a plan
to achieve water 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.
3.B.d
Packet Pg. 24 Attachment: Proposed Resolution (4402 : Desal Grant Resolution)
2
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 for an application for funding from the Department of Water Resources for an amount
not to exceed $10,000,000 for a construction grant for the City of Santa Monica Brackish
Desalter Production Efficiency Enhancement 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. 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:
_________________________
GEORGE S. CARDONA
Interim City Attorney
3.B.d
Packet Pg. 25 Attachment: Proposed Resolution (4402 : Desal Grant Resolution)
Memo
To: City of Santa Monica City Council
From: Dean Kubani, Chair, Task Force on the Environment
Signature:
Date: February 9, 2021
Re: City of Santa Monica Task Force on the Environment Motions Regarding Water Self-Sufficiency Projects
At the February 8, 2021 special meeting, the Task Force on the Environment
discussed and took action on the following agenda item:
Presentation, Discussion, and Possible Action Regarding Water Self-Sufficiency Projects
Sunny Wang, Water Resources Manager, presented an update on the City’s Sustainable Water Supply program, the projects identified in the Sustainable Water Master Plan, and possible funding opportunities. Staff is requesting the Task Force input and support on a grant from the Department of Water Resources for $10 million and the Metropolitan Water District Local Resources
Program ($340 per acre-foot of water produced). This funding is necessary for completion of projects to achieve water self-sufficiency. Both opportunities are consent items on the February 23rd City Council agenda. Additionally, the City is requesting support to apply for the US EPA Water Infrastructure Finance and Innovation Act Loan in the amount of $84 million. This opportunity is a consent
item on the March 23rd City Council agenda.
After discussion, the Task Force on the Environment adopted the following motion:
Motion by Task Force chair Kubani, seconded by Task Force member Mearns. Motion: The City of Santa Monica’s Task Force on the Environment recommends City Council approve the application and accept funding, if successful, for the Department of Water Resources Water Desalination Grant, Metropolitan Water
District of Southern California Local Resources Program, and the US EPA Water Infrastructure Finance and Innovation Act Loan.
The motion was approved by the following roll call vote:
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3.B.e
Packet Pg. 26 Attachment: Written Comments (4402 : Desal Grant Resolution)
Ayes: Chair Kubani
Member Baghdasarian Member Lempert Member Neandross Member Mearns
Member Pettit
Member Sokol Noes: None Abstain: None Absent: None
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3.B.e
Packet Pg. 27 Attachment: Written Comments (4402 : Desal Grant Resolution)