SR 01-11-2022 3D
City Council Report
City Council Meeting: January 11, 2022
Agenda Item: 3.D
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To: Mayor and City Council
From: Rick Valte, Acting Public Works Director, Public Works, Water Resources
Subject: Adoption of a Resolution to Apply for Grant Funds from the California State
Department of Water Resources Urban and Multibenefit Drought Relief Grant
Program for the Santa Monica Charnock Wells #13 and #18 Replacement
Project and Santa Monica Basin Groundwater Replenishment Wells Project
Recommended Action
Staff recommends that the City Council:
1. Adopt the attached resolution authorizing the application for grant funds from
the California State Department of Water Resources in the amount of
$7,303,923 for the Charnock Wells #13 and #18 Replacement Project and up
to $8,178,887 for the Santa Monica Basin Groundwater Replenishment Wells
Project in the Public Works Department; and
2. Authorize the City Manager and his or her designee to execute all necessary
documents to apply for the grant, accept the grant, if awarded, and accept all
grant renewals, if awarded.
Summary
The City of Santa Monica is undertaking a series of projects to help increase our
water self-sufficiency, as adopted by City Council in the 2018 Sustainable Water
Master Plan (SWMP) Update. The SWMP provides a roadmap to enhance local
resiliency of our water supply and ensure access to safe reliable water long-term.
Staff in the Public Works’ Water Resources Division have identified two projects that
qualify for grant funding from the California Department of Water Resources (DWR)
Urban and Multibenefit Drought Relief Grant Program: the Charnock Wells #13 and
#18 Project and the Santa Monica Basin Groundwater Replenishment Wells Project.
These two projects would enhance the resiliency and sustainability of the City’s local
water supply. As part of the grant application submittal, the DWR requires the City’s
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governing body to authorize the City Manager to file an application for funding. If
funding is awarded, the DWR also requires a resolution authorizing the City Manager
to negotiate and enter into an agreement with the DWR.
Discussion
On October 24, 2014, the Santa Monica City Council adopted the SWMP to achieve
water self-sufficiency from local water resources. The SWMP was updated in
November 2018 to refine the pathway to achieve water self-sufficiency to account for
changes in drinking water regulations and new findings from feasibility studies. The
SWMP lays out a set of goals and projects to ensure a long-term sustainable water
supply and to enhance local control of the City water supply.
Guided by the SWMP, staff have identified a set of water self-sufficiency projects
designed to ensure a sustainable, locally controlled water supply. These projects are
fully funded by a mix of grants, loans, and bond revenues designed to mitigate the
cost impacts to ratepayers as well as stabilize water rates over the long-term. Staff
continues to seek outside grant opportunities for water self-sufficiency projects as it
would free up water funds that could be used to accelerate future water
infrastructure projects and/or stabilize future water rates. Staff seeks authorization to
apply for grant funding that would significantly subsidize the costs of two projects
that will help Santa Monica reach water self-sufficiency. They are:
Charnock Wells #13 and #18 Project
Project Cost: $8.7 million | Grant Request: Up to $7.3 million
The Charnock Wells #13 and #18 Project would replace two aging groundwater
wells that are near the end of their useful lives and have lost significant pumping
capacity over time. Constructed in the 1980s in the City’s largest well field, Charnock
well field, these wells have lost more than half their original pumping capacity due to
age. Replacing the two Charnock Wells would restore them to full production
capacity, which accounts for approximately 35% of the City’s groundwater supply.
Santa Monica Basin Groundwater Replenishment Wells Project
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Project Cost: $9.1 million | Grant Request: Up to $8.1 million
The Basin Groundwater Project would install two new groundwater recharge wells
that would use water from the Sustainable Water Infrastructure Project (SWIP) to
replenish local groundwater supplies. The replenishment wells would be used to inject
advanced treated recycled water from the City’s SWIP into the Olympic Well Field
groundwater aquifer and enhance sustainability of the local groundwater supply. The
SWIP is currently under construction and is scheduled to be completed in 2022.
Although this grant funding opportunity does not require a local match, the City has
committed to a local match of 10% of the total project cost, and potentially up to 40%,
to increase the City’s chances of receiving the grant. The City’s local match would be
funded by Water Revenue Bonds. These match funds are included in the Water Fund
budget and would not impact ratepayers.
Past Council Actions
Meeting Description
10/28/14 (Attachment A) City Council adopted the Sustainable Water Master Plan.
11/27/18 (Attachment B)
City Council directed staff to proceed with an update to the
Sustainable Water Master Plan and the recommended
pathway to water self-sufficiency.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended action. Staff only seeks authorization to apply for the grants at this time.
Should the grants be awarded, the necessary revenue and expenditure budget changes
would be included in the FY 2022-23 Exception Based Operating Budget and FY 2022-
24 Capital Improvement Program Budget. The matching fund requirement for the grant
is already accounted for in the Water Fund and would not have any impacts on the
current water rates adopted for 2020 through 2024.
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Prepared By: Sunny Wang, Water Resources Manager
Approved
Forwarded to Council
Attachments:
A. October 28, 2014 Staff Report - SWMP Adoption (Web Link)
B. November 27, 2018 Staff Report - SWMP Update (Web Link)
C. Multibenefit Drought Grant Resolution_120221
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City Council Meeting: January 11, 2022 Santa Monica, California
RESOLUTION NUMBER _________ (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
AUTHORIZING THE GRANT APPLICATION, ACCEPTANCE, AND EXECUTION FOR
THE CHARNOCK WELLS #13 and #18 REPLACEMENT PROJECT AND THE SANTA
MONICA BASIN GROUNDWATER REPLENISHMENT WELLS PROJECT
WHEREAS, on January 25, 2011, the City Council directed staff to develop a plan
to achieve 100% self-sufficiency on local water resources; 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 groundwater and advanced treated recycled water; and
WHEREAS, the City of Santa Monica proposes to implement the Charnock Wells
#13 and #18 Replacement Project and Santa Monica Basin Groundwater Replenishment
Wells Project, both of which will ensure the coordinated and conjunctive reuse of all locally
available water resources including groundwater and advanced treated recycled water;
and
WHEREAS, the City of Santa Monica has the legal authority and is authorized to
enter into a funding agreement with the State of California; and
WHEREAS, the City of Santa Monica intends to apply for grant funding from the
California Department of Water Resources for the Charnock Wells #13 and #18
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Packet Pg. 43 Attachment: Multibenefit Drought Grant Resolution_120221 [Revision 1] (4833 : Adopt Resolution to Apply for DWR Drought Grant)
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Replacement Project and Santa Monica Basin Groundwater Replenishment Wells
Project;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE, ORDER, AND DETERMINE AS FOLLOWS:
SECTION 1. That pursuant and subject to all of the terms and provisions of Budget
Act of 2021 (Stats. 2021, ch. 240, § 80), the City of Santa Monica City Manager, or his
or her designee, is hereby authorized and directed to prepare and file an application for
funding with the Department of Water Resources, and take such other actions necessary
or appropriate to obtain grant funding.
SECTION 2. The City Manager, or his or her designee, is hereby authorized and
directed to execute the funding agreement with the Department of Water Resources and
any amendments thereto.
SECTION 3. The City of Santa Monica City Manager, or his or her designee, is
hereby authorized and directed to submit any required documents, invoices, and reports
required to obtain grant funding.
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:
_________________________
JOSEPH LAWRENCE
Interim City Attorney
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Packet Pg. 44 Attachment: Multibenefit Drought Grant Resolution_120221 [Revision 1] (4833 : Adopt Resolution to Apply for DWR Drought Grant)