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SR 12-13-2022 5L City Council Report City Council Meeting: December 13, 2022 Agenda Item: 5.L 1 of 5 To: Mayor and City Council From: Rick Valte, Public Works Director, Public Works, Water Resources Subject: Adoption of Resolution Authorizing the Application for Grant Funds from the California State Department of Water Resources Sustainable Groundwater Management Grant Program for the Santa Monica Groundwater Subbasin Recharge and Monitoring Project Recommended Action Staff recommends that the City Council: 1. Adopt the finding that the proposed five monitoring wells in the Santa Monica Basin are exempt from CEQA pursuant to Section 15303 (Section 15303 (New Construction or Conversion of Small Structures), Section 15304 (Class 4 – Minor Alterations to Land), and Section 15306 (information Collection) of the CEQA Guidelines. 2. Adopt the attached resolution authorizing the application for grant funds in the amount of up to $20,000,000 from the California State Department of Water Resources Sustainable Groundwater Management (SGM) Grant Program for the Santa Monica Groundwater Subbasin Recharge and Monitoring Project in the Public Works Department. 3. 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. Summary The State’s Sustainable Groundwater Management Act requires the formation of a Groundwater Sustainability Agency to manage each groundwater basin. The City of Santa Monica is one of five member agencies of the Santa Monica Basin Groundwater Sustainability Agency that was formed in 2017 and submitted the Santa Monica Basin’s first comprehensive management plan, the Groundwater Sustainability Plan (GSP), to the California Department of Water Resources in January 2022. The City is the lead 5.L Packet Pg. 343 2 of 5 and coordinating agency as the sole, municipal groundwater producer for potable consumption in the Santa Monica Basin. To maintain compliance with the Sustainable Groundwater Management Act, the Santa Monica Basin Groundwater Sustainability Agency is required to begin implementing groundwater sustainability projects outlined in the GSP. Staff is seeking to apply for grant funding of groundwater sustainability projects through the California Department of Water Resources (DWR) Sustainable Groundwater Management (SGM) 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 and to negotiate and enter into an agreement with the California Department of Water Resources, if awarded. Discussion The Santa Monica Basin Groundwater Sustainability Agency consists of five local government agencies with boundaries that are fully or partially overlying the Santa Monica Basin as defined by the California Department of Water Resources. The cities of Santa Monica, Beverly Hills, Los Angeles, Culver City, and the County of Los Angeles entered into a Memorandum of Understanding (MOU) in 2017 to cooperatively manage the Santa Monica Basin in a responsible and sustainable manner, which included the preparation of a GSP to be submitted prior to January 31, 2022. The Santa Monica Basin GSP was submitted prior to the deadline and is awaiting final approval from the California Department of Water Resources. During this review period, the Santa Monica Basin Groundwater Sustainability Agency must begin implementing groundwater sustainability projects (e.g., groundwater recharge wells and monitoring wells to refine the basin wide groundwater model) outlined in the GSP. As the lead agency of the Santa Monica Basin Groundwater Sustainability Agency, the City is seeking grant funding to support groundwater sustainability projects outlined in the GSP. At this time, staff is seeking grant funding to implement one additional groundwater recharge well along with two monitoring wells at the City Yards to monitor travel time and water quality to comply with regulatory requirements. The groundwater 5.L Packet Pg. 344 3 of 5 recharge well will leverage advanced treated recycled water from the City’s Sustainable Water Infrastructure Project (SWIP) to recharge the Olympic sub-basin of the Santa Monica Basin. The SWIP is a key project in the City’s 2018 Sustainable Water Master Plan Update to provide a sustainable and drought resilient water supply for the community and reduce the City’s reliance on imported water supplies. In addition to the recharge well, staff is also seeking grant funding to install additional groundwater monitoring wells in the Santa Monica Basin. Two groundwater monitoring wells, likely to be located in Marina del Rey and nearby in the City of Los Angeles, were identified in the Santa Monica Groundwater Basin GSP (approved by City Council on December 7, 2021). These monitoring wells would aid in refining the basin wide groundwater model and monitor for seawater intrusion. A third monitoring well, located at the Santa Monica Airport, would help fill a data gap and assist with implementation of sustainable management projects/practices identified in the GSP. The California Department of Water Resources (DWR) Sustainable Groundwater Management (SGM) Grant Program provides up to $20 million in grant funding for projects that encourage sustainable management of groundwater resources and invest in groundwater recharge. The estimated cost for the SWIP groundwater recharge well and basin modeling monitoring wells is approximately $15-18 million. To help offset cost to the City, staff is applying for grant funding from the SGM Program. Environmental Review The potential environmental effects of the groundwater recharge well were previously analyzed in the Olympic Arcadia Treatment Plant Initial Study/Mitigated Negative Declaration (IS/MND) (State Clearinghouse No. 2020070129), adopted on November 24, 2020. As determined in the previously adopted IS/MND, impacts would be less than significant with the implementation of adopted mitigation measures. The proposed five monitoring wells in the Santa Monica Basin are exempt from CEQA pursuant to Section 15303 (Section 15303 (New Construction or Conversion of Small Structures), Section 15304 (Class 4 – Minor Alterations to Land), and Section 15306 (information Collection) of the CEQA Guidelines. 5.L Packet Pg. 345 4 of 5 • Section 15303 exempts the construction of new small facilities or structures, including utility structures and extensions. • Section 15304 exempts minor alterations to land, which do not involve removal of mature or scenic trees. Activities include minor grading, trenching, and backfilling • Section 15306 exempts the basic data collection, research, experimental management, and resource evaluation activities which do not result in a serious or major disturbance to an environmental resource The groundwater monitoring wells will be drilled up to depths between 400 to 800 feet below the surface with minimal ground surface area disturbed. Upon completion, the appearance of the monitoring wells will be largely confined to a small area with each well covered by a concrete pad not larger than 4 by 4 feet. The monitoring wells will provide information and data necessary to implement long-term sustainable groundwater planning and management for the Basin. Therefore, the installation of the monitoring wells qualifies for CEQA exemption pursuant to Sections 15303, 15304, and 15306 as they consist of the new construction of small structures, minor alteration to land, and information collection activities. In addition, none of the exceptions specified in Section 15300.2 of CEQA Guidelines would apply that would preclude the use of the CEQA exemptions: • The project site is not located in a sensitive environment • The project will not have a significant effect on the environment due to unusual circumstances • The project would not damage scenic resources • The project would not be located on a hazardous waste site based on a review of relevant databases • The project would not cause a change to a historical resource as there are no historic resources identified within the identified site locations Past Council Actions Meeting Date Description 01/25/11 (Attachment A) City Council directs staff to develop a plan to reach water self- sufficiency 11/27/18 City Council directs staff to proceed with an update to the 5.L Packet Pg. 346 5 of 5 (Attachment B) Sustainable Water Master Plan and the recommended pathway to water self-sufficiency 12/7/21 (Attachment C) City Council approves the Santa Monica Basin Groundwater Sustainability Plan Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of recommended action. Staff will return to Council with budget changes if grant is awarded. Prepared By: Sunny Wang, Water Resources Manager Approved Forwarded to Council Attachments: A. Attachment A - January 25, 2011 Staff Report B. Attachment B - November 18, 2018 Staff Report C. Attachment C - December 7, 2021 Staff Report D. Attachment D - Resolution 5.L Packet Pg. 347 Page 1 of 2 City Council Meeting: December 13, 2022 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 A CALIFORNIA STATE DEPARTMENT OF WATER RESOURCES SUSTAINABLE GROUNDWATER MANAGEMENT GRANT PROGRAM AGREEMENT FOR THE SANTA MONICA GROUNDWATER SUBBASIN RECHARGE AND MONITORING 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 al locally available water resources including traditionally non-potable sources such as brackish groundwater and wastewater; and WHEREAS, the California Department of Water Resources is administering the Sustainable Groundwater Management (SGM) Grant Program using funds authorized by the California Budget Act of 2021 (Stats. 2021, ch. 240, § 80) (Budget Act of 2021) and Proposition 68 for projects that encourage sustainable management of groundwater resources that support the Sustainable Groundwater Management Act and/or invest in groundwater recharge projects with surface water, stormwater, recycled water, and other conjunctive use projects. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY RESOLVE AS FOLLOWS: 5.L.d Packet Pg. 348 Attachment: Attachment D - Resolution [Revision 1] (5412 : DWR SGM Grant Resolution) Page 2 of 2 SECTION 1. The Recitals above are incorporated herein by this reference. SECTION 2. An application shall be made to the Department of Water Resources to obtain a grant under the 2021 Sustainable Groundwater Management (SGM) Grant Program SGMA Implementation Grant pursuant to the California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access For All Act of 2018 (Pub. Resources Code, § 80000, et seq.) and the Budget Acts of 2021 and 2022. Be it further resolved that the City of Santa Monica has the authority and shall enter into a funding agreement with the Department of Water Resources to receive a grant for the Santa Monica Groundwater Subbasin Recharge and Monitoring Project. SECTION 3. The City Manager of the City of Santa Monica, or designee, is hereby authorized and directed to prepare the necessary data, conduct investigations, file such application, execute a funding agreement and any future amendments thereto, submit invoices, and submit any reporting requirements with the Department of Water Resources. SECTION 4. The City Clerk shall certify to the adoption of this Resolution of the City Council, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: DOUGLAS SLOAN City Attorney 5.L.d Packet Pg. 349 Attachment: Attachment D - Resolution [Revision 1] (5412 : DWR SGM Grant Resolution)