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SR 10-24-2023 5D City Council Report City Council Meeting: October 24, 2023 Agenda Item: 5.D 1 of 4 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 The U.S. Department of Interior - Bureau of Reclamation FY 2024 WaterSMART Drought Response Program for the Santa Monica Groundwater Well SM-4 Replacement Project Recommended Action Staff recommends that the City Council: 1. Adopt a finding of categorical exemption pursuant to Section 15302 (Class 2 – Replacement/Reconstruction) of the California Environmental Quality Act (CEQA) Guidelines. 2. Adopt the attached resolution authorizing the application for grant funds in the amount of up to $2,375,000 from the U.S. Department of Interior - Bureau of Reclamation for the SM-4 Groundwater Well Replacement 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. 5.D Packet Pg. 53 2 of 4 Summary The City of Santa Monica’s Olympic Well Field is the city’s second largest source of groundwater after the Charnock Well Field. One of the groundwater production wells in the well field, Santa Monica Well No. 4 (SM-4), is over 40 years old and needs to be replaced as it has lost over 70% of its production capacity. Replacing groundwater production well SM-4 would restore pumping capacity at the Olympic Well Field and maintain groundwater remediation activities at the well field. The well replacement of SM-4 is eligible for grant funding from the U.S. Department of the Interior - Bureau of Reclamation. Staff is requesting authorization to apply for grant funding to help offset 50% of the well replacement cost. Discussion The U.S. Department of the Interior - Bureau of Reclamation’s WaterSMART Drought Response Program provides grant funding for projects that build resiliency to drought by increasing the reliability of water supplies, improving water management, and/or providing benefits for fish and wildlife and the environment. The replacement of groundwater production well SM-4 at the Olympic Well Field meets the objectives under Task B of the grant opportunity - Increasing the Reliability of Water Supplies Through Groundwater Recovery. Restoring the production capacity at the Olympic Well Field would enhance local water supply reliability. Pumping contaminated groundwater for advanced treatment at the Arcadia Water Treatment Plant, will aid the remediation of the contamination plume at the Olympic Well Field. The project would include drilling and constructing a replacement groundwater well and equipping the well with a new pump, chemical feed system, and metering equipment after the well is constructed. Production of local groundwater has historically been 30% cheaper than purchasing imported water supplies for potable use in the city. Replacing the aging groundwater production well would assist the city in enhancing its drought resiliency by maximizing groundwater production within sustainable yield limits. In doing so, this reduces the city’s reliance on imported water supplies, where its availability and reliability has been impacted during prolonged droughts. The replacement well would be located in the 5.D Packet Pg. 54 3 of 4 Olympic Well Field, approximately 50 feet east of SM-4 near the intersection of Olympic Boulevard and Stewart Street. The estimated cost of the project is $4,750,000. The grant requires a 50 percent local match, which would come from an existing CIP for design and construction oversight of the replacement well and a future CIP as part of the FY2024-2026 biennial budget. Construction is anticipated to begin in April 2025 and end in September 2026. The term of the grant is from October 31, 2024, through October 31, 2026. On-going operation costs would be paid for out of the operating budget for the Water Fund. There would be no further operational costs associated with SM-4 as it will be destroyed after the replacement well is placed in operation. Environmental Review The project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302 (Class 2 – Replacement/Reconstruction) of the CEQA Guidelines. Section 15302 exempts Class 2 projects which “consists of replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced”. The replacement well would be designed to the original design capacity of SM-4 in the same general location and would not represent an increase in the City’s groundwater production capacity. Therefore, the replacement well is categorically exempt from CEQA. Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. The grant is reimbursement-based and requires a 50% match by the City. Staff would return to Council with budget changes if the grant is awarded. 5.D Packet Pg. 55 4 of 4 Prepared By: Sunny Wang, Water Resources Manager Approved Forwarded to Council Attachments: A. Resolution B. PowerPoint Presentation C. Resolution (Clean Version) D. Resolution (redline) 5.D Packet Pg. 56 Page 1 of 2 City Council Meeting: October 24, 2023 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 APPLY FOR GRANT FUNDS FOR A UNITED STATES DEPARTMENT OF INTERIOR BUREAU OF RECLAMATION WATERSMART DROUGHT RESPONSE PROGRAM: DROUGHT RESILIENCY PROJECTS FOR FISCAL YEAR 2024, AND TO NEGOTIATE AND ENTER INTO A GRANT AGREEMENT WITH THE UNITED STATES BUREAU OF RECLAMATION AND ANY AMENDMENTS THERETO WHEREAS, the United States Department of Interior, Bureau of Reclamation has allocated grant funding for projects pursuant to the WaterSMART Drought Response Program: Drought Resiliency Projects for Fiscal Year (FY) 2024 (“Grant Program”); and WHEREAS, California’s Water Supply Strategy and the City’s Sustainable Water Master Plan recognize that a sustainable and secure water future must include the use of locally available water resources; and WHEREAS, the City seeks to apply for grant funds in the amount of up to $2,375,000 from the Grant Program to further the City’s sustainable water supply objectives to improve drought resiliency, increase water supply, and enhance the flexibility in the management of the City’s water resources; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Recitals above are incorporated herein by this reference. SECTION 2. The City of Santa Monica City Manager, or designee is hereby authorized 5.D.a Packet Pg. 57 Attachment: Resolution [Revision 1] (5989 : Adopt Resolution Authorizing the Application for Grant Funds) Page 2 of 2 and directed to prepare and file an application for funding for the WaterSMART Drought Response Program: Drought Resiliency Projects for Fiscal Year (FY) 2024, to the United States Department of Interior, Bureau of Reclamation, and take such other actions necessary or appropriate to obtain grant funding. SECTION 3. The City of Santa Monica City Manager, or designee is hereby authorized and directed to execute the funding agreement with the United States Department of Interior, Bureau of Reclamation and any amendments thereto. SECTION 4. The City of Santa Monica City Manager, or designee is hereby authorized and directed to submit any required documents, invoices, and reports required to obtain grant funding. SECTION 5. 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.D.a Packet Pg. 58 Attachment: Resolution [Revision 1] (5989 : Adopt Resolution Authorizing the Application for Grant Funds) Item 5D – New Groundwater Production Well Location 5.D.b Packet Pg. 59 Attachment: PowerPoint Presentation (5989 : Adopt Resolution Authorizing the Page 1 of 2 City Council Meeting: October 24, 2023 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 APPLY FOR GRANT FUNDS FOR A UNITED STATES DEPARTMENT OF INTERIOR BUREAU OF RECLAMATION WATERSMART DROUGHT RESPONSE PROGRAM: DROUGHT RESILIENCY PROJECTS FOR FISCAL YEAR 2024, AND TO NEGOTIATE AND ENTER INTO A GRANT AGREEMENT WITH THE UNITED STATES BUREAU OF RECLAMATION AND ANY AMENDMENTS THERETO WHEREAS, the United States Department of Interior, Bureau of Reclamation has allocated grant funding for projects pursuant to the WaterSMART Drought Response Program: Drought Resiliency Projects for Fiscal Year (FY) 2024 (“Grant Program”); and WHEREAS, California’s Water Supply Strategy and the City’s Sustainable Water Master Plan recognize that a sustainable and secure water future must include the use of locally available water resources; and WHEREAS, the City seeks to apply for grant funds in the amount of up to $5,000,000 from the Grant Program to further the City’s sustainable water supply objectives to improve drought resiliency, increase water supply, and enhance the flexibility in the management of the City’s water resources; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Recitals above are incorporated herein by this reference. SECTION 2. The City of Santa Monica City Manager, or designee is hereby authorized 5.D.c Packet Pg. 60 Attachment: Resolution (Clean Version) (5989 : Adopt Resolution Authorizing the Application for Grant Funds) Page 2 of 2 and directed to prepare and file an application for funding for the WaterSMART Drought Response Program: Drought Resiliency Projects for Fiscal Year (FY) 2024, to the United States Department of Interior, Bureau of Reclamation, and take such other actions necessary or appropriate to obtain grant funding. SECTION 3. The City of Santa Monica City Manager, or designee is hereby authorized and directed to execute the funding agreement with the United States Department of Interior, Bureau of Reclamation and any amendments thereto. SECTION 4. The City of Santa Monica City Manager, or designee is hereby authorized and directed to submit any required documents, invoices, and reports required to obtain grant funding. SECTION 5. 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.D.c Packet Pg. 61 Attachment: Resolution (Clean Version) (5989 : Adopt Resolution Authorizing the Application for Grant Funds) Page 1 of 2 City Council Meeting: October 24, 2023 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 APPLY FOR GRANT FUNDS FOR A UNITED STATES DEPARTMENT OF INTERIOR BUREAU OF RECLAMATION WATERSMART DROUGHT RESPONSE PROGRAM: DROUGHT RESILIENCY PROJECTS FOR FISCAL YEAR 2024, AND TO NEGOTIATE AND ENTER INTO A GRANT AGREEMENT WITH THE UNITED STATES BUREAU OF RECLAMATION AND ANY AMENDMENTS THERETO WHEREAS, the United States Department of Interior, Bureau of Reclamation has allocated grant funding for projects pursuant to the WaterSMART Drought Response Program: Drought Resiliency Projects for Fiscal Year (FY) 2024 (“Grant Program”); and WHEREAS, California’s Water Supply Strategy and the City’s Sustainable Water Master Plan recognize that a sustainable and secure water future must include the use of locally available water resources; and WHEREAS, the City seeks to apply for grant funds in the amount of up to $2,3755,000,000 from the Grant Program to further the City’s sustainable water supply objectives to improve drought resiliency, increase water supply, and enhance the flexibility in the management of the City’s water resources; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Recitals above are incorporated herein by this reference. SECTION 2. The City of Santa Monica City Manager, or designee is hereby authorized 5.D.d Packet Pg. 62 Attachment: Resolution (redline) (5989 : Adopt Resolution Authorizing the Application for Grant Funds) Page 2 of 2 and directed to prepare and file an application for funding for the WaterSMART Drought Response Program: Drought Resiliency Projects for Fiscal Year (FY) 2024, to the United States Department of Interior, Bureau of Reclamation, and take such other actions necessary or appropriate to obtain grant funding. SECTION 3. The City of Santa Monica City Manager, or designee is hereby authorized and directed to execute the funding agreement with the United States Department of Interior, Bureau of Reclamation and any amendments thereto. SECTION 4. The City of Santa Monica City Manager, or designee is hereby authorized and directed to submit any required documents, invoices, and reports required to obtain grant funding. SECTION 5. 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.D.d Packet Pg. 63 Attachment: Resolution (redline) (5989 : Adopt Resolution Authorizing the Application for Grant Funds)