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HomeMy WebLinkAbout220426_Item 4.4_Council ReportRECOMMENDATION DATE: April 26, 2022 CATEGORY: Consent DEPT.: Public Works TITLE: Adopt a Resolution Authorizing Submittal of a Grant Application to Fund Recycled Water Expansion Projects Adopt a Resolution of the City Council of the City of Mountain View Authorizing Submittal of a Financial Assistance Application to the United States Bureau of Reclamation for its WaterSMART: Title XVI, Water Reclamation and Reuse Program, to be read in title only, further reading waived (Attachment 1 to the Council report). BACKGROUND The City of Mountain View currently receives recycled water from the Palo Alto Regional Water Quality Control Plant (RWQCP). Recycled water meets approximately 4% of the City's water needs and is a droughtproof water source. With the impacts of climate change, constraints from imported supplies through the City's water wholesalers, and California's third year in a drought, the use and expansion of recycled water becomes more significant to serve the needs of residents and businesses in the City. In 2014, the City completed a Recycled Water Feasibility Study to evaluate expansion of the existing recycled water distribution system. This study was recently updated to consider new City plans and policies since the last study. The updated Feasibility Study was approved by Council on March 22, 2022. The City's recommended Recycled Water Project (Project) includes a multi -phased approach to reach new users in the North Bayshore Area, the adjacent Federal property occupied by National Aeronautics and Space Administration (NASA) Ames Research Center and Moffett Field, and the City's East Whisman Area. Implementation of the entire Project will achieve the following significant benefits: • Increase recycled water use within the City's existing service area. • Bring recycled water to new areas of Mountain View and the adjacent Federal property. • Improve supply reliability by increasing access to a droughtproof water supply. Adopt a Resolution Authorizing Submittal of a Grant Application to Fund Recycled Water Expansion Projects April 26, 2022 Page 2 of 4 • Decrease the use of imported water, including from the Tuolumne River and the San Francisco Bay Delta. • Relieve pressure on local groundwater, especially during dry years. • Decrease wastewater outfall to the San Francisco Bay. The first set of recommendations from the updated Feasibility Study are to site and construct a recycled water reservoir and to expand the pipeline system in the North Bayshore Area. A reservoir will improve service and reliability for customers. Several site options need to be studied in detail to identify the optimum location. In addition, staff completed the design of a 4,700' recycled water pipeline system on Shorebird Way and Charleston Road, which is one of the projects identified for build -out of the North Bayshore recycled water system. This project has not been constructed due to insufficient funding. The estimated cost for the reservoir siting study and construction of the Shorebird Way and Charleston Road pipeline system is $4,977,600. ANALYSIS On January 14, 2022, the United States Bureau of Reclamation (Reclamation) announced Notice of Funding Opportunity No. R22AS00115 for the WaterSMART: Title XVI, WIIN Act Water Reclamation and Reuse Projects. Through this competitive Federal grant program, Reclamation provides financial and technical assistance to local water agencies for the planning, design, and construction of water reclamation and reuse projects. The selected projects will be funded through investments in the Bipartisan Infrastructure Law and Fiscal Year 2022-23 appropriations. The Bipartisan Infrastructure Law contains $1 billion over five years for water reclamation and reuse projects, including $550 million for the Title XVI, Water Reclamation and Reuse Program. Funding Opportunity No. R22AS00115 is open to projects eligible under the WIIN Act. The maximum project award is 25% of project costs, up to $30 million. Eligible expenses include work that is planned through September 30, 2025 or work that has been completed since Reclamation's feasibility study review findings for the project. The City of Mountain View's Recycled Water Project was approved by Reclamation to compete for WIIN Act funding opportunities in January 2018 and is eligible to compete for this Federal grant. City staff submitted a grant application for the reservoir siting study and construction of the new recycled water pipeline along Shorebird Way and Charleston Road on March 15, 2022, prior to the submission deadline. The City requested a grant of $1,244,400 (25% of the full project cost). Adopt a Resolution Authorizing Submittal of a Grant Application to Fund Recycled Water Expansion Projects April 26, 2022 Page 3 of 4 Letters of support were received from the following partner agencies and included in the submitted application packet: • NASA Ames Research Center • San Francisco Public Utilities Commission • Valley Water (formerly Santa Clara Valley Water District) • Bay Area Water Supply and Conservation Agency • Western Recycled Water Coalition Adoption of the Resolution (Attachment 1) will complete the City's WaterSMART: Title XVI WIIN Act Water Reclamation and Reuse Projects grant application, allowing it to compete for this Federal funding opportunity. The Resolution must be submitted to Reclamation before May 13, 2022. FISCAL IMPACT If the City's recycled water project is selected for Federal funding and awarded the requested $1,244,400, the City will be required to enter into an agreement with Reclamation committing to fund the remaining non -Federal project costs, estimated at $3,733,200. The recommended Fiscal Year 2022-23 Capital Improvement Program includes $4.19 million for recycled water projects, which, if approved, will be sufficient to cover the remaining proposed project costs, including administrative fees. Staff understands Reclamation will be awarding funding as reimbursement based on actual costs. ALTERNATIVES 1. Do not adopt the resolution. 2. Provide other direction. PUBLIC NOTICING—Agenda posting. Prepared by: Elizabeth Flegel Water Resources Manager Reviewed by: Lisa Au Assistant Public Works Director EF/TS/4/CAM 703-04-26-22CR 201907 Adopt a Resolution Authorizing Submittal of a Grant Application to Fund Recycled Water Expansion Projects April 26, 2022 Page 4 of 4 Approved by: Dawn S. Cameron Public Works Director Audrey Seymour Ramberg Assistant City Manager/ Chief Operating Officer Attachment: 1. Resolution Approving Federal Grant Application Attachment 1 CITY OF MOUNTAIN VIEW RESOLUTION NO. SERIES 2022 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOUNTAIN VIEW AUTHORIZING SUBMITTAL OF A FINANCIAL ASSISTANCE APPLICATION TO THE UNITED STATES BUREAU OF RECLAMATION FOR ITS WATERSMART: TITLE XVI WATER RECLAMATION AND REUSE PROGRAM WHEREAS, the United States Bureau of Reclamation ("Reclamation") has a funding program entitled "WaterSMART: Title XVI, Water Reclamation and Reuse Projects," and, pursuant to this program, Reclamation makes funds available for water recycling projects that have a Title XVI -compliant approved Feasibility Study; and WHEREAS, the City of Mountain View ("City") has an approved Title XVI Feasibility Study for its project titled "Recycled Water Project"; and WHEREAS, the City wishes to complete the application for Title XVI, Water Infrastructure Improvements for the Nation Act ("WIIN") funds to cover a portion of the cost of the Recycled Water Project by submittal of this Resolution to Reclamation by the May 13, 2022 deadline (60 days after application package deadline); and WHEREAS, Reclamation has directed applicants to include in its application an official resolution adopted by the applicant's governing body verifying: (1) the identity of the official with legal authority to enter into an agreement; (2) the board of directors, governing body, or appropriate official who has reviewed and supports the application submitted; (3) the capability of the applicant to provide the amount of funding and/or in-kind contributions specified in the funding plan; and (4) that the applicant will work with Reclamation to meet established deadlines for entering into a grant or cooperative agreement; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mountain View as follows: 1. The City Council hereby finds that it is in the City and the public's interest in health, safety, and welfare of the community to file the WIIN Financial Assistance Application with Reclamation and seek funds made available under the WIIN Act of Title XVI. 2. The City Council has received and supports the completion of the application with this Resolution that will be submitted before May 13, 2022, and finds: a. The City has legal authority to enter into an agreement with Reclamation to receive a grant. -1- b. The City is able to provide the minimum 75% non -Federal cost share specified in the funding plan for the application. 3. The City Council hereby authorizes and directs the City Manager, or designee, including the Public Works Director, to: a. File and sign, for and on behalf of the City of Mountain View, a Financial Assistance Application for a financing agreement for Reclamation for the Recycled Water Project. b. Provide the assurances, certifications, and commitments required for the financial assistance application, including negotiating a financial assistance agreement and any amendments or changes thereto. C. Represent the City in carrying out the City's responsibilities, including certifying disbursement requests on behalf of the City and compliance with applicable State and Federal laws. 4. The City will work with Reclamation to meet established deadlines required for entering into a cooperative agreement to obtain the aforementioned grant funding. TS/4/RESO 943-04-26-22r -2-