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HomeMy WebLinkAbout4.11(a)--Authorize Grant Application - 2022 Urban Community Drought Relief Grant Program CITY OF REDDING REPORT TO THE CITY COUNCIL Recommendation Adopt Resolution authorizing the submittal of a grant application by the City of Redding Water Utility to the State of California Department of Water Resources 2022 Urban Community Drought Relief Grant Program in an amount not to exceed $31,000,000 for drought relief projects and programs. Fiscal Impact The State of California Department of Water Resources (DWR) 2022 Urban Community Drought Relief Grant (2022 UCDRG) Program requires a minimum cost share of 25 percent of the total project costs. The City of Redding (City) is currently classified as a Disadvantaged Community, and as such, will request the local cost share requirements be waived. If the cost share waiver is not granted, the Water Utility would reassess and prioritize its projects and programs and reallocate existing funds to fulfill the local match requirement. The projects align with the existing Capital Improvement Plan and the expected revenue generated by the Water Utility. Total project/program costs are estimated to exceed the minimum $3,000,000 award requirement from DWR. Adoption of this resolution will have minimal fiscal impact, as the City expects to receive the cost share waiver. Alternative Action The City Council may choose from the following alternative actions: 1. Not adopt the resolution and, therefore, not authorize an application to the DWR 2022 UCDRG Program. In this case, the City would not apply for the funding opportunity and would not receive grant funding from this program. This alternative would result in several of the proposed projects not moving forward and the Water Utility funding 100 percent of the remaining projects. MEETING DATE: January 17, 2023 ITEM NO. 4.11(a) FROM: ***APPROVED BY*** caukland@ci.redding.ca.us btippin@cityofredding.org SUBJECT: 4.11(a)--Adopt Resolution Authorizing Submittal of Grant Application to the State of California Department of Water Resources 2022 Urban Community Drought Relief Grant Program Chuck Aukland, Public Works Director Report to Redding City Council January 6, 2023 Re: 4.11(a)--Authorize Grant Application - 2022 Urban Community Drought Relief Grant Program Page 2 2. Provide staff with alternative project recommendations. This may require further analysis to determine project eligibility or feasibility for implementation. Grant applications are due January 31, 2023. 3. Provide alternative direction to staff. Background/Analysis In June 2022, the California legislature amended the Budget Act of 2021 (Stats. 2021, ch. 240, § 80) to allocate an additional $545 million to DWR to award grants for drought relief. These grants are intended to provide water to communities that face the loss or contamination of their water supplies, to address immediate impacts on human health and safety, and to protect fish and wildlife resources. The City’s Water Utility is responsible for providing customers with a reliable supply of high- quality drinking water. The Water Utility s erves approximately 90,000 customers over a 60 square mile service area. The DWR 2022 UCDRG Program opportunity would enable the Water Utility to leverage grant funding to provide additional drought relief and resources to the City of Redding and its ratepayers. The proposed DWR 2022 UCDRG Program application projects include: • New production well installation in the southeast wellfield near the Stillwater Wastewater Treatment Plant, estimated cost $8 million; • Development of a turf replacement incentive program for residential customers to reduce irrigation water demand. The cost of this program will be dependent on the State award, if any; • Development and implementation of recycled water projects utilizing treated water from both wastewater treatment plants for irrigating parks and other open space, estimated cost $11 million; and • Rehabilitation of existing drinking water wells to increase their production and treatment for removal of undesirable constituents, estimated cost $8 million. The resolution has been approved as to form by the City Attorney. Environmental Review This action is not a project as defined under the California Environmental Quality Act (CEQA), and no further action is required. Council Priority/City Manager Goals • Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.” Attachments ^Resolution RESOLUTION NO. 2023-___ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING AUTHORIZING THE GRANT APPLICATION, ACCEPTANCE, AND EXECUTION FOR THE STATE OF CALIFORNIA DEPARTMENT OF WATER RESOURCES 2022 URBAN COMMUNITY DROUGHT RELIEF GRANT PROGRAM WHEREAS, the City of Redding proposes to implement the State of California Department of Water Resources 2022 Urban Community Drought Relief Grant Program; and WHEREAS, the City of Redding has the legal authority and is authorized to enter into a funding agreement with the State of California; and WHEREAS, the City of Redding intends to apply for grant funding from the California Department of Water Resources for the 2022 Urban Community Drought Relief Grant Program; THEREFORE, BE IT RESOLVED by the City Council of the City of Redding as follows: 1. That pursuant and subject to all of the terms and provisions of Budget Act of 2021 (Stats. 2021, ch. 240, § 80) as amended (Stats. 2022, ch. 44, §25), the City of Redding Public Works Director, or 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. 2. The City of Redding Public Works Director, or designee, is hereby authorized and directed to execute the funding agreement with the Department of Water Resources and any amendments thereto. 3. The City of Redding Public Works Director, or designee, is hereby authorized and directed to submit any required documents, invoices, and reports required to obtain grant funding. I HEREBY CERTIFY that the foregoing resolution was introduced at a regular meeting of the City Council of the City of Redding on the 17th day of January, 2023, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: _______________________________ MICHAEL DACQUISTO, Mayor ATTEST: APPROVED AS TO FORM: ____________________________ _______________________________ PAMELA MIZE, City Clerk BARRY E. DeWALT, City Attorney