REPORT TO COUNCIL
SUBJECT
Title
Action on Adoption of a Resolution Authorizing the Submittal of Application(s) for the California Department of Water Resources Urban Multi-Benefit Drought Relief Grant Program
Report
COUNCIL PILLAR
Promote Sustainability and Environmental Protection
BACKGROUND
The Water & Sewer Utilities Department provides potable water to approximately 26,000 customers in Santa Clara. The City receives its water from four sources: groundwater pumped from City owned wells, treated water from Valley Water, Hetch-Hetchy water from the San Francisco Public Utilities Commission (SFPUC), and recycled water through South Bay Water Recycling, operated by the City of San Jose. Hydrological analysis in Santa Clara revealed the need to drill and equip two new groundwater wells to serve current and future needs for the City’s customers.
Staff recognizes that the cost of doing so would impact City rate payers. In an effort to blunt such an impact and in cooperation with Townsend and Associates, the City’s lobbyist, staff began searching for alternative financing for the two new wells.
DISCUSSION
The California Department of Water Resources (DWR) Urban Multi-Benefit Drought Relief Grant Program allocated up to $300 million statewide for conservation programs and drought relief efforts. In collaboration with Townsend, City staff submitted an application for this program in October 2022 for funding for the drilling and equipping of two new groundwater wells and rehabilitating/reactivating one well in the City. The estimated amount requested is $4,537,500 with a City match of $1,512,500 (25%) for a total project cost of $6,050,000.
Staff requests that Council grant authority to the City Manager to sign any necessary submittals for the acceptance of this money, should the state accept the City’s application.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
There is no fiscal impact associated with this action other than staff time.
COORDINATION
This report has been coordinated with the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at 408-615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov>.
RECOMMENDATION
Recommendation
1. Adopt a Resolution authorizing the City Manager to apply for, accept, and execute a grant agreement with the California Department of Water Resources for the Urban Multi-Benefit Drought Relief Grant Program
Staff
Reviewed by: Gary Welling, Director, Water & Sewer Utilities
Approved by: Rajeev Batra, City Manager
ATTACHMENTS
1. Proposed Resolution authorizing the City Manager to apply for, accept and execute a grant agreement for the Urban Multi-Benefit Drought Relief Grant Program