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Home My WebLink About2004-03-01 City Council (3)TO: City of Palo Alto City Manager’s Report HONORABLE CITY COUNCIL ~ FROM:CITY MANAGER DEPARTMENT: PUBLIC WORKS 4 DATE:MARCH 1, 2004 CMR:163:04 SUBJECT:APPROVAL OF THE FUNDING STRATEGY, AND ADOPTION OF A RESOLUTION AUTHORIZING THE CITY MANAGER TO FILE AN APPLICATION FOR A GRANT FROM AND TO EXECUTE A GRANT AGREEMENT WITH THE STATE WATER RESOURCES CONTROL BOARD FOR THE CONSTRUCTION OF THE MOUNTAIN VIEW - MOFFETT AREA WATER RECYCLING FACILITY PROJECT RECOMMENDATION Staff recommends that Council approve: The funding strategy for the implementation of the Mountain View - Moffett Area Water Recycling Facility project. The attached resolution authorizing the City Manager to apply for a grant not to exceed $5,000,000 from the State Water Resources Control Board (SWRCB) on behalf of the Regional Water Quality Control Plant (RWQCP) for the construction of the Mountain View - Moffett Area Water Recycling Facility project (Attachment A) and to negotiate and execute a grant agreement for same. BACKGROUND On January 12, 2004, Council approved the project recommendations and adopted the mitigated negative declaration for the Mountain View - Moffett Area Water Recycling Facility Plan (CMR: 101:04). The Facility Plan defined the project elements and provided a funding strategy for the implementation of the project. A copy of the Facility Plan report was presented to Council on February 17, 2004 (CMR: 145:04), In that report, staff stated that the potential for State funds is the key to proceeding with this project. The SWRCB presently has funding available to fund 25% of the cost up to $5 million for the construction of eligible water recycling projects. The Mountain View - Moffett Area Water Recycling Facility would benefit the State’s water supply system and is eligible for the State grant. The grant application requires Council authorization in the form of the attached resolution. The State advised RWQCP staff to file the application for the construction grant as soon as possible after the completion of the Facility Plan because the State Water Resources Control Board (SWRCB) will start accepting applications in March 2004 and the fund is available on a first- come-first-serve basis. CMR:163:04 Page 1 of 4 DISCUSSION The project is composed of a conveyance pipeline and laterals necessary to serve the recycled water customers in the Mountain View - Moffett Field area and sized for the ultimate RWQCP service area. The pipeline will deliver approximately 1200 acre-feet of recycled water to restore the service to Shoreline golf links and provide landscape irrigation water to the North Bayshore area in Mountain View. It will also be connected to the existing customers in the City of Palo Alto that currently use approximately 100 acre-feet of recycled water. The pipeline ultimately could provide as much as 5,000 acre-feet of recycled water to the cities of Mountain View, Palo Alto, and the neighboring communities. The project will allow the RWQCP and its partners to achieve several key goals of the City, neighboring communities, and RWQCP stakeholders: Water Supply Management - The project will provide a dependable, drought-proof, locally controlled water source that reduces dependency on imported water. Wastewater Disposal Management - The project will restore the RWQCP Recycled Water Program to mitigate the Plant’s discharge to the Bay as required by the discharge permit. Water recycling helps reduce pollutant discharges and improve the overall water quality of the Bay. Long-Term Goal - The project will contribute to achieving the RWQCP long-term goals established by the stakeholders including taking a leadership role in promoting beneficial reuse and maximizing recycled water as a supplemental water source. Regional Connectivity - The project will constitute the first step towards the RWQCP’s long-term endeavor to establish connectivity with the recycled water producers and users in the region. The estimated construction cost for the project is $16 million. The funding sources include the State, the City of Mountain View, the RWQCP, and the City of Palo Alto. The proposed funding strategy is shown in the table below. Project Partner SWRCB RWQCP City of Mountain View Estimated Funding $4 M $1 M FY 04-05 CIP $1 M FY 05-06 CIP $8 M Identified Benefits Benefits to Bay-Delta water system Wastewater disposal management, regional connectivity Water supply management- 1200 AF near-term CMR:163:04 Page 2 of 4 City of Palo Alto Water Fund $0.5 M FY 04-05 CIP $0.5 M FY 05-06 CIP Wastewater Treatment Rate Stabilization Reserve - $1 M Water supply management - 100 AF current, future usage up to 1200 AF. Staff will be working with the City of Mountain View to develop a Memorandum of Understanding (MOU) that would include the funding and user agreements. Staff will submit the MOU to Council for approval, and return to Council during the budget process for the funding. RESOURCE IMPACT The estimated cost of the project is $16 million. participating agencies as follow: Funding will come from the State and $4 million matching grant from the SWRCB $2 million from the RWQCP partners: Palo Alto’s share ($0.7 million) was already included in the 2003-04 Adopted and 2004-05 proposed CIP budget (WQ-04010) $8 million from the city of Mountain View: already approved by Mountain View city council ¯$1 million total from the Palo Alto Utilities, Water fund with $0.5 million in the 2004- 05 CIP and $0.5 million in the 2005-06 CIP ¯$1 million from the Palo Alto Wastewater Treatment Rate Stabilization Reserve POLICY IMPLICATIONS The recommendation of this staff report is consistent with City policies. TIMELINE Application for State grant Final Design Construction Recycled water to use sites March 2004 July ’04 - March ’05 July ’05 - June ’06 summer 2006 ENVIRONMENTAL REVIEW A mitigated negative declaration was considered and adopted for the Mountain View-Moffett Area Water Recycling Facility Plan project by Council, Resolution #8391 on January 12, 2004. CMR: 163:04 Page 3 of 4 ATTACHMENTS Attachment A: Resolution of Council for the State Water Resources Control Board PREPARED BY: DEPARTMENT HEAD: Daisy Stark, Senior Engineer RWQCP William D. Miks, Manager RWQCP Director of Public Works CITY MANAGER APPROVAL: HARRISON Assistant City Manager CMR: 163:04 Page 4 of 4 ATTACHMENT A NOT YET APPROVED RESOLUTION NO RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AUTHORIZING THE CITY MANAGER TO FILE AN APPLICATION AND EXECUTE A GRANT AGREEMENT FOR A GRANT IN AN AMOUNT NOT TO EXCEED $5 MILLION FROM THE STATE WATER RESOURCES CONTROL BOARD ON BEHALF OF THE CITY OF PALO ALTO REGIONAL WATER QUALITY CONTROL PLANT (PARWQCP)FOR THE CONSTRUCTION OF THE MOUNTAIN VIEW- MOFFETT AREA WATER RECYCLING PROJECT WHEREAS, the Safe, Clean, Reliable Water Supply Act (1996 Bond Law) established a Water Recycling Subaccount for low-interest~ loans for design and construction of water recycling projects and for grants for facilities planning, design and construction of recycling projects; and WHEREAS, the State Water Resources Control Board established the Water Recycling Construction Program (WRCP) by adoption of the Water Recycling Funding Guidelines (WRF Guidelines) on April 17, 1997, which implemented provisions of the 1996 Bond Law as wel! as other bond laws; and WHEREAS, the Palo Alto Regional Water Quality Control Plant (PARWQCP) staff has reviewed the application, Plan of Study, and other supporting information for the water recycling project and has determined that the project complies with the WRF Guidelines; and WHEREAS, the PARWQCP operates a reclaimed water facility and delivers reclaimed water to various reuse sites. The existing pipeline from the PARWQCP to Shoreline has deteriorated and is scheduled for replacement. In anticipation of future reuse opportunities in Mountain View, such as the future Moffett facilities, the replacement pipe will be upsized; and WHEREAS, the State Water Resources Control Board presently has funding available to match 25% up to $5 million of the cost of reclaimed water facilities construction project. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION i. That the City Manager or his designee is hereby authorized and directed to sign and file, for and on behalf of the City of Palo Alto, a water recycling project construction Grant Application for a grant from the State Water Resources Control Board in an amount not to exceed $5 million for the construction of the Mountain View-Moffett Recycled Water 040223 sm 0100192 1 NOT YET APPROVED Project on behalf of the Palo Alto Regional Water Quality Control Boara (PARWQCP). SECTION 2. That the City of Palo Alto hereby agrees and further does authorize the City Manager or his designee to certify that the City has and will comply with all applicable state statutory and regulatory requirements related to any state grant funds received. SECTION 3. That the City Manager or his designee is hereby authorized to negotiate and execute on behalf of the City a grant agreement and any amendments thereto or other documents required in connection with the grant. SECTION 4. That a mitigated negative declaration (MND) was prepared in accordance with CEQA for the Project and adopted by the City Council, Resolution Number 8391 on January 12, 2004. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk APPROVED AS TO FORM: Mayor APPROVED: Sr. Asst. City Attorney City Manager Director of Public Works Director of Administrative Services 040223 sm 0100192 2