HomeMy WebLinkAboutStaff Report 8340
City of Palo Alto (ID # 8340)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 8/28/2017
City of Palo Alto Page 1
Summary Title: Resolution to Apply for Federal Funds for Recycled Water
Expansion
Title: Adoption of a Resolution Authorizing the Submittal of a Financial
Assistance Application to the United States Bureau of Reclamation for The
WaterSMART: Title XVI Water Recycling Projects Under the WIIN Act and to
Enter Into a Financing Agreement Under the Program
From: City Manager
Lead Department: Utilities
Recommendation
Staff recommends that the City Council approve a resolution authorizing the submittal of a
Financial Assistance Application to the United States Bureau of Reclamation for the
WaterSMART: Title XVI Water Recycling Projects Under the WIIN Act and to Enter Into a
Financing Agreement Under the Program.
Background
The City of Palo Alto (Palo Alto or City) operates the Regional Water Quality Control Plant
(RWQCP) for six partner agencies and currently supplies tertiary treated recycled water to
several City-owned parks and facilities, truck-fill standpipes, Caltrans, and the City of Mountain
View’s North of Bayshore distribution system. The City is collaborating with the Santa Clara
Valley Water District (Water District) to develop a Recycled Water Strategic Plan to update the
1992 Recycled Water Master Plan and include recommendations for expansion opportunities
given projected demands, an evaluation of recycled water used for indirect potable reuse
within Palo Alto, as well as a business plan and preliminary design for the Phase III Recycled
Water Pipeline Expansion through South Palo Alto and Stanford Research Park (Project).
The Water Infrastructure Improvements for the Nation (WIIN) Act was enacted in December
2016, to address water resources infrastructure that is critical to the nation's economic growth,
health and competitiveness. The amendments in Section 4009 (c) of Subtitle J of WIIN allows
new water recycling projects to be eligible for federal funding.
The Bureau of Reclamation (Reclamation) provides funding through the Title XVI Water
Reclamation and Reuse Program for projects that reclaim and reuse municipal, industrial,
City of Palo Alto Page 2
domestic or agricultural wastewater and impaired ground or surface waters. The funding
opportunity for the new WIIN Title XVI funding program is $10M available in CY17 Palo Alto’s
Project is one of the thirty (30) projects nationwide that are eligible to receive this grant money.
Discussion
While there has been no determination of the economic feasibility of the Project, there is an
immediate opportunity to apply for federal funds which, if secured, would significantly improve
the business case. Submitting the attached resolution by thirty (30) days after the application
deadline of August 17, 2017 is required to be eligible for this funding.
The purpose of the resolution is to verify:
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.
The application and the resolution do not commit Palo Alto to accepting funds. Such a
commitment would be required if and when the City entered into a grant agreement, a decision
that would return to Council for approval if the grant is secured. The business plan and
preliminary design will be principally completed before Council would be asked to make a
decision to accept funding.
Timeline
Staff intends to apply for the grant by the August 17, 2017 deadline and submit the adopted
resoution within thirty (30) days of August 17, 2017 as required by the Program.
Resource Impact
Approving the resolution has no resource impact.
Policy Implications
Applying for funding does not carry any policy implications.
Environmental Review
Council’s approval of the Resolution is categorically exempt from the California Environmental
Quality Act (CEQA) under CEQA Guidelines 15307 (Actions by Regulatory Agencies for
Protection of Natural Resources).
Attachments:
Attachment A: Resolution Authorizing the WIIN Application for Recycled Water Funding
NOT YET APPROVED
1
170725 jb JM/UTL/COUNCIL
Resolution No. ______
Resolution of the Council of the City of Palo Alto Authorizing the
City’s Submittal of a Financial Assistance Application to the United
States Bureau of Reclamation for The WaterSMART: Title XVI Water
Recycling Projects Under the WIIN Act and to enter into a Financing
Agreement under the Program
R E C I T A L S
The Water Infrastructure Improvements for the Nation is referred to as the WIIN Act.
A. The United Stated Bureau of Reclamation (“Reclamation”) has a funding program
entitled “WaterSMART: Title XVI Water Recycling Projects Under the WIIN Act”, and pursuant to
this program, Reclamation makes funds available for water recycling projects that have a Title
XVI-compliant approved Feasibility Study.
B. The City of Palo Alto (the “City”) has an approved Title XVI Feasibility Study for its
project titled “Recycled Water Pipeline Project”. The Feasibility Study was approved by
Reclamation on December 10, 2013.
C. The City wishes to apply for WIIN funds to cover a portion of the cost of the Recycled
Water Pipeline Project by the August 17, 2017 deadline.
D. Reclamation has directed applicants to include in its application an official resolution
adopted by the applicant’s board of directors or 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.
The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. The Council hereby finds that it is in the City and the public’s interest in the
health, safety and welfare of the community to file the WIIN Financial Assistance Application
with Reclamation to seek funds made available under the WIIN Act of Title XVI.
SECTION 2. The City Council has received and supports the application that will be
submitted on the 17th day of August, 2017, and finds:
(a) The City has legal authority to enter into an agreement with Reclamation to receive
a grant, and
(b) The City is able to provide the minimum 75% non-federal cost share specified in the
funding plan for the application.
ATTACHMENT A
SECTION 3. The Council hereby authorizes and directs the City Manager or his designee,
the General Manager of Utilities to:
(a) File and sign, for and on behalf of the City of Palo Alto, a Financial Assistance
Application for a financing agreement from Reclamation for the Recycled Water Pipeline
Project.
(b) Provide the assurances, certifications, and commitments required for the financial
assistance application, including executing a financial assistance agreement from the Board and
any amendments or changes thereto.
(c) Represent the City in carrying out the City’s responsibilities under the financing
agreement, including certifying disbursement requests on behalf of the city and compliance
with applicable state and federal laws.
SECTION 4. The City will work with Reclamation to meet established deadlines required
for entering into a cooperative agreement to obtain the aforementioned grant funding.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
__________________________ _____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ _____________________________
Deputy City Attorney City Manager