HomeMy WebLinkAboutStaff Report 14090
City of Palo Alto (ID # 14090)
City Council Staff Report
Meeting Date: 4/4/2022
City of Palo Alto Page 1
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 Reclamation and Reuse Project
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council approve a resolution (Attachment A) authorizing the submittal
of a Financial Assistance Application to the United States Bureau of Reclamation for the
WaterSMART: Title XVI Water Reclamation and Reuse Projects.
Executive Summary
In 2018, the City of Palo Alto (City) applied for, but was not awarded, federal funds to design
and construct an Advanced Water Purification System (AWPS Local Plant) at the Regional Water
Quality Control Plant (RWQCP). The AWPS Local Plant will reduce the salt content of the
recycled water used in Palo Alto and by the City of Mountain View (Staff Report ID #9420). The
federal government has authorized more funding for the WaterSMART grant. Staff is submitting
an updated application. Since the original application in 2018, the City contracted a design
engineer and anticipates completing the design by the end of Calendar Year 2022, which makes
the project a better candidate for funding because it is ready for construction. Staff has
submitted the grant application by the due date of March 15, 2022, however, within 60 days of
application, this confirming resolution approved by Council is required.
Background
The City of Palo Alto (City) operates the 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. Current and
potential future recycled water customers have expressed concerns with the quality of the
recycled water produced at RWQCP, particularly the level of total dissolved solids (TDS) being
too high for irrigation of salt-sensitive species such as redwood trees. Consequently, in 2010
Council passed Resolution No. 9035, Resolution of the Council of the City of Palo Alto
Establishing a Salinity Reduction Policy for Recycled Water. The resolution established a goal of
reducing TDS concentrations to below 600 milligrams per liter (mg/L). Since 2010, the City and
its RWQCP partner agencies have significantly reduced TDS concentrations by controlling
11
Packet Pg. 163
City of Palo Alto Page 2
infiltration of saline groundwater into the sewer collection system. Despite these efforts, TDS
concentrations remain above the 600 mg/L goal (2021 annual average was 775 mg/L) and
require additional treatment processes at the RWQCP to further reduce TDS concentrations and
achieve the goal.
In 2017, the City collaborated with Santa Clara Valley Water District (Valley Water) and the City
of Mountain View to complete a feasibility study and preliminary design for an AWPS Local
Plant to be located at RWQCP (Staff Report ID #6458). The Final Advanced Water Purification
System Feasibility Study indicated additional treatment through micro- or ultra-filters and
reverse osmosis membranes would sufficiently reduce TDS concentrations when blended with
the current recycled water to produce enhanced recycled water. A preliminary design (10
percent design level) was completed in December 2017 for a 1.125 million gallons per day
(MGD) AWPS local plant that could be scaled up in a second construction phase to 2.25 MGD. In
partnership with Valley Water and the City of Mountain View, the AWPS is currently in design
for the two-phase facility.
The United States Department of the Interior’s WaterSMART Program (Program) provides a
framework for federal leadership and assistance to stretch and secure water supplies for future
generations in support of the Department’s priorities. Through WaterSMART, the Bureau of
Reclamation leverages federal and non-federal funding to support stakeholder efforts to stretch
water supplies and avoid conflicts over water. Through the Title XVI Water Reclamation and
Reuse Program (Title XVI), the Bureau of Reclamation provides financial and technical
assistance to local water agencies for the planning, design, and construction of water
reclamation and reuse projects that have been congressionally authorized. The Water
Infrastructure Improvements for the Nation Act (WIIN) was enacted in December 2016 to
address water resources infrastructure that is critical to the nation's economic growth, health,
and competitiveness. WIIN expands the Title XVI to allow water recycling projects that have not
been congressionally authorized to be eligible to receive federal funding. The City’s AWPS Local
Project has not been congressionally authorized and therefore is eligible for a portion of the
current funding opportunity of $240 million for Title XVI projects authorized under section
4009(c) of the WIIN Act.
Discussion
Staff recommends that Council approve a resolution authorizing the submittal of a financial
assistance application for construction for the AWPS Local Plant. The application and resolution
do not commit the City 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. Additionally, if the AWPS Local Plant is selected for funding and Council
then approves the grant agreement, the City is required to provide the 75 percent local match.
It is anticipated that the local match will consist of monetary contributions from the City as well
as from the City of Mountain View and Valley Water; some or all of the local matching funds
will be financed from a State Revolving Fund loan. This loan program is compatible with the
11
Packet Pg. 164
City of Palo Alto Page 3
local match requirements. To be eligible for this funding, the City is required to submit the
attached resolution by May 13, 2022.
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 United States Bureau of Reclamation to meet
established deadlines for entering into a grant or cooperative agreement.
Timeline
Staff has applied for the grant by the March 15, 2022 deadline and as required by the program
to complete the application, pending Council approval, staff will submit the adopted resolution
within 60 days, which is May 13, 2022.
Resource Impact
Approval of the resolution recommended in this report will not have any impact on financial
resources. A financial 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.
Additionally, if the AWPS Local Plant is selected for funding and Council then approves the grant
agreement, the City is required to provide the 75 percent local match.
Policy Implications
Applying for funding does not carry any policy implications, however the project supports the
Sustainability/Climate Action Plan goals of increasing recycled water from the RWQCP.
Stakeholder Engagement
Engagement for this project occurs at the Joint Recycled Water Committee meetings between
Palo Alto, Valley Water, the City of Mountain View, and East Palo Alto. In addition, during the
City’s annual budget review this project, Advanced Water Purification Facility (WQ-19003), has
been discussed with Council as part of the five-year Capital Improvement Plan in the
Wastewater Treatment Fund. Previous engagement occurred as part of the Northwest County
Recycled Water Strategic Plan public workshops in 2018 – 2019.
Environmental Review
Submittal of a grant application with no requirement to accept the grant if approved is not a
project under section 15378(b)(4) of the California Environmental Quality Act (CEQA) Guidelines
because the grant application is a funding mechanism that does not involve any commitment to
any specific project which may result in a potentially significant impact on the environment. The
AWPS Local Plant has completed environmental review by November 18, 2019 date approved
11
Packet Pg. 165
City of Palo Alto Page 4
by Council (Staff Report ID #10627).
Attachments:
• Attachment11.a: Attachment A: Resolution WIIN Grant Application 2022 DRAFT
11
Packet Pg. 166
NOT YET APPROVED
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 WIIN Act Water Reclamation and Reuse Projects
RECITALS
A. The United States Department of the Interior, Bureau of Reclamation has a
program entitled “WaterSMART: Title XVI WIIN Act Water Reclamation and Reuse Projects”
that provides funding assistance through cooperative agreements or grants for the planning,
design, and construction of water reclamation and reuse facilities that have completed 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 “Advanced Water Purification System, Local Project”.
C. The City wishes to submit an application for a funding award to cover a
portion of the cost of the Advanced Water Purification System, Local Project.
D. The Bureau of Reclamation requires, as part of the City’s application, an official
resolution adopted by the Council 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 the Bureau of 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 apply for a funding award from the
WaterSMART: Title XVI WIIN Act Water Reclamation and Reuse Projects program.
SECTION 2. The City Council verifies:
(a) The City Manager or his designee, including the Director of Public Works, is
authorized to enter into an agreement with the Bureau of Reclamation a financial
assistance award; and
(b) The City Council has received and supports the application that will be
submitted on or before the 15th day of March, 2022
(c) The City is able to provide the minimum 75% non-federal cost share and/or in-
kind funding contributions specified in the funding plan for the application.
(d) The City will work with the Bureau of Reclamation to meet established
deadlines for entering into a grant or cooperative agreement.
1
11.a
Packet Pg. 167
SECTION 3. The Council hereby authorizes and directs the City Manager or his
designee, including the Director of Public Works, 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 Advanced
Water Purification System, Local 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 under the
financing agreement to be approved by the Council, including certifying disbursement
requests on behalf of the city and compliance with applicable state and federal laws.
(d) Work with the Bureau of 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:
Asst. City Attorney City Manager
Director of Public Works
11.a
Packet Pg. 168