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ADOPT A RESOLUTION TO FINALIZE A GRANT APPLICATION FOR A UNITED STATES BUREAU OF RECLAMATION WATERSMART: WATER AND ENERGY EFFICIENCY GRANT FOR FEDERAL FISCAL YEAR 2024
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Authorize the City Manager to, sign, apply for, and accept a United States Bureau of Reclamation WaterSMART: Water and Energy Efficiency Grant for Federal FY 24 in the amount not-to-exceed of $4,273,925 on behalf of the City of Stockton.
2. Authorize the City Manager to finalize the grant application and all information submitted for consideration and to certify that the Municipal Utilities Department has and will provide $4,273,925 in non-federal cost-share funding and/or in-kind contributions specified in the grant funding plan of $8,547,850.
3. Authorize the City Manager to certify that the City has and will comply with all statutory and regulatory requirements related to any grant funds.
4. Authorize the City Manager to negotiate and execute a financial assistance agreement and any amendments thereto on behalf of the City of Stockton.
It is further recommended that the City Manager be authorized to take all necessary and appropriate actions to carry out the purpose and intent of this resolution.
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Summary
The United States Bureau of Reclamation (USBR) Sustain and Manage America’s Resources for Tomorrow (WaterSMART): Water and Energy Efficiency Grant Program (USBR WaterSMART Program) supports projects that result in quantifiable and sustained water savings, implement renewable energy components, and support broader sustainability benefits.
On March 19, 2024, the City Council approved the Municipal Utilities Department (MUD) Advanced Meter Infrastructure and Meter Replacement project. This project will replace outdated manual and touch-read meters with Advanced Meter Infrastructure (AMI) at residential, commercial/institutional, and irrigation properties within the City’s water service area to support more efficient operation, management, and conservation of potable water supplies.
In addition, MUD submitted initial grant application information for the Advanced Meter Infrastructure and Meter Placement project - Phase I to the USBR Sustain and Manage America’s Resources for Tomorrow (WaterSMART): Water and Energy Efficiency Grant Program for $4,273,925 in possible grant funding.
On August 2, 2024, the USBR provided a letter wherein it stated that it anticipates awarding a grant to the City for the project and included information needed to complete the application. To receive the $4,273,925 in program grant funding, the City must provide information and complete several pre-award clearance items (Attachment A).
Staff recommends the City Council adopt a resolution authorizing the City Manager to take all actions, including signing, applying for, accepting, and finalizing the grant application and other documentation to receive $4,273,925 from the USBR WaterSMART: Water and Energy Efficiency Grant Program for Federal Fiscal Year 2024.
DISCUSSION
Background
The USBR WaterSMART Program provides a framework for Federal leadership and assistance to stretch and secure water supplies for future generations. The Program leverages Federal and non-Federal funding to work cooperatively with States, Tribes, and local entities as they plan for and implement actions to increase water supply sustainability through investments in existing infrastructure and attention to local water conflicts. The USBR Water and Energy Efficiency Grants provide financial assistance to support projects that result in quantifiable and sustained water savings, implement renewable energy components, and support broader sustainability benefits.
The City’s AMI and Meter Replacement project qualifies for the grant because it will save an estimated 1,003 acre-feet per year (AFY) of potable water, which will result in an estimated energy savings of 330,589 kilowatt-hours (kWh). The AMI and Meter Replacement project will improve water management with real-time data, early leak detection, and remotely read water meters.
The City’s AMI and Meter Replacement project consists of the purchase and installation of meters, reading equipment, software, technical support, data transmission, and receiving systems. The City will replace its existing manual meter-reading system with automated AMI equipment and software. The transition to a fully scalable AMI system will improve water conservation, energy efficiency and contribute to the sustainability of the San Joaquin River and Eastern San Joaquin Subbasin, thus supporting USBR’s water conservation goals.
Present Situation
Water demand in the City of Stockton is expected to increase by approximately 39 percent by 2045, according to the City of Stockton 2020 Urban Water Management Plan. By replacing its existing manual meter reading system with AMI, the City will reduce future water demands by improving water conservation and efficiency.
If approved by the City Council, MUD staff, at the direction of the City Manager, will complete the grant application and provide all documentation needed to receive $4,273,925 in grant funding from the USBR WaterSMART Program (Attachment A). The grant funding will be used to help fund the Advanced Meter Infrastructure and Meter Placement project - Phase I.
FINANCIAL SUMMARY
The Advanced Meter Infrastructure and Meter Placement project - Phase I (UH22001) is eligible to receive $4,273,925 in USBR WaterSMART Program grant funding. If funded, the required non-federal cost share of at least 50 percent will consist of $4,273,925 in MUD funding, totaling a minimum project cost of $8,547,850. The total approved project budget is $17,220,369.72.
Grant funding for this project is expected to be available in FY 2025 through FY 2027. Financial participation in other state and federal grant activities will be reviewed by the Department as additional opportunities become available.
There is no impact to the General Fund, or any other unrestricted fund, from this action.
Attachment A - WEEG-008 City of Stockton