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RESOLUTION APPROVING SUBMITTAL OF THE INTEGRATED REGIONAL WATER MANAGEMENT IMPLEMENTATION GRANT PROGRAM APPLICATION TO THE DEPARTMENT OF WATER RESOURCES
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RECOMMENDATION
It is recommended that the City Council adopt a resolution approving submittal of a grant application to the Department of Water Resources for the Integrated Regional Water Management Implementation (IRWM) Grant Program.
It is also recommended that the City Manager be authorized to take appropriate actions to carry out the purpose and intent of this resolution.
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Summary
The California Department of Water Resources (DWR) is coordinating the IRWM Implementation Grant Program. IRWM is a collaborative effort that crosses jurisdictional, watershed, and political boundaries to manage water resources in California. The intent of this grant program is to improve regional water self-resilience and stimulate water agencies to collaborate in managing a region’s water resources to reduce reliance on the Sacramento-San Joaquin Delta.
The City of Stockton is one of the 16-member Groundwater Sustainability Agencies (GSA) that make up the Eastern San Joaquin Groundwater Authority (GWA). The GWA has an adopted Groundwater Sustainability Plan (GSP) including 41 projects that are eligible for the IRWM Grant Program funds. The GWA grant application will support projects from the North San Joaquin Water Conservation District, San Joaquin County (Zone 2), and the City of Stockton. Each of the project proponents is required to adopt resolutions as Local Project Sponsors (LPS) to be included with the grant application. If approved by DWR, grant funding will be used for the design and construction of the Delta Water Treatment Plant Groundwater Recharge Improvements Project that is currently under development.
Staff recommends that the City Council adopt a resolution approving the submission of a $2,000,000 grant application and execute a LPS Cost Share Agreement, as part of the GWA combined grant application, to the DWR for the IRWM Implementation Grant Program.
DISCUSSION
Background
The IRWM Implementation Grant Program provides funding for implementation projects that meet the intent of Proposition 1, Chapter 7, also known as the Water Quality, Supply, and Infrastructure Improvement Act of 2014. Proposition 1, Chapter 7, authorizes $7.545 billion in general obligation bonds to fund ecosystem, watershed protection and restoration, water supply infrastructure projects, including surface and groundwater storage, and drinking water protection. The DWR is managing the IRWM Implementation Grant Program and awarding grants in two funding rounds. Proposition 1 Round 2 solicitation will make approximately $192 million of the $7.545 billion available across the state for eligible implementation projects.
To apply for the IRWM Implementation Grant Program, project proponents such as the City of Stockton must coordinate participation through their established Integrated Regional Water Management Group (Regional Group), and the Regional Group must in turn coordinate with other groups within the Proposition 1 IRWM Funding Area. The City of Stockton is a member of the established Greater San Joaquin County IRWM Region (GSJC IRWM Region). The GSJC IRWM Region was granted roughly $6,500,000. The GSJC IRWM Region determined that the City of Stockton will be granted $2,000,000 of the $6,500,000 for the Delta Water Treatment Plant Groundwater Recharge Project.
Present Situation
The Eastern San Joaquin (ESJ) Subbasin has been designated by DWR as a Critically Over-drafted Basin, and the GWA is eligible to submit a grant application and accompanying spending plan on behalf of the ESJ Subbasin GSAs.
The GSJC IRWM Region needs to prepare a grant application to DWR for these funds. San Joaquin County will serve as the grantee and contract directly with DWR. The City of Stockton will be the LPS for the grant project and will contract directly with San Joaquin County with an LPS Cost Share Agreement (Exhibit 1 to the Resolution). The $2,000,000 is non-competitive and will become available to the City once the application is approved by the DWR. The two other LPS involved in this grant are San Joaquin County (Zone 2) and the North San Joaquin Water Conservation District.
With Council approval, the Municipal Utilities Department staff will prepare and submit a grant application for up to $2,000,000 as part of the Greater San Joaquin IRWM Region grant application package to the DWR for the Proposition 1 Round 2 IRWM Implementation Grant Program. If approved by DWR, grant funding will be used for the design and construction of the Delta Water Treatment Plant Groundwater Recharge Improvements Project that is currently under development.
Staff recommends that the City Council adopt a resolution to approve the submission of a $2,000,000 grant application and execute a LPS Cost Share Agreement as part of the GWA combined grant application package, to the DWR for the IRWM Implementation Grant Program.
FINANCIAL SUMMARY
City-specific application preparation activities will be funded by the City. Funding to support joint application preparation activities is estimated to be $9,000 and will be split evenly between the City of Stockton, San Joaquin County (Zone 2) and the North San Joaquin Water Conservation District. Furthermore, grant administration activities will be supported by the City and may be up to 6% of the amount awarded to the City. The amount to be awarded to the City is estimated to be $2,000,000.
Grant funding will be available in fiscal years 2022-23 through 2026-27. Financial participation in the grant activities will be reviewed and approved under the annual Municipal Utilities Department budgeting process.
There is no impact to the General Fund, or any other unrestricted fund, from this action.