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APPROVE SUBMITTAL OF A GRANT APPLICATION TO THE 2023 UNITED STATES BUREAU OF RECLAMATION WATERSMART: PLANNING AND PROJECT DESIGN GRANT: ROUND 1
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RECOMMENDATION
It is recommended that the City Council adopt a resolution approving submittal of a grant application to the United States Bureau of Reclamation WaterSMART: Planning and Project Design Grant Program: Round 1.
It is further recommended that the City Manager is authorized to take all necessary and appropriate actions to carry out the purpose and intent of this resolution.
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Summary
The US Bureau of Reclamation (USBR) WaterSMART: Planning and Project Design Grant Program: Round 1 will support project-specific design for projects to improve water resources management or water supplies. Applicants are required to adopt resolutions to be included with or follow the grant application. If approved by USBR, the grant will help fund the engineering design of the Delta Water Treatment Plant Groundwater Recharge Improvements Project that is currently under development. This project will help develop additional water supply for the City and prevent further groundwater overdraft.
Staff recommends that the City Council adopt a resolution approving the submission of a $400,000 grant application and authorize the City Manager to enter into a cooperative agreement and administer a grant for the 2023 USBR WaterSMART: Planning and Project Design Grant Program: Round 1.
DISCUSSION
Background
In 2014, the California Legislature passed comprehensive groundwater legislation creating the Sustainable Groundwater Management Act of 2014 (SGMA). The SGMA required the formation of Groundwater Sustainability Agencies (GSA) to have jurisdiction over local groundwater basins. The City of Stockton is one of 16 GSAs that make up the Eastern San Joaquin Groundwater Authority (GWA). The GWA developed the Eastern San Joaquin Groundwater Sustainability Plan (GSP) and subsequently received grant funding from the California Department of Water Resources (DWR) to partially fund eligible projects for its participants including design and construction of the City of Stockton’s Delta Water Treatment Plant Groundwater Recharge Improvements Project (Recharge Project).
The USBR WaterSMART: Planning and Project Design Grant Program: Round 1 provides federal funding to complement non-federal funding for project-specific design for projects to improve water resources management or water supplies. The grant program provides up to $400,000 per project and requires a 50 percent matching non-federal cost-share.
The Municipal Utilities Department (MUD) Delta Water Treatment Plant Recharge Project design component is eligible for funding by the USBR. If funded, the required non-federal cost-share will partially consist of the DWR grant partial funding that has already been awarded to the GWA and funds from the MUD.
Present Situation
The Eastern San Joaquin Subbasin has been designated by DWR as a critically over-drafted basin, and the GWA received grant funding from DWR to partially fund eligible projects for its participants, including design and construction of the MUD Recharge Project.
Staff recommends that the City Council adopt a resolution approving the submission of a $400,000 grant application and authorize the City Manager to enter into a cooperative agreement and administer a grant for the 2023 USBR WaterSMART: Planning And Project Design Grant Program: Round 1.
FINANCIAL SUMMARY
The Recharge Project is eligible to receive $400,000 of project design funding by the USBR. If funded, the required non-federal cost share of at least 50 percent will consist of $225,000 from a DWR grant already awarded to the City through the GWA and an additional $188,000 from MUD with a total a project cost of $813,000.
Grant funding will be available in FY 2024-25 through FY 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.