For City Council Meeting [November 15, 2022]
TO: Honorable Mayor and City Council
APPROVAL: Marcus Fuller, City Manager
FROM: Thomas J. Crowley, P.E., Utilities Manager
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Request the City Council/Rialto Utility Authority Board 1) Adopt Resolution No. 7996 Authorizing the Grant Application, Acceptance, and Execution for the Advanced Metering Infrastructure Implementation Project with the Department of Water Resources of the State of California; and 2) Adopt RUA Resolution No. 12-22 Authorizing the Grant Application, Acceptance, and Execution for the Advanced Metering Infrastructure Implementation Project with the Department of Water Resources of the State of California.
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BACKGROUND
The 2022 Urban Community Drought Relief Program is one of three Department of Water Resources (DWRs) Drought Relief Grant Programs that offer financial assistance to address drought impacts. Funding for the Program was authorized by the Legislature amending the Budget Act of 2021; DWR was allocated $200 million for Urban Communities, $75 million for Conservation for Urban Suppliers, and $75 million for Turf Replacement. The same Budget Act also authorized $100 million for the Small Community Drought Relief Program.
ANALYSIS/DISCUSSION
The Department of Water Resources (DWR) released the final 2022 Guidelines/Proposal Solicitation Package in October 2022 and will accept applications between October 10, 2022, and January 31, 2023. Agencies awarded funding is scheduled to be announced between December 2022 and March 2023. Therefore, it is advantageous to apply for consideration early.
The Guidelines/Proposal outlines the procedures DWR will use to implement the Urban Community Drought Relief Program, which staff believes the Advanced Metering Infrastructure (AMI) project is appropriate for this grant program.
AMI is an integrated system of smart meters, communications networks, and data management systems that enables two-way communication between utilities and customers. This will help households reduce their water and energy consumption, lowering their bills and carbon emissions.
The Resolutions authorizing staff to apply for the grant, accept grant funds and execute contract documents are included in Attachments 1 and 2.
The estimated program funding is $300 million with a minimum grant opportunity of $3 million per applicant. Currently, there is no maximum grant amount; however, DWR reserves the right to establish a maximum award size depending on the applications received and funding availability.
The total cost of the AMI project is $8 million. Currently the city applied for $2 million in grant funding from the U.S. Department of Interior’s (Department) WaterSMART (Sustain and Manage America’s Resources for Tomorrow) Program, and staff was notified that an award is pending. An agreement with the Bureau of Reclamation is scheduled to be provided by February 2023. This grant comes with a 50% cost share. Therefore, the outstanding city cost portion from the WaterSMART grant would be $6 Million. The City is requesting from DWR $6 million for the remaining amount required for the project. This amount will cover the city’s 50% cost share portion and the remaining costs. of the AMI project. Must be noted that DWR may fund only a portion of the request.
ENVIRONMENTAL IMPACT
This report is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to §15378(a), a “Project” means the whole of an action, which has the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. According to §15378(b), a Project does not include (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
This action is consistent with
- Guiding Principle 1: Rialto is a Family First Community; and
- Guiding Principal 3: Rialto’s Economic Environment is Healthy and Diverse.
Specifically, items 1B and 3E:
1B. Essential community services and amenities must meet the needs and desires of our families.
3E. Rialto is committed to environmental sustainability, which means meeting the needs of the present without compromising the ability of future generations to meet their own needs.
LEGAL REVIEW:
The City Attorney reviewed and recommends approval of this staff report and resolution.
FINANCIAL IMPACT
Operating Budget Impact
None.
Capital Improvement Budget Impact
The requested action does not impact the Capital Improvement Budget.
RECOMMENDATION
Staff recommends that the City Council/Rialto Utility Authority Board 1) Adopt Resolution No. 7996 Authorizing the Grant Application, Acceptance, and Execution for the Advanced Metering Infrastructure Implementation Project with the Department of Water Resources of the State of California; and 2) Adopt RUA Resolution No. 12-22 Authorizing the Grant Application, Acceptance, and Execution for the Advanced Metering Infrastructure Implementation Project with the Department of Water Resources of the State of California.