For City Council and Rialto Utility Authority Meeting September 10, 2024
TO: Honorable Mayor and City Council
FROM: G. Michael Milhiser, Interim City Manager
AUTHOR: Toyasha Sebbag, Assistant to the City Manager
Title
Request City Council and Rialto Utility Authority Board to authorize Staff to Submit a Grant Application to the Santa Ana Watershed Project Authority for Proposition 1, Round 2 grant funds for a Septic to Sewer Project in the amount of $319,000.
Body
RECOMMENDATION
Staff recommends that the City Council and Rialto Utility Authority Board authorize Staff to Submit a Grant Application to the Santa Ana Watershed Project Authority for Proposition 1, Round 2 grant funds for a Septic to Sewer Project in the amount of $319,000
BACKGROUND
On November 4, 2014, California voters approved Proposition 1, the Water Quality, Supply, and Infrastructure Improvement Act of 2014. Proposition 1 authorized $510 million in Integrated Regional Water Management (IRWM) funding. California was divided into 12 funding regions to allocate the funding with Rialto falling into funding Region 5 - Santa Ana Sub-Region.
The IRWM Grant Program is designed to encourage integrated regional strategies for the management of water resources and to provide funding for programs and projects that support local IRWM planning and implementation. IRWM serves as the mechanism for the Department of Water Resources (DWR) to administer Proposition (water bond) funding to projects that help meet the long-term water needs of the state. The Santa Ana Watershed Project Authority (SAWPA) is the lead agency for the Santa Ana Sub-Region funding, and has created, and implemented the One Water One Watershed (OWOW) Integrated Regional Water Management (IRWM) Program for the region.
On November 24, 2015, the City of Rialto adopted Resolution No. 6855, the “One Water One Watershed (OWOW) 2.0 Plan”, the Integrated Regional Water Management Plan (IRWMP) for the Santa Ana River Watershed, which made the City eligible to apply for and receive IRWM Region 5 funding.
In May 2024, SAWPA notified staff that a grant applicant for the Proposition 1, Round 2 IRWM Disadvantaged Communities (DAC) Grant Funds under General Implementation Projects was no longer available to participate in the joint grant funding awarded to SAWPA by the Department of Water Resources (DWR). As a result, SAWPA reached out to the City/RUA inquiring if the City/RUA was interested in submitting a project scope for a replacement project.
On August 28, 2024, the Water Subcommittee reviewed a list of four (4) potential septic to sewer conversion projects and provided feedback to proceed with a project for Area No. 3 (ATTACHMENTS 1 and 2).
ANALYSIS/DISCUSSION
On November 14, 2023, the City/RUA authorized the submission of a grant application to the State Water Resources Control Board (SWRCB) for the Septic to Sewer Disadvantaged Communities Project Grant. This grant, which is still pending approval, could take up to three years for funding authorization. The grant aims to fund $370,000 for a detailed analysis of transitioning approximately 229 residential properties in disadvantaged portions of the city from septic systems to Rialto’s sewer system. The study will involve research, data collection, and analysis to confirm septic properties and evaluate the technical, economic, and environmental aspects of connecting to the sewer system. The parcels in question are identified as Areas No. 9, 11, 13, 14, and 15 (ATTACHMENT 1).
After omitting disadvantaged parcel locations from potential funding, the Water Subcommittee, on August 28, 2024, reviewed the remaining projects and provided feedback on the most suitable septic to sewer project location to leverage the grant funding.
The ideal project is Area No. 3, referenced in ATTACHMENT 2, and is located north of the 210 freeway, on Cheshire Street, east of Ayala Dr., and west of N. Beechwood Ave. This area includes converting 12 residential properties from septic and connecting them to RUA’s sewer system, the construction of 650 linear feet of sewer lines, and 2 manholes, with an estimated total project cost of $500,000.
If SAWPA accepts the project, it will be submitted to DWR for final approval as a replacement project. Additionally, if DWR approves the project, staff will bring forward a contract amendment with SAWPA for grant funding.
ENVIRONMENTAL IMPACT
This request is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 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
Approval of the proposed action also complies with the following City of Rialto Guiding Principles, General Plan Goals and Policies:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW
The City Attorney has reviewed the staff report.
FINANCIAL IMPACT:
Operating Budget Impact
Management of the Grant Agreement, including compliance with grant requirements, preparation and submission of supporting documents, and coordination with the Integrated Regional Water Management regional manager, are reimbursable costs. This includes the preparation of invoices and relevant supporting documentation for submittal to the Department of Water Resources (DWR) via the Grantee. If funding remains after covering construction costs, these expenses may be reimbursed. If no funding is available from the grant, these costs will be considered in-kind staff contributions to the project costs.
Capital Improvement Budget Impact
If the application is approved, staff will return to the City Council/RUA for a Capital Improvement Budget appropriation to fund additional costs not covered by the grant for the septic to sewer conversion of Area No. 3. Additional grant opportunities will also continue to be explored.