BOARD AGENDA MEMORANDUM
SUBJECT:Title
Adopt Resolution Approving the Application for Grant Funds from the United States Bureau of Reclamation (USBR) for Expanded Water Conservation Services in an Amount up to $2,000,000 from Fiscal Years 2023-2025, and Authorize the CEO, or Designee, to Accept the Grant, Negotiate, and Execute a Grant Agreement with USBR for the Drought Emergency Project, Project Number 91061008, and Other Related Actions.
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RECOMMENDATION:Recommendation
A. Approve the grant application submitted by the Chief Executive Officer (CEO) on July 28, 2022, to the United States Bureau of Reclamation for grant funds;
B. Authorize the CEO, or designee appointed by the CEO if the grant is awarded to Santa Clara Valley Water District, to:
i. Accept the grant and negotiate and execute a grant agreement with USBR for expanded water conservation services, provided all grant requirements can be met;
ii. Sign and submit any required documents, invoices, and reports to USBR to obtain grant fund reimbursements to be made pursuant to the Grant Agreement; and
iii. As needed, to provide management and support services required for the performance of the work and administration pursuant to the grant agreement, as deemed necessary and appropriate; and
C. Adopt the Resolution of the Board of Directors of the Santa Clara Valley Water District APPROVING THE APPLICATION FOR GRANT FUNDS FROM THE UNITED STATES BUREAU OF RECLAMATION FOR EXPANDED WATER CONSERVATION SERVICES.
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SUMMARY:
Water conservation is a proven measure toward enhancing local water supply reliability. Santa Clara Valley Water District (Valley Water) has provided a robust water conservation program since 1992. In November 2019, the Board approved the 2040 Water Supply Master Plan that updated the long-term conservation targets to 99,000 acre-feet per year (AFY) and 109,000 AFY by 2030 and 2040, respectively. In October 2021, the Water Conservation and Demand Management Committee received Valley Water’s updated Water Conservation Strategic Plan to guide staff on how best to achieve the long-term targets.
During droughts, reducing demand through conservation is the first and most cost-effective measure that water agencies rely upon to address a water shortage while also contributing to long-term water supply reliability. In response to the ongoing extremely challenging drought conditions, Valley Water is seeking a $2,000,000 grant from the United States Bureau of Reclamation (USBR) to support its water conservation and demand management programs. The increased funding would mitigate rising water rates and would allow for greater county-wide participation which would ultimately benefit disadvantaged areas of Santa Clara County.
In response to Valley Water’s efforts to promote water conservation along with extensive outreach efforts, participation in Valley Water’s conservation programs has skyrocketed and outside funding is needed to sustain and expand services to even more residents.
This grant opportunity can provide a supplemental funding source to minimize potential impacts on water rates in response to Valley Water’s drought response which would ultimately benefit disadvantaged areas of Santa Clara County. The grant may also increase the likelihood that Valley Water’s water conservation programs remain appropriately funded to maximize participation during the current drought. Funding will be utilized for the Fixture Replacement Program to replace inefficient plumbing fixtures in multifamily, commercial, industrial, and institutional properties; the Online Shopping Cart (eCart) Program; and Landscape Rebate Program’s irrigation equipment, rainwater capture, and large landscape lawn to mulch rebates. Valley Water may use grant funding to increase outreach and provide expanded services in the disadvantaged areas in Santa Clara County.
The grant application submittal deadline was July 28, 2022. As a condition of the grant application, USBR requires the Board to adopt a resolution authorizing staff to negotiate and execute the grant agreement within 30 days of the grant application deadline (Attachment 1). Staff prepared the full grant application and the CEO executed and submitted the application and the supporting documentation to USBR in order to meet the submittal deadline, and staff is now seeking a Board resolution approving and authorizing submittal of the grant application and Board approval of related actions. The grant application that was submitted to USBR on July 28, 2022, is attached. (Attachment 2). If Valley Water is successful in the application, staff will review and confirm all grant requirements to ensure ongoing compliance with the terms and conditions, prior to executing the grant.
ENVIRONMENTAL JUSTICE IMPACT:
There are no Environmental Justice Impacts associated with this action but seeking outside funding to provide expanded water conservation services will result in benefits for all residents of Santa Clara County including disadvantaged communities. Some of the benefits for disadvantaged communities include free services and equipment to encourage water conservation, as well as access to additional water conservation resources. Grant funding could mitigate future water rate increases for all residents.
FINANCIAL IMPACT:
The total Fiscal Year 2022-23 adopted budget for the Water Conservation Program and Drought Emergency Project is $24,688,160 (Water Conservation Program, Project No. 91151001 and Drought Emergency Project, Project No. 91061008). Upon the award of the grant, the funding provided will reimburse Valley Water up to $2,000,000 of the costs associated with the fixture replacement program expenditures of $4,000,000 over three years.
CEQA:
The recommended action does not constitute a project under CEQA because it does not have the potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
Attachment 1: Resolution
Attachment 2: Grant Application
UNCLASSIFIED MANAGER:Manager
Kirsten Struve, 408-630-3138