HomeMy WebLinkAbout20E - AA- NATURAL RESOURCES GRANTREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
OCTOBER 1, 2019
TITLE:
APPROVE APPROPRIATION
ADJUSTMENT ACCEPTING CALIFORNIA
DEPARTMENT OF NATURAL RESOURCES
GRANT FUNDS FOR THE ADVANCED
METER INFRASTRUCTURE PROJECT IN
THE AMOUNT OF $4,000,000
(NONGENERAL FUND)
{STRATEGIC PLAN NO. 6, 11
/s/ Kristine Ridge
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 15' Reading
❑ Ordinance on 2i1 Reading
❑ Implementing Resolution
❑ Set Public Hearing For
1111100 0411101MAa]Ift
FILE NUMBER
Approve an appropriation adjustment accepting California Department of Natural Resources grant
funds in the amount of $4,000,000 into the Public Works Water Quality & Control Fund,
Miscellaneous Revenue, State Grant -Direct revenue account and appropriating $2,000,000 into
the Public Works Water Quality & Control Fund, CA Natural Resources Grant, Improvements Other
Than Building for FY19-20 expenditure and the remaining $2,000,000 into Reserve Appropriation
expenditure accounts for future year expenditures.
DISCUSSION
On December 4, 2018, Council authorized staff to submit a grant application to the California
Department of Natural Resources for a General Fund Specified Grant for the planned Advanced
Metering Infrastructure (AMI) project. The AMI project involves the replacement of the City's
existing water meters with new smart meters, which are capable of being read automatically and
provide the consumer with up-to-date information on their water use. The proposed project is
extensive involving the replacement of approximately 45,000 meters, the integration of new
software and database systems, and the installation of a network of data collectors and
transmitters.
In February 2019, the City was awarded $4,000,000 in grant funding for the AMI Project. The project
is currently in the planning and design phase with software integration and a construction contracts
anticipated to be recommended for award in late 2019 and early 2020, respectively. Grant funds
received for this project may be utilized for all phases of the project. The total project cost is
estimated to be $17.8 million and staff continues to seek additional grant funds to further reduce
the net cost impact to our ratepayers.
20E-1
Appropriation Adjustment Accepting California Department of Natural Resources Grant Funds
for the AMI Project
October 1, 2019
Page 2
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #6 - Community Facilities &
Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City
assets).
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
Approval of the requested appropriation adjustment will accept $4,000,000 in California
Department of Natural Resources grant funds into the Public Works Water Quality & Control Fund,
Miscellaneous Revenue, State Grant -Direct revenue account (No. 16417002-52025) and
appropriate $2,000,000 into the Public Works Water Quality & Control Fund, CA Natural Resources
Grant, Improvements Other Than Building for expenditure account (No. 16417642-66220) for
expenditure in FY19-20 and the remaining $2,000,000 into Reserve Appropriation expenditure
account (No. 16417642-69011) for future year expenditure.
Funds will be budgeted for expenditures as follows:
Accounting Unit -
Accounting Unit - Account No.
Fiscal Year
Account No.
Fund Description
Description
Amount
Project No.
REVENUES
FY 2019-20
16417002-52025
PW Water Quality
Miscellaneous Revenue — State
$4,000,000
& Control
Grant -Direct
EXPENDITURES
PW Water Quality
CA Natural Resources Grant —
FY 2019-20
16417642-66220
& Control
Improvements Other Than
$2,000,000
Building
FY 2019-20
16417642-69011
PW Water Quality
CA Natural Resources Grant —
$2,000,000
& Control
Reserve Appropriation
TOTAL EXPENDITURES:
$4,000,000
Fuad Sweiss, PE, PLS
Executive Director
Public Works Agency
FSS/NS/RR
Exhibit: 1. Grant Award Agreement
APPROVED AS TO FUNDS AND ACCOUNTS:
Kathryn Downs, CPA
Executive Director
Finance and Management Services Agency
20E-2
STATE OF CALIFORNIA NATURAL RESOURCES AGENCY
GRANT AGREEMENT
GRANTEE NAME:
City of Santa Ana
PROJECT TITLE:
City of Santa Ana Advanced Metering Infrastructure
AUTHORITY:
Senate Bill No. 840 Specified Funding FY 201812019
PROGRAM:
General Fund Specified Grant Projects
AGREEMENT NUMBER:
GF1806-0
TERM OF LAND TENURE:
25 years from date of project completion as evidenced by Project Certification Form
PROJECT PERFORMANCE
PERIOD IS: 2/1/2019 to 2128/2021
Under the terms and conditions of this agreement, the applicant agrees to complete the project as described in the project scope set forth in Exhibit A and
any subsequent amendments, and the State of California, acting through the Natural Resources Agency pursuant to Senate Bill No. 840, agrees to fund the
project up to the total grant amount indicated.
PROJECT DESCRIPTION:
See project description on page 1 and Exhibit A of the Agreement
Total State Grant not to exceed $4,000,000.00
(or project costs, whichever is less)
The Special and General Provisions attached are made a part of and incorporated into the Agreement.
CITY OF SANTA ANA STATE OF CALIFORNIA
16 If1�J1 NATURAL RESOURCES AGENCY
By )4 t! k B
Nabil Saba 1 lie Alvis
Title Water Resources Manager Title Deputy Assistant Secretary
Date �'l 3 O 1 z' ! el Date oaz
CERTIFICATION OF FUNDING
AMOUNT OF ESTIMATE
AGREEMENT NUMBER
FUND
FUNDING
$4,000,000.00
GF1806-0
0001— General Fund
ADJ. INCREASING
FI$Cal
PO Number
ENCUMBRANCE
$0,00
ADJ. DECREASING
FUNCTION
ENCUMBRANCE
$0.00
Local Assistance
UNENCUMBERED BALANCE
REF NUMBER
FUND
EN YEARNT
ACCOUNT NUMBER
ALTACCOUNT
$0,00
101
0001
2018
5432000
000000000
PROGRAM
PCBU
PROJECT
ACTIVITY
RPTG
SVC LOC
AGENCY
I
BUDGET
STRUCTURE
USE
PERIOD
0320
0540
1 0540GF18060
31819
05400001
31819
1
2018
I hereby certi onal knowledge that budgeted funds are available for this encumbran / Z
SIGNATURE 0rACCOUNTING 01,FC D E
e 13
Agreement No. GF1806-0
GRANT AGREEMENT
State of California - The Natural Resources Agency
Grantee Name: City of Santa Ana
Project Title: City of Santa Ana Advanced Metering Infrastructure
Agreement Number: GF1806-0
Authority: Senate Bill No. 840 Specified Funding FY 2018/2019
Program: General Fund Specified Grant Projects
PROJECT DESCRIPTION
City of Santa Ana's installation and implementation of an Advanced Metering Infrastructure (AMI)
System providing real-time operational modeling information to track water customer demand and
use; establishing a distribution leak detection system and providing water consumption data to
allow approximately 1,000 customers and City to manage water consumption. This is Phase I of a
larger project.
A detailed project scope and activities, project schedule and project budget are described and
attached hereto as Exhibit A.
Grant Funds are to be used to support capital asset projects in accordance with the provisions
contained in the Procedural Guide for General Fund Specified Grant Projects and this
Agreement.
TERMS AND CONDITIONS OF GRANT
Special Provisions
1. Recipients of grant funds shall post signs acknowledging the source of the funds. Size,
location and number of signs shall be approved by the State.
2. The Grantee may be required to record Deed Restrictions, incorporating by reference this
Grant Agreement and giving public notice that the Grantee received funds under this
agreement in order to assist Grantee in developing the real property and that, in
consideration for the receipt of the grant funds, the Grantee has agreed to the terms of this
agreement.
General Provisions
A. Definitions
1. The term "Act" means Assembly Bill No. 97.
2. The term "Acquisition" means obtaining a fee interest or any other interest, including
easements, leases, and development rights.
3. The term "Agreement" means this Grant Agreement.
Agreement No. GF1806-0
3. Grantee shall complete the project in accordance with the Project Performance Period set
forth on the signature page, unless an extension has been formally granted by the State and
under the Terms and Conditions of this agreement. Extensions may be requested in
advance and will be considered by State, at its sole discretion, in the event of circumstances
beyond the control of the Grantee, but in no event beyond May 1, 2024.
4. Grantee shall at all times ensure that project complies with the California Environmental
Quality Act (CEQA) (Public Resources Code, Division 13, commencing with section
21000, et. seq., Cal Code Regs tit. 14, section 15000 et. seq.) and all other
environmental laws, including but not limited to obtaining all necessary permits. Grant
funds will not be disbursed before the close of the period for legal challenge under
CEQA.
Grant funds for planning and document preparation may be available sooner if included
in the grant project scope (Exhibit A) and approved by the State. CEQA compliance shall
be completed within one (1) year from the Grant Agreement start date, unless an
extension is granted by the State.
Changes to the scope resulting from CEQA compliance are permitted provided the State
determines that the project continues to meet all objectives of the General Fund Specified
Grant Project and is consistent with the intent cited in the original Application.
If a grantee's project is disapproved on grounds related to the California Natural
Resource Agency's CEQA determination, the grantee shall have the option of either: (1)
reimbursing the Natural Resources Agency for all state -reimbursed preliminary costs
(e.g., planning, design, etc.), or (2) relinquishing any planning/design documents,
including all copies, reproductions, and variations resulting from said funding, without a
license to use or otherwise retain in any form.
5. Projects must comply with any applicable laws pertaining to prevailing wage and labor
compliance.
6. Grantee certifies that the project does and will continue to comply with all current laws and
regulations which apply to the project, including, but not limited to, legal requirements for
construction contracts, building codes, environmental laws, health and safety codes, and
disabled access laws. Grantee certifies that, prior to commencement of construction; all
applicable permits and licenses (e.g., state contractor's license) will have been obtained.
7. Grantee shall provide access by the State upon 24-hours' notice to determine if project work
is in accordance with the approved project scope, including a final inspection upon project
completion.
8. Prior to the commencement of any work, Grantee agrees to submit in writing to the State for
prior approval any deviation from the original project scope per Exhibit A and the application.
Changes in project scope must continue to meet the need cited in the original application or
they will not be approved. Any modification or alteration in the project as set forth in the
application on file with the State must be submitted to the State for approval. Any
modification or alteration in the project must also comply with all current laws and
regulations, including but not limited to CEQA.
9. Grantee shall provide for public access and/or educational features where feasible.
10. Grantee must have (1) fee title, (2) leasehold, or (3) other interest to project lands and
demonstrate to the satisfaction of the State that the proposed project will provide public
2Dt-5
Agreement No. GF1806-0
4. The State reserves the right to request reimbursement of any funds spent on the project,
even funds deemed eligible costs, if the project is not completed in accordance with the
Grant Agreement and the guidelines.
5. Except as otherwise provided herein, the Grantee shall expend grant funds in the manner
described in the Exhibit A approved by the State. The total dollars of a category in the
project budget may be increased by up to ten percent (10%) through a reallocation of funds
from another category, without approval by the State. However, the Grantee shall notify the
State in writing when any such reallocation is made, and shall identify both the item(s) being
increased and those being decreased. Any cumulative increase or decrease of more than
ten percent (10%) from the original budget in the amount of a category must be approved by
the State. In any event, the total amount of the grant funds may not be increased, nor may
any adjustments exceed the limits for management costs as described in the Application
Guidelines.
D. Project Administration
1. Grantee shall promptly provide project reports and/or photographs upon request by the
State. In any event Grantee shall provide the State a report showing total final project
expenditures with the final payment request and required closing documents.
2. Grantee shall make property and facilities acquired or developed pursuant to this agreement
available for inspection upon request by the State.
3. Grantee shall use any income earned by the Grantee from use of the project to further
project purposes, or, if approved by the State, for related purposes within the jurisdiction.
4. Grantee shall submit all documentation for project completion, including a notice of
completion as applicable and final reimbursement within ninety (90) days of project
completion, but in no event any later than May 1, 2024.
5. Final payment is contingent upon State verification that project is consistent with project
scope as described in Exhibit A, together with any State approved amendments.
6. This agreement may be amended by mutual agreement in writing between Grantee and
State. Any request by the Grantee for amendments must be in writing stating the
amendment request and reason for the request. The Grantee shall make requests in a
timely manner and in no event less than sixty (60) days before the effective date of the
proposed amendment.
7. Grantee must report to the State all sources of other funds for the project.
E. Project Termination
1. The State reserves the right to terminate a Grant Agreement for any reason at any time.
There are no vested rights or entitlements to funding that a Grantee can or should rely upon,
and once a notice of termination is provided to the Applicant, only authorized and eligible
work prior to that notification of termination will be paid by the State.
2. Prior to the completion of project construction, either party may terminate this agreement
by providing the other party with thirty (30) days' written notice of such termination. The
State may also terminate this Grant Agreement for any reason at any time if it learns of or
otherwise discovers that there is a violation of any state or federal law or policy by
.b:W
Agreement No. GF1806-0
3. Grantee and State agree that in the event of judgment entered against the State and
Grantee because of the gross negligence of the State and Grantee, their officers, agents or
employees, an apportionment of liability to pay such judgment shall be made by a court of
competent jurisdiction. Neither party shall request ajury apportionment.
G. Financial Records
1. Grantee shall maintain satisfactory financial accounts, documents and records for the project
and to make them available to the State for auditing at reasonable times. Grantee shall also
retain such financial accounts, documents and records for three (3) years after final payment
and one (1) year following an audit.
2. Grantee agrees that during regular office hours, the State and its duly authorized
representatives shall have the right to inspect and make copies of any books, records or
reports of the Grantee pertaining to this agreement or matters related thereto. Grantee shall
maintain and make available for inspection by the State accurate records of all of its costs,
disbursements and receipts with respect to its activities under this agreement.
3. Grantee shall use applicable Generally Accepted Accounting Principles, unless otherwise
agreed to by the State.
H. Use of Facilities
The real property (including any portion of it or any interest in it) may not be sold or
transferred without the written approval of the State of California, acting through the
Natural Resources Agency, or its successor, provided that such approval shall not be
unreasonably withheld as long as the purposes for which the grant was awarded are
maintained.
2. Grantee shall maintain, operate and use the project in fulfillment of the purpose funded
pursuant to this grant for a minimum of 25 YEARS, consistent with the Land Tenure/Site
Control requirements included in the Application Guidelines. The Grantee, or the Grantee's
successor in interest in the property, may assign without novation the responsibility to
maintain and operate the property in accordance with this requirement only with the written
approval of the State. Grantee may be excused from its obligations for operation and
maintenance of the project site only upon the written approval of the State for good cause.
"Good cause" includes, but is not limited to, natural disasters that destroy the project
improvements and render the project obsolete or impracticable to rebuild.
3. Grantee shall use the property for the purposes for which the grant was made and shall
make no other use or sale or other disposition of the property. This agreement shall not
prevent the transfer of the property from the Grantee to a Public Agency, if the successor
public agency assumes the obligations imposed by this agreement.
4. If the use of the property is changed to a use that is not permitted by the agreement, or if
the property is sold or otherwise disposed of, at the State's sole discretion, an amount
equal to (1) the amount of the Grant (2) the Fair Market Value of the real property, or (3)
the proceeds from the sale or other disposition, whichever is greater, may be reimbursed
to the State. If the property sold or otherwise disposed of is less than the entire interest
in the property funded in the Grant, an amount equal to either the proceeds from the sale
or other disposition of the interest or the Fair Market Value of the interest sold or
otherwise disposed of, whichever is greater, shall be reimbursed to the State.
5. The Grantee shall not use or allow the use of any portion of the real property for
mitigation without the written permission of the State.
L0 C'7
Agreement No. GF1806-0
N. Disputes
If the Grantee believes that there is a dispute or grievance between Grantee and the State
arising out of or relating to this agreement, the Grantee shall first discuss and attempt to
resolve the issue informally with the Agency Grants Administrator. If the issue cannot be
resolved at this level, the Grantee shall follow the following procedures:
If the issue cannot be resolved informally with the Agency Grants Administrator, the
Grantee shall submit, in writing, a grievance report together with any evidence to the
Deputy Assistant Secretary for Bonds and Grants for the California Natural Resources
Agency. The grievance report must state the issues in the dispute, the legal authority, or
other basis for the Grantee's position and the remedy sought. Within ten (10) working
days of receipt of the written grievance report from the Grantee, the Deputy Assistant
Secretary shall make a determination on the issue(s) and shall respond in writing to the
Grantee indicating the decision and reasons therefore. Should the Grantee disagree with
the Deputy Assistant Secretary's decision, the Grantee may appeal to the Assistant
Secretary for Administration and Finance for the Natural Resources Agency.
2. The Grantee must submit a letter of appeal to the Assistant Secretary explaining why the
Deputy Assistant Secretary's decision is unacceptable. The letter must include, as an
attachment, copies of the Grantee's original grievance report, evidence originally
submitted, and response from the Deputy Assistant Secretary. The Grantee's letter of
appeal must be submitted within ten (10) working days of the receipt of the Deputy
Assistant Secretary's written decision. The Assistant Secretary or designee shall, within
twenty (20) working days of receipt of Grantee's letter of appeal, review the issues raised
and shall render a written decision to the Grantee. The decision of the Assistant
Secretary or designee shall be final.
O. Audit Requirements
Grant projects are subject to audit by the State annually and for three (3) years following the final
payment of grant funds. The audit shall include all books, papers, accounts, documents, or other
records of the Grantee, as they relate to the project for which the grant funds were granted.
EXHIBIT A
STATE OF CALIFORNIA NATURAL RESOURCES AGENCY
GRANT AGREEMENT
General Fund Specified Grant Projects
Grantee Name: City of Santa Ana
Project Title: City of Santa Ana Advanced Metering Infrastructure
Agreement Number: GF1806-0
Project Scope:
City of Santa Ana's installation and implementation of an Advanced Metering Infrastructure (AMI) System
providing real-time operational modeling information to track water customer demand and use;
establishing a distribution leak detection system and providing water consumption data to allow
individuals to manage their water consumption. This is Phase I of a larger project. Elements funded by
General Fund grant include the following:
• Planning for AMI project deployment and implementation
• Procuring AMI system including developing system specifications and bid documents
• Installing at least one (under acknowledgement sign
• Installing approximately 4,000 of AMI meters to primarily high -use customers
• Retrofitting and updating meter boxes and structures as needed to allow for AMI signal
transmission
• Installing approximately 4,000 of AMI Radios
• Installing AMI data collection infrastructure dependent on system selected
• Installing approximately 10 AMI Towers
• Integrating software, data and related information technology activities and improvements
• Installing software and systems integration (AMI Head -in System, HES and Meter Data
Management System, MDMS). Specific HES and MDMS software make/model will be specific to
the AMI system selected (to be determined).
• Deploying interactive customer portal to all users to monitor and track individual water usage
• Training staff to use and inspect AMI system
Project Schedule:
Activity Description
Timeline
Preliminary work on the project- Contract with an AMI Project
Manager
February -April 2019
Development of Implementation Plan and bid documents to
purchase AMI Technology and Software
February -May 2019
Environmental Review (CEQA) City of Santa Ana- submit
CEQA Document to the State
Already completed via NOE submittal
Public Works Encroachment Permit for Installation of AMI
Collector Towers
April -May 2019
Award Contract for Meter Installation (Phase 1) and Software
Development
June 2019
Provide construction staking; mobilization as required
June -July 2019
Review and approve shop drawings for materials required to
construct the project
July -August 2019
Submit final site design/plans/specifications to State
September 2019
Purchase equipment, conduct installation, train staff, inspect
installation
October 2019-February-2020
Submit evidence of bond acknowledgement sin
February 2020
Submit Project Closeout package with final Payment Request
to State
Aril 2020
Cost Estimate: See Exhibit Al
2bbE-9
Exhibit A-1: Cost Estimate
City of Santa Ana
City of Santa Ana Advance Metering Infrastructure
GF1806-0
Project Elements
Total Project
Costs
General Fund
Grant
NON -CONSTRUCTION COSTS
Direct Project Management & Administration Staff Time (direct costs only)
$150,000
$150,000
Develop Implementation Plan and Bid Documents
$250,000
$250,000
SUB -TOTAL Non -Construction Costs (not to exceed 25% of the grant)
$400,000
00
CONSTRUCTION COSTS
Funder Acknowledgement Sign and Installation
$920
0
Installation of AMI Meters
$1,250,000
0
Installation of AMI Radios
$750,000
0
Installation of AMI Towers
$500,000
0
]$4
Software and Systems Integration and Training (AM] Head -in System, HES and
Meter Data Management System, MDMS). Specific HES and MDMS software
make/model will be specific to the AMI system selected (to be determined).
$750,000
0
SUB- TOTAL Construction Costs
$3,250,920
0
Contingency (not to exceed 10% of grant)
$349,080
0
PROJECT GRAND TOTAL
$4,000,000
0
*Only direct project management costs are eligible; no overheard/indirect costs are reimbursable. In-service payroll may not include a
'billable rate' or administrative cost allocation.
**All invoices and receipts for all project expenditures from all funding sources will be retained and made available in the event of any
future State Audits.
20E-10