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Home My WebLink About55D - RESO METER INFRASTRUCTUREREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: OCTOBER 15, 2019 TITLE: ADOPT RESOLUTIONS AND AUTHORIZE GRANT APPLICATION SUBMISSIONS IN AN AMOUNT UP TO $1,500,000 FOR ADVANCED METER INFRASTRUCTURE AND IN AN AMOUNT UP TO $300,000 FOR HYDROPOWER GENERATION FROM THE DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION (NON -GENERAL FUND) {STRATEGIC PLAN NO. 6, 1G} CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1"Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO /s/ Kristine Ridge FILE NUMBER CITY MANAGER RECOMMENDED ACTION 1. Adopt a Resolution authorizing the City Manager to submit a grant application to the Department of the Interior, Bureau of Reclamation's WaterSMART Water and Energy Efficiency Grants Program for the Advanced Meter Infrastructure Project in an amount of up to $1,500,000. 2. Adopt a Resolution authorizing the City Manager to submit a grant application the Department of the Interior, Bureau of Reclamation's WaterSMART Water and Energy Efficiency Grants Program for a Hydropower Generation Project in an amount of up to $300,000. DISCUSSION The Department of the Interior offers grants through its Bureau of Reclamation's WaterSMART (Sustain and Manage America's Resources for Tomorrow) Water and Energy Efficiency Grant (WEEG) Program to stretch and secure water supplies. The Federal Fiscal Year 2020 (October 1, 2019, to September 30, 2020) includes an estimated $24 million for agencies via 50/50 cost -share funding at two levels: one for up to a maximum of $1.5 million and the other for $300,000. The City is in the planning and design stages of an Advanced Meter Infrastructure (AMI) Project. The proposed AMI Project involves, among other things, the transition of approximately 45,000 existing manual -read meters to new smart meters that communicate via radio or similar technology and enable the City to implement technological enhancements such as automated meter reads, leak detection and usage notifications, and interactive customer portals. By upgrading to an AMI system, customers can be supplied with on -demand, real-time water consumption data, enabling them to make more informed decisions about their water use. Case studies have shown that 55D-1 Resolution Authorizing Grant Applications - AMI & Hydropower Generation From Department of the Interior, Bureau of Reclamation WaterSMART October 15, 2019 Page 2 communities that upgrade to AMI systems can achieve water consumption savings of up to 15 percent. In 2016, the City completed an AMI feasibility study to evaluate the applicability and costs associated with an AMI project. The feasibility study estimated the cost of fully deploying this project at approximately $14,400,000. To date, the City has secured partial financing from two grants for the AMI project for a total of $4,300,000. The first is a $4,000,000 grant from the State's General Fund Specified Grant Projects account and the second is a $300,000 Bureau of Reclamation WaterSMART grant. The AMI project meets the requirements of the Fiscal Year 2020 WaterSMART WEEG Program for an award of up to $1.5 million. If a WEEG Program grant application is successful, the funding would offset a significant portion of the remaining cost of the project. Additionally, the City of Santa Ana water system has seven connection points with the Metropolitan Water District: sites SA-1 through SA-7. In February 2019, the City completed a Water Systems Alternative Energy Feasibility Study. The study determined that three of the seven connections have adequate water flow to generate electricity via turbines. This process is called hydropower generation, and the estimated cost of implementing that at all three sites is $2,600,000. Of the three sites, site SA-1 has a hydro turbine generator, but it has reached the end of its useful life. The estimated cost of replacing the hydropower generation unit at the SA-1 location is approximately $640,000. The proposed Hydropower Generation Project would upgrade the existing hydro turbine generator to a more efficient device and would serve as a model for installations at other locations. This project meets the requirements of the $300,000 WaterSMART WEEG Program funding group. The two resolutions referenced in this Council Action (Exhibit 1 and Exhibit 2) are needed to meet the State's requirements for submitting grant applications. Adoption of the resolutions would accelerate the completion of the AMI and Hydropower Generation projects, allowing the City and its enterprise ratepayers to benefit from these service -level improvements. 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), Strategy G (develop and implement the City's Capital Improvement Program in coordination with the Community Investment and Deferred Maintenance Plans). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. 55D-2 Resolution Authorizing Grant Applications - AMI & Hydropower Generation From Department of the Interior, Bureau of Reclamation WaterSMART October 15, 2019 Page 3 FISCAL IMPACT There is no fiscal impact associated with this action. Staff will return to the City Council with a request for approval of further actions and will indicate the fiscal impact of any such awards and associated expenditures at that time. Fuad Sweiss, PE, PLS Executive Director Public Works Agency FS/NS/RR Exhibits: 1. Resolution Authorizing Grant Application for the AMI Project 2. Resolution Authorizing Grant Application for the Hydropower Generation Project 55D-3 jmf 10/9/19 RESOLUTION NO. 2019-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING AN APPLICATION FOR GRANT FUNDING BY THE BUREAU OF RECLAMATION'S WATERSMART WATER AND ENERGY EFFICIENCY GRANT PROGRAM FOR THE AUTOMATED METER INFRASTRUCTURE PROJECT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A, The City of Santa Ana provides potable water for all of the City's businesses and residents. The City charges for water used by these customers using traditional mechanical meters that must be read manually by the City and have no additional capabilities. B. The City is in the design stages of an Automated Meter Infrastructure (AMI) Project. The proposed future AMI Project involves, among other things, the replacement of existing water meters with new smart meters that communicate via radio or similar technology and enable the City to implement technological enhancements such as automated meter reads, usage notifications, leak detection and interactive customer portals. C. By upgrading to an AMI system, customers can be supplied with on -demand, real time water consumption data enabling them to make more informed decisions about their water use. Case studies have shown that communities that upgrade to AMI systems can achieve significant savings on water consumption. D. In 2016, the City completed an AMI feasibility study to evaluate the applicability and costs associated with an AMI project. The cost of fully deploying such a project for the City is approximately $14,400,000. E. The United States Department of the Interior offers financial assistance in the form of grant funding through its Bureau of Reclamation's WaterSMART (Sustain and Manage America's Resources for Tomorrow) Water and Energy Efficiency Grant (WEEG) Program for this type of project. The program provides two levels of funding and up to a maximum of $1,500,000 in grant funding, but not to exceed 50% of the total project cost. F. The City desires to fund part of the cost of the AMI Project with grant funding from the WaterSMART WEEG Program. 55D-4 Section 2. The City Council of the City of Santa Ana hereby authorizes and directs the City Manager, or his or her designee, to sign and submit, for and on behalf of the City of Santa Ana, a grant application from the Bureau of Reclamation's WaterSMART WEEG Program for the AMI Project up to the amount of $1,500,000. Section 3. The City Manager, or his or her designee, is designated to provide the assurances, certifications, and commitments required for the grant application, including executing a financial assistance or similar agreement with the Bureau of Reclamation within established deadlines and any amendments or changes thereto. Section 4. The City Manager, or his or her designee, is designated to represent the City of Santa Ana in carrying out the City's responsibilities under the grant agreement, including certifying disbursement requests on behalf of the City and compliance with applicable state and federal laws. Section 5. If a grant award is made by the Bureau of Reclamation, the City of Santa Ana commits to providing up to $1,500,000 in matching funds for the AMI Project plus any remaining balance. Section 6. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of 12019. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: 7g, -f�L John M. Funk Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Miguel A. Pulido Mayor Resolution No. 2019-XXX Page 2 of 3 55D-5 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby certify the attached Resolution No. 2019 - to be the original resolution adopted by the City Council of the City of Santa Ana on .2019. Date: Clerk of the Council City of Santa Ana Resolution No. 2019-XXX Page 3 of 3 55D-6 EXHIBIT 2 jmf 10/9/19 RESOLUTION NO. 2019-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING AN APPLICATION FOR GRANT FUNDING BY THE BUREAU OF RECLAMATION'S WATERSMART WATER AND ENERGY EFFICIENCY GRANT PROGRAM FOR THE HYDROPOWER GENERATION PROJECT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The City of Santa Ana water system has seven connection points with the Metropolitan Water District, SA-1 through SA7. B. The volume of water flow through three of the connection points allows for generation of electricity via hydro turbines. C. In February 2019, the City completed the Water Systems Alternative Energy Feasibility Study, which determined that SA-1, SA-3 and SA-6 have adequate water flow to generate electricity. The cost of fully deploying the Hydropower Generation Project for the City is approximately $2,600,000. D. The study estimates the annual monetary value for the power generated through the improvements at the three sites to be approximately $175,000. E. The United States Department of the Interior offers financial assistance in the form of grant funding through its Bureau of Reclamation's WaterSMART (Sustain and Manage America's Resources for Tomorrow) Water and Energy Efficiency Grant (WEEG) Program for this type of project. The program provides up to a maximum of $300,000 in grant funding for projects such as the Hydropower Generation Project. F. The City desires to fund part of the cost of the Hydropower Generation Project with grant funding from the WaterSMART WEEG Program. Section 2. The City Council of the City of Santa Ana hereby authorizes and directs the City Manager, or his or her designee, to sign and submit, for and on behalf of the City of Santa Ana, a grant application from the Bureau of Reclamation's WaterSMART WEEG Program for the Hydropower Generation Project up to the amount of $300,000. 55D-7 Section 3. The City Manager, or his or her designee, is designated to provide the assurances, certifications, and commitments required for the grant application, including executing a financial assistance or similar agreement with the Bureau of Reclamation within established deadlines and any amendments or changes thereto. Section 4. The City Manager, or his or her designee, is designated to represent the City of Santa Ana in carrying out the City's responsibilities under the grant agreement, including certifying disbursement requests on behalf of the City and compliance with applicable state and federal laws. Section 5. If a grant award is made by the Bureau of Reclamation, the City of Santa Ana commits to providing up to $2,300,000 in matching funds for the Hydropower Generation Project plus any remaining balance. Section 6. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of 12019. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: 'y,- -f , L John M. Funk Assistant City Attorney /_\'/: R.71II, ,I TWI NOES: Councilmembers ABSTAIN: Councilmembers 1►[��:7X.y�►��Z.1tR.71I 11 Oi1TTM Miguel A. Pulido Mayor Resolution No. 2019-XXX Page 2 of 3 55D-8 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby certify the attached Resolution No. 2019 - to be the original resolution adopted by the City Council of the City of Santa Ana on .2019. Date: Clerk of the Council City of Santa Ana Resolution No. 2019-XXX Page 3 of 3 55D-9 55D-10