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Home My WebLink About55A - RESO WATER DROUGHT GRANT APPREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 6, 2018 TITLE: ADOPT A RESOLUTION AND AUTHORIZE GRANT APPLICATION SUBMISSION FOR WATER SMART DROUGHT RESPONSE PROGRAMS (NONGENERAL FUND) (STRATEGIC PLAN NO. 6, 1G) 1TY MANAGER C RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1°t Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution agreeing to the terms of participation in the Bureau of Reclamation WaterSMART Drought Response Program for the Automated Meter Infrastructure capital improvement project. 2. Authorize the Executive Director of Public Works to submit a grant application for Department of the Interior, Bureau of Reclamation's WaterSMART Drought Response Program, for the Automated Meter Infrastructure Project, in the amount up to $750,000. DISCUSSION 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 via traditional mechanical meters (analog meters) which must be read manually by the City and have no additional capabilities. The City is in the planning stages of an Automated Meter Infrastructure (AMI) project. The proposed future AMI project involves, among other things, the transition of existing dummy 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, 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 communities which upgrade to AMI systems can achieve water consumption savings of up to 15 percent. 55A-1 Adopt Resolution and Authorize Grant Applications for the Water Smart Drought Response Program March 6, 2018 Page 2 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 $14,000,000. If a WaterSMART Drought Response Program grant application is successful, the grant funding would offset a significant portion of the cost of the project. The Department of the Interior offers grants through its Bureau of Reclamation's WaterSMART (Sustain and Manage America's Resources for Tomorrow) Drought Response Program to develop and update comprehensive drought plans and implement projects that build long-term resiliency to droughts. The program provides up to a maximum of $750,000 in grant funding, but not to exceed 50 percent of the total project cost. 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). 41 k1rJI:Ze]I'll liril=1aI_1gIill 1:7:03I There is no environmental impact associated with this action FISCAL IMPACT There is no fiscal impact associated with this action. Staff will return to Council with a request for approval to accept any award under these applications and programs, and will indicate the fiscal impact of any such awards and associated expenditures at that time. Edwin "William" Galdez, P.E. Acting Executive Director Public Works Agency FM/NS/RR Exhibit 1: Resolution Authorizing Grant Application for the AMI Project 55A-2 jmf 2112118 RESOLUTION NO. 2018 -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 DROUGHT RESPONSE 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 planning stages of an Automated Meter Infrastructure (AMI) Project. The proposed future AMI Project involves, among, other things, the replacement of existing "dummy' 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 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 water consumption savings of up to 15 percent. 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 $14,000,000. 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) Drought Response Program for this type of project. The program provides up to a maximum of $750,000 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 Drought Response Program. Section 2. The City Council of the City of Santa Ana hereby authorizes and directs the Executive Director of Public Works, 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 Resolution No. 2018-M EXHIBIT 1 Page 1 of 55A-3 jmf 2/12/18 Reclamation's WaterSMART Drought Response Program for the AMI Project up to the amount of $750,000. Section 3. The Executive Director of Public Works, 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 Executive Director of Public Works, or his or her designee, is designated to represent the City of Santa Ana in carrying out the City's responsibilities underthe 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 $750,000 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 2018. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: wcn= �V 7 ohn M. Funk Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Miguel A. Pulido Mayor 55A-4 Resolullon No. 2018 -XXX Page 2 of 3 Jmf 2/12/18 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Maria D. Huizar, Clerk of the Council, do hereby certify the attached Resolution No. 2018 = to be the original resolution adopted by the City Council of the City of Santa Ana on Date: r Clerk of the Council City of Santa Ana 55A-5 Resolution No. 2018 -XXX Page 3 of 3 y