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08.h.Local Groundwater Assistance GrantMEMORANDUM TO: CITYCOUNCIL FROM: TERESA MCCLISH, COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: CONSIDERA'TION OF A RESOLUTION FOR THE SUBMISSION OF AN APPLICATION TO THE CALIFORNIA DEPARTMENT OF WATER RESOURCES TO OBTAIN A LOCAL GROUNDWATER ASSISTANCE GRANT AND AUTHORIZA'TION TO ENTER INTO A GRANT AGREEMENT DATE: JULY 10,2012 RECOMMENDATION: It is recommended the City Council: A. adopt the attached resolution authorizing the City Manager to file an application with the California Department of Water Resources (DWR) to obtain a Local Groundwater Assistance (LGA) Grant and enter into a grant agreement; and, 6. direct the City Clerk to submit the authorizing resolution to the California Department of Water Resources. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The City, as the lead applicant, on behalf of project stakeholders including representatives from the Northern Cities Management Area (NCMA) and Nipomo Mesa Management Area (NMMA), is requesting $250,000 of LGA Grant funds to cover the costs of developing a Salt and Nutrient Management Plan (SNMP) for the portions of the Santa Maria Groundwater Basin underlying the NCMA and NMMA. BACKGROUND: The Local Groundwater Management Assistance Act of 2000 (A6 303, Stats. of 2000, ch 708, 92; Water Code Section 10795 et seq.) and Proposition 50 (ch 8 Water Code Section 79560-79565) created Local Groundwater Assistance Funds. The intent of these Acts is to provide grants to local public agencies to conduct groundwater studies or to carry out groundwater monitoring and management activities. Priority for grant funding is given to local public agencies that have adopted a formalized groundwater management plan (GWMP) and demonstrated collaboration with other agencies in the management of the affected groundwater basin. For the purposes of the LGA Grant program, the Court ordered Stipulation and Judgment of the Santa Maria Groundwater Basin (Santa Maria Valley Water Conservation District v. City of Santa Maria, et. a/.) serves as the GWMP for the basin. Agenda Item 8.h. Page 1 ClN COUNCIL CONSIDERATION OF RESOLUTION TO OBTAIN A LOCAL GROUNDWATER ASSISTANCE GRANT JULY 10,2012 PAGE 2 The State Water Resources Control Board adopted the Recycled Water Policy (Policy) on February 3, 2009, and the Policy became effective on May 14, 2009. The goal of the Policy is to increase the use of recycled water while protecting water quality. The intent of the Policy is that "salts and nutrients from all sources be managed on a basin-wide or watershed-wide basis in a manner that ensures attainment of water quality objectives and protection of beneficial uses. The State Water Board finds that the appropriate way to address salt and nutrient issues is through the development of regional or subregional salt and nutrient management plans rather than through imposing requirements solely on individual recycled water projects." The Policy requires each groundwater basinlsub-basin in California to have a salt and nutrient management plan (SNMP) within five years of the effective date of the Policy (May 14, 2014). ANALYSIS OF ISSUES: The future management of the Santa Maria Groundwater Basin and long term water sources, such as recycled water, depends upon thorough characterization of the basin, as well as meeting State requirements for monitoring of salt and nutrients. If awarded, funding from the LGA grant will be used to develop a SNMP. This application is being submitted by the City of Arroyo Grande on behalf of participating agencies from the NCMA and other stakeholders of the proposed SNMP. The City submitted a successful grant application for a Desalination Study and produced a report in 2006. That and subsequent studies on alternative long term sustainable water supplies have been conducted over the last several years. In 2010, the Council directed staff to pursue alternatives for recycled water after considering the feasibility and costs of several long term water solutions that were analyzed in a 2010 Water Alternatives Study. The next step in developing a recycled water program is developing a SNMP. The scope for the development of a SNMP includes the following components: - Water recycling and stormwater rechargeluse goals and objectives - Salt and nutrient source identification, basin assimilative capacity and loading estimates, together with fate and transport of salt and nutrients - Implementation measures to manage salt and nutrient loading in the basin - An antidegradation analysis demonstrating that the projects included within the plan will, collectively, satisfy the requirements of State Water Resources Control Board Resolution No. 68-16 - A basin wide monitoring plan - Annual monitoring of Emerging ConstituentslConstituents of Emerging Concern (CECs) Agenda Item 8.h. Page 2 CITY COUNCIL CONSIDERATION OF RESOLUTION TO OBTAIN A LOCAL GROUNDWATER ASSISTANCE GRANT JULY 10,201 2 PAGE 3 ALTERNATIVES: The following alternatives are presented for the Council's consideration: Approve staffs recommendations; Do not approve staffs recommendations; Modify as appropriate and approve staffs recommendations; or Provide direction to staff. ADVANTAGES: The recommended action will allow the City of Arroyo Grande and partner agencies to receive up to $250,000 in grant funds from the State. This grant money will allow the City and other agencies to develop the necessary data and develop a SNMP. A SNMP is required to be developed for each groundwater basin within the State by May 14, 2014 per the requirements of State Water Resource Control Board's Recycled Water Policy. The development of a SNMP is a critical step to assist the NCMA and NMMA agencies to plan and implement recycled water projects within the NCMA and NMMA. DISADVANTAGES: Staff believes there is little disadvantage to proceeding with the study. With regard to any future project, there are a number of issues that will need to be resolved in order to proceed. These include costs, coordination and approval by partner agencies, environmental impacts, and the permitting process involved. ENVIRONMENTAL REVIEW: No environmental review is required for the study at this time. Environmental review will be required prior to proceeding with approval of any improvement project(s). PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, July 5, 2012. The Agenda and report were posted on the City's website on Friday, July 6, 2012. No public comments were received. Agenda Item 8.h. Page 3 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AUTHORIZING THE CITY MANAGER TO SUBMIT AN APPLICATION WITH THE CALIFORNIA DEPARTMENT OF WATER RESOURCES (DWR) TO OBTAIN A LOCAL GROUNDWATER ASSISTANCE GRANT AND ENTER INTO A GRANT AGREEMENT WHEREAS, the City Council of Arroyo Grande desires to seek certain Local Groundwater Assistance Grant funds made available through the California Department of Water Resources (DWR); and WHEREAS, the California Department of Water Resources requires all applicants to provide a resolution designating an authorized representative to file an application and enter into a grant agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande that: 1. An application be made by the City of Arroyo Grande to the California Department of Water Resources to obtain a Local Groundwater Assistance Grant pursuant to the Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006 (Public Resource Code (PRC) Section 75001 et seq.) and to enter into an agreement to receive a grant for the Preparation of a Salt and Nutrient Management Plan for the Northern Cities Management Area and Nipomo Mesa Management Area of the Santa Maria Groundwater Basin. 2. The City Manager is appointed as the official representative authorized and directed to prepare the necessary data, make investigations, execute, and file such application and execute an agreement with the California Department of Water Resources to accept the grant. On motion of Council Member seconded by Council Member and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this day of ,2012. Agenda Item 8.h. Page 4 RESOLUTION NO. PAGE 2 TONY M. FERRARA, MAYOR ATTEST: KELLY WETMORE, ClN CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, ClN MANAGER APPROVED AS TO FORM: TIMOTHY J. CARM~IN ATTORNEY Agenda Item 8.h. Page 5 THIS PAGE INTENTIO NALLY LEFT BLANK Agenda Item 8.h. Page 6