PREPARED BY: AMANDA BOOTH DATE OF MEETING: 05/06/19
SUBJECT:
TITLE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO TO: (1) ACCEPT AND APPROPRIATE AN USEPA SAN FRANCISCO BAY WATER QUALITY IMPROVEMENT FUND GRANT IN THE AMOUNT OF $680,000 FOR THE DEVELOPMENT OF A REGIONAL WATER QUALITY ALTERNATIVE COMPLIANCE PROGRAM; AND (2) AUTHORIZE THE CITY MANAGER TO ENTER INTO ANY REQUIRED AGREEMENTS WITH USEPA FOR THE ASSOCIATED FUNDS
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Compliance statements
Enhance Community Resilience - 202. Develop Long-Term Environmental Stewardship Goals is an adopted policy item contained in the FY 2019-21 Adopted City Council Priority Workplan, effective March 1, 2019.
CEQA Compliance Statement
Pursuant to CEQA Guidelines Section 15061 (b)(3), the adoption of the subject resolution authorizing Public Works to accept a grant award is exempt from CEQA requirements. Under Guidelines section 15378, “project” does not include the creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The development of the water quality trading system may require further CEQA review which will be completed as part of the proposed project.
BACKGROUND
On November 19, 2015, the State Water Board adopted the reissuance of the Municipal Regional Stormwater NPDES Permit No CAS612008 (MRP 2.0). As part of this permit, the City of San Pablo is required to increase programs that improve water quality and one of these programs is the implementation of green infrastructure. Green infrastructure, in this context, is a new way of designing and building roads, parking lots and landscaping to provide water quality benefits.
Green infrastructure can be very expensive to build, particularly in areas having limited water quality benefit. Therefore, in an effort to ensure that stormwater programs reduce costs but also meet the goals of the NPDES permits, City staff applied for a grant to develop a water quality trading system, also referred to as alternative compliance. Water quality trading offers a promising approach to controlling pollutants from multiple sources that collectively impact water quality conditions. In its most simple form, water quality trading would allow one green infrastructure project to control for a pollutant at a low cost, selling any additional pollutant controls as "credits" to another source that is not able to reduce pollutants as cost-effectively. The City of San Pablo would be working with other cities, developers and organizations across the Bay Area to develop a water quality-trading program that would provide the most water quality benefits in the most cost-effective way.
On November 19, 2018, San Pablo City Council approved Resolution 2018-150 that allowed the Public Works Department to apply for the EPA San Francisco Bay Water Quality Improvement Fund (SFBWQIF) grant to develop an alternative system for the funding and implementation of green infrastructure in San Pablo and across the Bay Area. In March 2019, the City was notified that the grant application was successful and that the City of San Pablo would receive $680,000 from EPA for the development of a regional water quality trading system in the Bay Area.
Staff recommends that City Council accept and appropriate USEPA San Francisco Bay Water Quality Improvement grant funds in the amount of $680,000 and authorize the City Manager to enter into any required agreements associated with the funds.
FISCAL IMPACT
Staff requests that the Council accept and appropriate the EPA SFBWQIF grant of $680,000 as follows:
|
ACTION |
FROM: Fund/Account Code |
AMOUNT |
TO: Fund/Account Code |
AMOUNT |
|
Accept |
USEPA San Francisco Bay Water Quality Improvement Grant |
$680,000 |
320-3201-33403 |
$680,000 |
|
Appropriate |
USEPA San Francisco Bay Water Quality Improvement Grant |
$680,000 |
320-3201-43600 |
$680,000 |
The EPA San Francisco Bay Water Quality Improvement Fund requires a 1:1 non-federal match. Since the project was awarded $680,000 from EPA then the City is required to provide $680,000 in match (cash or in-kind). The project budget outlines the following sources as match:
• $107,000 in match from staff time (from the City of San Pablo staff and other city staff from around the Bay Area).
• $40,000 from a grant partner San Francisco Estuary Institute (SFEI) for the development of a tracking system.
• The remaining $533,000 is expected to come from a Proposition 1 grant that Public Works Staff will be applying for in the summer of 2019.
|
Match Source |
Match Amount |
|
Staff Time (San Pablo) |
$30,000 |
|
Staff Time (Other) |
$77,000 |
|
SFEI match |
$40,000 |
|
Expected Proposition 1 match |
$533,000 |
|
Total Match |
$680,000 |
Staff will return to Council for approval regarding any match funds outside of staff time, if necessary.
ATTACHMENTS
1- Award Letter from EPA