REPORT TO THE CITY COUNCIL FROM: MICHAEL CARBAJAL, Director Department of Public Utilities BY: CHERYL BURNS, Senior Management Analyst Department of Public Utilities - Administration SUBJECT ..Title RESOLUTION - Authorizing application, by the Department of Public Utilities, in cooperation with the Department of Public Works and Parks, After School, Recreation and Community Services Department, to the United States Department of the Interior, Bureau of Reclamation for a WaterSMART Drought Response Program: Drought Resiliency Projects Grant for Fiscal Year 2022 in the amount of $293,450 for the City of Fresno Recycled Water Retrofit Project (Council District 3). ..Body RECOMMENDATION Staff recommends that the City Council adopt a Resolution authorizing submission of an application by the Department of Public Utilities (DPU), in cooperation with the Department of Public Works (DPW) and the Parks, After School, Recreation and Community Services Department (PARCS), to the United States Department of the Interior, Bureau of Reclamation (Bureau) for a WaterSMART Drought Response Program: Drought Resiliency Projects Grant (WaterSMART DR Grant) for Fiscal Year 2022 in the amount of $293,450 for the Recycled Water Retrofit Project, which will retrofit irrigation systems at three sites in Downtown Fresno to utilize recycled water for irrigation purposes, and authorize the Director of Public Utilities or designee to execute all application documents on behalf of the City. EXECUTIVE SUMMARY As drought conditions have continued to worsen in California, DPU has been actively engaged in water supply planning and coordination efforts to conserve water use and identify opportunities to reduce potable water use through the retrofit of irrigation systems to utilize recycled water rather than potable water. Three locations in Downtown Fresno with irrigation systems that require significant water consumption have been identified for conversion to recycled water for irrigation: 1. Fresno City Hall - 2600 Fresno Street 2. Fink-White Park - 535 S. Trinity Street 3. Fulton Street - between Congo Alley and Federal Alley The Bureau provides 50/50 cost-share grants for drought resiliency projects such as the irrigation retrofit projects at the three Downtown Fresno sites. The total estimated cost for the retrofit projects at the three sites is estimated at $613,811, and if awarded, 50% will be funded through the WaterSMART DR Grant, with DPU and DPW providing matching funds for the project. BACKGROUND The City of Fresno provides potable water supply service to residents, businesses, industries, and institutions within a geographic area that extends across approximately 110 square miles. Within the City's water supply service area, the City provides water for landscaping along median islands, parks, and other large irrigated turf areas in public spaces. Several of these irrigation systems require significant water consumption. As drought conditions have continued to worsen in California, the City has been actively engaged in water supply planning and coordination efforts to conserve water use. The planning and coordination effort has identified opportunities to reduce potable water use through the retrofit of irrigation systems to utilize recycled water rather than potable water. Three locations in Downtown Fresno with irrigation systems that require significant water consumption have been identified for conversion to recycled water for irrigation: 4. Fresno City Hall - 2600 Fresno Street 5. Fink-White Park - 535 S. Trinity Street 6. Fulton Street - between Congo Alley and Federal Alley The total estimated cost for the retrofit projects at the three sites is estimated at $613,811. The projects are estimated to reduce total potable water consumption at the project sites by approximately 70 acre-feet per year (AFY). The Bureau provides 50/50 cost-share grants for drought resiliency projects such as the irrigation retrofit projects at the three Downtown Fresno sites. As the water purveyor, DPU will apply for the WaterSMART DR Grant directly, and if awarded, DPW and PARCS will implement a series of projects utilizing the funding. The total estimated cost for the retrofit projects at the three sites is estimated at $613,811, and if awarded, 50% will be funded through the WaterSMART DR Grant, with DPU and DPW providing matching funds for the project. Grant applications were due on October 5, 2021. Per the Grant Guidelines, the City is required to submit an official resolution adopted by Council, to the Bureau of Reclamation. If an applicant is unable to submit the official resolution by the application deadline, because of the timing of board meetings or other justifiable reasons, the official resolution may be submitted up to 30 days after the application deadline. DPU has submitted an application to the Bureau of Reclamation. Staff recommends Council adopt the attached Resolution authorizing the City to submit an application to the Bureau for a WaterSMART DR Grant in the amount of $293,450. The proceeds from the WaterSMART DR Grant will be used to retrofit irrigation systems at three locations in Downtown Fresno to reduce potable water demands on the City's public water system. ENVIRONMENTAL FINDINGS Pursuant to California Environmental Quality Act (CEQA) Guidelines section 15378, submitting this grant application is not a project for the purposes of CEQA. LOCAL PREFERENCE Local Preference was not implemented because this action does not include a bid or an award of a contract. FISCAL IMPACT This resolution will have no immediate impact on the General Fund. Should the grant be awarded, the matching funds will be identified in future fiscal year Public Utilities operational budgets and Public Works capital budgets. The projects are located in Council District 3. Attachment: Resolution