TO: Board of Supervisors
FROM: Christopher Silke, District Engineer
REPORT BY: Annamaria Martinez, Assistant Engineer
SUBJECT: Budget Amendment to establish appropriations for multiple drought relief Projects
RECOMMENDATION
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Approve a Budget Amendment to establish appropriations in the Drought and Water Supply Sustainability project and to reimburse project expenses in the Alternative Intake Project and the Sustainable Water Supply Project. (Fiscal Impact: $637,000, LBRID Fund, Not Budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
In September 2021, the California Department of Water Resources (DWR) released guidelines for the Small Community Drought Relief Program (SCDRP) funded through the State Budget Act of 2021. On August 17, 2021, just prior to the release of the guidelines for the SCDRP, the Lake Berryessa Resort Improvement District (District)’s Governing Board adopted a Resolution declaring a water shortage emergency at the District as the water level in Putah Creek, where the District’s raw water intake for the water system is located, had dropped below the intake pump, requiring installation of a floating intake structure that would be capable of operation even with steadily declining creek levels. Facing extraordinary pump rental and equipment costs to ensure continuity of water service for the Berryessa Estates community, the Governing Board adopted Resolution 2021-04 authorizing the District Engineer to prepare and file an application for funding from the SCDRP, and to take such other actions as necessary or appropriate to execute an approved funding agreement with DWR and any amendments that may follow.
The District filed an application for funding through the SCDRP in November 2021 for a total amount of $637,000 to cover costs associated with the District’s emergency drought response. The scope of the project included the following five tasks: 1) the installation of a floating intake structure to compensate for declining water levels in Putah Creek due to the drought, 2) rehabilitation of the existing stationary intake structure, 3) perform temporary water transfers within the Putah Creek from up-channel pools to the existing intake, 4) perform hydrogeologic explorations for a potential alluvial or fractured rock deep well supply that can satisfy the maximum daily water demand of the Berryessa Estates community, 5) reimbursement of drought response expense including operator labor and the cost of rental equipment needed to maintain water supply to the community.
Receipt of a funding agreement from DWR was postponed multiple times. By October 2022, the District had completed Tasks 2 and 4 of the SCDRP scope by utilizing remaining funds in Project 21021 - Alternative Intake Project, originally funded by District operation’s fund balance and was created to pay for the District’s immediate drought emergency response beginning in August 2021 through June 2022, and Project 22009 - Sustainable Water Supply Project, originally funded by a Pass Through Grant Subaward from CalOES for critical drinking water supply improvements.
The SCDRP funding Agreement No. 240301B was issued in June 2023 and executed on August 28, 2023. The scope was revised to exclude Task 5 of the initial scope and only allow for reimbursement of project related expenses dating back to April 29, 2022. This allows the District to reimburse Project 21021 for administrative costs associated with SCDRP Task 2 totaling $6,394 and Project 22009 for design and construction of Task 2 and services related to Task 4 for a total of $453,634. The remaining balance of SCDRP funding after reimbursement of eligible project costs is $176,972 all of which will be used to complete Tasks 1 and 3 above. Full completion of the SCDRP scope is expected by December 31, 2024.
Requested Actions:
1. Approval of Budget Amendment for the following:
a. Increase revenue in the LBRID Alternative Intake Project (Fund 5220, Subdivision 5220500, Project 21021) State - Dept of Water Resources (Account 43425) in the amount of $6,394 to reimburse eligible project expenses; and
b. Increase revenue in the LBRID Sustainable Water Supply Project (Fund 5220, Subdivision 5220500, Project 22009) State - Dept of Water Resources (Account 43425) in the amount of $453,634 to reimburse eligible project expenses; and
c. Increase revenue in the LBRID Drought and Water Supply Sustainability (Fund 5220, Subdivision 5220500, Project 24019) State - Dept of Water Resources (Account 43425) in the amount of $176,972; and
d. Increase appropriations in LBRID Drought and Water Supply Sustainability (Fund 5220, Subdivision 5220500, Project 24019) Construction Services (52360) in the amount of $176,972 for remaining project elements noted above.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Approval of the requested Budget Amendment provides appropriations for Task 1 and 3 of the SCDRP grant and reimburses eligible project costs expended since April 29, 2022. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
Funding must be fully expended by December 31, 2024. Staff will include the project in recommended budgets until completed. |
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Consequences if not approved: |
Eligible project expenses will not be reimbursed, and no appropriations will be added to Project 24019, leaving the District unable to complete the Project scope and meet grant expenditure requirements. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: It has been determined that this type of project does not have a significant effect on the environment and is exempt from the California Environmental Quality Act. [See Class 1 (“Existing Facilities”) which may be found in the guidelines for the implementation of the California Environmental Quality Act at 14 CCR §15301; see also Napa County’s Local Procedures for Implementing the California Environmental Quality Act, Appendix B.]