To: Honorable Mayor and Members of City Council
From: Phil Brun, Utilities Director
Prepared By: Phil Brun, Utilities Director
TITLE:
Title
Napa Valley Drought Contingency Plan
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution authorizing the Utilities Director to execute on behalf of the City: (1) a professional services agreement with Brown and Caldwell, in an amount not to exceed $431,193, to prepare the Napa Valley Drought Contingency Plan; (2) all necessary documents with the Bureau of Reclamation for grant funding for a portion of the costs of the Plan; and (3) reimbursement agreements with other participating public agencies in Napa County, to proportionately share the costs of the Plan.
Body
DISCUSSION:
In 2005, the 2050 Napa Valley Water Resources Study was completed by Napa, American Canyon, Yountville, St. Helena, Calistoga, Napa County and Napa Sanitation District. The project reviewed each agency’s water supplies and demands and recommended potential individual and regional projects to address supply deficits in a drought. Key projects that Napa implemented were improvements to Barwick Jamieson Treatment Plant to maximize use of State water and save local supplies in Lake Hennessey and purchase of additional State Water Project entitlements from St. Helena and Yountville. All agencies have expressed an interest in a regional effort to complete a similar study in 2019.
In 2017, the Sonoma County Water Agency, in conjunction with Brown and Caldwell, secured a $200,000 grant from the Bureau of Reclamation to prepare a Drought Contingency Plan (DCP) in Sonoma, Marin and Napa Counties. Regional meetings with stakeholders were conducted in early 2018 to bring interested agencies from the three counties together to initiate the DCP. Subsequently, Marin and Sonoma County decided to focus efforts on their joint resiliency planning efforts and forego participation in the DCP. Napa County agencies offered to proceed with the grant funding. Brown and Caldwell’s team successfully coordinated efforts with the Bureau to revise the scope to only include the Napa County region and change the fiscal agent for the grant to the City of Napa. Staff expects final approvals from the Bureau to occur by the end of November.
In conjunction with the monthly WaterTAC meeting of Napa County water agencies and the discussions at LAFCO regarding the water and wastewater municipal service review, the staff of Napa, American Canyon, Yountville, St. Helena, Calistoga, Napa County and Napa Sanitation District agreed to move forward with the DCP with City of Napa as the lead agency responsible for executing agreements with Brown and Caldwell and the Bureau of Reclamation. A cost share plan has been developed based on water deliveries and population served (Attachment 2). Specific reimbursement agreements will be executed with each agency with authorization, as needed, from their respective Council/Board to participate in the project.
The Napa Valley DCP will be a valuable regional effort to determine options for all agencies to address drought scenarios in the future. A specific focus will be placed on regional efforts that may compete successfully for future grant funding. Brown and Caldwell was originally selected for this effort by the Sonoma County Water Agency due to their extensive experience in the water resources area. In particular, Brown and Caldwell is currently preparing a DCP for North Monterey County and previously worked on the Bay Area Regional Reliability Partnership DCP for the Bay Area’s largest water agencies. Staff recommends Council approve the selection of Brown and Caldwell for this project, based on the criteria for approval of contracts for “specialty items” set forth in Napa Municipal Code Section 2.91.050. A written determination supporting this recommendation is included as Attachment 3.
An Agreement for Services (Attachment 4) will be executed with Brown and Caldwell after the grant funding is secured and reimbursement agreements are executed with each participating agency. In the unlikely event that a participating agency decides to modify their contribution or not participate, the scope of work and contract costs with Brown and Caldwell will be reduced accordingly.
FINANCIAL IMPACTS:
The total cost of the project is $431,193. $200,000 in grant funds from the Bureau of Reclamation and $91,624 in contributions from participating agencies for their proportional share of costs for the project are expected as revenue. The net cost to the City’s Water Fund will be $139,569 which is currently budgeted in 53905-53201. Staff is requesting an additional appropriation of $291,624 in 53905-53201 to cover the full cost of the contract. This additional appropriation is offset by the Grant and contribution revenue.
In order to execute the contract and receive contributions, revenue and expenditure adjustments are necessary in the Water Fund budget as follows:
SOURCES:
$200,000 Grant Funding from Bureau of Reclamation (53905-33401)
(New Revenue Adjustment)
$91,624 Contributions from Participating Agencies (53905-33703)
(New Revenue Adjustment)
$139,569 Non-Recurring Water Supply, Professional Services (53905-53201)
(Existing Appropriation)
$431,193 TOTAL
USES:
$139,569 Non-Recurring Water Supply, Professional Services (53905-53201)
(Existing Appropriation)
$291,624 Non-Recurring Water Supply, Professional Services (53905-53201)
(New Appropriation)
$431,193 TOTAL
CEQA:
The Utilities Director has determined that the Recommended Action described in this Agenda Report is not subject to CEQA, pursuant to CEQA Guidelines Section 15060(c).
DOCUMENTS ATTACHED:
ATCH 1 - Resolution
ATCH 2 - Cost Share Plan
ATCH 3 - Determination for Specialty Items
ATCH 4 - Agreement for Services with Brown and Caldwell
NOTIFICATION:
None