TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. Subject
title
Authorization for the Director of Public Works to sign and file a financial assistance application for a financing agreement with the California State Water Resources Control Board for the City of Orange Wells 25 and 27 per- and polyfluoroalkyl substances Treatment Systems. Resolution No. 11591.
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2. Summary
In 2019, the Orange County Water District, who manages the groundwater basins of north and central Orange County, conducted a study to address treatment of per- and polyfluoroalkyl substances as required by the California State Water Resources Control Board, Division of Drinking Water. Water quality sampling of City of Orange wells indicated elevated levels of per- and polyfluoroalkyl substances with concentrations exceeding the Division of Drinking Water’s Response Levels at nine wells which require treatment systems. The design and construction of these treatment systems is being fully funded by the Orange County Water District. To date, four treatment systems have been completed, and the wells have been put back into operation. Adoption of Resolution No. 11591 is necessary to support Orange County Water District’s effort in applying for available grants for the construction of the treatment systems at Wells 25 and 27.
3. Recommended Action
recommendation
Adopt Resolution No. 11591. A Resolution of the City Council of the City of Orange authorizing a representative to sign and file a financial assistance application for a financing and grant agreement with the State Water Resources Control Board for City of Orange Wells 25 and 27 PFAS Treatment Plant.
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4. Fiscal Impact
None.
5. Strategic Plan Goals
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.
Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.
6. Discussion and Background
Under the Bipartisan Infrastructure Law (BIL), $5 billion has been set aside through the Drinking Water State Revolving Fund (DWSRF) Program administered by the State Water Resources Control Board (SWRCB) to reduce people’s exposure to per- and polyfluoroalkyl substances (PFAS) and other emerging contaminants (EC). The SWRCB will provide one hundred percent as principal forgiveness (i.e., a Federal grant) and up to $5,000,000 for each qualified applicant. Eligible projects include the construction of a new treatment facility that addresses EC/PFAS such as the City of Orange Wells 25 and 27 PFAS Treatment Systems Project. OCWD is not considered as a qualified applicant for the PFAS grant because OCWD does not own nor operate any PFAS-contaminated wells in its service area. Therefore, OCWD is requesting assistance from the City of Orange to apply for the PFAS grant.
Per the PFAS Treatment Facilities and Program Agreement, OCWD has financed, in its entirety, the technical feasibility study, design, and construction of the City of Orange Wells 25 and 27 PFAS Treatment Systems Project which is scheduled to be completed in 2026. The total project budget is approximately $12,000,000, with construction costing $7,600,000. Also, per the Agreement, the City of Orange is to support and assist OCWD in the pursuit of any PFAS grants that may be used to fund the project construction. Receiving this grant would minimize future replenishment assessment (i.e., groundwater fees) increases from OCWD, fees which are passed through to the customer in the City of Orange’s water rates.
If the PFAS grant funding agreement were executed, the City would be the recipient of grant funds as the owner and the operator of the PFAS water treatment systems. OCWD would submit invoice(s) to the City of Orange totaling to the grant amount. The City of Orange would need to pay OCWD as “proof of payment” before seeking and receiving grant reimbursement from the SWRCB. The City of Orange would serve as a “pass- through” agency between SWRCB and OCWD, and the net financial impact to the City of Orange would be zero.
The City’s adoption of an Authorization Resolution is a requirement of the PFAS grant application and is needed in order to execute a grant funding agreement with the SWRCB.
7. ATTACHMENTS
• Resolution No. 11591