ITEM:		CONSENT CALENDAR
3.	Bureau of Reclamation WaterSMART Program (A) Consider Approval of Resolution 2015-13 in Support of Filing an Application for a Drought Contingency Planning Grant (B) Authorize the General Manager to Enter into a Grant Agreement with the United States Bureau of Reclamation
Meeting Date:			June 15, 2015	Budgeted:	Partially
From:			David J. Stoldt,	Program/	Water Supply Projects
			General Manager	Line Item No:	1-5-1 Groundwater Replenishment Project
Prepared By:			Larry Hampson	Cost Estimate:	$200,000 (in-kind and consultant expenses)
General Counsel Review: N/A
Committee Recommendation: The Administrative Committee reviewed this item on June 8, 2015 and recommended approval.
CEQA Compliance: N/A

SUMMARY: The United State Bureau of Reclamation (Reclamation) is proposing to award grants of up to $200,000 through its WaterSMART program in Fiscal Year 2015 for Drought Contingency Planning. The recipient cost share (non-federal share) is a minimum of 50% of total project costs, which for a maximum federal share would require a minimum local cost-share of $200,000. Reclamation goals for this program include (1) develop and update comprehensive drought plans, (2) implement projects that will build long-term resiliency to drought, and (3) implement emergency response actions. District staff proposes to be the administrative lead to apply for a grant and to develop a Drought Contingency Plan (Plan) for the northern portion of Monterey County that would benefit from the Pure Water Monterey Project. An application is due no later than June 25, 2015 and notice of award is expected in July 2015. Development of a Plan must be completed within two years of award.

RECOMMENDATION: If this item is approved, the Board will:

A) Adopt Resolution 2015-13 to apply for a $200,000 grant from the WaterSMART program; B) Authorize the General Manager to enter into a grant agreement with Reclamation to receive funds and complete a Drought Contingency Plan. The General Manager would also be authorized to negotiate sub-grantee agreements with local agencies, non-profits, and consultants to carry out the scope of work described in the work plan for the grant for a cost not-to-exceed $200,000 to be reimbursed from grant funds. District staff recommends approval of the above actions.

BACKGROUND:

Potential project partners include:

• Monterey Regional Water Pollution Control Agency (MRWPCA)
• Monterey County Water Resources Agency (MCWRA)
• City of Salinas (California Water Service Company)
• Marina Coast Water District (MCWD)
• California American Water (CalAm)
• Salinas Valley Water Coalition and the Grower-Shippers

Development of a Plan would build on both the Monterey Peninsula and Greater Monterey County Integrated Regional Water Management planning efforts and the network of agencies and stakeholders that is advancing the Pure Water Monterey project. A Drought Contingency Plan would include the following specific activities:

• Drought monitoring;
• Vulnerability assessment;
• Mitigation actions;
• Response actions;
• Operational and administrative framework;
• Plan update process.

If awarded a grant, most of the non-federal share for development of the plan is anticipated to come from past expenditures (after July 1, 2014) and existing agency efforts to respond to drought including: development of water conservation and rationing criteria; communication and public outreach plans to combat drought; feasibility and project studies for drought-resistant projects such as for the Pure Water Monterey project. MPWMD and project partners would work with Reclamation to develop a detailed work plan. Reclamation would be involved in the management of the planning process and can provide technical assistance to develop elements of a Plan.

IMPACT ON STAFF/RESOURCES: Several consultants have been retained to assist with preparation of a grant application, which is due June 25, 2015. The application for a grant will be uploaded by the District’s Planning and Engineering Division. If the District receives a planning grant, staff time will be required to administrate the grant over approximately two years. The non-federal share is anticipated to be a combination of in-kind services from stakeholders (including MPWMD and MRWPCA), such as staff labor, and consultant expenses associated with existing programs.

EXHIBIT

3-A Resolution No. 2015-13

U:\staff\Boardpacket\2015\20150615\ConsentClndr\03\Item 3.docx