ITEM:		ACTION ITEM
18.	CONSIDER AUTHORIZATIONS FOR PROPOSITION 1 DISADVANTAGED COMMUNITY GRANT Not a project, CEQA Guidelines §15378; Existing facilities, Categorical Exemption, §15301
	(A)	CONSIDER AUTHORIZING the General Manager to ENTER INTO a GRANT AGREEMENT
	(B)	CONSIDER EXPENDITURE OF FUNDS TO RETAIN A CONSULTANT TO Administer hIGH eFFICIENCY aPPLIANCE rETROFIT TARGETS (HEART) PILOT PROGRAM
	(C)	CONSIDER EXPENDITURE OF FUNDS TO RETAIN A CONSULTANT TO PROVIDE ASSISTANCE with THE MPWMD DISADVANTAGED COMMUNITY NEEDS ASSESSMENT
Meeting Date:			April 16, 2018	Budgeted:	4-2-3 for HEART Program
From:			Dave Stoldt, General Manager	Program	Integrated Regional Water Management
				Line Item No.:	24-03-785505
Prepared By:			Maureen Hamilton Stephanie Locke	Cost Estimate:	$252,693 (fully reimbursed)
General Counsel Approval: N/A
Committee Recommendation:
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines section 15378; Repair of existing facilities is a categorical exemption under Section 15301.

SUMMARY: MPWMD is eligible to receive up to $252,693 in grant funds out of a Proposition 1 Integrated Regional Water Management Disadvantaged Community Involvement Program grant from the Department of Water Resources (DWR) to the Central Coast Funding Area (CCFA). The grant funds are available for two projects:

1. MPWMD Disadvantaged Community Needs Assessment.

2. High Efficiency Appliance Retrofit Targets Program (HEART).

The MPWMD Disadvantaged Community Needs Assessment project will determine the current drinking water and wastewater technical, managerial, and financial capacities of local Disadvantaged Communities (DACs) to ensure long-term safe, reliable drinking water and wastewater treatment and disposal. Outreach and assessment will be conducted in DACs already identified in the City of Seaside and the City of Monterey, as well as areas that are too sparsely populated or geographically small to be identified as a DAC using census data. The assessments will position the DACs for future Proposition 1 implementation funding opportunities.

The HEART project will focus on the City of Seaside’s DACs to provide free or low-cost installations of water efficient toilets, showerheads and faucet aerators, High Efficiency Clothes Washers, High Efficiency Dishwashers, Irrigation Controllers and rain sensors, leak detection and repairs, dish squeegees, dye tablets for toilets, etc. Outreach activities will include education and outreach to DAC property owners, managers and renters. Outreach and education will continue with DAC residents through site assessments of DAC properties and completion of appliance retrofits. Participation will result in engaging City of Seaside community members through this new retrofit program conducted by the MPWMD to help DAC awareness of existing water resource issues, need for conservation, and cost saving opportunities. Participation in the program will result in lower water/energy usage and lower bills.

RECOMMENDATION: Staff requests that the Administrative Committee recommend authorization for the General Manager to enter into a grant agreement with the Regional Water Management Foundation for grant funds for the MPWMD Disadvantaged Community Needs Assessment and HEART projects, in an amount not-to-exceed $252,693. The balance of the Monterey Peninsula, Carmel Bay, and South Monterey Bay Regional Water Management Group (Monterey Peninsula RWMG) grant funds less grant administration fees, $182,992, was allocated to the City of Monterey’s Franklin Street Storm Drain Project.

Staff further requests that the Administrative Committee recommend authorization for the General Manager to enter into contract agreements for services to conduct the MPWMD Disadvantaged Community Needs Assessment (NTE $100,000) and to implement the HEART project (NTE $152,693), for a not-to-exceed amount of $252,693.

DISCUSSION: On November 4, 2014, California voters approved Proposition 1, the Water Quality, Supply, and Infrastructure Improvement Act of 2014 (Proposition 1). Proposition 1 authorized $510 million in Integrated Regional Water Management (IRWM) funding. Water Code §79745 directs not less than 10% of the total $510 million be utilized for the purpose of ensuring the involvement of Disadvantaged Communities, economically distressed areas, and underrepresented communities within regions (hereinafter DACs).

DWR will administer three separate Proposition 1 grant programs:

1. Planning Grant Program

2. Disadvantaged Community Involvement Program

3. Implementation Grant Program

DWR allocated Proposition 1 funds to 12 hydrologically based funding areas. The Central Coast Funding Area (CCFA) is comprised of six IRWM Regions, including the Monterey Peninsula RWMG, of which MPWMD is a member. The CCFA is eligible to receive $43 million from the Proposition 1 funds.

On April 18, 2016, the MPWMD Board authorized execution of the Memorandum of Agreement for Central Coast IRWM Planning and Funding in the Central Coast Area (CCFA MOA). The CCFA MOA funding allocation allows the Monterey Peninsula RWMG to receive $4,333,643 out of the $43 million CCFA Proposition 1 funding allocation.

On August 1, 2016, the DWR released a Request for Proposals (RPF) for the Proposition 1 Disadvantaged Community Involvement Program. The Monterey Peninsula RWMG is eligible to receive $435,685 of the CCFA allocation in accordance with the CCFA MOA. The RFP stated that the funds would be awarded on a non-competitive basis or by direct expenditures, no local match would be required, and one proposal would be submitted for each of the twelve hydrologically-based funding areas. In 2016, the CCFA members selected the Regional Water Management Foundation of Santa Cruz (Foundation) to administer the Disadvantaged Community Involvement grant on behalf of the CCFA members. The Foundation is the DWR grantee, with each local project sponsor acting as a sub-grantee to the Foundation.

In 2016, MPWMD requested project proposals from local jurisdictions with identified DACs. The following proposals were received, and subsequently submitted in the grant application:

1. Franklin Street Storm Drain Project (City of Monterey)

2. Monterey Peninsula Needs Assessment (MPWMD)

3. High Efficiency Applied Retrofit Targets (“HEART”) Program (MPWMD)

On February 13, 2018, DWR fully executed a grant agreement with the Foundation for DAC Involvement in an amount not to exceed $4.3 million dollars. Funds are allocated in accordance with the CCFA MOA, with the Monterey Peninsula RWMG receiving $435,685 for the three projects proposed in the DAC Involvement grant application.

MPWMD DISADVANTAGED COMMUNITY NEEDS ASSESSMENT

Staff is recommending the retention of consultant services to conduct needs assessments throughout the Monterey Peninsula IRWM region to determine the current technical, managerial and financial capacities of local DACs. The recommended improvements will provide a basis for the future Proposition 1 Implementation Grant Program for projects benefitting DACs. DACs include areas identified by the State utilizing census data, as well as identifying areas that are too sparsely populated or too geographically small to be identified using census data.

In accordance with the DWR objectives under the Disadvantaged Community Involvement RFP, the consultant will:

1. Work collaboratively to identify and involve DACs, community-based organizations, and stakeholders in IRWM planning efforts to ensure balanced access and opportunity for participation in the IRWM planning process.

2. Increase the understanding and where necessary, identify the water management needs of DACs on a regional basis.

3. Develop strategies and long-term solutions that appropriately address the identified DAC water management needs.

HEART

Staff is requesting retention of consultant services to conduct the HEART program. The program will be administered similarly to Ecology Action’s WaterLink grant program MPWMD has been involved with. Where WaterLink has focused on devices that save both water and energy, the HEART program will focus specifically on water savings by providing for the purchase and installation of water efficient fixtures and appliances (toilets, showerheads, aerators and other water-saving devices, high efficiency clothes washers and water efficient dishwashers) throughout the homes of qualified low-income participants. The program will also offer leak detection and repair services. Water savings of about 40 percent per dwelling unit are expected.

The multi-family common-area laundry high efficiency clothes washer component of the HEART project provides financial incentives or direct replacement of inefficient commercial clothes washers in multi-family settings. Older clothes washers use approximately 40 gallons per load, while high efficiency clothes washers use 10 to 16 gallons. They also extract more moisture from clothes during the spin cycle, thus reducing drying time (and wear and tear on the clothing). Savings of up to 60 percent per replacement washer can be expected. The Consortium for Energy Efficiency reports savings of 0.09 AFY (or greater) per commercial washer. There are approximately 10,500 multi-family dwelling units in the project area, as determined by MPWMD in consultation with the California American Water Company and the Seaside Municipal Water District. Assuming 50% of these units are served by common-area laundries, the overall market potential for water savings in this area are anticipated to exceed 126 AFY.

IMPACT TO STAFF/RESOURCES: The 2017-18 budget includes line item 4-2-3 D “DAC Direct Install Grant” for the HEART project, which would be reimbursed from grant funds, and a reimbursable budget line item will be added for the MPWMD Disadvantaged Community Needs Assessment project.

Several District staff would be involved in managing the projects. MPWMD is not proposing to be reimbursed for these services unless project costs are less than grant funding.

EXHIBIT

None

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