Consider Adoption of Resolution No. 2009-04 Expressing Support for Submitting an Application for Challenge Grant Program:  Recovery Act of 2009 Water Marketing and Efficiency Grants


Meeting Date:

May 21, 2009







Darby Fuerst,




General Manager

Line Item No.:



Prepared By:

Jonathan Lear

Cost Estimate: 



General Counsel Approval:  N/A


CEQA Compliance:  N/A


SUMMARY:  The United States Bureau of Reclamation has opened a Challenge Grant Program in accordance with the 2009 American Recovery and Reinvestment Act funding cycle.  Grant funds are allocated to promote water marketing and efficiency in water resources projects in the Western United States.   Awarded grants will provide up to 50% funding match and require receiving entities to spend a minimum of one million dollars on new infrastructure to promote more efficient and effective management of water resources.   Applications are due May 22, 2009 and successful applicants will be notified by July 2009.  In accordance with the American Recovery and Reinvestment Act, all grant funds must be spent by September 30, 2011, however grant applications with project completion dates no later than September 30, 2010 will receive higher ranking during the application process.  Qualifying projects will create a water bank through water exchanges or conjunctive use management of surface water and groundwater resources. Expansion of the Monterey Peninsula Water Management District’s Seaside Basin Phase 1 Aquifer Storage and Recovery (ASR) Project meets the criteria for these funds.


RECOMMENDATION:   Staff is seeking authorization from the Board to submit an application for this grant to help fund further expansion of the Seaside Basin ASR Project, by way of formal Board resolution (Exhibit 18-A).  Staff recommends adoption of Resolution No. 2009-04 authorizing staff to apply for grant funds from the United States Bureau of Reclamation for expansion of the Seaside Basin ASR Project.


IMPACTS TO STAFF/RESOURCES:  There is no external cost associated with adoption of this resolution. Staff time spent to prepare grant will not be recovered, however if the grant is awarded and accepted, staff time spent administering and working within the scope of the grant will potentially be reimbursed through the grant compensation.   


BACKGROUND:  This federal grant program represents an opportunity for potential expansion of the successful Phase 1 ASR Project in the Seaside Groundwater Basin.  Accordingly, staff supports the submittal of the grant application as a means of investigating and potentially securing alternative funding mechanisms to offset future ASR project costs.



18-A    Draft Resolution No. 2009-04