(B)       Authorize the General Manager to ENTER INTO GRANT AGREEMENTS




Meeting Date:

November 15, 2010





Darby Fuerst,

General Manager


Protect Environmental Quality



Line Item No:†††††††††

2-6 IRWMP and

Grant Applications




Prepared By:

Larry Hampson

Cost Estimate:

$10,000 additional -- $35,000 total


General Counsel Review:N/A

Committee Recommendation:The Administrative Committee reviewed this item on November 9, 2010 and recommended approval.

CEQA Compliance:N/A




The California Department of Water Resources (DWR) is proposing to award up to approximately $250 million statewide in Fiscal Year 2010-11 under two separate grant programs funded through Proposition 84 (The Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coast Protection Bond Act of 2006).In September 2010, MPWMD applied for a $995,000 grant from Round 1 Prop. 84 Planning Grant funds to update the existing Integrated Regional Water Management Plan (IRWM Plan) for the Monterey Peninsula, Carmel Bay and Southern Monterey Bay planning region.A preliminary decision on that application is due in November 2010.


MPWMD is currently facilitating the development of a Round 1 Implementation Grant application for funds to carry out seven local projects including two MPWMD-sponsored projects: 1) Phase 2 of the Seaside Basin Aquifer Storage and Recovery Project; and 2) the Regional Educational Facility Water Conservation Program.Total Round 1 Implementation Grant funds are anticipated to be up to $11.56 million for the Central Coast funding area.Both grant programs are competitive, so there are no guarantees that this region will receive grant funding from either program.


At their July 19, 2010 meeting, the MPWMD Board of Directors authorized the General Manager to enter into agreements with consultants for professional services associated with completing a grant applications to DWR at a cost not-to-exceed $25,000.District staff project that these funds are likely to be expended prior to the completion of the Round 1 Implementation Grant application due in early January 2011.At this time, District staff is requesting authorization to expend up to $10,000 in addition to the previously authorized $25,000 for consultant services to complete an Implementation Grant application.The total not-to-exceed amount for services would be $35,000.The Big Sur Land Trust has agreed to reimburse MPWMD for up to $5,000 and the Cities of Monterey and Pacific Grove are considering a similar level of reimbursement (i.e., $2,500 each) to assist with the final preparation and submittal of a grant application.


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


A)                Adopt Resolution 2010-13 to apply for Implementation Grant funding under Proposition 84;


B)                 Authorize the General Manager to enter into a contract with the State of California to receive Implementation Grant funds to carry out projects described in the Monterey Peninsula, Carmel Bay and Southern Monterey Bay Integrated Regional Water Management Plan.The General Manager will 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 State of California grant contract;


C)                Authorize the General Manager to increase the not-to-exceed amount for agreements with consultants for professional services associated with completing a grant application to DWR from $25,000 to $35,000 and recover the additional costs from the Big Sur Land Trust and the Cities of Monterey and Pacific Grove.


District staff recommends approval of the above actions.


BACKGROUND:The District is currently the only agency in the Monterey Peninsula, Carmel Bay and Southern Monterey Bay planning region eligible to submit a Round 1 Implementation Grant application to DWR (MPWMD was the only local agency to adopt the IRWM Plan prior to September 30, 2008, which was the date of the legislation authorizing expenditure of IRWM grant funds).In future rounds, or for other Prop. 84 grant fund programs, there will be several other local agencies that are eligible to submit applications.††


District staff recommends that the Board approve Resolution 2010-13, which will authorize the work necessary to prepare a grant application and authorize the General Manager to enter into an agreement with the DWR to receive grant funds (Item 2A).District staff is also recommending authorization for the General Manager to enter into sub-grantee agreements to disburse funds for several projects proposed to be completed with IRWM grant funds and local matches consisting of cash and in-kind services (Item 2B).In addition, District staff is recommending approval to expend an additional $10,000 (in addition to the previously authorized limit of up to $25,000) for a total not-to-exceed $35,000 to retain consultants to assist staff in preparing the necessary information and filing applications with DWR (Item 2C).The Big Sur Land Trust will reimburse MPWMD for up to $5,000 and the Cities of Monterey and Pacific Grove would each reimburse MPWMD for up to $2,500 for these costs.


If this region is awarded grant funds, the District would be responsible for grant administration.The project sponsors have agreed to reserve up to 5%, or $275,230, of the total grant fund amount over the life of the grant for this task (see table below).Grant administration would include quarterly reports, accounting services, grant reimbursements, project monitoring, and acting as a facilitator between project sponsors and DWR.Portions of this work could be contracted out to consultant services.Grant administration would continue until all projects are complete and a final report is submitted to DWR.




Staff is proposing to apply to DWR for an implementation grant of up to $5.78 million for seven projects.The proposal includes a request for funds for (a) work at the Carmel River lagoon and in the lower Carmel River for flood control and floodplain enhancement, (b) completion of Phase 2 of the Seaside Groundwater Basin Aquifer Storage and Recovery project, (c) a water conservation project to retrofit local schools, (d) rehabilitation of deteriorating sanitary sewer system pipes in the Cities of Pacific Grove and Monterey, (e) a project to remove trash and other debris before it goes into storm drains leading to the Monterey Bay, (f) a project to track the potential sources of pollution that can go into the Pacific Grove Area of Special Biological Significance, and (g) a program to train volunteers in monitoring, stewardship, and water conservation measures for the Carmel River Basin.


As shown in the table above, each project sponsor is required to contribute a local match consisting of cash and/or in-kind services.Should this region receive a grant, staff would request authorization from the Board of Directors to expend the local match for MPWMD-sponsored projects at a future meeting.

Project sponsors and partners include MPWMD, Big Sur Land Trust, California American Water, Carmel River Watershed Conservancy, Coastal Watershed Council, Monterey County Water Resources Agency, Monterey County Public Works Department, City of Pacific Grove, City of Monterey, and the City of Seaside.


An application for an Implementation Grant is due January 7, 2011.In order to complete a grant application on time and to be competitive within the Central Coast funding area, District staff is proposing to retain qualified consultants to assist in developing and reviewing an application.MPWMD continues to work with DWR and planning agencies in the Central Coast funding region to develop a fair and equitable method for allocating IRWM funds from Prop. 84 to the Central Coast.The Central Coast was allocated $52 million from Prop. 84 funds.However, several planning regions within the funding area have indicated that they will submit Round 1 Implementation Grant applications.The total funds requested will exceed the amount allocated in this round and will result in a competition for funds among the submitting regions.


IMPACT ON STAFF/RESOURCES:†† Application for a Prop 84 Implementation Grant will be completed by the Districtís Planning and Engineering Division staff with assistance from the Water Resources Division and consultants to be retained.Project sponsors are required to fill out individual project applications that will be assembled into one proposal to DWR.Larry Hampson, Senior Water Resources Engineer, is the Districtís Prop. 84 grant application coordinator.Minimal direct costs may be incurred to obtain relevant documents from other agencies and to copy and mail the application.If the District receives a grant, staff time will be required to coordinate with other agencies, and to administer the grant.Some grant administration tasks may be contracted to appropriate consultants.



2-A††††† Resolution No. 2010-13


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