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Resolution No. 72494W 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO, 7249 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING AN APPLICATION FOR SAFE AND CLEAN WATER GRANT FROM THE WATER REPLENISHMENT DISTRICT OF SOUTHERN CALIFORNIA WHEREAS, the Water Replenishment District of Southern California ("WRD") has established a Safe and Clean Water Grant Program under which water producers in the WRD's boundaries may be eligible to receive a grant to fund (1) water infrastructure improvements or conservation programs designed to reduce reliance on ground water, (2) reclaimed water infrastructure or improvements designed to increase overall supplies of water available within the District, (3) water quality projects designed to either prevent contaminants from entering the ground water supplies of the District or to remove contaminants from the ground water supplies of the District, and (4) purchase of surface delivery water from other sources, which will have the effect of reducing the applicant's reliance on ground water produced on applicant or acquired from other sources within the District; and WHEREAS, the WRD has indicated the City is eligible for a grant of $1,068,400.16, scheduled to be released in two installments of $534,200.08,, the first upon approval of the application and the second in March 1999; and WHEREAS, the Director of Community Services and Water has recommended that the City Council approve an application for a Safe and Clean Water Grant from the WRD from all projects and activities allowed under the Program, subject to the terms and conditions applicable to said Program. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1-6 17 18 19 20 21 22 23 24 25 26 27 28 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of the City of Vernon hereby approves and authorizes the submittal of an application for a Safe and Clean Water Grant to the Water Replenishment District of Southern California, a copy of which has been presented to the City Council concurrently with this Resolution. SECTION 3: The City Council of the City of Vernon hereby authorizes the City Administrator to execute the application, any other necessary documents and payment requests for the purpose of securing the grant funds for, and on behalf of, the City of Vernon, and to implement and carry out the purposes specified in the grant application. SECTION 4: The City Clerk of the City of Vernon shall certify to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 15th day of December, 1998. ATTEST' BRUCE V. MALKENHORST, City Clerk -2- EONI S C . MAL; URG, MJyor 17-7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STATE OF CALIFORNIA ) )ss COUNTY OF LOS ANGELES ) I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 7249, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, December 15, 1998, and thereafter was duly signed by the Mayor of the City of Vernon. (SEAL) BRUCE V. MALKENHORST, City Clerk -3- SUPPORTING DOCUMENTS CITY COUNCIL LEONIS C. MALBURG Mayor THOMAS A. YBARRA Mayor Pro-Tem Wm. 'BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL McCORMICK Councilman BRUCE V. MALKENHORST City Administrator / City Clerk FAX (323) 581-7924 DAVID B. BREARLEY City Attorney FAX: (626) 330-5818 KEVIN WILSON Director of Community Services & Water FAX: (323) 588-2761 CITY HALL 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 TELEPHONE (323) 583-8811 January 11, 1999 Mr. Bob Campbell General Manager Water Replenishment District of Southern California 12621 E. 166th Street Cerritos, California 90703 KENNETH J. DeDARIO Director of Municipal Utilities FAX: (323) 583-1983 DAVE TELFORD Fire Chief FAX: (323) 581-1385 BRUCE W. OLSON Police Chief FAX: (323) 583-5236 Re: Safe and Clean Water Grant Program - Funding Application Dear Mr. Campbell: Enclosed herewith is our application requesting a WRD Safe and Clean Water Grant in the amount of $1,068,400.16 for Water Replenishment and/or Clean Water related projects and/or programs per your Resolution No. 98-569. The above referenced application was approved by the Vernon City Council through Resolution No. 7249 on December 15, 1998. If you have any questions, please do not hesitate to call Mr. Kevin Wilson, our Director of Community Services & Water, at Ext. 245. Very truly yours, CITY OF VERNON J*loriJ. osco Chief Deputy City Clerk GJO:rcw c: K. Wilson Enclosures Water Replenishment District of Southern California APPLICATION FOR SAFE AND CLEAN WATER GRANT This is to certify that Vernon is requesting a WRD Safe and Clean Water Grant Program grant (Grant) in the amount of $1,068,400.16 for Water Replenishment and/or Clean Water related projects and/or programs, to be released to Vernon in two installments of $534,200.08 with the first released in November 1998 and the second in March 1999. Further that the Vernon acknowledges that the Grant is subject to the terms and conditions contained in WRD Board Resolution 98- 569, a copy of which is attached for reference, and that WRD reserves the right to review and/or inspect those programs and/or projects funded by the Grant to determine compliance with the conditions of the WRD Board resolution. We will use the SCWGP funds for the following type(s) of projects and/or programs: [x] Water infrastructure improvements. [x] Conservation programs designed to reduce reliance on groundwater. [x] Reclaimed water infrastructure or improvements designed to increase overall supplies of water available within the District. [ x] Water quality projects designed to either prevent contaminants from entering the groundwater supplies of the District or to remove contaminants from the groundwater supplies of the District. I x] Purchase of surface delivery water from other sources, which will have the effect of reducing the applicant's reliance on groundwater produced by the applicant or acquired from other sources within the District. Vernon: Signed: Date: 1 6 99 Title: City Administrator/City Clerk By signing this application you are certifying that you are authorized to make application for SCWGP funds on behalf of your groundwater producing entity. OFFICE OF THE CITY CLERK INTER -OFFICE MEMORANDUM Date: January 5, 1999 To: Kevin Wilson, Director of Community Services & Water FROM: Gloria J. Oros(Zj.,_.Chief Deputy City Clerk RE: WRD Grant Program Please complete the application for Bruce`s signature. OFFICE OF THE CITY CLERK CoM... ty 0 1999 INTER —OFFICE MEMORANDUM services Date: January 5, 1999 To: Kevin Wilson, Director of Community Services & Water FROM: Gloria J. OrosQ!j,.Chief Deputy City Clerk RE: WRD Grant Program Please complete the application for Bruce's signature. Water Replenishment District of Southern California APPLICATION FOR SAFE AND CLEAN WATER GRANT This is to certify that Vernon is requesting a WRD Safe and Clean Water Grant Program grant (Grant) in the amount of $1,068,400.16 for Water Replenishment and/or Clean Water related projects and/or programs, to be released to Vernon in two installments of $634,200.08 with the first released in November 1998 and the second in March 1999. Further that the Vernon acknowledges that the Grant is subject to the terms and conditions contained in WRD Board Resolution 98- 569, a copy of which is attached for reference, and that WRD reserves the right to review and/or inspect those programs and/or projects funded by the Grant to determine compliance with the conditions of the WRD Board resolution. We will use the SCWGP funds for the following type(s) of projects and/or programs: [ ] Water infrastructure improvements. [ ] Conservation programs designed to reduce reliance on groundwater. [ ] Reclaimed water infrastructure or improvements designed to increase overall supplies of water available within the District. [ ] Water quality projects designed to either prevent contaminants from entering the groundwater supplies of the District or to remove contaminants from the groundwater supplies of the District. [ ] Purchase of surface delivery water from other sources, which will have the effect of reducing the applicant's reliance on groundwater produced by the applicant or acquired from other sources within the District. Vernon: Signed: Title: Date: By signing this application you are certifying that you are authorized to make application for SCWGP funds on behalf of your groundwater producing entity. WATER REPLENISHMENT DISTRICT OF SOUTHERN CALIFORNIA December 1, 1998 Kevin Wilson Acting Dir. of Community Services Vernon 4305 Santa Fe Avenue Vernon; CA 90058 DIRECTORS ROBERT GOLDSWORTHY, PRESIDENT DR. KENNETH M. ORDUNA, VICE PRESIDENT LEO J. VANDER LANS, TREASURER M. SUSAN CARRILLO, SECRETARY ALBERT ROBLES, DIRECTOR ROBERT L. CAMPBELL, GENERAL MANAGER RECF-1V F DEC 0 3 1998 Community Services SUBJECT: Safe and Clean Water Grant Program — Funding Application Dear Sir / Madam: Attached is a new Safe and Clean Water Grant Program Funding Application that includes your agency name and dollar amount that was inadvertently omitted from our letter dated November 25, 1998. Please sign the application and return to the Water Replenishment District. Bob Campbell General Manager 12621 E. 166th Street, Cerritos, California 90703 Phone (562) 921-5521 Fax (562) 921-6101 ® Printed on Recycled Paper. ._.a 186 �+ Al, CITY COUNC LEONIS C. MAL G Mayor THOMAS A. YBARRA Mayor Pro-Tem Wm. "BILL" DAVIS Councilman H. "LARRY" GONZALES Councilman W. MICHAEL McCORMICK Councilman BRUCE V. MALKENHORST City Administrator / City Clerk FAX (323) 581-7924 CITY HALL 4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058 TELEPHONE (323) 583-8811 December 10, 1998 Finance Committee City of Vernon Honorable Members: DAVID B. BREARLEY City Attorney FAX: (626) 330-5818 KEVIN WILSON Director of Community Services & Water FAX: (323) 588-2761 KENNETH J. DeDARIO Director of Municipal Utilities FAX: (323) 583-1983 DAVE TELFORD Fire Chief FAX: (323) 581-1385 BRUCE W. OLSON Police Chief FAX: (323) 583-5236 The Water Replenishment District's new Safe and Clean Water Grant program is offering the City of Vernon nearly $1.1 Million in grants that will be disbursed in two equal lump sum payments which are scheduled for November, 1998 and April, 1999. WRD is requesting that we submit an application for the grant money and that we comply with the term of WRD Board Resolution 98-569. Funds left unexpended shall be returned to the District after three years. Since we spend over $500,000.00 per year on the purchase of surface water from MWD, we can certainly qualify for this grant which could be used to offset MWD costs for about two years which would free up other funds to take care of capital improvements. This has been reviewed by the Director of Community Services and Water and the City Attorney, and it is hereby recommended that authority be granted to submit the grant application to the Water Replenishment District. Very truly yours, Bruce V. Malkenhorst Director of Finance BVM/gst enclosure December 8, 1998 To: Bruce Malkenhorst, City Administrator From: Samuel Kevin Wilson Director of Community Services and Water Subiect: WRD Grant Program I have reviewed the Water Replenishment District's new Safe and Clean Water Grant program. This is a rather liberal grant program with the amount of funds available being based upon our groundwater production over the last three years. We are being offered nearly $1.1 Million in grants that will be disbursed in two equal lump sum payments which are scheduled for November 1998 and April 1999. It seems that the November date is a bit optimistic. WRD requests that we submit an application for the grant money. This application differs from every other grant application in that it requires virtually no details on how we intend to spend the money. The application specifies that we must comply with the term of WRD Board Resolution 98-569. There are no financial accounting requirements included in the resolution so how we account for the incoming funds and future expenditures against these funds is up to us. In the ordinance, the District has identified four projects and/or programs that are applicable for the money: 1. Water infrastructure improvements or conservation programs designed to reduce reliance on groundwater. 2. Reclaimed water infrastructure or improvements designed to increase overall supplies of water available within the District. 3. Water quality projects designed to prevent contaminants from entering the groundwater or removing those already in the groundwater. 4. Purchase of surface water to reduce our dependence on groundwater. The application does not require us to outline what actual projects we will fund with the money or relate these projects to any of the above criteria. The resolution does, however, give the General Manager the right to verify that the monies have been spent in accordance with the resolution. The manner of verification is not outlined in these documents. Funds left unexpended shall be returned to the District after three years. Since we spend over $500,000.00 per year on the purchase of surface water from MWD, we can certainly qualify for this grant under project type number 4 above. The grant money could be used to offset MWD costs for about two years which would free up other funds to take care of capital improvements. If, for any reason we are not able to take surface water, we can still use the funds for various projects that would qualify under the other project categories. I recommend that we check all four project categories and sign the grant application. CAKennedyTNWater\WRD\wrd grant.wpd t RESOLUTION 99-569 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER REPLENISHMENT DISTRICT OF SOUTHERN CALIFORNIA ADOPTING THE 1998-1999 FINANCIAL ACTION PLAN WHEREAS, the Board of Directors of the Water Replenishment District of Southern California has direc>ed the preparation of a Financial Action Plan to strengthen the accounting and financial controls on all district activities, to outline a capital improvement program and a capital funding policy, to outline a non -capital project program, to establish a reserve policy and to outline a Clean and Safe Water Grants Program; WHEREAS, in response to that directive, stall' has prepared a draft Financial Action Plan containing the components set forth above, and WHEREAS, it is in the best interests of the District to approve and adopt such a plan establishing policy guidelines to assist staff in implementing such goals. IT IS RESOLVED 1. Implementation of Accounting and Financial Controls. The Board hereby adopts the staffs recommendations concerning the implementation of accounting and financial controls. Accordingly a. There is established the staff -position of Chief Financial Officer. The duties of the position shall be as determined by the General Manager, acting in consultation with the District's Treasurer, and subject to Board review. The General Manger shall seek Board approval of an appropriate salary range for the position: b. Staff is directed to prepare and present to the Board for approval a Policies and Procedures Manual to govern budgeting, accounting and reporting, procurement, and the management of fixed assets. C. Staff is directed to establish reasonable internal control measures for the purpose of verifying work flow and to encourage efficient internal operations. d. Staff Is directed to periodically perform internal audit reviews in a manner to be determined by the General Manager. e. Staff is directed to design and implement a Work Order Project Costing System 2. Capital improvement Program. The Board hereby adopts the proposed Thee -Year Capital Improvement Program in the form presented to the meeting, and modifies the 1998-1999 Budget accordingly. Such approval does not constitute approval of any individual Project thereunder which has not been previously approved in final form following compliance with the Calf' ornia Environmental Policy Act. 3. Debt Financing Policy. The Board hereby adopts as a guideline the policy that eighty percent (80%) of the total cost of implementing the Three-year Capital Improvement Program be paid through debt financing 4. Non -Capital Programs. The Board hereby authorizes 1998-1999 expenditures in the m&ximum amounts established in the Financial :fiction Plan for the identified Non -Capital Programs, and modifies the 1998- I999 Budget accordingly. 5. Cash Retention Policy. The Board hereby establishes the following policy governing the retention of cash reserves, in addition to any sum specifically appropriated to particular District projects: a. The District shall at all times maintain an Operating Reserve in the amount of the greater of Five Million Dollars ($5,000,000.00) or such amount as shall be reasonably necessary to provide resources necessary to operate the District for a minimum of two months, such amount to be determinedin the discretion of the General Manager. The reserve may expended Wider.emeriency conditions or otherwise as directed by the Board. b. The District shall manage a Replenishment Purchase Reserveinthe amount of Fifteen Million Dollars (515,C, 0,000.00) to provide for variability of year- to-year replenishment costs 6. Clean and Safe Water Grant Program. There is established the Clean and Safe Water Grant Program, to which there is allocated the sum of Thirty Million Dollars ($30,000,000.00). Staff is directed to prepare a written policy implementing that program for 1998-1999 containing at least the following provisions: a. Provided a water producer within the District's boundaries meets the criteria established by the General Manager for participation in the Program, the producer shall be eligible for a grant, in the discretion of the General Manager, up to a maximum amount determined by formula to be established by the General Manager based upon the applicant's average three-year groundwater production. In determining the maximum eligibility for a particular applicant, the General Manager shall consider rights retired through participation by the applicant in the District's In -Lieu Program as though such retired rights had been fully pumped. b. Successful applicants must be able to demonstrate that there is a need within their water system or service area in one or more of the areas set forth below, and mwm� agree to apply such grant exclusively -to such projects, activities, or programs: l . Water infrastructure improvements or conservation programs designed to reduce reliance on groundwater. 2. Reclaimed water infrastructure or improvements designed to increase overall supplies of water available within the District. 3. Water quality projects designed to either prevent contaminants from entering the groundwater supplies of the District or to remove contaminants from the groundwater supplies of the District. 4. Purchase of surface delivery water from other sources, which will have the effect of reducing the applicant's reliance on groundwater produced by the applicant or acquired from other sources within the District. C. Grants shall be made subject to the District's right to verify that grant monies have been applied in the manner proposed by the applicant upon which approval of the application was based. d. No portion of any grant pursuant to this program shalt be charged against the Replenishment Fund to the extent of -any amount attributed to activities described in b(3) above. e. No grant provided to an applicant under the program shall constitute an agreement by WRD to act as lead agency or to undertake any responsibilities the applicant may have for compliance with the California Environmental Quality Act. Expenditure of grant monies may be subject to CEQA compliance, and no expenditure is authorized by this resolution except following full compliance with CEQA by the applicant, where required. Disbursement may be conditioned upon certification by the applicant or its legal counsel that any project has been approved following appropriate environmental review. Any amounts unexpended by the applicant three years after the date of such grant shall be returned to the District. f. The General Manager shall devise a method of evaluating grant,,applications with the object of disbursing approved grants in equal insthllments'in November, 1998 and March, 1999. PASSED, APPROVED AND ADOPTED this day of , 1998. President ATTEST: "'Secretary •, i AO*VRD WATER REPLENISHMENT DISTRICT OF SOUTHERN CALIFORNIA November 24, 1998 DIRECTORS ROBERT GOLDSWORTHY, PRESIDENT DR. KENNETH M. ORDUNA, VICE PRESIDENT LEO J. VANDER LANS, TREASURER M. SUSAN CARRILLO, SECRETARY ALBERT ROBLES, DIRECTOR ROBERT L. CAMPBELL, GENERAL MANAGER RECEIVED Mr. Kevin Wilson NOV z 5 1998 Acting Director of Community Services Community Services City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 SUBJECT: Safe and Clean Water Grant Program- Funding Application Dear Mr. Wilson: In accordance with the approval of Resolution 98-569, on October 21, 1.998, (a copy of which is attached for reference), the Water Replenishment District of Southern California (WRD) established the Safe and Clean Water Grant Program (SCWGP). This program will allow WRD to participate as a partner with the groundwater producers in the Central and West Coast Basins by providing funding for their water replenishment and/or clean water related projects and programs. Because you are one of those groundwater producers the WRD has determined the maximum allowable grant that you qualifies for under the SCWGP. In arriving at this maximum eligibility level WRD has determined the total amount of groundwater production in the Central and West Coast Basins for the previous three fiscal years. This amount has been compared with your total groundwater production over the same three year period. This percentage was then applied against the $30,000,000 allocated by WRD for the SCWGP. The SCWGP funds will be dispersed in two installments, the first in November 1998, and the second in March 1999. Based on our records you produced 29,575.18 acre-ft for the three year period including produced and in-lieued groundwater. The total amount of groundwater produced for the three year period in Central and West Coast Basins was 830,452.33 acre-ft. Your production constitutes 3.561 % of the total, resulting in a maximum grant level of $1,068,400.16, which can be requested in two installments of $534,200.08. In accordance with WRD rules and regulations SCWGP funds must be used for the purposes indicated in the resolution. You can apply for SCWGP funds for projects and/or programs meeting those criteria. 12621 E. 166th Street, Cerritos, California 90703 Phone (562) 921-5521 Fax (562) 921-6101 ® Printed on Recycled Paper. 186 2: Page 2 Mr. Kevin Wilson City of Vernon November 24, 1998 By signing the application below you are certifying on behalf of your groundwater producing entity that the SCWGP funds provided to you will be used for those purposes stated above, and that you have the authority to make such a request on behalf of your groundwater producing entity. You are also acknowledging that the WRD reserves the right to review and/or inspect those programs and/or projects that are funded through the SCWGP for compliance with the requirements contained in WRD Resolution 98-562. Sincerely, ' Bob Campbell General Manager Water Replenishment District of Southern California APPLICATION FOR SAFE AND CLEAN WATER GRANT This is to certify that the City of Vernon is requesting a WRD Safe and Clean Water Grant Program grant (Grant) in the amount $1,068,400.16for Water Replenishment and/or Clean Water related projects and/or programs, to be released to the City of Vernon in two installments of $534,200.08 with the first released in November 1998 and the second in March 1999. Further that the City of Vernon acknowledges that the Grant is subject to the terms and conditions contained in WRD Board Resolution 98-569, a copy of which is attached for reference, and that WRD reserves the right to review and/or inspect those programs and/or projects funded by the Grant to determine compliance with the conditions of the WRD Board resolution. We will use the SCWGP funds for the following type(s) of projects and/or programs: Water infrastructure improvements Conservation programs designed to reduce reliance on groundwater. [ ] Reclaimed water infrastructure or improvements designed to increase overall supplies of water available within the District. [ ] Water quality projects designed to either prevent contaminants from entering the groundwater supplies of the District or to remove contaminants from the groundwater supplies of the District. [ ] Purchase of surface delivery water from other sources, which will have the effect of reducing the applicant's reliance on groundwater produced by the applicant or acquired from other sources within the District. City of Vernon Signed: Date: Title: By signing this application you are certifying that you are authorized to make application for SCWGP funds on behalf of your groundwater producing entity. RESOLUTION 98-569 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER REPLENISHMENT DISTRICT OF SOUTHERN CALIFORNIA ADOPTING THE 1998-1999 FINANCIAL ACTION PLAN WHEREAS, the Board of Directors of the Water Replenishment District of Southern California has directed the preparation of a Financial Action Plan to strengthen the accounting and financial controls on all district activities, to outline a capital improvement program and a capital funding policy, to outline a non -capital project program, to establish a reserve policy and to outline a Clean and Safe Water Grants Program; WHEREAS, in response to that directive, staff has prepared a draft Financial Action Plan containing the components set forth above; and WHEREAS, it is in the best interests of the District to approve and adopt such a plan establishing policy guidelines to assist staff in implementing such goals. IT IS RESOLVED 1. Implementation of Accounting and Financial Controls. The Board hereby adopts the staffs recommendations concerning the implementation of accounting and financial controls. Accordingly: a. There is established the staff position of Chief Financial Officer. The duties of the position shall be as determined by the General Manager, acting in consultation with the District's Treasurer, and subject to Board review. The General Manger shall seek Board approval of an appropriate salary range for the position. b. Staff is directed to prepare and present to the Board for approval a Policies and Procedures Manual to govern budgeting, accounting and reporting, procurement, and the management of fixed assets. C. Staff is directed to establish reasonable internal control measures for the purpose of verifying work flow and to encourage efficient internal operations. d. Staff is directed to periodically perform internal audit reviews in a manner to be determined by the General Manager. 1 e. Staff is directed to design and implement a; Work Order Project Costing System. Z. Capital Improvement Program. The Board hereby adopts the proposed Three -Year Capital Improvement Program in the form presented to the meeting, and modifies the 1998-1999 Budget accordingly. Such approval does not constitute approval of any individual Project thereunder which has not been previously approved in final form following compliance with the California Environmental Policy Act. 3. Debt Financine Polite. The Board hereby adopts as a guideline the policy that eighty percent (80%) of the total cost of implementing the Three-year Capital Improvement Program be paid through debt financing. 4. Non -Capital Programs. The Board hereby authorizes 1998-1999 expenditures in the maximum amounts established in the Financial Action Plan for the identified Non -Capital Programs, and modifies the 1998-1999 Budget accordingly. 5. Cash Retention Policy. The Board hereby establishes the following policy governing the retention of cash reserves, in addition to any sum specifically appropriated to particular District projects: a. The District shall at all times maintain an Operating Reserve in the amount of the greater of Five Million Dollars ($5,000,000.00) or such amount as shall be reasonably necessary to provide resources necessary to operate the District for a minimum of two months, such amount to be determined, in the discretion of the General Manager. The reserve may be expended under emergency conditions or otherwise as directed by the Board. b. The District shall manage a Replenishment Purchase Reserve in the amount of Fifteen Million Dollars ($15,000,000.00) to provide for variability of year- to-year replenishment costs. 6. Clean and Safe Water Grant Program. There is established the Clean and Safe Water Grant Program, to which there is allocated the sum of Thirty Million Dollars ($30,000,000.00). Staff is directed to prepare a written policy implementing that program for 1998-1999 containing at least the following provisions: a. Provided a water producer within the District's boundaries meets the criteria established by the General Manager for participation in the Program, the producer shall be eligible for a grant, in the discretion of the General Manager, up to a maximum amount determined by formula to be established by the General Manager based upon the applicant's average three-year groundwater production. In determining the maximum eligibility for a particular applicant, 2 1 the General Manager shall consider rights retired through participation by the applicant in the District's In -Lieu Program as though such retired rights had been fully pumped. b. Successful applicants must be able to demonstrate that there is a need within their water system or service area in one or more of the areas set forth below, and must agree to apply such grant exclusively to such projects, activities, or programs: l . Water infrastructure improvements or conservation programs designed to reduce reliance on groundwater. 2. Reclaimed water infrastructure or improvements designed to increase overall supplies of water available within the District. 3. Water quality projects designed to either prevent contaminants from entering the groundwater supplies of the District or to remove contaminants from the groundwater supplies of the District. 4. Purchase of surface delivery water from other sources, which will have the effect of reducing the applicant's reliance on groundwater produced by the applicant or acquired from other sources within the District. C. Grants shall be made subject to the District's right to verify that grant monies have been applied in the manner proposed by the applicant upon which approval of the application was based. d. No portion of any grant pursuant to this program shall be charged against the Replenishment Fund to the extent of any amount attributed to activities described in b(3) above. e. No grant provided to an applicant under the program shall constitute an agreement by WRD to act as lead agency or to undertake any responsibilities the applicant may have for compliance with the California Environmental Quality Act. Expenditure of grant monies may be subject to CEQA compliance, and no expenditure is authorized by this resolution except following full compliance with CEQA by the applicant, where required. Disbursement may be conditioned upon certification by the applicant or its legal counsel that any project has been approved following appropriate environmental review. Any amounts unexpended by the applicant three years after the date of such grant shall be returned to the District. f. The General Manager shall devise a method of evaluating grant applications with the object of disbursing approved grants in equal installments in November, 1998 and March, 1999. PASSED, APPROVED AND ADOPTED this _'D 1 day of �3c�rolfl sue— , 1998. President ATTEST: Secretary 4