Title
Consider and take action on a resolution authorizing the submittal of a grant application with the Texas Water Development Board (TWDB) for available funding from the State Fiscal Year (SFY) 2023, Drinking Water State Revolving Fund (DWSRF) for activities associated with the U.S. Environmental Protection Agency’s (EPA) mandated Lead Copper Rule Revision (LCRR) (Director of Public Works)
Background:
Approval of this resolution will authorize the submittal of a grant application to the TWDB for available grant funding concerning EPA’s mandated Lead Copper Rule Revision (LCRR). The LCRR requires the City to develop an inventory and plan for the removal of all lead and galvanized services lines downstream of lead pipe. Council approved a professional services agreement with CDM Smith on February 28, 2023 (Agenda Item 6K) for services related to the development of the LCRR. EPA’s deadline for this phase of the LCRR is October 2024, with service line removal guidance expected soon after.
League City’s Public Water System (PWS) is currently in compliance with EPA’s Lead Copper Rule (LCR). However, recent revisions of this rule were finalized on December 16, 2021, leading to the current requirements of the LCRR. The revision requires several changes to be in place by a compliance date of October 16, 2024. The revised LCR is EPA’s continued effort to improve and eventually eliminate the human health impact from lead drinking water service lines. This is in direct response to the 2016 public water system crisis in Flint, Michigan where a large majority of its’ population was exposed to excessive lead concentrations created by a change in the raw water source for the City’s treatment facility (further details available in attachment 5).
TWDB has committed $213,455,000 for the SFY2023 Lead Service Line Replacement (LSLR) Loan/Grant Program. Project areas are subject to the Average Medium Household Income (AMHI) criteria specific to the LSLR Program. CDM Smith consultants and City staff are currently working together to develop a project map of potential eligible areas and an estimated cost to perform the required tasks of the LCRR. Exact numbers are not available at this time, but future cost commitments could range from $250,000 to $500,000. Funds will be awarded as a zero percent interest loan with up to 51 percent principal forgiveness and 49 percent loan/bond. Loan repayment would commence up to 18-months at the completion of the program activities, with either a 15- or 30-year term. The program allows 12-months for inventory related activities and 24-months for all other related activities.
Eligible costs for LSLR funding include but are not limited to identification, planning, design, and replacement of lead/galvanized service lines. TWDB has imposed a deadline to submit a Project Information Form (PIF) by May 23, 2023. This form is not the formal grant application and is intended to confirm project eligibility and to provide TWDB an order of magnitude cost for future funding distribution. CDM Smith has identified approximately $9,000,000 in eligible scope based on the aforementioned categories. The City’s history of building eras will eliminate the majority of this eligibility. The City’s ongoing water line replacement program further reduces potential cost associated with the LCRR.
Attachments:
1. Data Sheet
2. Proposed Resolution
3. COLC Grant Application Pre-Approval Form
4. TWDB Guidance Document
5. Approved Data Sheet - CDM Smith, Inc. 2.28.23
CONTRACT ORIGINATION: STAFF
FUNDING
{X} Grant funds will reimburse expenses that will be charged to Water Production Department’s Professional Services Account #10207300-53050
STRATEGIC PLANNING
{X} Addresses Strategic Planning Success Factor #1 - Develop and Maintain our Infrastructure