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HomeMy WebLinkAboutItem 10i - American Rescue Plan Act ("ARPA") Allocation for New Goldring Well DATE: December 17, 2024 TO: Honorable Mayor and City Council FROM: Paul Cranmer, Public Works Services Director By: Henry Chen, Interim Administrative Services Director SUBJECT: ALLOCATE $1,350,000 IN AMERICAN RESCUE PLAN ACT (“ARPA”) FUNDS FOR THE NEW GOLDRING MUNICIPAL WATER SUPPLY WELL CEQA: Not a Project Recommendation: Approve SUMMARY The City received $8,865,000 in funding through the American Rescue Plan Act (“ARPA”). The funds were intended to address impacts in five major areas: public health response, negative economic impact, essential worker pay, revenue loss, and infrastructure improvements. To date, the City Council has approved $7,515,000 in ARPA funds for various projects to address the negative financial, health and economic impacts of the COVID-19 pandemic. The City has $1,350,000 of ARPA funds remaining and these funds need to be allocated by December 31, 2024. It has been determined that the remaining funds would be most effective when contributed toward the construction of the new Goldring Municipal Water Supply Well, which is estimated to cost $7 million. It is recommended that the City Council approve the allocation of $1,350,000 in ARPA funds toward the construction of the new Goldring Well. DISCUSSION The City of Arcadia and the City of Sierra Madre entered into a Joint Groundwater Production Well Agreement to jointly design, construct, operate, and maintain a groundwater production well in the Main San Gabriel Basin. A Municipal Water Supply Well Siting Study was conducted to consider the hydrogeology, groundwater quality, vicinity, environmental concerns, proximity to neighborhoods, and available space for a future water well. The completed study recommended the southwest corner of the City of Arcadia’s Public Works Services Yard, near the entrance of Kardashian Avenue, as the best location for a new Joint Well. Goldring Well ARPA Allocation December 17, 2024 Page 2 of 2 This project was previously budgeted in Fiscal Year 2020-21; however, due to cost increases in equipment and labor, and the additional cost for the construction of the Granular Activated Carbon (“GAC”) treatment equipment for Per and Polyfluoroalkyl Substances (“PFAS”) contamination in the groundwater, the project was postponed. The project was reintroduced in the FY 2024-25 budget at a cost of $7 million, half of which Sierra Madre will contribute. Allocating the remaining APRA monies will help offset some of the project cost increases and reduce the contribution needed from the Water Fund, which is somewhat depleted at this time. ENVIRONMENTAL ANALYSIS The proposed action of allocating funding does not constitute a project under the California Environmental Quality Act (“CEQA”), under Section 15061(b)(3) of the CEQA Guidelines, as it can be seen with certainty that it will have no impact on the environment. FISCAL IMPACT The City has been allocated a total of $8,865,000 in ARPA funding and has already allocated $7,515,000. The remaining $1,350,000 needs to be allocated by December 31, 2024. The use of ARPA monies for this project will alleviate the need to use Water funds, freeing up monies for improvements at other City wells, and helping reduce the expected rate increases that will be necessary in the coming years. RECOMMENDATION It is recommended that the City Council determine that this action does not constitute a project under the California Environmental Quality Act (“CEQA”); and approve the allocation of $1,350,000 in American Rescue Plan Act (“ARPA”) funds for the new Goldring Municipal Water Supply Well.