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BACKGROUND <br /> The City recognizes the critical role of recycled water can play in providing a reliable <br /> water supply to its customers and in meeting water conservation goals as mandated by <br /> California's Water Conservation Act of 2009 (20% per capita reduction by the year <br /> 2020). In recognition of the potential regional impacts of recycled water use, the City <br /> and Zone 7 are conducting a recycled water feasibility study involving 1) a market <br /> analysis that quantifies supply and demand and identifies customer incentives, 2) the <br /> development and evaluation of recycled water program scenarios consisting of various <br /> facility types, locations and sizing options to meet projected demands; considering the <br /> integration of energy-efficient and renewable energy technologies, 3) an economic <br /> analysis that develops cost estimates and potential pricing, and identifies potential <br /> funding sources, 4) a legal and institutional analysis that evaluates opportunities and <br /> barriers, 5) an environmental analysis that evaluates potentially significant <br /> environmental impacts, and 6) an analysis of water supply alternatives to recycled <br /> water. Staff anticipates the study will be completed in 16 months from the start of the <br /> study. The anticipated start date following consultant selection will be approximately <br /> November 2011 . <br /> DISCUSSION <br /> The two proposed grants will offset the cost of the study and assure that it proceeds at a <br /> minimal cost to both the City and Zone 7. Approval of City resolutions is a requirement <br /> for both grant applications. The resolutions authorize the Director of Operations <br /> Services to sign, file and administer the grant applications and grant requirements. <br /> Sub i=o.y: f Fiscal Review: Approved y: <br /> Daniel smith Emily Wagner Nelson Fialho <br /> Director of Operations Services Director of Finance City Manager <br /> Attachments: <br /> 1. Resolution adopting financial and legal commitment for Title XVI Grant Funds <br /> 2. Resolution authorizing submittal of the State Water Resources Control Board on behalf of the City <br /> to sign and file a Water Recycling Facilities Planning Grant Application with the State Water <br /> Resources Control Board. <br /> Page 2 of 2 <br />