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Home My WebLink About2.c. Integrated Water Management Update��SEMOU T EXECUTIVE SUMMARY CITY COUNCIL City Council Work Session: March 11, 2015 AGENDA ITEM: Integrated Water Management Update, AGENDA SECTION: ENG 0169 Discussion PREPARED BY: Andrew J. Brotzler, PE, Director of Public Works/City Engineer AGENDA NO. 2.c. ATTACHMENTS: Letter from WSB & Associates, Inc. APPROVED BY: ddj RECOMMENDED ACTION: Discussion and direction. BACKGROUND Council last discussed Integrated Water Management at the October 14, 2014 City Council Work Session prior to submitting a grant application to the Minnesota Board of Water and Soil Resources (BWSR). The City has been notified by staff with BWSR that it was not awarded grant monies for the project. Integrated Water Management (IWM) is a concept that evaluates water resources (groundwater, water supply, wastewater, treated effluent, and surface water) together to identify opportunities to balance the demand and supply of these resources. This includes the evaluation and consideration for re -use of stormwater and treated effluent for non -potable uses today and in the future to offset future demands on groundwater aquifers and maximize the use of available resources. Several slides from the power point presentation at the October 14, 2014 City Council Work Session are attached for information. At this time, Staff would like to update Council on additional funding opportunities for the project. The attached letter from Todd Hubmer and Jamie Wallerstedt with WSB & Associates, Inc. discusses a number of additional funding opportunities and strategies for Council consideration and direction. Staff has contacted representatives from the University of Minnesota who have indicated continued support for pursing funding for this effort. Todd Hubmer will be in attendance at the meeting to provide an overview of these opportunities and address questions that Council may have. C:\Users\cgh\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\TE5ZIMG\20150311 CWS Integrated Water Mgmt Update.docx UM re Park Integrated Water Management • tormwater Treatment • Stormwater reuse for Irrigation and Infiltration • Treated Effluent from Wastewater for Supplemental Irrigation • Groundwater Recharge • Reuse Utility Funds • Surface Water Emergency Overflow 1 More Park Water Balance q>> Wore Park Goal: Zeta Stornn wAiRr r discharge for all canditim 14�y'; TYpf3 fJi W,�ifr 1 SSU es-. I On Silt- CWlWMM tip. a K,� lift 8-Clfrnlulxr:gY�tlenr4tllLJLf151 PL#4oLRwi*DY wihp 4 uvar swl*5rwho* 8MCESTMealedE1ALmnAtgm uln, T TlplW Ellluol CtWft1PwlkP 9 CresMrWr Ilw.lvlge 9 almn Walm Fs Vffrr Or NA 14. Fakr IP`nrbN fadla. Wq#pLWw, n ep Lrlc'$Lek. Mt1H geld WCA Witzi ILLm,el 'fIF�[�l�+.ic•7C k e- RAI �cs�aoEras..Tic�ra �,..- G ik 1 INS A WSS c�C Assad engineering • planning • environmental • construction 701 Xenia Avenue South Suite 300 Minneapolis, MN 55416 Tel: 763-541-4800 Fax: 763-541-1700 March 6, 2015 Mr. Dwight Johnson City Administrator City of Rosemount 2875 145th Street West Rosemount, MN 55068 Re: Possible Sources of Funding for the Integrated Water Management (IWM) Program City of Rosemount, MN Dear Mr. Johnson: The City of Rosemount did not receive the Board of Water and Soil Resources (BWSR) Accelerated Implementation Grant to develop an Integrated Water Management (IWM) program for the UMore Park Development and the City of Rosemount. Due to this decision, we are evaluating alternative funding opportunities to develop the IWM program. This letter is intended to: • Provide you and the City Council with an update on the status of the project; • Request authorization to begin working on a Legislative -Citizen Commission on Minnesota Resources (LCCMR) funding application from the Minnesota Environment and Natural Resource Trust Fund; • And discuss other potential funding sources to develop the IWM program. Since we last met with the City Council, City of Rosemount staff and WSB have met with representatives from UMore Park LLC to discuss the opportunity of developing a partnership to complete the IWM program. After that meeting, the University of Minnesota evaluated their proposed goals and plans for the development of UMore Park. This evaluation has resulted in the University of Minnesota shifting away from a sustainable approach to a more market driven vision for the development. Even with the new vision for the development of UMore Park, the opportunity to evaluate and develop an alternative water source for UMore Park and other high-volume water users may be necessary to maintain market compatibility. The current alternative being discussed of converting large municipalities from groundwater to surface water sources for potable water will add significant financial burden to development in this region. There is a significant benefit in preserving and replenishing our groundwater sources through the IWM approach. This approach may delay the need to convert to surface water for many years and potentially indefinitely. Equal Opportunity Employer wsbeng.00m K:\00800-140\Admin\Docs\030515 LTR UMore IWM Funding Sourc A.. Possible Sources of Funding for the Integrated Water Management Project March 6, 2015 Page 2 Development of the IWM program will require coordination with many public and private entities to achieve success. Therefore, we are actively looking for project funding partners. Funding partners we have currently identified include: • Minnesota Environment and Natural Resource Trust Fund (LCCMR Appropriations); • Legislative Appropriation; • State Agency Budget Requests or Applicable Grants; and • Direct Funding Allocation from Project Partner/Stakeholders. Minnesota Environment and Natural Resource Trust Fund The LLCCMR has issued its 2016 Request for Proposal (RFP) for funding from Minnesota's Environment and Natural Resources Trust Fund beginning July 1, 2016. Approximately $46.3 million is expected to be available for projects that provide multiple ecological and other public benefits in at least one of the following seven environments and natural resource areas further detailed in the RFP which is attached to this letter: 1. Foundational Natural Resource Data and Information; 2. Water Resources; 3. Environmental Education; 4. Aquatic and Terrestrial Invasive Species; 5. Air Quality, Climate Change, and Renewable Energy; 6. Methods to Protect or Restore Land, Water, and Habitat; and 7. Land Acquisition for Habitat and Recreation. Proposals responding to the 2016 RFP are due Monday, May 11, 2015 and it is a multi -step process to receive funding beginning July 1, 2016. The process includes the development of a comprehensive project proposal and, if selected for funding, a detailed work plan. The overall process is detailed on Page 3 of the attached RFP. The IWM Program focuses on a number of the above project priority categories; however, the main purpose of the program will be Item No. 2 — Water Resources of the above list. In the LCCMR's RFP, the focus of the Water Resources category aligns with the IWM Program. The project will be to research and evaluate the increase protection, conservation, and sustainability of the quality, quantity, and function of the City's and Region's water resources. This effort will include the following components that are detailed as priorities in the RFP: • Ground and surface water interaction, including stream flow and groundwater flow; • Aquifer recharge; • Wetland, river, and lake ecosystems; and • Mitigation of impacts resulting from artificial hydrological modifications in both urban and agricultural areas. Based on the above descriptions, this project should be a strong candidate to receive funding through the LCCMR for this project. K:\00800-140\Admin\Docs\030515 LTR UM— 1WM Funding Sour A.c Possible Sources of Funding for the Integrated Water Management Project March 6, 2015 Page 3 Legislative Appropriation There are opportunities with the 2015 legislative session to work with the City's State Representatives to pursue direct legislative appropriations on a bonding bill. The City may consider discussing this project with the House Representatives and Senators to evaluate a potential source of funding directly from the State. WSB can provide background information as well as approximate costs to continue the project efforts in cooperation with project partners. It is recommended that the City obtain additional State Agency (Metropolitan Council, MnDNR, etc.) statements of support to supplement discussions with the State Representatives. State and Other Agency Budget Requests or Applicable Grants As the proposed IWM Program involves the creation of policy and implementation links between the management of stormwater, drinking water, wastewater, surface water, and groundwater, there are a number of differing state and federal agencies that would have a vested interest in the IWM Program. This jurisdictional overlap creates an avenue for multiple funding sources by budget requests and applicable grants programs. It is recommended that the City continue to respond to budget requests as they become available. This may include but is not limited to BWSR, the Metropolitan Council, and Vermillion River Watershed Joint Powers Organization. In addition, the IWM Program may be eligible for a number of grants in the upcoming year. It is recommended that as the grants are published, the City and WSB evaluate the published applications and discuss the project with the grant representatives to establish if the project would be a candidate for funding. Direct Funding Allocation from Proiect Partner/Stakeholders In a project of this nature and magnitude, there are numerous project partners that should be engaged to ensure a transparent and well-balanced IWM Program is developed. By the City engaging project partners, there will be a level of confidence and assurance that interests from all beneficiaries are incorporated into the overall management policy. The City should continue to engage the project stakeholders to request direct funding participation for the IWM Program development. Potential project stakeholders including the following: • Metropolitan Council; • Minnesota Pollution Control Agency; • Minnesota Department of Health; • Minnesota Department of Natural Resources (MnDNR); • Empire Township; • Dakota County; and • Vermillion River Watershed Joint Powers Organization (VRWJPO). K:\00800-140\Admin\Docs\030515 LTR UM— IWM Funding Sour A.c Possible Sources of Funding for the Integrated Water Management Project March 6, 2015 Page 4 Summary It is recommended that the City continue to engage project partners and stakeholders to request funding for the IWM Program development. As detailed above, a number of these requests and meetings should be completed on a parallel path to ensure that funding is secured to begin the development of this important study. Specifically, WSB is requesting the authorization for the following next steps: • Develop a response to the attached LCCMR 2016 RFP; • Meet with the City's Legislators to request consideration on an upcoming bonding bill; • Complete applicable budget requests from agencies as they become available; • Apply for applicable grants as they become available; and • Meet with the potential project partners to request their funding participation. Sincerely, WSB & Associates, Inc. 1011d Todd Hubmer, PE Jamie Wallerstedt, PE Principal Project Manager Cc: Andy Brotzler, Director of Public Works/City Engineer of K:\00800-140\Admin\Docs\030515 LTR UM— IWM Funding Sou —A.c