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Home My WebLink About10 - Supporting the Water Infrastructure Funding Act of 2022Q �EwPpRT CITY OF O � z NEWPORT BEACH <,FORN'P City Council Staff Report November 16, 2021 Agenda Item No.10 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Mark Vukojevic, Utilities Director - 949-644-3011, mvukojevic@newportbeachca.gov PREPARED BY: Mark Vukojevic, Utilities Director TITLE: Resolution No. 2021-114: Supporting the Water Infrastructure Funding Act of 2022 At its October 26, 2021 meeting, the Newport Beach City Council unanimously voted, via a straw poll, in favor of staff bringing forward a resolution for the Council's consideration, expressing support for the California Water Infrastructure Funding Act of 2022. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Adopt Resolution No. 2021-114, A Resolution of the City Council of the City of Newport Beach, California, Supporting the Water Infrastructure Funding Act of 2022. DISCUSSION: The California Policy Center is pursuing a statewide ballot initiative for the November 2022 election to fund new water supply projects. More specifically, the ballot initiative would call for two percent of state general fund revenues to be annually set aside and allocated toward projects that create additional water supply for the state. The general intent of the initiative is to secure a non -water bond funding source and to compel the development and construction of new water supply projects. At the request of Mayor Pro Tem Kevin Muldoon, at the October 26, 2021 City Council meeting, the City Council considered placing an item on the future Council agenda that if adopted, would express its support for the Water Infrastructure Act of 2022. The City Council unanimously voted, via a straw poll, in favor of staff bringing forward a resolution for the Council's consideration. California residents have frequently voted for water bonds to create new reservoirs and water supplies to help drought -proof the state. Unfortunately, these water projects seem to move very slowly through the regulatory process or not at all. The state's water supply system is commonly known to be fragile for a variety of reasons. 10-1 Support for the Water Infrastructure Funding Act of 2022 November 16, 2021 Page 2 Residents and businesses are routinely told to reduce their water usage. The goal of this initiative is to increase the state's water supplies. This initiative, which is intended to qualify for the November 2022 state ballot, would accomplish the following objectives: Allocate two percent of the state's general fund revenues for water supply construction projects such as, aquifer storage, wastewater recycling, conveyance, surface storage, desalination, and water treatment to increase the annual sustainable supply of water to California's cities and farms by five million acre-feet. The measure authorizes up to 50 percent of this revenue stream to be used to make payments on construction bonds, which could immediately raise approximately $40 billion. According to the proponents, the initiative aims to alleviate the legal and bureaucratic obstacles to getting water projects approved and funded, and to streamline the permitting process. If adopted, Resolution No. 2021-114 (Attachment A) would convey that the City Council supports the Water Infrastructure Funding Act of 2022 and that it be placed on the ballot for consideration by the voters. FISCAL IMPACT: There is no City fiscal impact related to this item. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item ATTACHMENT: Attachment A —Resolution No. 2021-114 10-2 ATTACHMENT A RESOLUTION NO. 2021-114 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, SUPPORTING THE WATER INFRASTRUCTURE FUNDING ACT OF 2022 WHEREAS, the challenges of a growing population in conjunction with prolonged droughts has exposed serious flaws with the State of California's water infrastructure; WHEREAS, the Water Infrastructure Funding Act of 2022, a citizens' ballot initiative to prioritize, fund, and streamline new water supply projects has been filed for qualification for the November 2022 general election ("Initiative" or "Act"); WHEREAS, the Initiative will amend the state constitution and provisions of the California Water Code, Public Resources Code, and Government Code to accomplish the following objectives: (1) Require the transfer of two percent (2%) of the state's General Fund Revenue each and every year into a trust account until the state certifies that water projects funded in whole, or in part, have created a minimum increase of five million acre- feet (5,000,000 AF) of additional annual water supply that can be reliably delivered to Californians every year thereafter; (2) Provide "pay-as-you-go" funding for certain water projects, including those ready for immediate construction, while also authorizing the issuance of general obligation bonds which may be repaid using up to half of the revenue transferred into the trust account each year for larger, longer-term water projects, all for the purpose of creating a minimum of five million acre-feet (5,000,000 AF) of additional annual water supply; (3) Require that such projects include new or increased storage capacity in reservoirs and aquifers, desalination, recycling and treatment of waste and stormwater, repair and upgrade to water systems for the delivery of clean, safe drinking water for homes and businesses, water for agricultural uses, and other projects designed to increase the safe and affordable supply of water to all Californians; and (4) Provide for streamlined administrative processing and judicial review of water projects funded in whole, or in part, by the Act or otherwise certified by the California Water Commission as a drought resiliency project that would help achieve a minimum of five million acre-feet (5,000,000 AF) of additional annual water supply capacity. 10-3 Resolution No. 2021 - Page 2 of 3 NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council does hereby support the Initiative to increase California's annual water supply by a minimum of five million acre-feet (5,000,000 AF), improve California's aging water infrastructure, construct new means to capture and deliver water to all parts of our state, and streamline the processing of water projects. Section 2: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 3: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 4: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. 10-4 Resolution No. 2021 - Page 3 of 3 Section 5: This resolution shall take effect immediately Upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 16th day of November 2021. Brad Avery Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Aaro C. Harp City Attorney 10-5