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To authorize the Chief Administrative Officer, for and on behalf of the City of Richmond, to accept funds in the amount of $750,000.00 from the Virginia Resources Authority, and to amend the Fiscal Year 2023-2024 Water Utility Budget which appropriated the estimated receipts of the water utility, by increasing estimated receipt and the amount appropriated for the water utility by $750,000.00, for the purpose of funding the City’s lead service line replacement program for residential, school, and day care properties.
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THE CITY OF RICHMOND HEREBY ORDAINS:
§ 1. That the Chief Administrative Officer is authorized to accept funds in the amount of $750,000.00 from the Virginia Resources Authority for the purpose of funding the City’s lead service line replacement program for residential, school, and day care properties.
§ 2. That Article I, Section 12 of Ordinance No. 2023-071, adopted May 8, 2023, which adopted the Water Utility Budget for the fiscal year commencing July 1, 2023, and ending June 30, 2024, by increasing the estimated receipts of the water utility and the amount appropriated for line replacement program for residential, school, and day care properties.
§ 3. This ordinance shall be in full force and effect upon adoption.
DATE: October 06, 2023 EDITION: 1
TO: The Honorable Members of City Council
THROUGH: The Honorable Levar M. Stoney, Mayor
THROUGH: J.E. Lincoln Saunders, Chief Administrative Officer
THROUGH: Sheila White, Director Finance
THROUGH: Jason May, Director Budget
THROUGH: Robert C. Steidel, Deputy City Administrator, Operations
THROUGH: April M. Bingham, Director, DPU
FROM: Billy Vaughan, Deputy Department Director, Senior, DPU
Eric Whitehurst, Deputy Department Director, Senior, DPU
RE: Virginia Water Supply Assistance Grant (“WSAG”); Financial and Construction Assistance Program; Lead Service Line Replacement & Service Line Inventory
ORD. OR RES. No. ______________
PURPOSE: To authorize the Chief Administrative Officer to accept funds in the amount of $750,000.00 from the Virginia Resources Authority (VRA), as administrator of the Virginia Water Supply Revolving Fund, and to appropriate the funds received to the Fiscal Year 2024 Budget by increasing revenues and the amount appropriated to the Department of Public Utilities’ Water Utility enterprise funds for the purpose of funding full lead service line replacements in the City and the development of an Interactive Service Line Inventory Map that is required to be submitted to the Virginia Department of Health by October 24, 2024.
BACKGROUND: The City operates a Lead Service Line Replacement (LSLR) Grant Program (the “Program”) administered by DPU. The Program aids property owners in replacing their lead water service lines running from the water meter serving their property into their homes. DPU already has funding secured to complete lead service line replacements within the public right of way, but DPU is not authorized to spend utility funds on private infrastructure. $500,000 of the total allocation of $750,000 is earmarked for LSLR on residential properties as well as schools and daycare facilities. The work for these replacements will be done by private plumbers certified by the City to participate in the program and hired by the property owner. These grant funds will pay for administrative fees, plumber reimbursement costs for approved LSL Replacements, and public outreach and education.
An additional $250,000 is included in this grant award for to the development of an Interactive Service Line Inventory Map. The map will be developed under the direction of City staff by a City engineering consultant. This map is required to be submitted to the Virginia Department of Health by October 24, 2024.
COMMUNITY OUTREACH: Prior to implementation of the FY22 LSLR Program, DPU conducted three certification training sessions for local plumbing companies. Currently there are 21 plumbing companies certified to participate in the grant program. In addition, DPU hosted an on-line, information session for property owners who had expressed interest in the Program. The information presented at this session is still available to all customers on the City’s website. Throughout the year, DPU also attends neighborhood meetings, Council District meetings, National Night Out events and many other public forums to promote the Program. More outreach events will be scheduled in January 2024 once the new grant cycle kicks-off.
STRATEGIC INITIATIVES AND OTHER GOVERNMENTAL: The Program is categorized under the “Building Back Greener and More Resilient” initiatives as outlined in the American Rescue Plan Act. The Program also coordinates its efforts with the Office of Housing and Community Development to identify possible residents who would benefit from their grant funded Healthy Homes program. The Healthy Homes program assists qualified homeowners with repairs inside their homes.
FISCAL IMPACT: By accepting this grant, the Water Utility will receive $750,000 to aid property owners in replacing their lead service lines and aid the water utility with development of an interactive service line map.
DESIRED EFFECTIVE DATE: Upon adoption.
REQUESTED INTRODUCTION DATE: November 13, 2023
CITY COUNCIL PUBLIC HEARING DATE: December 11, 2023
REQUESTED AGENDA: Consent
RECOMMENDED COUNCIL COMMITTEE: Planning Commission (November 20, 2023)
AFFECTED AGENCIES: Department of Public Utilities, Department of Budget and Strategic Planning, Department of Finance
RELATIONSHIP TO EXISTING ORD. OR RES.: None
ATTACHMENTS: Drinking Water Funding Agreement No. WSL-006-23
STAFF: Billy Vaughan, DPU, 804-646-5232
Eric Whitehurst, DPU, 804-646-3780
E-COPIES: Sherril Hampton, Director Office of Housing & Community Development; Rosemary Green, Capital Projects Manager, Senior, DPU; Michelle Woodson, Interim Operations Manager, DPU; Dupree Jackson, Operations Manager, DPU