TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Erick Lee, Public Works Director
Prem Kumar, City Engineer
SUBJECT:Title
Consideration of a Resolution Approving the Transfer Agreement with Los Angeles County Flood Control District for the South Santa Monica Bay Water Quality Enhancement 28th Street Storm Drain Infiltration Project (Public Works Director Lee).
A) ADOPT RESOLUTION NO. 21-0116
B) APPROVE APPROPRIATION AND BUDGET ADJUSTMENTS FOR MEASURE W FUNDS
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Recommended Action
RECOMMENDATION:ody
Staff recommends that City Council adopt the attached Resolution No. 21-0116:
1) Approving the County Transfer Agreement that provides grant funds up to $17.52 million for the City’s 28th Street Storm Drain Infiltration Project
2) Authorizing the City Manager to execute the Agreement and any subsequent administrative amendments subject to review and approval of the City Attorney
3) Approving the appropriation and revenue budget adjustment for $1,497,100 in the Measure W Fund for the 28th Street Storm Drain Infiltration Project
4) Authorizing the Public Works Director to conduct all matters necessary for grant administration of the project.
5) Approving a budget adjustment to transfer funds related to the Safe Clean Water Program into a new Measure W Fund.
FISCAL IMPLICATIONS:
In the FY 2019-2020 CIP, the City Council appropriated $200,000 to fund the Storm Drain Infiltration Feasibility Study Project in the Stormwater Fund. The Feasibility Study Report was completed and submitted for various grant funding. On September 15, 2021, the County of Los Angeles Board of Supervisors approved a funding allocation of $17.52 million in the Stormwater Investment Plan for the City’s 28th Street Storm Drain Infiltration Project under the Los Angeles Region Safe Clean Water Program.
The funding is allocated over 5 years in the following manner:
Year 1: $1,497,100
Years 2-5: $4,005,732 annually
In accordance with the Transfer Agreement, the Los Angeles County Flood Control District (District) will disburse the Year 1 funds within 45-days of the execution of the Agreement. By approving this agreement, an appropriation of $1,497,100 in the CIP Budget is required for this next phase of the project that will include design of the improvements. A revenue budget adjustment for the same amount is also recommended to recognize the awarded grant funds. Year 2-5 annual allocations from the District will be addressed as part of the City’s upcoming FY22-23 CIP Budget. There are no General Fund monies allocated to the 28th Street Stormwater Infiltration Project
Incidentally, in early September 2021, the City received confirmation that it was awarded $4,936,566 from the California Natural Resources Agency (CNRA) to provide supplemental funding for the 28th Street Stormwater Infiltration Project. Once the City receives the funding agreement from the CNRA, it will be presented to City Council for approval.
The total project cost for the 28th Street Stormwater Infiltration Project was originally estimated at $17.6 million. However, the actual costs of the project will not be known until after the project is designed and bid out via the public contracting process.
The City also began receiving annual funds through the Measure W Municipal Program in FY 2020-2021. The City will receive about $410,000 per year for spending on eligible projects and programs. In accordance with the funding guidelines, the Measure W municipal program and grant funds should be deposited into its own special revenue fund. A revenue budget adjustment of $410,000 is required to move the anticipated annual allotment from the Stormwater Fund to the newly created Measure W Fund. These funds will be appropriated for future projects as needed.
BACKGROUND:
The Los Angeles County Flood Control Act was established in 1915 by the Los Angeles County Flood Control District and empowered it to provide flood protection, water conservation, recreation and aesthetic enhancement within its boundaries. In 2018, Chapter 16 of the Los Angeles Flood Control District District’s Code was added to establish the Los Angeles Region Safe Clean Water Program and imposed a special parcel tax within the Los Angeles County Flood Control District. This parcel tax, commonly referred to as Measure W, is intended to help pay the costs and expenses of carrying out projects and programs that increase storm water capture and reduce storm water and urban runoff pollution within Los Angeles County.
The cities of Manhattan Beach, Hermosa Beach, Redondo Beach, Torrance and the Los Angeles County Flood Control District (LACFCD) have jointly developed an Enhanced Watershed Management Program (the Beach Cities EWMP) as part of compliance with the 2012 Los Angeles Regional Water Quality Control Board Storm Water Permit (LA MS4 Permit). The Beach Cities EWMP identified capital improvement projects that would minimize wet weather discharges and eliminate dry weather discharges into Santa Monica Bay, with the goal of reducing pollutants entering the Bay and meeting the water quality-based effluent (outflow) limitations. The City’s 28th Street Storm Drain Infiltration Project is the highest priority project to significantly reduce bacterial, trash and debris discharges into South Santa Monica Bay from the storm drain system and aligns with the California Regional Waterboard’s Municipal Separate Storm Sewer System (MS4) Permit mandate.
On April 20, 2020, the City Council awarded a Professional Design Services Agreement to CWE for $198,286 to perform the Manhattan Beach Stormwater Infiltration Project Feasibility Study. This Study was necessary to detail out the project parameters as well as establish the fundamentals for pursuing grant funding. This consultant prepared the technical evaluation and conducted several outreach presentations before completing the feasibility study report. The consultant also took the lead in preparing the grant application and presentations to the grantors that resulted in the successful outcome of this $17.52 million grant award.
On June 14, 2021, the City Council approved the funding application for the Urban Flood Protection Grant Program administered by the CNRA for the same project. In early September 2021, the City received formal confirmation that it was successful in receiving a $4.9 million award from this grant program. The CNRA grant requires a 25% funding match from other sources. This 25% funding match will come from the Los Angeles Region Safe Clean Water Program Measure W grant funds. The approval of this separate grant agreement will be presented at a future City Council meeting.
DISCUSSION:
The Transfer Agreement provides grant funds up to $17.52 million allocated over a 5-year period in the Stormwater Investment Plan approved by the County of Los Angeles Board of Supervisors on September 15, 2021, under the Los Angeles Region Safe Clean Water Program and specifically for the City’s 28th Street Storm Drain Infiltration Project. In order to accept and utilize these grant funds, City Council must adopt a resolution approving the Transfer Agreement.
The attached Transfer Agreement outlines the project and reporting requirements. The Transfer Agreement contains standard boilerplate agreement language that is consistently applied to any jurisdiction successfully receiving such grant funds from LACFCD. The attached Resolution authorizes the City Manager to sign the Agreement and any subsequent administrative amendments, if necessary, due to minor variations and/or adjustments to the terms and conditions therein. The Resolution also authorizes the Public Works Director to conduct all matters necessary for grant administration of the project as the City’s agent to negotiate, execute and submit all grant related documents including, but not limited to, applications, payment requests, etc. for the completion of the project.
It is important that the City moves forward with the design of the project in short order to meet the grant deadlines. The award for the project’s design contract will be presented to City Council in an upcoming meeting.
PUBLIC OUTREACH:
Public outreach efforts were conducted during the fall of 2020 that included residents of Manhattan Beach (advertisement in The Beach Reporter), the Surfrider Foundation, the Bay Foundation, Heal the Bay, and Supervisor Hahn’s Office, and the City’s Sustainability Task Force. All entities have been supportive of the project.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality act (CEQA) and has determined that the grant application submittal activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 21-0116
2. Transfer Agreement - Los Angeles County Flood Control District
3. LA County Board: Staff Report - September 15, 2021 (Attachment A)
4. LA County Board: Staff Report - September 15, 2021 (Funding Allocation)