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Recommendation to adopt resolution authorizing City Manager to enter into a financial assistance agreement with the State Water Resources Control Board (SWRCB); and
Authorize City Manager to execute any and all documents necessary for a new funding agreement and any amendments thereto with the SWRCB to restart the Colorado Lagoon Clean Beaches Initiative Grant Project with funding support from the American Recovery and Reinvestment Act of 2009. (District 3)
DISCUSSION
On February 7, 2006, the City Council accepted grant funding in the amount of $3,823,868 from the State Water Resources Control Board (SWRCB) through the Clean Beaches Initiative (CBI) Grant Program for the installation of a low-flow sewer diversion system and construction of a bio-swale along the western lagoon arm. The CBI grant also included funding support for cleaning the existing 1,OOO-foot underground culvert, which connects the Colorado Lagoon to Marine Stadium. Please refer to enclosed location map (Exhibit A).
The CBI grant (State Agreement No. 06-266-550-0) was originally funded in 2006 with Proposition 40 monies. On December 17, 2008, the SWRCB notified the City that all general obligation bond-funded projects were being suspended due to the State's budget problems. City staff issued a Stop Work Notice for the CBI grant project on December 23, 2008.
On April 6, 2009, the City was notified by the SWRCB that the suspended grant project had been initially screened as eligible and selected to receive American Reinvestment and Recovery Act (ARRA) funds, as a principal forgiveness loan, through the State Revolving Fund Loan program. If approved, the loan agreement will be for $3,534,013.
If all terms and conditions are met, the total loan amount will be forgiven.
In order to remain eligible for the ARRA funding, the SWRCB requires the City Council to adopt a resolution certifying project initiation.
This matter was reviewed by Deputy City Attorney Richard Anthony on April 14, 20...
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