TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to submit a grant application to the California Natural Resources Agency, for the Long Beach Municipal Urban Stormwater Treatment Recycle Facility; accept said grant, if awarded, in an amount up to $3,000,000 in Proposition 68 funding; and, execute all documents necessary to accept and expend the funds. (Districts 1,7,8,9)
DISCUSSION
In June 2018, California voters passed the California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access for All, known as Proposition 68 (Prop 68). This authorized $4 billion in general obligation bonds to finance drought, water, parks, climate, coastal protection, and outdoor access for all programs. This has led to various appropriations to multiple agencies to offer Prop 68 funding. The Legislature appropriated $18.5 million to the California Natural Resources Agency for competitive grants for multi-benefit green infrastructure investments in, or benefiting, disadvantaged or severely disadvantaged communities, which resulted in the Green Infrastructure (GI) Grant Program.
The California Natural Resources Agency has an open call for Prop 68 grant applications through June 28, 2019. The Long Beach Municipal Urban Stormwater Treatment (LB-MUST) Recycle Facility (Project) meets the guidelines of the Prop 68 grant program for the GI. City Council approval is requested to apply for up to $3,000,000 in GI Prop 68 grant funds for the Project. If awarded, the funds will be used to cover funding shortfalls associated with the additional scope of work and costs associated with the design and construction of the Project.
This matter was reviewed by Deputy City Attorney Amy R. Webber on May 29, 2019 and by Revenue Management Officer Geraldine Alejo on May 29, 2019.
TIMING CONSIDERATIONS
City Council action is requested on June 18, 2019, to ensure the grant application is submitted by the grant deadline. A Resolution authorizing submittal of the application is required in the application package.
FISCAL IMPACT
The total estimated cost of the Project is $32,000,000, which includes design, construction, construction management, inspection, labor compliance, and project oversight. The total cost is partially supported by $28,000,000 from the California Department of Transportation grant funding, $2,000,000 in grant funding from the Rivers and Mountains Conservancy, and $428,000 from City Capital Projects funds. If awarded, up to $3,000,000 in GI Prop 68 funding will be used to cover funding shortfalls associated with the additional scope of work and costs associated with the design and construction of the project. The grant will have a dollar per dollar match requirement. The match requirement is supported with project funding currently appropriated in the Capital Projects Fund Group in the Public Works Department.
No appropriation is requested at this time. Upon grant award, staff will return to the City Council with a request for appropriation, offset by grant revenue. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
CRAIG A. BECK
DIRECTOR OF PUBLIC WORKS
APPROVED:
PATRICK H. WEST
CITY MANAGER