TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute all documents necessary to enter into an agreement with the Los Angeles County Flood Control District (LACFCD), to accept and expend funding in the amount of $10,800,000 for the Long Beach Municipal Urban Stormwater Treatment (LB-MUST) - Phase 1 Project from the Safe, Clean Water Program’s (Measure W) Regional Program Transfer Agreement No. 2020RPLLAR02;
Increase appropriations in the Capital Projects Fund Group in the Public Works Department in the amount of $10,800,000, offset by Measure W revenue from LACFCD; and
Increase appropriations in the Capital Projects Fund Group in the Public Works Department by $10,800,000, offset by transfer of Measure W revenue from LACFCD funds from the Capital Projects Grant Fund. (Districts 1,7,8,9)
DISCUSSION
On November 6, 2018, Measure W was successfully passed by Los Angeles County voters, which created the Safe Clean Water Program (SCWP). The SCWP provides local, dedicated funding for stormwater and urban runoff programs and projects to increase local water supply, improve water quality, and protect public health. With the approval of the SCWP, the first annual parcel tax was collected through property tax bills in Fiscal Year 2019/2020.
SCWP revenues will be allocated as follows:
• 50 percent distributed among nine watershed areas, to be programmed by the respective Watershed Area Steering Committees (WASCs) to fund stormwater projects and programs at the regional watershed level;
• 40 percent allocated directly to municipalities, proportional to the tax revenues collected within their boundaries, to fund local stormwater programs and projects; and
• 10 percent allocated to the LACFCD for program administration, which includes technical assistance and staff support for the WASCs.
The City of Long Beach (City) is in the Lower Los Angeles River (LLAR) watershed area under the SCWP. The LLAR watershed area is estimated to receive up to $12.82 million annually to fund regional projects and programs. Regional Program funds for the LLAR are programmed by the LLAR Watershed Area Steering Committee (WASC), comprised of local stakeholders from agencies, municipalities, and community members from within the LLAR. The LLAR WASC meets regularly to develop funding plans and recommendations to provide water quality, water supply, and community enhancement benefits to the region.
The LB-MUST - Phase 1 Project is a flagship stormwater treatment project for the LLAR watershed. The project will entail the construction of an innovative and expansive stormwater and urban runoff treatment facility that, once fully functional will intercept and treat runoff for the City and nearby upstream cities. Treated water will be recycled and utilized for irrigation at parks and green spaces along the vicinity of the 710 Freeway. The treated water will also be used within the treatment facility itself and for the constructed wetlands.
The City applied for SCWP Regional Program funds for the construction phase of the LB-MUST - Phase 1 Project in December 2019, and was later implemented into the Stormwater Investment Plan (SIP) for five years of regional funding. There is no match requirement for SCWP regional funds.
On October 13, 2020, the Los Angeles County Board of Supervisors approved the SCWP Transfer Agreement and the SIP for the Regional Program, which will need to be executed between the City and LACFCD. The transfer agreement for the Regional Program will disburse funds to the City over a five-year period for construction phase of the LB-MUST - Phase 1 Project. The disbursement of funds is in accordance with the approved SIP and is as follows:
FY 2020/2021: $ 1,000,000
FY 2021/2022: $ 5,000,000
FY 2022/2023: $ 4,800,000
FY 2023/2024: $ 0
FY 2024/2025: $ 0
TOTAL: $10,800,000
Following receipt of the signed Transfer Agreement by the LACFCD, the LACFCD will disburse the FY 2020/2021 allocation to the City within 45 days.
This matter was reviewed by Deputy City Attorney Amy R. Webber and by Budget Management Officer Rhutu Amin Gharib on March 3, 2021.
TIMING CONSIDERATIONS
City Council action is requested on March 23, 2021, to secure the City’s participation in the LACFCD SCWP Regional Program.
FISCAL IMPACT
The total cost of the LB-MUST Project is currently estimated at $38,709,510, which includes design, construction, construction management, inspection, labor compliance, and project oversight. The total cost is partially supported by $24,000,000 from the California Department of Transportation grant funding, $2,000,000 in grant funding from the Rivers and Mountains Conservancy, $1,000,000 from the Harbor Department (Port) Community Infrastructure Grant Program, $209,510 from the City Capital Projects funds, $500,000 from the California Coastal Conservancy Grant, $200,000 from the Measure W SCWP Municipal Program Funds, and $10,800,000 Measure W funds made available under the SCWP Regional Program funds to improve and increase water supply and quality.
There is no impact to the City’s General Fund Group. The City will receive $10,800,000 in SCWP Regional Program funds over a five-year period for the construction phase of the LB-MUST - Phase 1 Project. This funding does not have a match requirement.
An appropriation increase in the amount of $21,600,000 is requested in the Capital Projects Fund Group in the Public Works Department. Of this amount, $10,800,000 will be offset with Measure W revenues received from the LACFCD. The remaining $10,800,000 is a technical appropriation to allow for the transfer of Measure W funds from the Capital Projects Grant Fund, a fund within the Capital Projects Fund Group. 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
[Enter Body Here]
Respectfully Submitted,
ERIC LOPEZ
DIRECTOR OF PUBLIC WORKS
APPROVED:
THOMAS B. MODICA
CITY MANAGER