TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to amend the existing Cooperative Agreement between the City of Long Beach and the City of Signal Hill, for the construction of the Los Cerritos Channel Sub-Basin 4 Stormwater Capture Facility Project; to increase the reimbursement amount from $350,000 to $565,000 for additional City of Long Beach administrative and construction costs; and
Authorize City Manager, or designee, to execute all documents necessary to enter into a Memorandum of Understanding between the City of Long Beach, the City of Signal Hill, and the Los Angeles County Flood Control District, for the construction of Phase 3 of the Los Cerritos Channel Sub-Basin 4 Stormwater Capture Facility Project. (District 5)
DISCUSSION
On June 16, 2015, the City of Signal Hill (Signal Hill) adopted a Cooperative Implementation Agreement (CIA) with Caltrans for up to $11 million in funding for the Los Cerritos Channel (LCC) Sub-Basin 4 Stormwater Capture Facility Project (Project). The Project is located within City of Long Beach (Long Beach) Airport property at the northwest corner of Spring Street and Lakewood Boulevard. This underground stormwater facility captures 14 acre-feet of stormwater runoff to reduce pollution discharging into the LCC and Pacific Ocean. Construction of the Project helps Long Beach and Signal Hill satisfy their National Pollutant Discharge Elimination System (NPDES) permit requirements.
On January 19, 2016, the City Council approved a Cooperative Agreement (Agreement) between Signal Hill and Long Beach (Cities) to partner on the Project. Signal Hill assumed the lead agency role along with responsibility for funding, procurement, and project management/oversight activities. Long Beach contributes right-of-way and property necessary for the Project, issues encroachment and construction permits, and provides general Project support. As part of the Agreement, the Cities agreed to share the administrative costs and Long Beach was allowed up to $50,000 in reimbursement. On October 3, 2017, the Agreement was amended to increase this amount to $350,000.
Recently, Signal Hill obtained additional grant funding to expand the Project. On May 22, 2018, Caltrans amended the CIA with Signal Hill to fund an additional $4.25 million to expand the Project by approximately seven acre-feet (Phase 2). On June 20, 2018, the Los Angeles County Flood Control District (LACFCD) approved a Memorandum of Understanding (LAC MOU) to fund up to $7.5 million to expand the Project further by adding ten acre-feet (Phase 3). Phases 2 and 3 will more than double the storage capacity of the Project and extend construction until June 30, 2019. Phase 2 will be built via the CIA between Signal Hill and Caltrans. Phase 3 requires Long Beach to enter the LAC MOU with Signal Hill and LACFCD.
To accommodate the additional scope for Phases 2 and 3, the existing Agreement between the Cities will be revised to increase the reimbursement amount from $350,000 to $565,000 for Long Beach. The increased amount covers project support services through June 30, 2019, and replacement of a portion of Airport perimeter security fence. Reimbursement is contingent upon fund availability after all contractor costs, consultant costs, and Signal Hill costs up to $125,000 have been paid. Additionally, the Cities will share the costs of ongoing maintenance of the Project based on proportional share of stormwater flow into the LCC.
This matter was reviewed by Deputy City Attorney Amy R. Webber on October 1, 2018 and by Budget Analysis Officer Julissa José-Murray on October 4, 2018.
TIMING CONSIDERATIONS
City Council action is requested on October 23, 2018, to proceed with the Project.
FISCAL IMPACT
The design and construction of the project is being funded by Signal Hill, through $15.25 million and $7.5 million grant funds received from Caltrans and LACFCD, respectively. The updated project budget includes reimbursement of $565,000 for City administrative and construction related costs. The Public Works Department (PW) will request appropriations for its project expenses to be offset by reimbursement revenue from Signal Hill once the agreement is finalized. Operating and maintenance will be determined upon project completion scheduled for June 2019. As much as possible, projected operating and maintenance costs and offsets will be incorporated in the FY 20 Proposed Budget.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
CRAIG A. BECK
DIRECTOR OF PUBLIC WORKS
APPROVED:
PATRICK H. WEST
CITY MANAGER