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HomeMy WebLinkAboutItem 2b - Memoradum of Understanding re Prop 84DATE: TO: FROM: STAFF REPORT Public Works Services Department August 4, 2015 Honorable Mayor and City Council Tom Tait, Public Works Services Director Prepared by: Ken Herman, P.E., Principal Civil Engineer SUBJECT: MEMORANDUM OF UNDERSTANDING WITH THE LOS ANGELES COUNTY FLOOD CONTROL DISTRICT REGARDING ADMINISTRATION AND COST SHARING FOR THE PROPOSITION 84 2015 INTEGRATED REGIONAL WATER MANAGEMENT GRANT PROGRAM IN THE AMOUNT OF $16,165.75 Recommendation: Approve SUMMARY In 2006, California voters approved Proposition 84, the Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act. Proposition 84 appropriated one billion dollars for Integrated Regional Water Management projects that will assist local public agencies to meet the long term water needs of the State, including the delivery of safe drinking water and the protection of water quality and the environment. The City of Arcadia is part of the Greater Los Angeles County Program Region ( "Region "), which is working to prepare an application of 20 regional projects that will be submitted to the Department of Water Resources ( "DWR ") for Prop 84 funding as part of the 2015 Integrated Regional Water Management Grant Program ( "Grant "). The lead agency that oversees the coordination of all projects submitted for the Region is the Los Angeles County Flood Control District ( "County "). For the current round of applications being submitted to receive funding, the County has hired RMC Water and Environment ( "RMC ") to act as a consultant to the Region for the purpose of preparing the Grant application. The cost to perform this work is to be divided equally among the 20 projects. The City of Arcadia's cost -share for the preparation of the Grant application is $16,165.75. It is recommended that the City Council authorize and direct the City Manager to execute a Memorandum of Understanding ( "MOU ") with the Los Angeles County Flood Control District regarding the administration and cost sharing for the Proposition 84, Memorandum of Understanding for Prop 84 Grant Program August 4, 2015 Page 2 of 4 2015 Integrated Regional Water Management Grant Program in the amount of $16,165.75. BACKGROUND The DWR created the Program to encourage regional projects that address multiple water resource management issues, and to provide funding for both planning and implementation of projects. Eligible projects through this Grant opportunity must yield multiple benefits that plan and support the management of water supplies, water quality, environmental interests, drought protection, flood protection, and reducing dependence on imported water. In May 2015, the DWR released the Grant Guidelines for the current round of Prop 84 funding. The Grant is designed to encourage integrated regional strategies for management of water resources and to provide funding through Proposition 84 for implementation projects that support integrated water management. In response to the Governor's recent Drought Declaration the DWR has expedited the solicitation process for Prop 84 funding. As a result, the County announced to the Region that they had retained the services of RMC to administrate a regional Grant application process. The County invited other members of the Region to submit eligible projects to be included under a cooperative application. In March 2015, higher concentrations of volatile organic chemical, Trichloroethylene ( "TCE ") were detected in the City's Live Oak Well, which supplies approximately 15% of the City's total annual water demands. As a result, the Well was shut down for a short time until levels of the contaminant were below the maximum contaminant level. The well pumps water from the Main San Gabriel Basin ( "Basin ") which recently recorded historic low water levels due to the Drought. This drop in the Basin's water level has exacerbated the concentrations of pollutants in the Basin. The Public Works Services Department has been working with a local consultant, Stetson Engineers, to examine potential solutions to mitigate the contamination or replace the water supply from the Live Oak Well, and determined that adding a treatment facility would provide the most effective solution in removing the contaminant from the water produced as well as from the groundwater Basin. DISCUSSION On May 27, 2015 the Public Works Services Department presented to the Region the Live Oak Well Treatment Facility Project ( "Project "), a multi - beneficial project that proposes to construct a 4,000 gallon per minute Liquid -phase Granular Activated Carbon Treatment Facility at the City's Live Oak Well. The proposed treatment facility would increase the City's ability to continue to meet water demands through local groundwater supplies and would remove contaminants from the Basin. Additionally, the Project would provide for the restoration of 2,650 acre feet of local groundwater supply annually that is currently unusable do to contamination of TCE. Furthermore, the Memorandum of Understanding for Prop 84 Grant Program August 4, 2015 Page 3 of 4 Project would improve long -term drought preparedness by allowing the well to operate and provide water from a local water supply source, regardless of the fluctuations in the groundwater levels and change in local contamination concentrations. The estimate for the proposed Project is approximately $3,395,000 and if grant funding is awarded to the City it would be considered for approval by the City Council as part of the FY 2016 -17 CIP Budget. The amount being requested through this Grant is $1.5 million dollars and would be paid to the City as reimbursement of approved costs for the Project. At this time, only enough effort has been expended to determine the benefit of the project and preliminary cost for the purposes of submitting the project to be considered for Grant funding. Further development of the project is contingent on Grant funding, and City Council approval. In order to be considered for Prop 84 funding under the Grant Program, all projects requesting funds must be submitted as part of regional plans to improve water resources. The means by which the City is able to submit an application for Prop 84 under this Grant Program is by joining together with the Region and submitting the Project as part of the Region's joint application to the DWR. The Region's Leadership Committee has accepted the City's Project as one of 20 projects included in the Region's application. The County has developed a cost allocation formula that would allocate the cooperative Grant application administration costs to agencies based on the number of projects submitted under the application by each respective agency. A total of 20 regional projects, including the Live Oak Well Treatment Facility Project, will be submitted by the County on behalf of the Region under the cooperative application. RMC has proposed a total cost of $323,315 for the administration of the cooperative Grant application. This equates to a cost share of $16,165.75 for each project submitted under the application. FISCAL IMPACT The City's total cost share for the submission of the Live Oak Well Treatment Facility Project under the cooperative Grant application is $16,165.75. Sufficient funding is budgeted in Fiscal Year 2015 -16 Capital Improvement Program for Well Inspection and Rehabilitation. This year's well inspection and rehabilitation work will include a project at Longden Well No. 1 and partial funding for the Live Oak Well Treatment Facility grant application. This MOU only pertains to the City's cost share for the Grant Application process. Should the City's project be accepted and grant funding be awarded, Public Works Services would include a project for the design and construction of a treatment facility at the Live Oak Well facility for consideration during the budget process for Fiscal Year 2016 -17. Memorandum of Understanding for Prop 84 Grant Program August 4, 2015 Page 4 of 4 RECOMMENDATION It is recommended that the City Council authorize and direct the City Manager to execute a Memorandum of Understanding with the Los Angeles County Flood Control District regarding administration and cost sharing for the Proposition 84 2015 Integrated Regional Water Management Grant Program in the amount of $16,165.75. Approved: ioii ni!c�L a = a r t t o City Manager Attachment "A" - Memorandum of Understanding between the Los Angeles County Flood Control District and the City of Arcadia MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF ARCADIA AND THE LOS ANGELES COUNTY FLOOD CONTROL DISTRICT REGARDING THE PROPOSITION 84 2015 INTEGRATED REGIONAL WATER MANAGEMENT GRANT PROGRAM This Memorandum of Understanding (MOU) is made and entered into between the Citv of Arcadia (CITY) and the Los Angeles County Flood Control District (DISTRICT), a body corporate and politic. Collectively, these entities shall be known herein as "PARTIES" or individually as "PARTY." RECITALS WHEREAS, the Greater Los Angeles County (GLAC) Integrated Regional Water Management (IRWM) Region is seeking grant funding through the Department of Water Resources' (DWR) Proposition 84 - 2015 Integrated Regional Water Management Implementation Grant Program; and WHEREAS, CITY is a member of the GLAC IRWM Region and desires to have its Live Oak Well VOC Treatment (PROJECT) included in the GLAC IRWM Region's application (APPLICATION) to DWR for Proposition 84 - 2015 Integrated Regional Water Management Implementation Grant Program funding; and WHEREAS, the DISTRICT has retained the services of RMC Water and Environment (CONSULTANT) to prepare the APPLICATION on behalf of the GLAC IRWM Region; and WHEREAS. CITY and the other members of the GLAC IRWMP Region that wish to have their projects included in the APPLICATION (collectively, APPLICANTS) have agreed to share in the cost of hiring the CONSULTANT to prepare the APPLICATION (CONSULTANT COST) by reimbursing the DISTRICT through this MOU, which will be executed separately between the DISTRICT and each APPLICANT. Each APPLICANT's share of the CONSULTANT COST is calculated according to the formula set forth in Exhibit A, incorporated herein by reference; and WHEREAS, the total cost of the CONSULTANT's services is estimated to be $323,315.00. Based on the cost allocation formula set forth in Exhibit A, the total cost per project when divided equally among the 20 projects in the APPLICATION is estimated at $16,165.75. AGREEMENT NOW, THEREFORE, in consideration of the mutual benefits to be derived by the PARTIES, and of the promises contained in this MOU, the PARTIES hereby agree as follows: Section 1. Recitals: The recitals set forth above are fully incorporated as part of this MOU. Section 2. Purpose: The purpose of this MOU is to reimburse the DISTRICT for the cost of retaining the CONSULTANT to prepare the APPLICATION. Section 3. Cooperation: The PARTIES shall fully cooperate with one another to attain the purpose of this MOU. Section 4. Term: This MOU shall become effective on the latest date of execution by a PARTY, and shall remain in effect until CONSULTANT has been paid in full for its preparation of the APPLICATION, and DISTRICT has received payment from CITY for its proportionate share of the CONSULTANT COST. Section 5. COUNTY Agrees: a. To invoice CITY in the amount of $16,165.75 upon execution of this MOU. This amount represents CITY's proportionate share of the CONSULTANT COST, as calculated pursuant to the cost allocation formula set forth in Exhibit A. b. To contract with CONSULTANT and to be responsible for coordinating the activities of CONSULTANT. DISTRICT agrees to use the funds received from CITY only for the preparation and submission of the APPLICATION. c. To provide an accounting at the termination of the MOU or cancellation thereof and to return to CITY its proportional share of the unused portion of all funds deposited with the DISTRICT, if any, in accordance with the cost allocation formula set forth in Exhibit A. d. To notify CITY in writing if the CONSULTANT's actual total cost of preparing the APPLICATION will exceed the cost estimate set forth above, and obtain written approval of the increase from the CITY. Upon written approval of the increased costs by the CITY, the DISTRICT will invoice CITY for the CITY's proportionate share of the increased costs according to the cost allocation formula set forth in Exhibit A. HOA.1055677.1 2 of 8 Section 6: CITY agrees: a. To pay the DISTRICT the amount invoiced pursuant to Section 5 within 45 days from receipt of the invoice. b. To cooperate in good faith with DISTRICT and CONSULTANT in the preparation of the APPLICATION. Section 7: Indemnification a. To the fullest extent permitted by law, each PARTY shall indemnify, defend, and hold harmless each other PARTY, including its special districts, elected and appointed officers, employees, agents, attorneys, and designated volunteers from and against any and all liability, including, but not limited to demands, claims, actions, fees, costs, and expenses (including reasonable attorney's and expert witness fees), arising from or connected with the respective acts of each PARTY arising from or related to this MOU; provided, however, that no PARTY shall indemnify another PARTY for that PARTY's own negligence or willful misconduct. b. In light of the provisions of Section 895.2 of the Government Code of the State of California imposing certain tort liability jointly upon public entities solely by reason of such entities being parties to an agreement (as defined in Section 895 of such Code), each of the PARTIES hereto, pursuant to the authorization contained in Section 895.4 and 895.6 of such Code, shall assume the full liability imposed upon it or any of its officers, agents, or employees, by law for injury caused by any act or omission occurring in the performance of this MOU to the same extent such liability would be imposed in the absence of Section 895.2 of said Code. To achieve the above - stated purpose, each PARTY agrees to indemnify, defend, and hold harmless each other PARTY for any liability, cost, or expense that may be imposed upon such other PARTY solely by virtue of Section 895.2. The provisions of Section 2778 of the California Civil Code are made a part hereof as if incorporated herein. Section 8. General Provisions a. Notices. Any notices, bills, invoices, or reports relating to this MOU, and any request, demand, statement or other communication required or permitted hereunder shall be in writing and shall be delivered to the Representative of the PARTY at the address set forth in Exhibit B. PARTIES shall promptly notify each other of any change of contact information, including personnel changes, provided in Exhibit B. Written notice shall include notice delivered via email, reader notification requested, or fax. A notice shall be deemed to have been received on (a) the date of delivery, if delivered by hand during HOA.1055677.1 3 of 8 regular business hours, or by confirmed facsimile or by email; or (b) on the third (3rd) business day following mailing by registered or certified mail (return receipt requested) to the addresses set forth in Exhibit B. b. Administration. For the purpose of this MOU, the PARTIES hereby designate as their respective PARTY representatives the persons named in Exhibit B. The designated PARTY representatives, or their respective designees, shall administer the terms and conditions of this MOU on behalf of their respective PARTY. Each of the persons signing below on behalf of a PARTY represents and warrants that they are authorized to sign this MOU on behalf of such PARTY. c. Relationship of Parties. The PARTIES are and shall remain at all times as to each other, wholly independent entities. No PARTY to this MOU shall have power to incur any debt, obligation, or liability on behalf of another PARTY unless expressly provided to the contrary by this MOU. No official, employee, agent, or officer of a PARTY shall be deemed for any purpose whatsoever to be an official, agent, employee or officer of another PARTY. Each PARTY shall have no financial obligation to the other PARTIES of this MOU, except as herein expressly provided. d. Binding Effect. This MOU shall be binding upon and inure to the benefit of each PARTY to this MOU and its respective heirs, administrators, representatives, successors and assigns. e. Amendment. The terms and provisions of this MOU may not be amended, modified, or waived, except by an instrument in writing signed by all PARTIES who have not terminated their interests herein or whose involvement has not terminated by reason of non - payment or default. f. Waiver. Waiver by any PARTY to this MOU of any term, condition, or covenant of this MOU shall not constitute a waiver of any other term, condition, or covenant. Waiver by any PARTY to any breach of the provisions of this MOU shall not constitute a waiver of any other provision, nor a waiver of any subsequent breach or violation of any provision of this MOU. g. Law to Govern; Venue. This MOU shall be interpreted, construed and governed according to the laws of the State of California. In the event of litigation between the PARTIES, venue in the state trial courts shall lie exclusively in the County of Los Angeles. h. No Presumption in Drafting. The PARTIES to this MOU agree that the general rule that an MOU is to be interpreted against the PARTY drafting it, or the PARTY causing it to be prepared, shall not apply. HOA.1055677.1 4 of 8 Interpretation. All PARTIES have been represented by counsel in the preparation and negotiation of this MOU. Accordingly, this MOU shall be construed according to its fair language. j. Entire MOU. This MOU constitutes the entire agreement of the PARTIES with respect to the subject matter hereof and supersedes all prior or contemporaneous agreements, whether written or oral, with respect thereto. k. Severability. If any term, provision, condition or covenant of this MOU is declared or determined by any court or competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this Agreement shall not be affected thereby and this MOU shall be read and constructed without the invalid, void, or unenforceable provision(s). I. Counterparts. This MOU may be executed in any number of counterparts, each of which shall be an original, but all of which taken together shall constitute but one and the same instrument, provided, however, that such counterparts shall have been delivered to all PARTIES to this MOU. HOA.1055677.1 5 of 8 IN WITNESS WHEREOF, the PARTIES hereto have caused this MOU to be executed by their duly authorized representatives and affixed as of the date of signature of the PARTIES: LOS ANGELES COUNTY FLOOD CONTROL DISTRICT GAIL FARBER Date Chief Engineer APPROVED AS TO FORM: MARY C. WICKHAM Interim County Counsel Deputy Date CITY OF ARCADIA ATTEST: DOMINIC LAZZARETTO City Manager APPROVED AS TO FORM: HOA.1055677.1 6 of 8 Date Date EXHIBIT A Cost Allocation Formula Cost Allocation Formula Per Project Cost _ Total Consultant _ Total Number of Projects Share Fee Included in Application Estimated cost share for one (1) project based on a total of 20 projects Per Project Cost Share $16,165.75 _ $323,315.00 HOA.1055677.1 7 of 8 - 20 Projects EXHIBIT B Party Representatives Los Angeles County Flood Control District Department of Public Works Watershed Management Division, 6t" Floor 900 South Fremont Avenue Alhambra, CA 91803 -1331 Angela R. George E -mail: AGEORGE @dpw.lacounty.gov Phone: (626) 458 -4300 Fax: (626) 457 -1526 2. City of Arcadia 11800 Goldring Rd. Arcadia, CA 91006 Party Representative: E -mail: Phone: Fax: HOA.1055677.1 8 of 8