Title
Approve and authorize the CAO to Execute a Funding Agreement between the Monterey County Water Resources Agency and the County of Monterey for Phase II of the Pajaro River Bench Excavation Project. (ADDED VIA ADDENDUM)
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Approve and authorize the CAO to Execute a Funding Agreement between the Monterey County Water Resources Agency and the County of Monterey for Phase II of the Pajaro River Bench Excavation Project.
SUMMARY:
In January of 2008, Santa Cruz Flood Control and Water Conservation District, Zone 7 ("District") and Monterey County Water Resources Agency ("Agency") were awarded a $6.2 million Proposition 50 Grant for preparing and constructing the Pajaro River Bench Excavation Project ("Project"). Of the total amount, $1.6 million was designated for planning and permitting and $4.6 million was designated for construction. Of the designated construction funding, $2.11 million was utilized for Phase I construction, which was finished in 2012, leaving a remaining balance of $2.49 million.
The District was recently notified that a Proposition 84 Grant award was made for the project in the amount of $2.95 million, and the District and Agency now desire to accomplish Phase II. Phase II consists of evacuating approximately 153,000 cubic yards of excess sediment from select locations (Sites 5R through 8R) along the upper terrace benches inside the Pajaro River levees in order to improve the flood carrying capacity of the levee system. The estimated cost of Phase II is $4.4 million.
The District and Agency intend to utilize a maximum of the $2.49 million remaining award to the Parties pursuant to Proposition 50 grant award and approximately $2 million from the Proposition 84 grant award to fund 100% of the construction cost of Phase II Project.
The terms of the Proposition 50 Grant agreement require the District and Agency to pay the contractor's invoices and then to submit reimbursement claims with California Department of Water Resources (DWR). DWR will then reimburse 90% of the claim, holding ten (10) percent until Project completion. For Phase II, the District and Agency have agreed to equally advance funds, making the Agency's share $2.2 million. Of this amount, DWR will reimburse $1.98 million while withholding $220,000 until the full Project is completed.
The Agency, however, does not have sufficient available funds to advance its share of the cost of Phase II. Because Phase II (as with Phase I) provides a direct benefit to the residents of Monterey County due to the flood protection provided to the citizens of the County adjacent to the Pajaro River, it is in the interest of Monterey County to facilitate completion of Phase II. It is therefore recommended that the County enter into a funding agreement ("Funding Agreement") with the Agency whereby, beginning in FY 2013-14, the Agency will submit invoices to the County; the County will pay the invoiced amounts to the District; and the Agency will remit grant proceeds to the County to reimburse all sums paid by the County to allow the Pajaro Bench Excavation Phase II project to proceed. The County will be reimbursed by the Agency immediately upon receipt from the various Grant proceeds received by the Agency, but in any event the Agency commits to reimburse the County from any available funds no later than June 30, 2014. A copy of the proposed Funding Agreement is enclosed as Exhibit 1.
OTHER AGENCY INVOLVEMENT:
The District previously certified an environmental impact report for the entire project. The Agency proposes to enter into an agreement with the District for construction of Phase II. That agreement is on the agenda for the Agency Board of Supervisors, along with approval of this Funding Agreement on behalf of the Agency. This Funding Agreement has been reviewed and approved by the Board of Directors of the Agency, the Office of the County Counsel, and the Office of the County Administrative Officer.
FINANCING:
This second phase of the Pajaro River Excavation project will be budgeted by the Agency in FY 2013-14. Per the provisions of the subject Project Funding Agreement, interim funding will be appropriated in the General Fund to provide cash flow to support the project pending receipt of grant reimbursements by the Agency. The Agency will work with the CAO's office to adjust appropriations in the County's budget as interim financing becomes necessary.
Prepared by Leslie J. Girard, Chief Assistant County Counsel
Approved by: Leslie J. Girard,
Chief Assistant County Counsel
(831) 755-5365
Attachments: Exhibit 1 - Funding Agreement