SHARE OF 10% RETENTION COSTS DWR)
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1 I j ITEM 4.6 ', CITY MANAGER' S REPORT MAY 16, 2016, CITY COUNCIL MEETING ITEM: APPROVE RESOLUTION ACKNOWLEDGING ADEQUATE FUNDING TO COVER THE STATE' S SHARE OF 10% RETENTION COSTS RECOMMENDATION: Adopt Resolution Acknowledging Adequate Funding to Cover the State' s share of 10% Retention Costs Associated with UFRR Grant from State Department of Water Resources DWR) SUMNIARY: California Senate Bill 5 ( S65), passed in 2007 and later amended by various bills, requires the State to develop and adopt a comprehensive Central Valley Flood Protection Plan ( CVFPP), which was approved by the Central Valley Flood Protection Board ( CVFPB) in June SB5 restricts development approvals after July 2, 2016 unless a permitting agency can make a finding of ` Adequate Progress" toward providing an Urban Level of Flood Protection ( ULOP), which includes protection from a 200- year flood. The cities of Lathrop and Manteca and our development community have been funding the efforts required to prepare the ULOP 200- year flood maps and to analyze the existing Reclamation District No. 17 levees against the Urban Levee Design Criteria ( ULDC) recently created by DWR, and the total expenditures to date exceed 3 million. The City of Lathrop applied to the California Department of Water Resources ( DWR) for an Urban Flood Risk Reduction_ (UFRR) grant on August 19, DWR offered Lathrop a $ 10 million dollar grant to be funded 50% by State funding 5 million) and 50% by local matching funds ($ 5 million), to pursue a State - Feasibility Study and to perform initial design for a ULOP 200- year flood protection project within Reclamation District No. 17 ( RD 17). Lathrop is currently negotiating a revised scope for the $ 10 million UFRR grant, with the first phase of work to be shared at $353, 180 State and $ 353, 180 Lathrop, with the Lathrop costs to be entirely funded from credit for sums previously expended by City on SB5 studies. DWR guidelines for the UFRR program require that the local agency demonstrate sufficient financial capability to cover the local share of the project plus, for cash flow purposes, a 10% retention from each reimbursement payment made to the grant recipient, to be fully reimbursed by the State at the time of the project' s completion and acceptance by the State. For this reason, the City of Lathrop, as the grant recipient, will be required to fund temporarily up State' s share of the 10% retention of the identified work. to $ 35, 318 to cover the
2 CITY MANAGER' S REPORT Page 2 MAY 16, 2016 CITY COUNCIL MEETING FUNDIMG TO COVER' THE STATE' S SHARE OF 10% RETENTION COSTS ASSOCIATED WITH UFRR GRANT BACKGROUND: California Senate Bill 5 ( SB5) was passed in 2007 and later amended by various bills. SB5 requires the State to develop and adopt a comprehensive Central Valley Flood Protection Plan ( CVFPP), which was approved by the Central Valley Flood Protection Board ( CVFPB) in June As amended, SB5 also requires all cities and counties in the Central Valley to incorporate the CVFPP into their general plans by July 2, 2015 and into their zoning ordinances by ] uly 2, SB5 restricts development beyond July 2, 2016 unless a permitting agency can make a finding of Adequate Progress" toward providing an Urban Level of Flood Protection ( ULOP), which includes protection from a 200- year flood. REASON FOR RECOMMENDATION: DWR offered Lathrop a $ 10 million grant, to be funded $ 5 million from the State and matched with $ 5 million from the City of Lathrop, to pursue a State Feasibility Study and to perform initial design for a ULOP 200- year flood protection project within Reclamation District No. 17 ( RD 17). Lathrop is currently negotiating a revised scope for the $ 10 million UFRR grant, with the first phase of work to be shared at $ 353, 180 State and $ 353, 180 Lathrop, with the Lathrop costs to be entirely funded from Credit for sums previously expended by City on SB5 studies. DWR guidelines for the UFRR program require that the local agency demonstrate sufficient financial capability to cover the local share of the project plus, for cash flow purposes, a 10% retention from each reimbursement payment made to the grant recipient, to be fully reimbursed by the State at the time of the project' s completion and acceptance by the State. For this reason, the City of Lathrop, as the grant recipient, will be required to fund temporarily up State' s share of the 10% retention of the identified work. to $35, 318 to cover the Staff is recommending that City Council acknowledge adequate funding to cover temporarily the State share of 10% retention costs ( estimated not to exceed 50, 000) associated with the Urban Flood Risk Reduction grant from the Department of Water Resources until the Sfate reimburses that amount. FISCAL IMPACT At this time, there is no fiscal impact associated with this item as the City has not entered into contract with an agency to perform the initial phase of the project. However, based on the DWR grant guidelines once the contract is fully executed, the City will commit to cover the 10% retention costs until fully reimbursed by the State at the completion and acceptance of the project. At the initial phase of the project, the City' s retention estimates total $ 35, 318. To allow for adjustments in the cost of this first phase of work, the attached resolution recognizes the need to fund temporarily up to $ 50, 000 to cover the State' s share of the 10% retention of
3 CITY MANAGER' S REPOItT Page 3 NIAY 16, 201fs CITY COUIVCIL IuIEETING FllNDING TO CO\/ ER THE ST147E' S SIiA te OF 10% RETE101TYON COSTS AS OCIATED 1IVITI-I UFRR GRANT the identified work. A separate item will be presented to Council to approve the contract for the initial phase. e4tt/4ch iw E NTS: A. Resolution Acknowledging Adequate Funding to Cover the State' s share of 10% Retention Costs Associated with UFRR Grant from State Department of Water Resources B. Letter to Department of Water Resource dated May 16, 2016 Re: City of Lathrop Urban Flood Risk Reduction Grant Authorization of Funding to Cover State' s Share of Retention
4 Salva14' wr... CITY MANAGER' S REPORT Page 3 MAY 16, 2016 CITY COUNCIL MEETING FUNDING TO COVER THE STATE' S SHARE OF 10% RETENTION COSTS ASSOCIATED WITH UFRR GRANT I APPROVALS: Glenn Gebhardt City Engineer Dat a. ht f'r+j, cj I 3 l tr, r Cari James Date Finance Director a. r J /3- / v or IVavarrete City Attorney Date Step Salvatore Date Ci " Manager 3 1l
5 RESOLUTION NO. 16- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP ACKNOWLEDGING ADEQUATE FUNDING TO COVER THE STATE' S SHARE OF 10% RETENTION COSTS ASSOCIATED WITH UFRR GRANT FROM STATE DEPARTMENT OF WATER RESOURCES WHEREAS, California Senate Bill 5 ( SB5), passed in 2007 and later amended by various bills, requires the State to develop and adopt a comprehensive Central Valley Flood Protection Plan ( CVFPP), which approved by the Central Valley Flood Protection Board ( CVFPB) in June 2012; and WHEREAS, SB5 also requires all cities and counties in the Central Valley to incorporate the CVFPP into their general plans by July 2, 2015 and into their zoning ordinances by July 2, 2016; and WHEREAS, 5B5 restricts development approvals after July 2, 2016 unless a permitting agency can make a finding of Adequate Frogress" toward providing an Urban Level of Flood Protection ( ULOP), which includes protection from a 200- year flood; and WHEREAS, the cities of Lathrop and Manteca and our development community have been funding the efforts required to prepare the ULOP 200- year flood maps and to analyze the existing Reclamation District No. 17 levees against the Urban Levee Design Criteria ( ULDC) recently created by DWR, and the total expenditures to date have exceeded $ 3 million; and WHEREAS, the City of Lathrop applied to the California Department of Water Resources ( DWR) for an Urban Flood Risk Reduction ( UFRR) grant on August 19, 2015; and WHEREAS, DWR offered Lathrop a $ 10 million grant-funded 50% by State funding ($ 5 million) and 50% by local matching funds ($ 5 million), to pursue a State Feasibility Study and to perform initial design for a ULOP 200- year flood protection project within Reclamation District No. 17 ( RD 17); and WHEREAS, Lathrop is currently negotiating a revised scope for the $ 10 million UFRR grant, with the first phase of work to be shared at $353, 180 State and $ 353, 180 Lathrop, with the Lathrop costs to be entirely funded from Credit for sums previously expended by City on SB5 studies; and WHEREAS, DWR guidelines for the UFRR program require that the local agency demonstrate sufficient financial capability to cover the local share of the project plus, for cash flow purposes, a 10% retention from each reimbursement payment made to the grant recipient, to be fully reimbursed by the State at the time of the project' s completion and acceptance by the State; and Page 1 of 3
6 WHEREAS, for this reason, the City of Lathrop, as the grant recipient, will be required to fund temporarily up to $ 35, 318 to cover the State' s share of.the 10% retention of the identified work; and WHEREAS, although the $ 35, 318 does not represent an ultimate cost to the City of Lathrop, the City will carry this cost for the duration of the contract with DWR until the State reimburses that amount; and WHEREAS, to allow for adjustments in the cost of this first phase of work, the City of Lathrop is recognizing the need to fund temporarily up to $ 50, 000 to cover the State' s share of the 10% retention of the identified work; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop hereby acknowledges adequate funding to cover temporarily the State' s share of 10% retention costs ( estimated not to exceed $ 50, 000) associated with the Urban Flood Risk Reduction grant from 'the Department of Water Resources until that amount is reimbursed by the State. Page 2 of 3
7 PASSED AND ADOPTED by the City Council of the City of Lathrop this 16th day of May 2016, by the following vote: AYES: NOES: ABSTAIN: ABSENT: Sonny Dhaliwal, Mayor ATTEST: APPROVED AS TO FORM: Teresa Vargas, City Clerk i y rney Page 3 of 3
8 ty of Laf ro; p-- ATTACHMENT " B" City Manager's Office 390 Towne Centre Drive, Lathrop, CA, Phone: ( 209) Fax: ( 209) ca.us May 16, 2016 Department of Water Resources Eric Martinez, Project Manager 3464 El Camino Avenue, Suite 200 Sacramento, CA AFT Re: City of Lathrop Urban Flood Risk Reduction Grant Authorization of Funding to Cover State' s Share of Retention Dear Mr. Martinez: I am responding to your request to document the authority of the City of Lathrop to commit to funding for the Urban Flood Risk Reduction (UFRR) grant from the State. Department of Water Resources ( DWR) guidelines for the UFRR program require that the local agency demonstrate sufficient financial capability to cover the local share of the project plus, for cash flow purposes, a 10% retention from each reimbursement payment made to the grant recipient, to be fully reimbursed by the State at the time of the project' s completion and acceptance by the State. For this reason, the City of Lathrop, as the grant recipient, will be required to fund temporarily up to $35,318 to cover the State' s share of the 10% retention of the identified work. Lathrop has committed to funding the local share of the UFRR grant. This commitment letter to temporarily fund the cost of this$ 35,318 retention has been provided to the City Council for their approval. Although the $35,318 does not represent an ultimate cost to the City of Lathrop, the City will carry this cost for the duration of the contract. To allow for adjustments in the cost of this first phase of work, the attached resolution recognizes the need to fund temporarily up to $50,000 to cover the State' s share of the 10% retention of the identified work. Based on the City Council' s approval of the attached resolution on May 16, 2016, please accept this letter as confirmation of the City of s Lathrop' agreement to cover the 10% State retention (estimated not to exceed 50,000) until the State pays that amount.
9 C ty f Lc - - t- r r- City llfanager's Office 390 Towne Centre Drive, Lathrop, CA, Phone: ( 209) Fax: ( 209) If I can be of further assistance, please let me know. I can be reached by at ssalvatorec ci.lathrop.ca.us or by phone (209) Thank you, Stephen Salvatore City Manager cc: Salvador Navarrete, City Attorney. Glenn Gebhardt, City Engineer Cari James, Finance Director Encl: Lathrop Council Resolution No. 16-
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