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CC 2024-12-10_09g Award of Traffic Way Bridge Replacement ProjectItem 9.g. MEMORANDUM TO: City Council FROM: Bill Robeson, Assistant City Manager/Public Works Director BY: Shannon Sweeney, City Engineer SUBJECT: Notice of Award, Traffic Way Bridge Replacement Project, PW 2023-02 DATE: December 10, 2024 RECOMMENDATION: 1) Adopt a Resolution authorizing the City Manager to execute a construction contract for the Traffic Way Bridge Replacement Project to Granite Construction Company in the amount of $10,799,051, subject to any minor technical, or non -substantive changes as approved by the City Manager in consultation with the City Attorney; and 2) Adopt a Resolution authorizing the City Manager to execute a construction management agreement for the Traffic Way Bridge Replacement Project to Filippin Engineering, Inc. in the amount of $1,121,955, subject to any minor technical, or non - substantive changes as approved by the City Manager in consultation with the City Attorney. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: $6,911,469 is budgeted in FY 2024-25 and the same amount is budgeted in FY 2025-26 for the Traffic Way Bridge Replacement Project (the “Project”), for a total of $13,822,938 over the next two fiscal years. The Highway Bridge Program (HBP), a Federal cost reimbursement program, is funding 88.53% ($12,237,448) of the project, and Measure O-2006 Sales Tax is funding the remaining 11.47% ($1,585,490) of the budgeted funds. Construction, construction management, associated contingency costs, and previously approved design consultant construction support funding of $181,368.97 (September 24, 20241) total $13,294,475.57 for the construction phase of this project. Additional costs expended this year associated with this project include an estimated $1,306,270 in right- of-way and preliminary engineering costs, for a total of $14,600,749.57. Adequate funds exist in this year’s budget to cover anticipated costs through the end of the fiscal year. The additional $777,811.57 not already budgeted will be incorporated into the next 5-year 1 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=12578 Page 108 of 215 Item 9.g. City Council Notice of Award, Traffic Way Bridge Replacement Project, PW 2023-02 December 10, 2024 Page 2 Capital Improvement Program. This additional cost amounts to an additional $89,214.99 in City funding, with the remainder from the HBP. An additional $500,000 is expected to be needed to address environmental mitigation requirements. This funding will be treated as a separate project and a separate grant, though still under the HBP and benefiting from the 88.53% federal funding. An additional $57,350 in City funding will be needed to meet this requirement. BACKGROUND: The Traffic Way Bridge (“Bridge”) spans Arroyo Grande Creek, allowing Traffic Way to connect to West Branch Street. Traffic Way is an arterial roadway that conveys approximately 11,500 vehicles per day. The Bridge is a reinforced concrete structure supported by abutments on each end of the Bridge and concrete piles along the span. The Bridge was constructed in 1932, making it 92 years old. Caltrans completes bridge inspections for this and all other bridges in the State. In 2006, Caltrans designated this Bridge as “scour critical” meaning that the supporting members of the Bridge are compromised due to erosion of surrounding soil. In 2016 the Bridge was reinspected, and that inspection found signs of deck cracking, failed expansion joints, spalling concrete, concrete abrasion, and creek channel erosion. In March 2018, it was determined that not only is scour an issue, but that the foundation is vulnerable in bearing capacity. Caltrans determined the Bridge needed replacing and placed it in the federal Highway Bridge Program (HBP). HBP provides funding for bridge repair and replacement. It provides 88.53% of federal funding and a required local match of 11.47%. Since then, the City has worked diligently on obtaining funding, completing design, securing right-of-way, and working with the community towards a successful bridge replacement. ANALYSIS OF ISSUES: The City advertised this Project on September 27, 2024, on its website, in the local paper, to trade journals/construction exchanges, and to nine firms capable of performing such work. Two bids were received ranging from $10,799,051 to $12,891,919.91 (Attachment 1). As a part of the federal funding requirements, the Office of Civil Rights established a Disadvantaged Business Enterprises (DBE) goal of 22% for this project. The purpose of the DBE program is to increase the participation of minority and woman owned businesses in State and local transportation projects that are federally funded. If a contractor does not meet this goal, it must submit documentation presenting their good faith effort to meet the goal. The low bidder, Granite, did not meet the 22% DBE goal but did obtain 12.05% DBE participation and provided its good faith effort documentation. This information was Page 109 of 215 Item 9.g. City Council Notice of Award, Traffic Way Bridge Replacement Project, PW 2023-02 December 10, 2024 Page 3 reviewed by City and Caltrans District 5 staff who determined that Granite did demonstrate good faith efforts to meet the DBE participation goal for the project. The other bidder, Papich Construction Company (“Papich”), submitted a bid protest, claiming that Granite did not submit the necessary bid documents and did not meet the DBE goal whereas Papich did meet the DBE goal. The City responded to the protest, verifying that Granite did in fact submit the necessary bid documents, and provided information supporting Granite’s good faith efforts. Papich has since accepted the City’s determination and dropped their protest. The proposed construction contract between the City and Granite is included as Exhibit A to the resolution included as Attachment 2. Concurrently, the City issued a qualifications-based Request for Proposals for construction management of this Project. Two proposals were received. These proposals were reviewed by a review team consisting of four City staff and a representative from the project design engineer firm that the City has been working with throughout the project. City staff negotiated costs with the top-rated firm, Filippin Engineering, on November 19, 2024. The proposed professional services agreement between the City and Filippin is included as Exhibit A to the resolution included as Attachment 3. Environmental permits from several regulatory agencies are necessary to complete this project because of its impacts to the creek:  California Department of Fish and Wildlife (“CDFW ”), Streambed Alteration Agreement 1602  Regional Water Quality Control Board (“RWQCB”), 401 Permit  Army Corps of Engineers, 404 Permit Permitting from CDFW has already been secured. City staff continues to work with RWQCB staff on the 401 permit, due to challenges in finding adequate mitigation for the negative impacts of the project on Arroyo Grande Creek. Inadequate space in the project footprint exists to complete the necessary mitigation. Staff searched for alternative locations within the creek to meet this requirement, which is called off-site mitigation. After evaluating multiple alternatives, no good City-owned property was found to meet the necessary criteria. Compensatory mitigation, which consists of providing funding for projects for other entities (in the same local), was then offered as an alternative. The most suitable project is the Corbett Creek Floodplain and Stream Restoration project (“restoration project”) being coordinated by the Coastal San Luis Resource Conservation District (“RCD”), because of its nexus to Arroyo Grande Creek and the benefits that this project affords in reducing flooding potential of properties within the City’s jurisdiction. While the RWQCB is in favor of this compensatory mitigation in concept, they are concerned about the project actually being constructed and are seeking firm commitments on the funding of construction and longer-term maintenance prior to issuing the 401 permit. RCD is working with the Department of W ater Resources to obtain a letter of commitment for construction funding. Page 110 of 215 Item 9.g. City Council Notice of Award, Traffic Way Bridge Replacement Project, PW 2023-02 December 10, 2024 Page 4 One mechanism for demonstrating the City’s commitment to the success of the restoration project is an addendum to the 2017 Memorandum of Understanding (MOU), included as Attachment 4. City staff plans on bringing this item for City Council’s consideration at its January 14, 2025, meeting. RWQCB has indicated that they plan on including a term in the permit indicating that failure of the restoration project to meet construction milestones will result in an increase in the mitigation requirement for the Traffic Way Bridge project costs for which the HBP will not pay. The Army Corps of Engineers 404 permit will automatically be issued once the RWQCB’s 401 permit is issued. The proposed construction contract time is 140 working days, and work is anticipated to take place between April 2025 and December 2025. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Authorize the City Manager or designee to execute a construction contract for the Traffic Way Bridge Replacement Project to Granite Construction Company (”Granite”) for $10,799,051 subject to any minor, techni cal, or non-substantive changes as approved by the City Manager in consultation with the City Attorney; Authorize the City Manager or designee to approve change orders of 10% of the contract amount, $1,079,905.10, for unanticipated costs during the constru ction phase of this Project; and 2) Authorize the City Manager or designee to execute a construction management agreement for the Traffic Way Bridge Replacement Project to Filippin Engineering, Inc. (”Filippin”) for $1,121,955 subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney; and Authorize the City Manager or designee to approve change orders of 10% of the contract amount, $112,199.50, for unanticipated costs during the construction phase of this Project; 2. Do not approve staff’s recommendations and request further information; or 3. Modify staff’s recommendation. ADVANTAGES: Replacing the Traffic Way Bridge will provide the following advantages:  Provides a safe path of travel over Arroyo Grande Creek on Traffic Way.  Removes potential bridge failure and closure of the existing bridge due to excessive scour at the intermediate piers.  Reduces future bridge creek maintenance by constructing a bridge without intermediate supports in the flow area of the creek.  Mitigates future disruptions to traffic and parking for maintenance and repairs;  Improves the use of the Bridge for pedestrians and cyclists.  Maximizes federal funding for this vital element of City infrastructure. Page 111 of 215 Item 9.g. City Council Notice of Award, Traffic Way Bridge Replacement Project, PW 2023-02 December 10, 2024 Page 5 DISADVANTAGES: Replacing the Traffic Way Bridge will have the following disadvantages:  Significant disruption to vehicles and pedestrians, including parking. Detour plans2 have been developed with significant public input, including a presentation to City Council on September 9, 20243, to facilitate traffic circulation to the greatest extent possible. Additional elements being added to facilitate traffic circulation include a temporary traffic signal at the southbound Fair Oaks Avenue offramp, a temporary traffic signal at Bridge Street and East Branch Street, and a traffic circle in front of Arroyo Grande High School.  Potential negative impact to businesses adjacent to the construction site or negatively impacted by the change in traffic flow. On July 28, 20204 City Council directed staff to limit project construction to one season to minimize disruption to businesses and help control project costs.  Additional local sales tax costs. $1,192,105 of the anticipated costs, and much of the budget overrun, is contingency. City staff will monitor the project carefully through the construction phase to minimize the use of this contingency and therefore minimize the additional local sales tax costs.  Lack of an executed 401 permit. City staff continues to work diligently with project partners and regulatory agencies to obtain an executed 401 permit prior to actual construction, which is currently scheduled for April 2025. A compensatory mitigation arrangement will not negatively impact the contractor’s scope of work. However, failure to meet the terms of the MOU and its planned addendum will likely increase mitigation required in the future, past the construction phase of the project, which has some unknown financial implications. ENVIRONMENTAL REVIEW: On September 26, 20235, the City Council adopted a Mitigated Negative Declaration (MND) for the Project (SCH No. 2022060452). The MND analyzed the environmental impacts of the Project in compliance with the California Environmental Quality Act. The subsequent award of a construction contract for the Project, and a construction management agreement for the Project, respectively, do not in themselves result in a direct or reasonably foreseeable indirect physical change in the environment and is thus not subject to the California Environmental Quality Act under State CEQA Guidelines sections 15060(c)(2),(3), 15378. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. 2https://www.arroyogrande.org/DocumentCenter/View/12363/Traffic-Way---Traffic-Flow_20240425 3https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=12478 4 https://www.arroyogrande.org/AgendaCenter/ViewFile/Item/9992?fileID=16092 5 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=8662 Page 112 of 215 Item 9.g. City Council Notice of Award, Traffic Way Bridge Replacement Project, PW 2023-02 December 10, 2024 Page 6 ATTACHMENTS: 1. Bid Opening Log Sheet 2. Resolution - Award Construction Contract – Granite 3. Resolution - Award Professional Service Agreement – Filippin 4. 2017 Memorandum of Understanding with RCD Page 113 of 215 24,2024 ATTACHMENT 1 Page 114 of 215 65501.00015\42788974.6 ATTACHMENT 2 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AWARDING THE TRAFFIC WAY BRIDGE REPLACEMENT PROJECT CONSTRUCTION CONTRACT TO GRANITE CONSTRUCTION COMPANY FOLLOWING A COMPETITIVE BID PROCESS, AND FINDING THAT SAID ACTION IS EXEMPT FROM CEQA PURSUANT TO STATE CEQA GUIDELINES SECTION 15060 WHEREAS, the Traffic Way Bridge (“Bridge”) spans Arroyo Grande Creek allowing Traffic Way to connect to West Branch Street. Traffic Way is an arterial roadway that conveys approximately 11,500 vehicles per day. The Bridge is a reinforced concrete structure supported by abutments on each end of the Bridge and concrete piles along the span; and WHEREAS, in 2006, Caltrans designated this Bridge as “scour critical” meaning that the supporting members of the Bridge are compromised due to erosion of surrounding soil. In 2016 the Bridge was reinspected, and that inspection found signs of deck cracking, failed expansion joints, spalling concrete, concrete abrasion, and creek channel erosion. In March 2018, it was determined that not only is scour an issue, but that the foundation is vulnerable in bearing capacity; and WHEREAS, Caltrans determined the Bridge needed replacing and placed it in the federal Highway Bridge Program (HBP). HBP provides funding for bridge repair and replacement. It provides 88.53% of federal funding and a required local match of 11.47%; and WHEREAS, $6,911,469 is budgeted in FY 2024-25 and the same amount is budgeted in FY 2025-26 for the Traffic Way Bridge Replacement Project (the “Project”), for a total of $13,822,938 over the next two fiscal years; and WHEREAS, Adequate funds exist in this year’s budget to cover anticipated costs through the end of the fiscal year. The additional $777,811.57 not already budgeted will be incorporated into the next 5-year Capital Improvement Program. This additional cost amounts to an additional $89,214.99 in City funding, with the remainder from the Highway Bridge Program; and WHEREAS, the City advertised this Project on September 27, 2024, on its website, in the local paper, to trade journals/construction exchanges, and to nine firms capable of performing such work, in compliance with the City’s purchasing policy; and WHEREAS, two bids were received ranging from $10,799,051 from Granite Construction Company (“Granite”) to $12,891,919.91 from Papich Construction Company (“Papich”); and Page 115 of 215 65501.00015\42788974.6 RESOLUTION NO. PAGE 2 WHEREAS, as a part of the federal funding requirements, the Office of Civil Rights established a Disadvantaged Business Enterprises (DBE) goal of 22% for this project. The purpose of the DBE program is to increase the participation of minority and woman owned businesses in State and local transportation projects that are federally funded. If a contractor does not meet this goal, it must submit documentation presenting their good faith effort to meet the goal; and WHEREAS, the low bidder, Granite, did not meet the 22% DBE goal but did obtain 12.05% DBE participation and provided its good faith effort documentation. This information was reviewed by City and Caltrans District 5 staff who determined that Granite did demonstrate good faith efforts to meet the DBE participation goal for the project; and WHEREAS, this resolution documents formal action awarding this contract pursuant to Gov. Code 36935. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande, as follows: 1. RECITALS. The foregoing recitals are true and correct and are incorporated herein. 2. CEQA FINDINGS. The City Council finds that awarding the Traffic Way Bridge Replacement Project construction contract to Granite Construction is exempt from further review under the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15060(c)(2),(3), 15378. On September 26, 2023, the City Council adopted a Mitigated Negative Declaration (MND) for the Project (SCH No. 2022060452). The MND analyzed the environmental impacts of the Project in compliance with the California Environmental Quality Act. The subsequent award of a construction contract for the Project, and a construction management agreement for the Project, respectively, do not in themselves result in a direct or reasonably foreseeable indirect physical change in the environment and is thus not subject to the California Environmental Quality Act under State CEQA Guidelines sections 15060(c)(2),(3), 15378. City Council directs staff to file a Notice of Exemption with the County Clerk and State Clearinghouse within five days of this Resolution. 3. Contract Award. The City Council awards the Traffic Way Bridge Replacement Project to Granite Construction Company contract in the not-to- exceed amount of $10,799,051, attached in substantially final form as Exhibit “A.” The City Council authorizes the City Manager to execute that contract, Page 116 of 215 65501.00015\42788974.6 RESOLUTION NO. PAGE 3 subject to any minor technical, or non-substantive changes in consultation with the City Attorney. The City Council incorporates the analysis of the Staff Report dated December 10, 2024, accompanying this item, as part of the passage of this Resolution. 4. Contingency. The City Council authorizes the City Manager or designee to approve change orders of 10% of the contract amount, $1,079,905.10, for unanticipated costs during the construction phase of this project. 5. CUSTODIAN OF RECORDS. The documents and materials associated with this Resolution that constitute the record of proceedings on which these findings are based are located at City Hall, 300 E Branch St Arroyo Grande CA 93420. On motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit: AYES: NOES: ABSENT: The foregoing Resolution was passed and adopted this 10th day of December 2024. Page 117 of 215 65501.00015\42788974.6 RESOLUTION NO. PAGE 4 _________________________________________ CAREN RAY RUSSOM, MAYOR ATTEST: ________________________________________ JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: ________________________________________ MATTHEW DOWNING, CITY MANAGER APPROVED AS TO FORM: ________________________________________ ISAAC ROSEN, CITY ATTORNEY Page 118 of 215 65501.00015\42788974.6 RESOLUTION NO. PAGE 5 Exhibit “A” Page 119 of 215 Page 120 of 215 Page 121 of 215 Page 122 of 215 Page 123 of 215 Page 124 of 215 Page 125 of 215 Page 126 of 215 Page 127 of 215 Page 128 of 215 Page 129 of 215 Page 130 of 215 Page 131 of 215 Page 132 of 215 Page 133 of 215 Page 134 of 215 Page 135 of 215 Page 136 of 215 Page 137 of 215 Page 138 of 215 Page 139 of 215 Page 140 of 215 Page 141 of 215 Page 142 of 215 Page 143 of 215 Page 144 of 215 Page 145 of 215 Page 146 of 215 65501.00015\42788974.6 ATTACHMENT 3 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AWARDING THE TRAFFIC WAY BRIDGE REPLACEMENT PROJECT CONSTRUCTION MANAGEMENT PROFESSIONAL SERVICES AGREEMENT TO FILIPPIN ENGINEERING FOLLOWING A REQUEST FOR PROPOSALS PROCESS, AND FINDING THAT SAID ACTION IS EXEMPT FROM CEQA PURSUANT TO STATE CEQA GUIDELINES SECTION 15060 WHEREAS, the Traffic Way Bridge (“Bridge”) spans Arroyo Grande Creek allowing Traffic Way to connect to West Branch Street. Traffic Way is an arterial roadway that conveys approximately 11,500 vehicles per day. The Bridge is a reinforced concrete structure supported by abutments on each end of the Bridge and concrete piles along the span; and WHEREAS, in 2006, Caltrans designated this Bridge as “scour critical” meaning that the supporting members of the Bridge are compromised due to erosion of surrounding soil. In 2016 the Bridge was reinspected, and that inspection found signs of deck cracking, failed expansion joints, spalling concrete, concrete abrasion, and creek channel erosion. In March 2018, it was determined that not only is scour an issue, but that the foundation is vulnerable in bearing capacity; and WHEREAS, Caltrans determined the Bridge needed replacing and placed it in the federal Highway Bridge Program (HBP). HBP provides funding for bridge repair and replacement. It provides 88.53% of federal funding and a required local match of 11.47%; and WHEREAS, $6,911,469 is budgeted in FY 2024-25 and the same amount is budgeted in FY 2025-26 for the Traffic Way Bridge Replacement Project (the “Project”), for a total of $13,822,938 over the next two fiscal years; and WHEREAS, Adequate funds exist in this year’s budget to cover anticipated costs through the end of the fiscal year. The additional $777,811.57 not already budgeted will be incorporated into the next 5-year Capital Improvement Program. This additional cost amounts to an additional $89,214.99 in City funding, with the remainder from the Highway Bridge Program; and WHEREAS, the City issued a qualifications-based Request for Proposals for construction management of this Project. Two proposals were received. These proposals were reviewed by a review team consisting of four City staff and a representative from the project design engineering firm that the City has been working with throughout the project. City staff negotiated costs with the top-rated firm, Filippin Engineering, on November 19, 2024; and Page 147 of 215 65501.00015\42788974.6 RESOLUTION NO. PAGE 2 WHEREAS, as a part of the federal funding requirements, the Office of Civil Rights established a Disadvantaged Business Enterprises (DBE) goal of 22% for this project. The purpose of the DBE program is to increase the participation of minority and woman owned businesses in State and local transportation projects that are federally funded. If a contractor does not meet this goal, it must submit documentation presenting their good faith effort to meet the goal; and WHEREAS, the selected consultant met the 22% DBE goal; and WHEREAS, this resolution documents formal action awarding this contract pursuant to Gov. Code 36935. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande, as follows: 1. RECITALS. The foregoing recitals are true and correct and are incorporated herein. 2. CEQA FINDINGS. The City Council finds that awarding the Traffic Way Bridge Replacement Project construction management professional services agreement to Filippin Engineering is exempt from further review under the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15060(c)(2),(3), 15378. On September 26, 2023, the City Council adopted a Mitigated Negative Declaration (MND) for the Project (SCH No. 2022060452). The MND analyzed the environmental impacts of the Project in compliance with the California Environmental Quality Act. The subsequent award of a construction contract for the Project, and a construction management agreement for the Project, respectively, do not in themselves result in a direct or reasonably foreseeable indirect physical change in the environment and is thus not subject to the California Environmental Quality Act under State CEQA Guidelines sections 15060(c)(2),(3), 15378. City Council directs staff to file a Notice of Exemption with the County Clerk and State Clearinghouse within five days of this Resolution. 3. Contract Award. The City Council awards a professional services agreement for construction management of the Traffic Way Bridge Replacement Project to Filippin Engineering in the not-to-exceed amount of $1,121,955, attached in substantially final form as Exhibit “A.” The City Council authorizes the City Manager to execute that contract, subject to any minor technical, or non- substantive changes in consultation with the City Attorney. The City Council incorporates the analysis of the Staff Report dated December 10, 2024, accompanying this item, as part of the passage of this Resolution. Page 148 of 215 65501.00015\42788974.6 RESOLUTION NO. PAGE 3 4. Contingency. The City Council authorizes the City Manager or designee to approve change orders of 10% of the contract amount, $112,199.50, for unanticipated costs during the construction phase of this project. 5. CUSTODIAN OF RECORDS. The documents and materials associated with this Resolution that constitute the record of proceedings on which these findings are based are located at City Hall, 300 E Branch St Arroyo Grande CA 93420. On motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit: AYES: NOES: ABSENT: The foregoing Resolution was passed and adopted this 10th day of December 2024. Page 149 of 215 65501.00015\42788974.6 RESOLUTION NO. PAGE 4 _________________________________________ CAREN RAY RUSSOM, MAYOR ATTEST: ________________________________________ JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: ________________________________________ MATTHEW DOWNING, CITY MANAGER APPROVED AS TO FORM: ________________________________________ ISAAC ROSEN, CITY ATTORNEY Page 150 of 215 65501.00015\42788974.6 RESOLUTION NO. PAGE 5 Exhibit “A” Page 151 of 215 Page 152 of 215 Page 153 of 215 Page 154 of 215 Page 155 of 215 Page 156 of 215 Page 157 of 215 Page 158 of 215 Page 159 of 215 Page 160 of 215 Page 161 of 215 Page 162 of 215 Page 163 of 215 Page 164 of 215 Page 165 of 215 Page 166 of 215 Page 167 of 215 Page 168 of 215 Page 169 of 215 Page 170 of 215 Page 171 of 215 Page 172 of 215 Page 173 of 215 Page 174 of 215 Page 175 of 215 Page 176 of 215 Page 177 of 215 Page 178 of 215 Page 179 of 215 Page 180 of 215 Page 181 of 215 Page 182 of 215 MEMORANDUM OF UNDERSTANDING BY AND BETWEEN THE COASTAL SAN LUIS RESOURCE CONSERVATION DISTRICT AND THE CITY OF ARROYO GRANDE REGARDING THE CORBETT CREEK FLOODPLAIN AND STREAM RESTORATION PROJECT This Memorandum of Understanding ("MOU") is entered into by and between the Coastal San Luis Resource Conservation District ("RCD"), a special district of the State of California and the City of Arroyo Grande ("CITY"), a California municipal corporation, (collectively the "Parties") with reference to the following Recitals: RECITALS A. in 2007, CITY received a civil liability complaint from the California Regional Water Quality Control Board relating to a sewage spill that occurred in or near Arroyo Grande Creek. The CITY was required to make restitution by expending $60,000 on supplemental environmental projects SEP) within the CITY. B. in response to the civil liability complaint, the CITY funded two separate SEPs: (a) an SEP to retrofit the City hall parking lot to include a landscaped bioswale and drainage filtration approximately $41,000) and (b) an SEP to combat increased runoff and sedimentation in Corbett Canyon Creek (approximately $19,000). C. The CITY subsequently expended an additional $42,000 (over and above the restitution obligation) to perform a preliminary field survey, biological surveys and design for an expanded Corbett Canyon Creek project ("Corbett Creek Floodplain and Stream Restoration Project" or Project"). D. Recently, the CITY participated with the RCD in a grant application to the Department of Water Resources ("DWR") for the Urban Streams Restoration Program, which would provide funds for implementation of the Corbett Creek Floodplain and Stream Restoration Project. E. The CITY has agreed to provide $70,000 cash and $14,000 of in-kind staff time toward the Project. F. The DWR recently conditionally awarded a grant to the RCD in an amount not to exceed 831,420 to fund the Corbett Creek Floodplain and Stream Restoration Project. The grant is conditioned on, among other things, the DWR and RCD entering into a grant agreement. The DWR and RCD are in the process of finalizing that certain Grant Agreement No. 4600009865. The Grant Agreement identifies the RCD as the project sponsor and the CITY as a program partner. Other programs partners are creek-side landowners, Central Coast Salmon Enhancement, the State Coastal Conservancy and the Natural Resource Conservation Service. G. As the Grant Agreement only generally sets forth the respective obligations of the RCD and CITY, the purpose of this MOU is to more clearly define the tasks and roles of each Party as to the other consistent with the Grant Agreement. Page 1 of 5 ATTACHMENT 4 Page 183 of 215 H. The Parties agree that performance of the Corbett Creek Floodplain and Stream Restoration Project in the City of Arroyo Grande provides a public benefit. Specifically, implementation of the Project will alleviate flooding on Corbett Canyon Creek and reduce stress on the lower portion of Arroyo Grande Creek. The Project will also restore riparian and floodplain habitat. NOW, THEREFORE, the Parties agree as follows: 1. CITY Contribution: CITY agrees to provide $70,000 cash and $14,000 of in-kind staff time toward the Corbett Creek Floodplain and Stream Restoration Project in the manner set forth in this MOU. 2. Project Administration: RCD will perform all Project administration such as invoicing, expense and travel reporting, tracking overhead, quarterly and final progress reports throughout the grant contract. RCD's obligation shall specifically include grant management to revise the scope of work as needed and administration of additional contractual documents, including contracts with the DWR and subcontractors. 3. Easement Acquisition for Clark Property: a) RCD will use its best efforts to obtain a conservation/flood easement for the approximately 12.5 acres of property specifically identified in the Grant Agreement as the Clark Property ("Conservation Easement Property"), with stream access restored to 10 acres of historic floodplain to attenuate peak storm flows and thereby increase flood protection to urban and agricultural areas downstream ("Conservation Easement"). b) CITY will reimburse RCD, in an amount not to exceed $12,000, for the costs RCD incurs in obtaining an appraisal, purchasing title reports and preparing, processing and recording the Conservation Easement in accordance with the requirements set forth in the Grant Agreement. c) CITY will provide in-kind staff time to work with RCD to develop a Maintenance Trust to manage the removal of increased sediment within the Conservation Easement Property and other maintenance tasks associated with the Conservation Easement. 4. Design Floodplain/Sediment Detention and Long-term Management Plan: a) CITY will provide in-kind staff time to attend two (2) meetings to review the engineering designs with necessary permitting agencies and partners and receive comment. b) CITY will work with RCD to develop a long-term management plan to support periodic sediment removal in order to maintain the Project's usefulness for sediment capture and revegetation of grassland areas. Page 2 of 5 Page 184 of 215 5. Design Stream Restoration Plan: a) CITY will provide funds necessary, not to exceed $25,000, to RCD for the preparation of 50% design plans for a channel restoration project along 4,200 feet of stream immediately downstream of the Conservation Easement Property) to restore the channel geometry, thereby increasing flow volumes. CITY engineering staff will attend two (2) meetings to review the designs with necessary permitting agencies and partners and receive comment. b) RCD will coordinate access agreements and outreach to multiple landowners on the Project trajectory. 6. Permitting and Environmental Compliance: a) Permitting for Floodplain/Sediment Detention Basin. 1) CITY will provide staff time necessary, not to exceed a $7,000 value, to review permit applications and prepare California Environmental Quality Act ("CEQA") documents. Permits include those required by the Department of Fish and Game, Regional Water Quality Control Board, U.S. Army of Corps of Engineers, and the CITY. The CITY will prepare a Negative Declaration or a Mitigated Negative Declaration based on the existing initial study and 100% designs of the floodplain project. b) Permitting for Stream Restoration. 1) CITY will provide the staff time necessary, not to exceed a $7,000 value, to prepare an initial study to determine what CEQA documents may be required for the stream restoration project. 2) CITY will provide up to $33,000 in cash to cover the costs to write and submit permits and environmental compliance documents beyond the initial study subject to the option set forth below. RCD will complete permit applications and lead the permit conversations with the various responsible agencies. RCD will complete the CEQA documents after the initial study is performed. The CITY may, at its option, decide to prepare the needed CEQA documents as an in-kind match and advise RCD in writing if it intends to do so. 7. General Provisions of this MOU: a). The Parties recognize that grant disbursement is subject to fund availability and potential withholding by the State. In the event that the grant is not disbursed, the Parties are excused from the performance of this MOU except as set forth herein. b) CITY agrees to provide any information necessary for RCD to establish compliance with the terms set forth in the Grant Agreement. Page 3 of 5 Page 185 of 215 c)CITY agrees to perform all work set forth in this MOU in accordance with the requirements and standards set forth in the Grant Agreement and applicable provisions of the law. d) All coordination, assistance, and services rendered under this MOU will be carried out in compliance with the objectives, roles and responsibilities of the Parties. e) The Parties will exchange information and consult with each other before implementing the provisions hereof that may affect the ability of the other party to perform under this MOU. f)The Parties acknowledge that this MOU must be implemented through a complex series of steps that include several governmental approvals requiring compliance with the CEQA. Notwithstanding the obligations of CITY set forth in Paragraph 6 above, RCD shall be identified as the Lead Agency with respect to CEQA for all environmental issues related to all actions described in this MOU. 8. Roles and Responsibilities: The Parties shall each designate in writing a single point of contact to ensure their respective responsibilities are satisfied. All future correspondence regarding this MOU and the rights and responsibilities hereunder shall be directed to the designated single points of contact. 9. Effective Date, Termination and Modification: This MOU will become effective when executed by the Parties. This MOU may terminate by the mutual written consent of the Parties or by operation of law. This MOU may be amended by written instrument executed by the Parties. 10. Mutual Indemnification: Each party shall, to the fullest extent permitted by law, indemnify, defend and hold the other party harmless against any and all costs, expenses, losses, claims, suits, damages, and liabilities (including reasonable attorney's fees) for acts or omissions arising out of or in connection with their respective acts or omissions performed under this MOU. NOTHING FURTHER BEYOND THIS POINT EXCEPT SIGNATURES/////////// Page 4 of 5 Page 186 of 215 IN WITNESS WHEREOF, the parties hereto have executed this MOU effective upon the date of last signature below. COASTAL SAN LUIS RESOURCE CITY OF ARROYO GRANDE: CONSERVATION DISTRICT: By: 74,-;) i4,1-);:c, BA Neil Havlik, President Tony Fix are, Mayor Date: . l - — (2___ • Date: II- /3 ATTEST: ATTEST: Kelly We; ore ity Clerk APPROVED AS TO FORM AND LEGAL EFFECT: APPROVED AS TO FORM: Erica A. Stuckey, Deputy County Counsel Tin .thy J. Carmel, City Attorney Date: Date: 1 1 1 13 i Z APPROVED AS TO CONTENT: Stever Adams, City Manager Date: ////.?//Z Page 5 of 5 Page 187 of 215