PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #9.D
SUBJECT/TITLE:
TERMINATION OF THE AUGUST 11, 2021 EMERGENCY PROCLAMATION; UPDATE ON MARCH 16, 2020 AND JANUARY 12, 2017 EMERGENCY PROCLAMATIONS
RECOMMENDATION:
1. Adopt a Resolution:
1. Terminating the local emergency confirmed by City Council on August 12, 2021, and rescinding R-2021-070; and
2. Ratifying expenditures in the amount of $69,849.67 and $327,405.63 to Pacific Petroleum and R. Baker, Inc., respectively; and
3. Appropriating related budget adjustments in fiscal year 2022.
2. Receive a report on the remaining active emergency proclamations.
BACKGROUND:
Chapter 2.32 of the Pismo Beach Municipal Code empowers the City Manager, acting as the Director of Emergency Services, to proclaim the existence of a local emergency when the City is affected by an emergency and the City Council is not in session. An emergency exists when conditions are beyond the control of the services, personnel, equipment, facilities, and existing laws of this City. The declaration is an acknowledgement of the need for additional resources and expedited procedures to deal with the emergency. The Director of Emergency Service’s declaration is subject to City Council ratification within seven days.
As required by the Emergency Declarations ratified by Resolution R-2021-070 on August 12, 2021, relating to a sewer spill, Resolution R-2020-026 on March 17, 2020, relating to the COVID-19 health threat, and by Resolution R-2017-012 on January 17, 2017, relating to winter storm damage, the following status report is provided for information purposes.
August 11, 2021 Proclamation: Sewer Spill
During the evening of August 10, 2021, damage to a primary sewer collection and transmission line in the vicinity of 98 South Dolliver Street was discovered. Staff took immediate cleanup and protective measures to maintain the City’s sewer system and prevent any environmental damage. On August 11, 2021, the Director of Emergency Services issued a Proclamation of Local Emergency for the spill, and on August 12, 2021, the Council convened a special meeting and adopted Resolution R-2021-070 ratifying the Director’s proclamation.
Exploratory potholing was performed to determine the location and extent of the damage to the sewer line. It was determined the section of damaged pipe was past the point of repair, and the best course of action would be to install a new pipe that runs under the creek, bypassing the damaged portion of the line. Staff worked to locate a contractor and obtain the necessary materials to perform the work. The horizontal directional drilling under the creek to install the new sewer pipe is complete and the new sewer line was put Council Agenda 2-15-2022 9.D-1
into service on September 9, 2021. Now that the project is complete, staff recommends the Council adopt the proposed Resolution (Attachment 1) terminating the local emergency and rescinding R-2021-070. Additional detail about termination of the emergency is provided in the Fiscal Impact section, below.
March 17, 2020 Proclamation: COVID-19
A severe acute respiratory illness caused by a novel (new) coronavirus, known as COVID- 19, has spread globally and rapidly, resulting in illness and death around the world. The World Health Organization has described COVID-19 as a global pandemic. On March 4, 2020, California Governor Gavin Newsom declared a State of Emergency in response to the increased spread of COVID-19. Additionally, on March 13, 2020, the County of San Luis Obispo declared a countywide emergency. And on March 13, 2020, the President of the United States declared a federal emergency as a result of COVID-19.
The City Manager, acting as the Director of Emergency Services, proclaimed the existence of a local emergency on March 16, 2020, which declaration was ratified by Council Resolution R-2020-0261 on March 17, 2020. The Council further proclaimed that a local emergency existed as of the date of the Governor’s March 4, 2020 declaration of emergency, and that the local emergency continued to exist. The City also partially activated its Emergency Operations Center on March 16, 2020 and the EOC team has met periodically to address the changing conditions presented by the various emergency declarations and other state and county health guidance.
Actions taken to date with respect to COVID-19 response have included the continued procurement of sanitation supplies, the temporary closure of City Hall and other City facilities to the public, additional software licensing to increase public access to the City’s online records, and the development of virtual meeting models to allow the City Council, staff, the business community, and residents to participate remotely in critical meetings.
The City ordered Pismo Beach-branded bandanas to be used as face coverings, and provided them to lodging properties and other businesses for distribution to customers.
As a result of seasonal crowds, staff ordered and posted signage promoting keeping physical distance. The City has allowed the use of the right-of-way for queuing of customers, and developed a pilot Temporary Outdoor Dining Area Certification (TODAC) program allowing businesses to place tables for their customers in approved outdoor areas such as parking lots. The City Council has also authorized the use of certain street rights-of-way for temporary outdoor dining as part of the City’s COVID-19 Support Dining Encroachment Permit program.
During the initial closure of City facilities, the City adopted work-from-home policies and procedures to allow “essential” staff to continue their work and offer many public services virtually. At a special meeting of the City Council held on December 11, 2020, the Council authorized the Mayor to support a regional initiative for the counties of San Luis Obispo, Santa Barbara, and Ventura to be considered separately from the “Southern California” region for purposes of state COVID-19 metrics that dictate which counties are able to “re-
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open,” as the rates of infection and ICU occupation remain much lower in the tri-county area than the remainder of the counties currently considered to be part of the “Southern California” region. A joint Mayors’ letter asking for the state’s consideration of this request was transmitted the week of December 14, 2020. At this same meeting, the Council affirmed its support for this City’s continued enforcement of what were then known as state “purple tier” health and safety restrictions.
On May 19, 2020, the Council adopted Urgency Ordinance O-2020-004 which implemented a requirement that employees of any business open to the public wear face coverings when unable to maintain adequate physical distance from customers, as well as a requirement that each such business post signage encouraging patrons to wear masks, and providing information about CDC recommendations relating to hand washing and other topics. This Ordinance became effective on May 20, 2020. Staff delivered direct messaging to the business community using contact information provided in business licensing records. On June 15, 2021, following the relaxing of state health directives relating to the virus, the City Council adopted Urgency Ordinance O-2021-002 which repealed the City’s local face covering mandates.
The City continues to provide messaging to the community encouraging the public to pursue vaccination, and has ensured that City Council Members and staff members are enrolled in vaccination opportunities as appropriate. On April 27, 2021, it was announced that San Luis Obispo County would be moved to what was then known as the state’s “orange” tier of state-mandated health and safety restrictions, effective April 28, 2021, enabling the transition to certain activities, such as limited indoor gatherings of individuals, with certain restrictions. As such, staff implemented a hybrid model for City Council and Planning Commission meetings, where a majority of legislative body members and some staff are present in person, and some legislative body members, some staff, and all members of the public are present virtually.
In late May, the State of California announced the planned repeal of most temporary health and safety restrictions relating to COVID-19 on June 15, 2021. In anticipation of a grace period allowing local jurisdictions to return to pre-pandemic practices shortly after the emergency orders are lifted, staff prepared logistically for the full return of the public in-person access to City Hall, other City facilities, and City Council Meetings. At the time of the update presented on August 17, 2021, nearly all City staff had returned to the office full-time, and CalOSHA guidance relating to the use of face coverings in the workplace had been implemented.
As of the date of the last report, staff noted that the City was monitoring concerns relating to the delta variant of the coronavirus, and that the full return to in-person legislative meetings had yet to be implemented. In accordance with face covering guidance issued by the County Health Officer effective September 1, 2021, the City has issued a directive requiring its employees to return to the use of face masks indoors and in vehicles when in proximity to other employees, as well as requiring visitors to wear masks inside City facilities.
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As of the date of this report, the omicron variant is an additional, prevalent concern. The California Governor has indicated intent to end the state’s indoor mask mandate for vaccinated people on February 15, 2022, and staff will continue to monitor state and county regulatory changes and formulate appropriate adaptations to City operations.
January 17, 2017 Proclamation: Winter Storms
Summary of Current Events
The storm drain failure at Cliff Avenue and Ocean Boulevard required a Phase II Environmental Study per Caltrans Local Assistance (LA) and the City’s environmental subconsultant. The Phase II Environmental Study fieldwork is complete and the results are being reviewed by Caltrans LA for approval and National Environmental Policy Act (NEPA) clearance. Staff submitted a time extension request to Caltrans LA in mid-August 2021, and is still waiting to hear if it is approved.
Contracts were awarded by Council on December 21, 2021 to Granite Construction, Inc. (Granite) and Cannon Associates (Cannon) for construction and construction management services for the Ocean Boulevard Improvement Project, respectively. A pre- construction meeting for the project was held the week of February 7, 2022, and submittals are coming in from Granite and being reviewed by staff and Cannon.
Construction is anticipated to start March 2022.
Construction for the Price Canyon Road Slope Repair project is complete and 3-month plant establishment period has begun, which is estimated to be complete in April 2022.
Staff solicited and received three proposals for Professional Services for bid-ready plans and specifications for repair of the storm drain over the bluff behind the Dolphin Bay Resort. A consultant has been selected and contract executed, within staff’s purchasing authority.
Summary of Past Events
The Pismo Beach City Council declared a state of emergency on January 12, 2017, via Resolution R-2017-0122, in response to the January 2017 winter storms. Shortly after the Council’s declaration, the County of San Luis Obispo declared an emergency which was followed by a declaration by Governor Jerry Brown for the region. On February 14, 2020 and March 16, 2020 President Donald Trump declared a major disaster for the early and late January storms, making federal disaster aid available. The storms, which began the first week of January, took a toll on the community, culminating with a Caltrans storm drain failure on Highway 101, which caused flooding of two hotels on Price Street, blockage of the City’s Franklin storm drain outfall and debris scattered along Highway 101, Price Street and sidewalk, on Franklin Drive and various private parcels on January 20, 2017. Damage from the storms includes but is not limited to the following:
Bluff failure on Ocean Boulevard (Caltrans purview)
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Bluff failure at Memory Park (FEMA purview)
Franklin Avenue storm drain failure (FEMA purview)
City Hall storm damage (FEMA purview)
Bluff failure at Ebb Tide Park (FEMA purview)
Bluff failure at Cypress Street at Harloe Avenue (FEMA purview) Storm drain failure on the City’s outfall located adjacent to the Dolphin Bay Resort (FEMA purview)
Storm drain failure on Cliff Avenue at Ocean Boulevard (adjacent to Dinosaur Caves Park) (Caltrans Purview)
Storm drain failure at the end of Harbor View Avenue (FEMA purview) Slope/road failure on Price Canyon Road (Caltrans purview)
Staff took immediate cleanup and protective measures of the sites where possible and has been working with FEMA through the California Governor's Office of Emergency Services (CalOES) and FHWA through Caltrans for reimbursement for work and funds required to cleanup and secure the various sites. Staff attended a Recovery Scoping Meeting with FEMA on May 16, 2017 and a Damage Assessment Site Inspection Meeting with Caltrans on May 18, 2017. The application and approval process for cost recovery and permanent restoration at each site under FEMA purview is complete and checks have been issued based on FEMA scoping and estimated construction costs with a reimbursement of 93.75% FEMA/State and a 6.25% City match. Completed work for sites under FEMA purview includes removal of the fallen tree on the beach below Ebb Tide Park. It was anticipated that the actual cost of repairs at each site will exceed the amount approved and checks issued by FEMA. The City also filed insurance claims for each of these sites to potentially assist in completion of the repairs. After FEMA review, the following sites are deemed ineligible for federal aid as observed erosion and bluff failure was defined by FEMA representatives as naturally occurring over time:
Bluff failure at Memory Park
Bluff failure at Cypress Street at Harloe Avenue
Permanent restoration at these two sites will have to rely solely on insurance claim funding and/or grants that City staff is consistently in search of and pursuing.
The City has received all reimbursement checks from the State and Federal Emergency Management Agency (FEMA) for damages at various sites under FEMA purview during the 2017 storms totaling $101,833. The next step is for City staff to further evaluate each site, issue requests for proposals (RFPs) for engineering design and environmental services and/or pursue cost estimates from contractors for permanent restoration of these sites which include:
Franklin Avenue storm drain failure (FEMA purview)
City Hall storm damage (FEMA purview)
Bluff failure at Ebb Tide Park (FEMA purview)
Storm drain failure on the City’s outfall located adjacent to the Dolphin Bay Resort (FEMA purview)
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Storm drain failure at the end of Harbor View Avenue (FEMA purview)
Construction of repairs and drainage improvements to address leaking issues at the Fire Administration and Conference and Visitors portion of City Hall is complete.
The City received authorization from the Federal Highway Administration (FHWA) through the California Department of Transportation (Caltrans) for engineering design and environmental studies for the following three sites:
Bluff failure on Ocean Boulevard
Storm drain failure on Cliff Avenue at Ocean Boulevard (adjacent to Dinosaur Caves Park)
Slope/road failure on Price Canyon Road
Costs for these services are reimbursed at 88.53% by FHWA/Caltrans with an 11.47% City match. The environmental/design phase for both the Ocean Boulevard Improvement Project and the Price Canyon Road Slope Repair Project began by TerraCosta Consulting Group and Yeh and Associates, Inc., respectively in early 2019. Environmental, cultural resource and temporary access impacted the design schedule and City staff pursued one- year time extensions from Caltrans for each project which we were subsequently granted.
As discussed in the summary of current events, the consultant for the Ocean Boulevard Improvement Project provided 100% design plans for review which have been reviewed by staff from all applicable departments and final bid-set plans are being developed.
The City has included the permanent repair of all sites (both Caltrans and FEMA purview) damaged during the January 2017 storms in an insurance claim and has provided all required documentation to the insurance company. City staff was presented with a Partial Proof of Loss and Subrogation Agreement for the Morro stairs and storm drain outfall sites during a meeting with our insurance representative on February 15, 2019, and the City has received an initial payment in the amount of $504,324. This amount is based on the estimated cost of repair for the Morro Stairs and outfall. The City is currently waiting on a response from the City’s insurance representative on an initial payment amount that could be expected for all other sites. The City’s insurance representative has also indicated that the cost of engineering and environmental services for each site can be added to the total amount of the claim.
City staff was also pursuing a grant from the California Department of Parks and Recreation, Division of Boating and Waterways, through its Shoreline Erosion Control Grant Program for stabilization of a portion of the bluff near the City’s lift station at the end of Harloe Street. An application was submitted, and onsite meetings have been held.
Staff was notified that the State budget did not support any projects during Fiscal Year 2021, but was invited to reapply for Fiscal Year 2023. Staff submitted the new application and was notified on January 13, 2022 the project was not recommended for funding in the Governor’s proposed budget Fiscal Year 22. Staff is looking into other funding opportunities to support this project.
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FISCAL IMPACT:
The fiscal impact of the attached Resolution is the authorization of expenditures for the August 2021 Sewer Spill emergency to Pacific Petroleum in the amount of $69,849.67 and R. Baker, Inc. in the amount of $327,405.63, and related budget adjustments.
August 2021 Sewer Spill
Per the City’s Purchasing Policy and Procedures, an emergency declared by an appropriate authority as described in Pismo Beach Municipal Code Chapter 2.32, Emergency Services, requires that an order be placed with the most expeditious source of equipment, goods or services, taking into account timeliness of delivery and price. In the event of an Emergency, the City Manager/Director of Emergency Services is authorized to approve without solicitation of bids purchases, leases, or other contracts for goods or services up to a value of $100,000. Emergency procurements shall be ratified as soon as practical, including ratification by City Council for emergency procurements exceeding $100,000 or the amount set by City Council after receiving the recommendation of the City Manager.
The City’s costs for the August 2021 Sewer Spill emergency is $418,047.55. Of this amount, one agreement with R. Baker, Inc. in the amount of $327,405.63 exceeded the $100,000 procurement threshold and one agreement with Pacific Petroleum in the amount of $69,849.67 exceeded the non-emergency $50,000 procurement threshold.
The City’s purchasing policy allows for the City Manager to authorize payments up to $50,000, and so the payments for the remaining vendors (Central Coast Fence, DPSI, and WSC) were paid under that authority. The total project costs are shown in the table below.
Vendor Amount
Pacific Petroleum $69,849.67
R. Baker, Inc. $327,405.63
Central Coast Fence $4,469.75
Diversified Project Services International (DPSI) $11,090.00 Water Systems Consulting, Inc. (WSC) $5,232.50
Total Cost $418,047.55
Staff is continuing to explore recovery of these costs from third parties whose actions precipitated the emergency. If funds are not recovered, this is an unanticipated large cost that may have an impact of future wastewater rates. In the meantime, staff recommends that Council adjust the FY 2022 Wastewater Enterprise Fund’s budget to cover the cost of the sewer spill. Staff recommends appropriating $418,048 for the Pismo Creek Sewer Spill project in the Wastewater Enterprise Fund in FY 2022.
COVID-19
Costs related to the COVID-19 emergency are continuing on an ongoing basis, and as such, a precise total is difficult to assess at the current time. Staff will continually update Council as appropriate on anticipated future costs and reduced revenues as a result of the emergency.
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January 2017 Winter Storms
The cost of damage from the January 2017 storms is estimated to be between $3,000,000 and $6,000,000. Once the damage can be fully assessed, staff will be able to formulate a better cost estimate.
ALTERNATIVES:
1. Do not adopt the attached Resolution; provide staff with direction.
ATTACHMENTS:
1. Resolution terminating August 11, 2021 sewer spill emergency proclamation Prepared by: Meeting Date: February 15, 2022
Chad Stoehr, P.E., Engineer
Erica Inderlied, City Clerk
Submitted by: Erica Inderlied, City Clerk
City Manager Approval:
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RESOLUTION NO. R-2022-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,
CALIFORNIA TERMINATING THE LOCAL EMERGENCY CONFIRMED BY CITY COUNCIL ON AUGUST 12, 2021 AND RESCINDING R-2021-070; RATIFYING EXPENDITURES IN THE AMOUNT OF $69,849.67 AND $327,405.63 TO PACIFIC PETROLEUM AND R. BAKER, INC., RESPECTIVELY; AND APPROPRIATING RELATED BUDGET ADJUSTMENTS IN FISCAL YEAR 2022
WHEREAS, on August 11, 2021 the Director of Emergency Services issued a proclamation declaring the existence of a local emergency in response to damage to a primary sewer collection and transmission line in the vicinity of 98 South Dolliver Street; and
WHEREAS, the proclamation was confirmed by City Council on August 12, 2021 by Resolution R-2021-070; and
WHEREAS, staff took immediate cleanup and protective measures to maintain the City’s sewer system and prevent any environmental damage; and
WHEREAS, it was determined the section of damaged pipe was past the point of repair, and the best course of action would be to install a new pipe that runs under the creek, bypassing the damaged portion of the line; and
WHEREAS, horizontal directional drilling under the creek to install the new sewer pipe was completed and the new sewer line was and put into service on September 9, 2021; and
WHEREAS, per the City’s Purchasing Policy and Procedures, an emergency declared by an appropriate authority as described in Pismo Beach Municipal Code Chapter 2.32, Emergency Services, requires that an order be placed with the most expeditious source of equipment, goods or services, taking into account timeliness of delivery and price; In the event of an Emergency, the City Manager/ Director of Emergency Services is authorized to approve without solicitation of bids purchases, leases, or other contracts for goods or services up to a value of $100,000; Emergency procurements shall be ratified as soon as practical, including ratification by City Council for emergency procurements exceeding $100,000 or the amount set by City Council after receiving the recommendation of the City Manager; and
WHEREAS, the City’s costs for the August 2021 Sewer Spill emergency is $418,047.55; Of this amount, one agreement with R. Baker, Inc. in the amount of $327,405.63 exceeded the $100,000 procurement threshold and one agreement with Pacific Petroleum in the amount of $69,849.67 exceeded the non-emergency $50,000 procurement threshold.
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Attachment 1
NOW, THEREFORE, BE IT RESOLVED that pursuant to Government Code Section 8630, the City Council determines that conditions warrant the termination of the local state of emergency declared under Resolution R-2021-070, and therefore, the City Council of the City of Pismo Beach hereby terminates the local emergency confirmed by the City Council on August 12, 2021.
BE IT FURTHER RESOLVED that the City Council of the City of Pismo Beach hereby ratifies the expenditures in the amount of $69,849.67 and $327,405.63 to Pacific Petroleum and R. Baker, Inc., respectively, for work performed in response to the damage to the primary sewer collection and transmission line.
BE IT FURTHER RESOLVED that the City Council of the City of Pismo Beach hereby appropriates $418,048 in the Pismo Creek Sewer Spill project account in the Wastewater Enterprise Fund in Fiscal Year 2022.
BE IT FINALLY RESOLVED that Resolution R-2021-070 is hereby rescinded.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 15th day of February 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
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Attachment 1