June 18, 2024
Public Works
DATE: June 25, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
Daniel Chavarria, PE, Director of Public Works
Robert Armijo, PE, Deputy Public Works Director / City
Engineer
Jeffrey Barich, PE, Senior Civil Engineer
Subject:
Additional Grant Funds from the California Natural
Resources Agency (CNRA) for the Rheem Creek Flood
Risk Reduction Project; Amend UST Testing Services,
Inc.’s Construction Contract; Amend American Rivers
Inc.’s Project/Grant
FINANCIAL IMPACT: Additional grant funding for $631,400 shall be appropriated in the Stormwater Fund (4006) for a total
grant budget of $2,230,244 (Account String 40623431-
400642-22A02). This will fund the contract amendments
for UST Testing Services, Inc. and American Rivers.
There will be no impact to General Fund.
PREVIOUS COUNCIL
ACTION:
July 6, 2021 (Resolution 82-21)
July 19, 2022 (Resolution 106-22 and 107-22)
July 11, 2023 (Resolution 81-23)
STATEMENT OF THE
ISSUE:
City staff seeks City Council approval to accept and
appropriate additional grant funds from the California
Natural Resources Agency (CNRA); amend the
construction contract with UST Testing Services, Inc.;
and amend the professional services contract with
American Rivers for the Rheem Creek Flood Risk
Reduction Project.
AGENDA
REPORT
June 18, 2024
RECOMMENDED ACTION:
ADOPT a resolution to ACCEPT and APPROPRIATE
additional grant funds in the amount of $631,400 from
California Natural Resources Agency (CNRA) for the
Rheem Creek Flood Risk Reduction Project for a total
grant award of $2,230,244; and APPROVE an
amendment to UST Testing Services, Inc. contract in the amount of $179,481, for an amended total contract
amount not to exceed $1,535,990, and AUTHORIZE the
Director of Public Works to approve additional change
orders up to $18,000, if necessary; and APPROVE an
amendment to American Rivers’ contract in the amount
of $148,200, for an amended total contract amount not to exceed $448,700 – Public Works Department (Daniel
Chavarria 510-620-5478/Robert Armijo 510-620-5477).
DISCUSSION:
Background
Technical studies and community-supported plans were made in 2019 to solve flooding issues in the Fairmede neighborhood and the adjacent unincorporated Rollingwood Neighborhood, which has persisted for more than 20 years due to overflowing from the Rheem Creek. Plans and preliminary designs were submitted to the appropriate regulatory agencies (i.e., California Department of Fish and Wildlife, State Water Resources Control Board, U.S. Army Corp of Engineers).
In June 2020, the City and its partners, American Rivers, Watershed Project, Restoration Design Group, and other local partners, submitted an application to the California Natural Resources Agency Urban Flood Protection Grant Program requesting grant funding for the final design of the Flood Risk Reduction Project in the Rheem Creek Watershed Project. In September 2021, the City was awarded grant funding in the amount of $1,598,844.
In July 2023, the City Council approved the award of the construction contract to UST Services Inc. for $1,356,509. In July 2022, the City approved the contract with American Rivers to manage the grant and implement the tasks and deliverables, which currently totals $300,500.
Flood Risk Reduction Project
Construction started in September 2023, but due to regulatory constraints, imposed by the California Department of Fish and Wildlife and new requirements from the East Bay Municipal Utility District (EBMUD) regarding the use of their property for staging areas introduced unforeseen logistical and financial challenges. These developments necessitated adjustments to the original project scope and budget.
June 18, 2024
The project's complexity required additional funds to address the expanded scope of work, including an additional $179,481 for UST contract amendment for costs associated with the delayed timeline, including increased labor and material costs and the requirements for using EBMUD’s property as a staging area which involves additional preparation and restoration work.
The proposed project remains categorically exempt per California Environmental Quality Act (CEQA) Guidelines Section 15333, Small Habitat Restoration Project. The project area is less than one acre and is not anticipated to adversely impact endangered, rare, or threatened species or their habitat, nor will it disturb hazardous materials or result in significant impacts.
Grant Funding
The California Natural Resources Agency (CNRA) has agreed to grant the City additional funds in the amount of $631,400 to complete this project. These funds will cover the additional fees incurred by UST, American Rivers, and other project team consultants, that arose due to the construction delays. The City needs to adopt a resolution to accept and appropriate these additional grant funds (See Attachment 1).
Recommendation
City staff is requesting the adoption of the resolution accepting and appropriating the grant award of $631,400 and amending the contracts by increasing the payment limits with UST and American River to $179,481 and $148,200, respectively. In response to the revised project requirements, City staff also recommend an increase in the contingency budget by $18,000 and authorize the Director of Public Works to approve additional change orders up to the increased contingency amount. This authority will ensure the project can proceed without delay, maintaining efficiency and adherence to the new project timelines and conditions.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution
Attachment 2 – UST Testing Services Original Contract
Attachment 3 – UST Testing Services Amendment #1 to the Contract Attachment 4 – American Rivers Original Contract
Attachment 5 – American Rivers Amendment #1 to the Contract Attachment 6 – American Rivers Amendment #2 to the Contract Attachment 7 – American Rivers Amendment #2 to the Contract – Scope of Work