State Water Resources Control Board
TO:
FROM:
DATE:
Joe Karkoski
Deputy Director
DIVISION OF FINANCIAL ASSISTANCE
Jennifer Toney
Senior Water Resource Control Engineer
DIVISION OF FINANCIAL ASSISTANCE
April 30, 2024
SUBJECT: APPROVAL OF ADDITIONAL PROPOSITION 1 FUNDS FOR THE CITY OF SAN PABLO (CITY); SUTTER AVENUE GREEN STREET PROJECT (PROJECT); GRANT AGREEMENT NO. D2112149
BACKGROUND
The Water Quality, Supply, and Infrastructure Improvement Act of 2014 (Prop 1) was approved by California voters in the general election on November 4, 2014. Among other funds, Prop 1 provided $200 million for matching grants to public agencies, nonprofit organizations, public utilities, state and federally recognized Indian tribes, and mutual water companies for multi-benefit stormwater management projects (Water Code section 79747).
The State Water Board adopted the Proposition 1 Stormwater Grant Program (SWGP) Guidelines (Guidelines) on December 15, 2015 for Round 1 and on October 16, 2019 for Round 2. The SWGP Round 2 Guidelines authorizes the Deputy Director of the Division of Financial Assistance (Division) to utilize available funds to augment the scope of work and budget of projects previously awarded, consistent with the Guidelines.
The Project is for the purpose of constructing stormwater best management practices along Sutter Avenue to reduce street flooding and pollutant-loading in Wildcat Creek, a 303(d) listed water body.
The City has requested a cost increase as summarized below. The City advertised for bids on February 20, 2024, the bid opening was on March 21, 2024, and one bid was received. The City indicated that re-bidding the project to receive more bids could significantly delay the project schedule and would not necessarily reduce the project cost based on variables such as contractor availability during the summer. The City also
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evaluated cost estimates for Construction Management Services and after cost negotiations selected the top-ranked consultant. Based on the qualified bid amount ($3,856,219), the selected Construction Management Services cost estimate ($382,404), and other adjustments as noted in the request, the City requested an additional $1,451,100 of grant funds to cover Project cost increases.
The City indicated the main contributing factors for cost increase were high inflation in the construction industry as well as increased construction quantities of several line items. The City also requested a 10% contingency for the construction management line item. Division staff notified the City that contingency funds are only for construction bid amounts due to limited grant funding. Therefore, if approved, the additional grant funding would be $1,412,860 instead of the requested amount.
The City serves a disadvantaged community and is eligible for a 10% match to meet the Prop 1 match requirement. The original proposed match was $390,000, and the City is proposing a match of $621,500 which is approximately 12% match and meets the minimum 10% requirement.
The Prop 1 SWGP has approximately $2.4 million in remaining funds that could be utilized to address cost increases in previously funded projects. If the requested cost increase for this project were approved, the remaining available amount for Prop 1 SWGP cost increases would be approximately $1 million.
The table below summarizes the current and proposed budgets:
Table 1:
Current Proposed
Initial Grant Award (Prop 1) $1,560,000 $1,560,000
Proposed Added Grant (Prop 1) N/A $1,412,860
Match $390,000 $621,500
Other Funding $1,888,000 $1,760,000*
Total $3,838,000 $5,354,360
* The City indicated Other Funding of the original budget was reduced since $50k of the Other Funding was moved to Match and $78k did not meet the timeline for construction.
If approved, an amendment to the Grant Agreement (No. D2112149) will be prepared to reflect the changes to the budget.
STAFF RECOMMENDATION
Staff recommends approval of an additional $1,412,860 in Prop 1 grant funds for the Project.
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APPROVAL
I, Joe Karkoski, Deputy Director of the State Water Board’s Division, approve staff’s recommendation described above.
Approved: _________________________
Joe Karkoski, Deputy Director
Division of Financial Assistance
cc: Michael Downey
Division of Financial Assistance
Kim Dinh
Division of Financial Assistance
Anthony Austin
Office of Chief Counsel
Bryan Ayule
Division of Financial Assistance
Angie Noorda
Division of Financial Assistance
Cassandra Fujii
Division of Financial Assistance