DATE: December 17, 2024
TO: Board of Supervisors
SUBMITTED BY: Steven E. White, Director
Department of Public Works and Planning
SUBJECT: Amendment I to Agreement with Del Rey Community Services District (CDBG 23151)
RECOMMENDED ACTION(S):
TITLE
Approve and authorize Chairman to execute Amendment I to Agreement No. 23-583 with Del Rey Community Services District Wastewater Treatment Plant Hazard Reduction, Community Development Block Grant Project No. 23151, effective upon execution with no change in term through July 25, 2025, increasing the maximum Community Development Block Grant funds provided by $135,500, due to increased construction costs, to a total Community Development Block Grant funding amount not to exceed $435,500.
REPORT
Approval of the recommended action will provide additional Community Development Block Grant (CDBG) funding for the Wastewater Treatment Plant Hazard Reduction (Project). These additional funds are available from the Del Rey Community Services District (District) CDBG allocation included in the County’s 2024-2025 Action Plan, as approved by your Board on June 18, 2024. The total Project cost is now estimated at $435,500. This item pertains to a location in District 4.
ALTERNATIVE ACTION(S):
Your Board may choose not to approve the recommended amendment, requiring the District to provide local financial contributions to cover Project costs that exceed the current $300,000 CDBG funding provided in the Agreement.
FISCAL IMPACT:
There is no Net County Cost associated with the recommended action. The recommended amendment will increase CDBG funding for the Project by $135,500; from $300,000 to $435,500. The additional CDBG funds are included in the Department of Public Works and Planning - Community Development Block Grant Org 7205 FY 2024-25 Adopted Budget. CDBG funds are provided on a reimbursement basis.
DISCUSSION:
On October 24, 2023, the Board approved Agreement No. 23-583 (Agreement) for the Project, then estimated at $300,000. The Agreement provided $300,000 in CDBG funds to the District, on a reimbursement basis, for the demolition and removal of abandoned structures and equipment at the existing Del Rey Wastewater Treatment Plant (WWTP). Pipes, electrical equipment and other structures will be removed, and open pits will be filled in and capped with concrete. The work will reduce hazards and remove habitat for rats and other vermin. There is no expansion of system capacity. The Project is located at the Del Rey Wastewater Treatment Plant on the southwest corner of East American Avenue and South Indianola Avenue.
The Project was put out to bid in the summer of 2024, and bids received July 10, 2024, significantly exceeded available funding. The bid schedule was revised to utilize additive alternates and rebid in the fall of 2024. The award of the Project by the District is expected in December 2024, following the Board’s decision on the recommended action.
Amendment I is before your Board for approval. If approved, Amendment I will increase the total CDBG funds allocated to this Project from $300,000 to $435,500. All remaining provisions of the Agreement will remain in full force and effect.
OTHER REVIEWING AGENCIES:
Amendment I to Agreement No. 23-583 has been reviewed and approved by the Del Rey Community Services District. On October 16, 2024, the Housing and Community Development Citizens Advisory Committee reviewed and approved the request for the additional $135,500 in CDBG funds.
REFERENCE MATERIAL:
BAI #8, June 18, 2024
BAI #48, October 24, 2023
BAI #11, June 21, 2022
ATTACHMENTS INCLUDED AND/OR ON FILE:
Location Map
On file with Clerk - Amendment I to Agreement with Del Rey Community Services District
CAO ANALYST:
Salvador Espino