DATE: November 8, 2022
TO: Board of Supervisors
SUBMITTED BY: Steven E. White, Director
Department of Public Works and Planning
SUBJECT: Amendment I to Agreement with Malaga County Water District
(CDBG 21451)
RECOMMENDED ACTION(S):
TITLE
Approve and authorize Chairman to execute Amendment I to Agreement No. 22-236 with Malaga County Water District for the Malaga Wastewater Treatment Plant Nitrogen Reduction, Community Development Block Grant Project No. 21451, effective upon execution with no change in term through June 12, 2024, increasing the maximum Community Development Block Grant funding by $250,000 to a total Community Development Block Grant funding amount not to exceed $500,000.
REPORT
Approval of the recommended action will provide additional Community Development Block Grant (CDBG) funding for the Malaga Wastewater Treatment Plant Nitrogen Reduction (Project). The additional funds are needed to complete additional nitrogen reduction improvements submitted for funding as the Malaga Wastewater Treatment Plant Nitrogen Reduction, Phase II (Phase II). Phase II was recently funded from the 2022-23 Back-Up list, and with approval of this amendment, will be combined with the Project for efficiency of implementation. The total Project cost is now estimated at $500,000 with the addition of Phase II. This item pertains to a location in District 3.
ALTERNATIVE ACTION(S):
Your Board may reject the recommended action, and direct Department of Public Works and Planning staff to either execute a separate agreement for Phase II, or reject the Phase II project entirely, and direct staff to identify a project from the 2022-23 Back-Up list for consideration. However, deletion may impact the County’s ability to meet its CDBG expenditure timelines set by the U.S. Department of Housing and Urban Development (HUD).
FISCAL IMPACT:
There is no Net County Cost associated with the recommended actions. The total estimated combined Project cost (the Project and Phase II) will increase from $250,000 to $500,000 due to increased construction costs associated with Phase II. The recommended amendment will increase CDBG funding for the combined Project and Phase II from $250,000 to $500,000. The additional CDBG funds are included in the Department of Public Works and Planning - Community Development Block Grant Org 7205 FY 2022-23 Adopted Budget. CDBG funds are provided on a reimbursement basis. If necessary to complete the Project by June 12, 2024, the Malaga County Water District (District) will provide a local financial contribution for project costs in excess of the CDBG funds.
DISCUSSION:
On May 11, 2021, the Board approved the 2021-22 Unincorporated Area Projects list as part of the Annual Action Plan, which included the Project on the Back-Up list should funding become available. Due to year-end cost savings from other CDBG activities, in September 2021, there were sufficient funds available for the Project.
On June 7, 2022, the Board approved Agreement No. 22-236 for the Project, then estimated at $250,000. The agreement provided $250,000 in CDBG funds to the District, on a reimbursement basis, for the installation of various aeration, flow, and control system modifications, upgrades and improvements at the Malaga Wastewater Treatment Plant. The Project will improve treatment efficiency and reduce the effluent nitrogen content to meet new regulatory requirements and reduce groundwater contamination.
On June 21, 2022, the Board approved the 2022-23 Unincorporated Area Projects list as part of the Annual Action Plan, which included Phase II on the Back-Up list should funding become available. Phase II includes additional treatment efficiency and nitrogen reduction improvements at the Malaga Wastewater Treatment Plant. Due to year-end cost savings from other CDBG activities, in August 2022, there were sufficient funds available for Phase II. County staff and the District have determined that combining Phase II with the Project will be the most efficient and cost-effective way to implement the proposed improvements.
Based on an increase in construction costs associated with combining the Phase II with the Project, Amendment I is before your Board for approval. All remaining provisions of the agreement will remain in full force and effect.
REFERENCE MATERIAL:
BAI #8, May 11, 2021
BAI #64, June 7, 2022
BAI #11, June 21, 2022
ATTACHMENTS INCLUDED AND/OR ON FILE:
Location Map
On file with Clerk - Amendment I to Agreement No. 22-236 with Malaga County Water District
CAO ANALYST:
Salvador Espino