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(SFEP) for the BC/AC Project. ABAG’s application was successful and ABAG was <br />awarded an IRWM Grant in the amount of $20 Million on February 14, 2014. <br /> <br />ANALYSIS <br />The IWRM Grant award by DWR to ABAG lists the BC/AC Project as one of 20 projects <br />eligible for funding. Of the total $20 Million award, the City’s project and portion of the <br />grant is $1,135,000. ABAG/SFEP requires each agency that is a sub-recipient of the <br />grant to sign a standardized Local Project Sponsor Agreement (LPS Agreement). <br /> <br />The LPS Agreement does not obligate the City to construct improvements for the <br />Bayfront Canal or Atherton Channel. However, if and when the City proceeds with <br />construction, the City’s costs would be eligible for reimbursements with an executed <br />LPS Agreement. Only costs associated with construction of BC/AC can be invoiced to <br />ABAG/SFEP. Costs up to the maximum amount of $1,135,000 are eligible for <br />reimbursement. <br /> <br />While the LPS Agreement contains a project schedule that shows tasks that have yet to <br />be started or completed with milestone dates that are already in the past, ABAG staff <br />has assured the City that it will not consider the City to be in breach of the agreement. <br />The City will periodically report actual project progress schedules with an overall <br />schedule for completion by December 31, 2018. ABAG has also indicated that ABAG <br />will work with DWR and the City to extend the final project completion date of December <br />31 2018, if progress is made by the City but more time is determined to be necessary to <br />complete the project. <br /> <br />The original application for the IWRM Grant was submitted with a total cost estimate for <br />the BC/AC Project in the amount of $3,051,140. This cost estimate was based on a <br />conceptual design the City conducted. Total cost estimates will be refined once design <br />and planning of the BC/AC Project is developed further than the conceptual design <br />stage. The LPS Agreement has a matching requirement of $890,600 from the City. If <br />actual costs for the project are more than the sum amount of the grant and the match <br />requirement, the additional cost will be the sole responsibility of the City. The LPS <br />Agreement recognizes this difference as “Additional Cost Share”. <br /> <br />Additional funding is being pursued for the BC/AC Project. The other municipal <br />agencies that contribute stormwater runoff in the watershed are currently collaborating <br />on the BC/AC Project. San Mateo County is developing a Memorandum of <br />Understanding between the agencies that could help reduce the total burden the City <br />bears for the work on the BC/AC Project by spelling out cost sharing and administrative <br />responsibilities between the agencies. <br />6.1.D. - Page 2