AgdaPkt 2008-10-27 Clsd and Reg - Laserfiche WebLink

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6.3A Page 1 REPORT October 27, 2008 SUBJECT Redwood City Recycled Water Project - California Department of Water Resources Proposition 50 Grant Funding Agreement RECOMMENDATION 1. Approve by motion, Implementation Agreement No.3, between the Bay Area Clean Water Agencies and the City of Redwood City, and adopt a Resolution accepting the terms of the Agreement. 2. Approve by resolution, an amendment to the Fiscal Year 2008/09 Capital Improvement Program Budget to include these grant funds in the amount of $972,800. BACKGROUND In November 2002, California voters passed Proposition 50, which authorized $3.4 billion in general obligation bonds to fund a variety of specified water and wetland projects, $380 milfion of which was to be used on Integrated Regional Water Management Programs (IRWMP). In 2006, the City of Redwood City's Recycled Water Project was included in the San Francisco Bay Area's IRWMP consolidated Step 2 grant application for Prop 50 Chapter 8 grant funding. The Bay Area Clean Water Agencies (BACW A) was the grant applicant from this regional effort because its joint powers agreement provides them the ability to be a contracting entity with California Department of Water Resources (DWR) and the Local Project Sponsors. In March 2007, DWR awarded BACWA a grant for $12.5 million for 12 local project sponsors for 15 projects. Redwood City was awarded up to $972,800 for the design and construction of recycled water distribution pipeline Bid Package 7 (East Bayshore Road and the Blomquist/Maple Street intersection.) This is equal to about twenty four percent of the total project costs (planning, design and construction) estimated in 2007 at $4,087,000. State Grant funds will be reimbursed by DWR to BACWA after eligible costs have been incurred by a Local Project Sponsor, and a request for reimbursement has been produced and submitted by BACWA to DWR. BACWA will, in turn, disburse the State Grant funds to each of the Local Project Sponsors for their specified projects. The contractual terms of the grant Agreement between DWR and BACW A specify that DWR will have an agreement with BACWA, and BACWA will have a similar yet unique agreement with each of the 12 local sponsors. BACW A will assign local Project Sponsors the right to act on behalf of BACW A for the management, oversight, compliance, and operations and maintenance of their individual Projects Local Project Sponsors shall also act on behalf of BACWA in the fulfillment of BACWA responsibilities where specifically provided in these agreements.