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HomeMy WebLinkAboutCC AG PKT 2005-02-14 #N AGENDA REPORT DATE: February 14, 2005 ,r TO: Honorable Mayor and City Council THRU: John B. Bahorski, City Manager FROM: Mark K. Vukojevic, P.E. Director of Public Works /City Engineer SUBJECT: RESCISSION AGREEMENT FOR SAN GABRIEL TO NEWPORT BAY (SURFSIDE COLONY) FEASIBILITY STUDY COST SHARING AGREEMENT (FCSA) SUMMARY OF REQUEST: The proposed action will authorize the City Manager to sign the Rescission Agreement with the State of California, Department of Boating & Waterways for funding of the San Gabriel to Newport Bay (Surfside Colony) Feasibility Study and return the first payment of the funding of $113,750 to the California Boating & Waterways. BACKGROUND: The U.S. Army Corps of Engineers ( USACE) has notified the City of Seal Beach that the San Gabriel to Newport Bay (Surfside Colony) Feasibility Study previously initiated has been cancelled. The USACE was unable to fund the project at this time. However, future Surfside beach nourishment projects will continue to be funded under a separate program. The City obtained a grant from the Department of Boating and Waterways (DBAW) and with the cancellation of the project is now obligated to return the funds. The changes to the coastal plain including the construction of flood control facilities, breakwaters for shipping harbors, harbor jetties in Long Beach (Alamitos Bay) and at the U. S. Naval Weapons Station (Anaheim Bay) has permanently altered natural beach sand management. In an effort to mitigate the effects of the Anaheim Bay harbor entrance jetties, the U.S. Army Corps of Engineers (USACE) initiated a sand replenishment project every four to six years to mitigate the loss of natural sand flow. Although the replenishment project seems to be meeting the overall goal of nourishing the coastal beaches from Surfside — Sunset to Newport Beach, isolated erosion immediately adjacent to the southeasterly Anaheim Bay entrance jetty poses a hazard for the neighboring public and private infrastructure. In January 2001, Council approved an application for funding a portion of the proposed Feasibility Study with the Department of Boating and Waterways. This study would be a joint planning effort between the City of Seal Beach and the U.S. Army Corps of Engineers (USACE). USACE feasibility studies are funded with a 50% local sponsor Agenda Item N share requirement. The total cost of the project has been estimated by USACE at $2,541,000. The project was originally expected to be complete in the first quarter of 2006. The California Department of Boating and Waterways (DBAW) awarded the City of Seal Beach grant funds through the Public Restoration Program. In June 2001, Council approved the funding agreement with the State of California, Department of Boating & Waterways, which provided $113,750. However, with the cancellation of the project, the City is now obligated to return the funds and cancel the agreement with DBAW. If the project becomes feasible or funded by USACE, the City will have the opportunity to apply for funding from DBAW. FISCAL IMPACT: The agreement is being terminated for lack of funding and the initial payment of $113,750 is being returned to the State of California, Department of Boating & Waterways. There is no fiscal impact to the General Fund. RECOMMENDATION: It is recommended that City Council authorize the City Manager to sign the Rescission Agreement with the State of California, Department of Boating & Waterways for the funding of the San Gabriel to Newport Bay (Surfside Colony) Feasibility Study and return the initial payment of $113,750. Prepared By: V O4 (4 ..... Mark K. Vukojevic, P.E. Director of Public Works /City Engineer NO : i £ D APPROV / 6/ John .4. Bahorski Cit anager Attachments: Copy of the Rescission Agreement between the City of Seal Beach and the State of California, Department of Boating & Waterways Agenda Item f Draft RESCISSION AGREEMENT City of Seal Beach Grant Agreement 00- 300 -612 as amended This Agreement is entered into to February 14, 2005 between the State of California, Department of Boating and Waterways (Department) and the City of Seal Beach (City). Department and City agree as follows: 1. Consent to Rescission: The parties hereby consent and agree to rescind that certain grant agreement between them (agreement # 00- 300 -612 as amended) dated May 1, 2003 in which the Department agreed to make a local assistance grant in the amount of Three Hundred Thirty Three Thousand Seven Hundred Fifty ($338,750) to assist in funding the U. S. Army Corps of Engineers' Surfside Beach Feasibility Study. This Rescission Agreement is pursuant to the right of the parties, under the agreement, to cancel the agreement upon the consent of the parties. A copy of that agreement is attached. 2. Disposition of Proceeds: The parties agree that $113,750 was disbursed to the grantee and $225,000 was not disbursed. The $113,750 shall be returned, within 30 days of this rescission, to the Department and it will be disencumbered and reverted to the Public Beach Restoration Fund for future grant applicants. The $225,000 was not disbursed and it will be disencumbered and reverted to the Harbors and Watercraft Revolving Fund for loan or grant to future applicants. 3. Reason for Rescission: The parties agree that the reason for this rescission is that the U.S. Army Corps of Engineers has been unable to secure federal funding to pursue this cost - shared study and State funding could be put to use elsewhere. 4. Borrowers Right to Reapply: The parties agree that the City may submit a new application for grant funds in the future and its application will be received by the Department without prejudice and will be considered based upon the feasibility of the study or project. 5. Surrender of Rights: The parties mutually agree to forgo all other rights and benefits provided for under the agreement referred to in Paragraph 1 above as consideration for the rescission of that agreement. DEPARTMENT CITY Raynor Tsuneyoshi, Director John B. Bahorski, City Manager Date: Date: