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Chief Administrative Office recommending the Board approve and authorize the Chief Administrative Officer to sign the Second Amendment to Agreement 6820 with the El Dorado County Water Agency, revising the project list to add the South Tahoe Public Utilities District Apache Avenue Waterline Improvements Project in the amount of $442,438 by reallocating funds from the Grizzly Flats Community Services District Reservoir Lining Rehabilitation Project, which is fully contracted and under budget, and the El Dorado County Fairgrounds Project which was only able to contract for the project design before the federal contracting deadline, with no increase in total compensation or change to the term of the Agreement, contingent upon approval by County Counsel.
FUNDING: American Rescue Plan Act Funds.
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DISCUSSION / BACKGROUND
On March 11, 2021, President Biden signed into law the American Rescue Plan Act (ARPA), which allocated $1.9 trillion to assist in the recovery from the impacts of the COVID-19 pandemic. El Dorado County received a direct allocation of $37.46 million.
On November 9, 2021, with Legistar Item 21-1680, the Board allocated $6,020,000 in ARPA funds for water infrastructure projects identified as "Tier 1" projects by the El Dorado County Water Agency:
Fairgrounds Water Quality and Drainage Improvements $400,000
Rubicon Tank 1 Water Feed Line Replacement 75,000
Lower Meeks Bay Pressure Reducing Station 200,000
Sly Park Intertie Improvement 750,000
Outingdale Dam Rehabilitation 440,000
South Upper Truckee Erosion Control Project* 575,000
Grizzly Flats Pump Station Reliability Improvements 2,530,000
Grizzly Flats Reservoir Lining Rehabilitation 300,000
Rubicon Wells 2 and 3 Backup Power Project 200,000
West Lake Tahoe Regional Water Treatment Plant 500,000
Georgetown Divide Water System Assessment 50,000
TOTAL $6,020,000
*The South Upper Truckee Erosion Control Project will be completed by the County's Transportation Department. The remaining projects, totaling $5,445,000 will be administered by EDCWA, who will further sub-award funds to various implementing agencies.
On July 6, 2022, with Legistar Item 22-1288, the Board approved Agreement 6820 providing the full $5,445,000 in funding to be disbursed to the EDCWA for the Board approved projects.
On January 30, 2024, with Legistar Item 24-0196, the Board approved Amendment I to the agreement to amend the project funding to El Dorado Irrigation District’s Outingdale Dam Rehabilitation Project from $440,000 to $325,117.90, award South Tahoe Public Utilities District’s (STPUD) fire hydrant installation project with the residual funds in the amount of $114,882.10, and amend the El Dorado County Fair Association’s project description.
EDCWA has continued to administer the ARPA funding for water resources projects consistent with the Agreement and ARPA funding requirements. In accordance with ARPA requirements, all contracting for projects is required to be fully executed by December 31, 2024. To ensure this condition was met, and to maximize utilization of ARPA funding, EDCWA Board approved on August 14, 2024, a contingency plan (Attachment A) to make sure the available funding is fully expended by the deadline.
Consistent with the EDCWA Board-approved ARPA Residual Funding Contingency Plan, EDCWA staff worked with the lead agencies to verify awarded contracts. Two projects were identified in having residual funding remaining for reallocation in accordance with the contingency plan as described below.
1) Grizzly Flats Community Services District, Reservoir Lining Rehabilitation Project
Original Funding Allocation: $300,000
Actual Project Cost: $155,500
Residual Uncontracted Funding: $144,500
Summary: When this project cost was originally estimated if was anticipated that there would be much more sediment buildup to remove and more extensive repairs would be necessary. Upon inspection and assessment there was much less sediment and repairs to the reservoir liner than anticipated. This significantly reduced the overall project cost.
2) El Dorado County Fair Association, Drainage Channel Rehabilitation
Original Funding Allocation: $400,000
Actual Project Cost: $102,062
Residual Uncontracted Funding: $297,938
Summary: Design of the improvements is contracted for and will be completed. With design ongoing, this project was not able to bid and award for construction before the December 31, 2024, federal deadline. The residual uncontracted funding, which would have been used for construction, will be reallocated through this amendment.
The total amount of residual funding from these two projects totals $442,438. In accordance with the EDCWA Board-approved ARPA Residual Funding Contingency Plan contingency plan, EDCWA is requesting the funding be allocated to the South Tahoe Public Utilities District’s Apache Waterline Improvements Project. Contracts for this project have already been awarded and funds fully spent. This project was recently completed to accommodate El Dorado County’s Apache Avenue Pedestrian Safety and Connectivity Project.
Due to the ARPA obligation deadlines of December 31, 2024, it is recommended that the Board authorize the Chief Administrative Officer to execute Amendment II to Agreement 6820 which update Exhibit A’s project list to reduce the allocations to the El Dorado County Fair Association and Grizzly Flats Community Services District and add the $422,438 to the South Tahoe Public Utilities District’s Apache Waterline Improvements Project, contingent upon approval by County Counsel.
ALTERNATIVES
The Board could choose not to approve the Amendment and the current spending plan would remain in place, which would result in $442,438 of ARPA funds not being used for the benefit of El Dorado County communities. Funds would then revert to the United States Treasury.
PRIOR BOARD ACTION
Legistar Item 21-1680 - November 9, 2021 - Board allocated $6,020,000 in ARPA funds for water infrastructure projects identified as "Tier 1" projects by the El Dorado County Water Agency.
Legistar Item 22-1288 - July 6, 2022 - Board approved Agreement 6820 providing the full $5,445,000 in funding to be disbursed to the EDCWA for the Board approved projects.
Legistar Item 24-0196 - January 30, 2024 - Board approved Amendment I to the agreement to amend the project funding to El Dorado Irrigation District’s Outingdale Dam Rehabilitation Project from $440,000 to $325,117.90, award STPUD fire hydrant installation project with the residual funds in the amount of $114,882.10, and amend the El Dorado County Fair Association’s project description.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
The Water Agency Board of Directors approved the ARPA Residual Funding Contingency Plan on September 11, 2024.
FINANCIAL IMPACT
Approval of the Amendment will not increase the amount of ARPA funding to the EDWCA.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Emma Owens, Principal Management Analyst