Title
Staff Report for a City of San Leandro City Council Resolution to Authorize the City Manager to Submit a Federal Grant Fund Application, as a Subrecipient to Alameda County Flood Control District; and Designate the City Manager as the Authorized Agent to Execute Federal Grant Applications, all in Support of Securing Federal Grant Funding for the Neptune Drive Shoreline Flood Protection Project 2016.0700
Staffreport
SUMMARY AND RECOMMENDATIONS
This action will authorize staff to submit an application for federal grant funding to support construction of the Neptune Drive Shoreline Flood Protection project, which will reduce the risk of flooding for approximately 1,000 San Leandro properties in the Mulford Gardens and Marina Faire neighborhoods.
Staff recommends the following:
• Authorize the City Manager to submit a federal grant fund application, as a Subrecipient to Alameda County Flood Control District, for flood protection improvements near the intersection of Neptune Drive and Marina Boulevard; and
• Designate the City Manager as the Authorized Agent to execute federal grant applications as a Sub-recipient
BACKGROUND
The Federal Emergency Management Agency’s (FEMA) most recent flood insurance risk maps indicate increased risk of flooding to approximately 1,000 San Leandro properties in the Mulford Gardens and Marina Faire neighborhoods. The maps indicate that there is a risk that water may enter the neighborhood via a low spot on the San Francisco Bay shoreline near the intersection of Neptune Drive and Marina Boulevard as well as by overtopping of the north levee along the Estudillo Canal. Improvements at both locations are required to reduce the flooding risk.
The City has engaged Wood Rogers, a consulting engineering firm, to prepare a design for flood protection improvements near the intersection of Neptune Drive and Marina Boulevard. The City has also engaged NBS Consultants, a firm experienced in creating special financing districts, for services related to the outreach, voting, and formation of an assessment district to fund the project.
The Alameda County Flood Control District (District), which operates the Estudillo Canal, designed a project to modify the levees along the canal so that the canal improvements along with the City’s proposed Neptune Drive shoreline improvements will protect the adjacent neighborhood from a one-hundred-year flood. The District advertised the canal project for construction; however, all bids for the work were rejected in Spring 2020 because the bids resulted in a project cost approximately $2,700,000 more than the available budget.
To supplement the funding for canal improvements, the District is applying for federal funding through the Hazard Mitigation Grant Program, a Federal grant program managed by FEMA. Grants awarded though this program cover up to 75% of eligible costs.
Analysis
The District has offered to include the Neptune Drive Shoreline Flood Protection project in the grant application, with the City listed as a sub-recipient.
If the grant is awarded the City will be required to fund the matching amount and the cost of work done to date, which is considered ineligible for the grant. The total commitment from the City is approximately $1,100,000 and can be funded from City General Funds, an assessment on the properties that receive benefit, or a combination of both sources.
If the grant is not awarded the City and District may look at other funding options including formation of an assessment district. If approved by property owners, an assessment district may be formed to fund both the Neptune Drive Shoreline Flood Protection project and the shortfall for the District’s Estudillo Canal project.
Formation of an assessment district requires approval of a majority of the property owners; votes are weighted by the benefits that accrue to each property, as determined by the assessment engineer. Typical factors include square footage of property that would be affected. If the property owners vote against the assessment district the City would need to re-evaluate the project and identify alternate sources of funding.
Current Agency Policies
• Maintain and enhance San Leandro’s infrastructure
Previous Actions
• On February 19, 2019, by Resolution No. 2019-044, the City Council approved an agreement with NBS for Services Related to the Formation of a Special Financing District for the Neptune Drive Shoreline Flood Protection project.
• On February 20, 2018, by Resolution No. 2018-011, the City Council approved an agreement with Wood Rodgers, Inc. for the design of the Neptune Drive Shoreline Flood Protection project.
• On November 2, 2020, by Resolution No. 2020-138, the City Council approved CSA Amendment No. 1 with Wood Rodgers, Inc. for an increased scope of work for the design of the Neptune Drive Shoreline Flood Protection project.
Applicable General Plan Policies
• Policy EH-1.7 Work collaboratively with County, State, and federal agencies to develop short and long-term programs that reduce flood hazards in the City. At the local level, the City will regularly maintain its storm drainage system and ensure that those portions of San Leandro Creek under its jurisdiction remain clear of obstructions.
Environmental Review
The project has been determined to be categorically exempt from CEQA and a Notice of Exemption was filed with Alameda County Recorder’s office on October 15, 2019.
Summary of Public Outreach Efforts
• Staff and NBS presented project information at two separate public meetings held on July 29, 2019 and November 13, 2019, respectively. A FEMA representative presented at the second meeting.
• NBS continually provides updates and information by means of mailed postcards, social media sites, and on the project website. The consultant also addressed public comments and questions received.
Fiscal Impacts
Assuming the grant is not awarded, and an assessment district is formed to pay for the project, the total cost of the project is as follows.
Design and Bid: $600,000
Easements: $500,000
Construction Administration: $87,000
Neptune Drive Construction Contract: $1,193,000
Estudillo Canal Improvements (Assessment District portion): $2,700,000
Post Construction Administration: $20,000
Assessment District Debt Service: $500,000
Total: $5,600,000
If grant funds are awarded the Estudillo Canal Improvements (Assessment District portion) cost will be removed from the total project cost.
If an assessment district isn’t formed the Assessment District Debt Service cost will be removed from the project cost.
Budget Authority
Account No. Reso., Appropriation Dates & Source Amount
210-28-200 FY 2017-18 CIP Budget $500,000
210-28-200 FY 2020-21 $ 60,000
Current Funding $560,000
Attachment to Related Legislative File:
Designation of Subrecipient’s Agent Resolution Form
PREPARED BY: John O’Driscoll, Associate Engineer, Engineering and Transportation Department