Agenda Item AGENDA STAFF REPORT ASR Control 07-002768
MEETING DATE:	02/26/08
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	5
SUBMITTING Agency/Department:	Resources and Development Management Department (Approved)
Department contact person(s):	Mary Anne Skorpanich (714)834-5067
	George Edwards (714)834-3173

Subject: Amend Agreement - Narco Channel Restoration

ceo Concur	County Counsel Review		Clerk of the Board
Concur	Approved Agreement to Form		Consent Calendar
			3 Votes Board Majority
Budgeted: Yes		Current Year Cost: $140,000		Annual Cost: $5,000 per year for four(4) years
Staffing Impact: No		# of Positions:		Sole Source: No
Current Fiscal Year Revenue: $130,000
Funding Source: City of Laguna Niguel Proposition 13 Grant: 93%; Fund 100-034: 7%
Prior Board Action: July 18, 2006 and March 15, 2005

RECOMMENDED ACTION(S)

1.	Find that Final Mitigated Negative Declaration IP05-429, previously adopted by the Board of Supervisors on July 18, 2006, satisfies the requirements of CEQA and is approved for Amendment #1 to Agreement D04-058.
2.	Approve and authorize the Chairman to execute Amendment No. 1 to Cooperative Agreement No. D04-058 with the City of Laguna Niguel to include reassignment of task responsibilities and adjustment of State grant reimbursements for the implementation of the Sulphur Solution Project (Narco Channel Restoration).

SUMMARY:

Approval of the finding that the Final Mitigated Negative Declaration IP05-429 satisfies CEQA and approval to amend the cooperative agreement with the City of Laguna Niguel for restoration of Narco Channel will facilitate water quality improvement and protection in Laguna Niguel Regional Park, Aliso Creek, and Aliso Beach.

BACKGROUND INFORMATION:

In 2004, the City of Laguna Niguel was awarded a State Water Resources Control Board (SWRCB) Proposition 13 Nonpoint Source Pollution Control grant (Agreement No. 04-066-559-0) to implement water quality improvements in Narco Channel, a tributary within the Aliso Creek watershed. The project was implemented in response to San Diego Regional Water Quality Control Board regulatory actions directed toward the County and the watershed cities. The regulatory actions require monitoring, source identification, and reduction of fecal indicator bacteria within the Aliso Creek watershed. Narco Channel consistently exceeds the San Diego Region Basin Plan bacterial quality objectives.

On March 15, 2005, your Board approved the County and City of Laguna Niguel entering into Cooperative Agreement D04-058 whereby the County Resources and Development Management Department (RDMD) would perform a major portion of the grant project on the City's behalf. The County was responsible for project design, CEQA compliance, permitting, excavation, grading, construction, and habitat restoration of a reach of Narco Channel adjoining Laguna Niguel Regional Park. The County was also responsible for water quality monitoring and final report preparation. The County was to contribute 1,500 hours of in-kind staff services to support the project as local match or a minimum of $139,800. In addition, the County was to be reimbursed $1,438,300 in grant funds for the County’s consultant and contractor costs. The City was to administer the grant, invoice the State Water Resources Control Board, and reimburse the County for the County’s share of grant funds.

Subsequent to the execution of the cooperative agreement, the City performed several tasks that had originally been assigned to the County in order to optimize available resources. Certain elements of the City’s cost came in under budget and savings were not known until near the end of the construction period so one of the amendment conditions allows the unspent grant funds to be used to offset $130,000 in costs that would have otherwise been absorbed by the County as an in-kind match. The City sought a time extension from the State and the cooperative agreement needs to reflect the adjusted timeframe. Project construction was initiated in 2006, and is essentially complete as of December 2007. The Amendment to the County-City Cooperative Agreement proposes the following modifications:

1.	The City assumed additional project tasks including water quality monitoring plan preparation, water quality monitoring, and final report preparation. The City will receive grant reimbursement in the amount of approximately $80,000, which would have been due to the County if it had performed the tasks.
2.	The County will be able to receive grant reimbursement for County staff charges should there be grant funds remaining once project contractors, consultants, and City external costs are paid. The original agreement stipulated that County personnel charges could only be applied to the local match requirement of the State grant.
3.	Due dates of project deliverables are extended such that they conform to due dates memorialized in an amendment to the State grant agreement between the City and State.
4.	The County assumes responsibility for plant establishment requirements imposed by resource agency construction permits, estimated to be $5,000 per year for five years.

Compliance with CEQA: The proposed project is covered by Final Mitigated Negative Declaration IP05-429 previously adopted by the Board of Supervisors on July 18, 2006. The circumstances of the project are substantially the same and Final Mitigated Negative Declaration IP05-429 adequately addressed the effects of Amendment No. 1 to Agreement D04-058.

FINANCIAL IMPACT:

The proposed amendment will increase the reimbursement amount to $130,000 in City of Laguna Niguel Proposition 13 grant funds and the County will assume responsibility for plant establishment requirements imposed by resource agency construction permits, estimated to be $10,000 in the current year and $5,000 annually for the next five years and will budget accordingly for future fiscal years.

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A - Amendment No. 1 to Cooperative Agreement D04-058