BOARD MEETING DATE: November 6, 2009
AGENDA NO. 6
PROPOSAL:
Appropriate Funds from Undesignated Fund Balance to Planning, Rule Development and Area Sources FY 2009-10 Professional and Special Services Account Budget for Contracts for CEQA Analysis for Proposed Expansion and Modernization of Union Pacific’s Intermodal Container Transfer Facility
SYNOPSIS:
In 2008, the Board entered into a Memorandum of Agreement with Intermodal Container Transfer Facility (ICTF) Joint Powers Authority (JPA) to prepare the CEQA documents for Union Pacific Railroad's ICTF Proposed Expansion and Modernization Project. The JPA agreed to reimburse the AQMD for the not-to-exceed amount of $2.5 million for preparation of these CEQA documents. To date, the Board has approved a total of $750,000 for this project. AQMD staff has now concluded that additional funds are necessary to continue working on the CEQA documents because the analysis is more extensive than originally projected. This action recommends that the Board authorize the appropriation of an additional $500,000 from the Undesignated Fund Balance to the Planning, Rule Development and Area Sources FY 2009-10 Professional and Special Services Account Budget. Money will be allocated to the consultants on an as-needed basis. All amounts will be reimbursed by the ICTF JPA overseeing the project, and ultimately paid by Union Pacific Railroad.
COMMITTEE:
Mobile Source, October 16, 2009, Reviewed
RECOMMENDED ACTIONS:
Authorize the Executive Officer to:
Recognize up to $500,000 from the Intermodal Container Transfer Facility Joint Powers Authority upon receipt into the General Fund.
Appropriate up to $500,000 from the Undesignated Fund Balance to the Planning, Rule, and Area Sources FY 2009-10, Professional and Special Services Account Budget.
Authorize the Executive Officer to adjust contracts previously awarded, as necessary to meet the fully developed scope of environmental analysis for the proposed expansion and modernization of Union Pacific Railroad’s Intermodal Container Transfer Facility, in an amount not to exceed $500,000 for all four contracts combined.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
On May 9, 2008, the AQMD approved a Memorandum of Agreement (MOA) with the ICTF JPA, for the AQMD staff to prepare the California Environmental Quality Act (CEQA) documents for the proposed expansion and modernization of Union Pacific Railroad’s ICTF. Under the MOA, the JPA is the Lead Agency for the proposed project. On June 24, 2008, the JPA and Union Pacific Railroad approved a Reimbursable Work Order (RWO) for preparation of all CEQA documents on the proposed ICTF project. The JPA has agreed to reimburse the AQMD up to $2.5 million for preparation of the CEQA documents which includes consultant services and AQMD staff time.
In 2008, the Board authorized the Executive Officer to contract with Environmental Audit, Inc., Castle Environmental Consulting, Iteris Inc., and Parsons Transportation Group to assist AQMD staff in preparation of the CEQA documents. The Board approved $600,000 for these four consultants and up to an additional $400,000 if needed to meet the fully developed scope of the environmental analysis. The Board reauthorized and approved this $400,000 on September 11, 2009. Based on the scope of the analysis, the AQMD staff expects to use the additional $400,000, and more funds are needed to complete the analysis.
Proposal
- Recognize up to $500,000 from the ICTF JPA upon receipt into the General Fund.
Under the terms of the MOA, the additional $500,000 will be reimbursed by the ICTF JPA overseeing the project, and ultimately paid by Union Pacific Railroad. This action seeks to recognize receipt of these reimbursed funds into the General Fund.
- Appropriate up to $500,000 from the Undesignated Fund Balance to the Planning, Rule, and Area Sources FY 2009-10, Professional and Special Services Account Budget.
Because of the depth and complexity of analysis for the proposed project, the total cost of the four contracts may exceed the additional $400,000 (reauthorized in September, 2009). The additional analysis includes quantification of cumulative impacts, anticipation of more extensive response to comments, incorporating recent revisions to the San Pedro Bay cargo forecasts, and possibly further evaluation of project alternatives. In order to complete the analysis, the AQMD staff is requesting the Board authorize an additional $500,000 from the Undesignated Fund Balance to the Planning, Rule and Area Sources FY 2009-10 Professional and Special Services Account Budget to cover remaining costs and any contingency funds needed. This money will be used and allocated based on need.
- Authorize the Executive Officer to adjust contracts previously awarded to complete the CEQA documents for the proposed expansion and modernization of Union Pacific Railroad’s ICTF, in an amount not to exceed $500,000 for all four contracts combined, as necessary to meet the fully developed scope of environmental analysis.
Due to the complexity of the project analysis and the reasons discussed above, the AQMD staff has estimated that the total cost for the contracts may exceed the currently Board-approved $1,000,000 ($600,000 for four contracts plus $400,000 re-authorized in September, 2009). In order to avoid potential delays in work due to lack of available funding, the AQMD staff recommends that the Board authorize the Executive Officer to adjust any individual contracts as necessary, not to exceed $500,000 for all four contracts combined. This would bring the total contract amount to $1.5 million, which is still within the total JPA budget of $2.5 million.
Resource Impacts
The funding for the preparation of the CEQA documents comes from the JPA. However, by appropriating up to an additional $500,000 from the Undesignated Fund Balance to the Planning, Rule, and Area Sources FY 2009-10, Professional and Special Services Account Budget the AQMD is providing the initial funding in order to pay for the four consultants helping to prepare the CEQA documents. In accordance with the MOA between the AQMD and JPA, the JPA will continue to reimburse the AQMD for expenditures made on a time-and-materials basis for AQMD administrative services and the subconsultant services necessary to complete the CEQA documentation. The JPA has agreed to reimburse the AQMD up to $2.5 million for preparation of the CEQA documents. The total cost of the contracts for completion of analysis and preparation of the CEQA documents, which includes the increase of up to $500,000 for subconsultant services and AQMD administrative services, are within the $2.5 million.