BOARD MEETING DATE: September 11, 2009
AGENDA NO. 8
PROPOSAL:
Re-authorize Appropriation of Funds from Undesignated Fund Balance to Planning, Rule, and Area Sources FY 2009-10, Professional and Special Services Account Budget
SYNOPSIS:
In 2008, the Governing Board approved four contracts to assist AQMD staff in the preparation of CEQA documents for Union Pacific Railroad’s Intermodal Container Transfer Facility (ICTF) Proposed Modernization and Expansion Project. The Governing Board also approved the adjustment of contract awards as necessary to meet the fully developed scope of environmental analysis, up to an additional amount of $400,000 ($100,000 for four consultants) for fiscal year 2008-2009. AQMD staff has concluded that the additional funds are necessary to continue working on the CEQA documents. Because this money was not encumbered in the existing contracts, it can no longer be accessed in the new fiscal year. This action recommends that the Governing Board reauthorize the appropriation of the $400,000 from the Undesignated Fund Balance to the Planning, Rule, and Area Sources Fiscal Year 2009-10 Professional and Special Services Account Budget. All amounts will, however, be reimbursed by the ICTF Joint Powers Authority (JPA) overseeing the project, and ultimately paid by Union Pacific Railroad.
COMMITTEE:
Not Applicable
RECOMMENDED ACTIONS:
Authorize the Executive Officer to:
- Appropriate the $400,000 from the Undesignated Fund Balance to the Planning, Rule, and Area Sources FY 2009-10, Professional and Special Services Account Budget.
- Recognize $400,000 from the Intermodal Container Transfer Facility JPA upon receipt into the General Fund.
- 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 Intermodal Container Transfer Facility, in an amount not to exceed $150,000 for any individual contract, and $400,000 for all four contracts combined, as necessary to meet the fully developed scope of environmental analysis.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
On May 9, 2008, the AQMD approved a Memorandum of Agreement (MOA) with the 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 allocated up to $2.5 million of available funding to the AQMD for preparation of the CEQA documents.
In 2008, the Governing 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. For each contract, the Board approved $150,000. The Board also authorized the Executive Officer to adjust the contract awards, up to an additional amount of $100,000 for each contract, as necessary to meet the fully developed scope of the environmental analysis for a total cost of $1 million for all contracts. To date, the additional $400,000 ($100,000 for each contract) has not been used. However, because of the depth and complexity of analysis for the proposed project, several contracts will exceed the original $150,000.
Proposal
- Re-authorize funds from the Undesignated Fund Balance in the General Fund into Planning, Rule, and Area Sources FY 2009-10, Professional & Special Services Account Budget
Over the last year AQMD staff and consultants have been preparing CEQA documents on the proposed ICTF project and are in the process of completing this work. In order to complete the necessary work, the AQMD staff is recommending that the additional $400,000 originally authorized for contingency purposes, become available for use in the current fiscal year. In order for these monies to be utilized, $400,000 must be re-allocated from the Undesignated Fund Balance in the General Fund to the Planning, Rule, and Area Sources FY 2009-10, Professional & Special Services Account Budget.
- Recognize $400,000 from the ICTF JPA upon receipt into the General Fund
Under the terms of the MOA, the additional $400,000 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.
- Authorize the Executive Officer the authority to adjust contract awards in an amount not to exceed $150,000 for any individual contract, and $400,000 for all four contracts combined, as necessary to meet the fully developed scope of environmental analysis.
In its original authorization, the Board authorized the Executive Officer to adjust contract awards in amounts up to $100,000 for each contract as necessary. The AQMD staff now has estimated that one or more of the consultants will need to exceed this $100,000. Therefore, the AQMD staff recommends the Board authorize the Executive Officer to adjust any individual contracts up to $150,000 but not to exceed $400,000 for all four contracts combined. The AQMD staff anticipates returning to the Board in November 2009 to seek authorization for additional funding for at least one of the contracts. Additional time is needed for AQMD staff to prepare a proposal for Board consideration and present the proposal to the Mobile Source Committee.
Resource Impacts
The AQMD will pay consultants for the preparation of the CEQA documents; all amounts, however, will be reimbursed by the JPA overseeing the project, and ultimately paid by Union Pacific Railroad. The JPA has estimated that preparation of the CEQA documents could cost up to $2.5 million. 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.