Approve Project Partnership Agreement with the California Department of Water Resources in the amount of $2,477,500, for the Huff's Corner Levee Raise & Channel Reconfiguration Project (Phase II); adopt associated resolution accepting funds and authorizing the Director of Community Services and Manager of Natural Resources to perform various administrative actions and adopt a budget resolution increasing the Cache Creek Resources Management Plan Fund budget by $2,477,500. (No general fund impact) (Lindbo/Sabatini)

Yolo County independently operates, maintains, and repairs the Huff's Corner Levee System, which is on the right bank of Cache Creek, approximately 2,700 feet upstream from Interstate 5, adjacent to County Road 18 in Woodland.  On April 9, 2019, the County Board of Supervisors adopted Resolution No. 19-46 accepting funds from the California Department of Water Resources ("DWR") for a State-Federal Flood Control System Modification Project titled: Huff's Corner Levee Raise & Channel Reconfiguration Project ("Project").  On August 7, 2019, the County and DWR executed a funding agreement, Agreement No. 2019-FSRP-NA21-01 ("Project Agreement"), in the amount of $2,845,000, for the Project.  The Project Agreement's scope of work involves raising a portion of the Huff's Corner Levee to its original design height and reconfiguring the Cache Creek channel to control erosional forces against the levee.  The cost-share for the Project was 85% State ($2,418,250) and 15% County ($426,750 - provided by the Cache Creek Resources Management Plan fund). 

To date, the County has completed the following activities under the Project Agreement:

In December 2020, County staff and its consultant team notified DWR that the Project Agreement would not have the funding capacity to complete the levee raise portion of the Project due to unforeseen costs associated with construction, environmental mitigation, and securing land acquisition/right-of-way.  In January 2023, DWR was able to secure additional monies to ensure the Project is constructed in its entirety.  

On February 21, 2023, the Board of Supervisors adopted Resolution No. 23-23 authorizing the Manager of Natural Resources to request a new funding agreement from DWR for "Phase II" of the project.  The new agreement, in the form of a Project Partnership Agreement, was presented to County staff in August 2023.  A copy of the agreement has been provided to the staff report as Attachment A.  

This agreement is for a total amount $2,477,500.  The cost-share consists of 90% State ($2,229,750) and 10% County ($247,750 - again, provided by the Cache Creek Resources Management Plan fund). The local cost share amount is less than what the Board of Supervisors originally authorized in the adoption of Resolution No. 23-23 (approximately $600,000) for two reasons: 1) the project scope being reduced (i.e., the levee raise occurring on a shorter length of levee), and 2) the increase in the State cost share (it was originally expected that the State cost share would be 85%).  

The follow activities will be covered in the Scope of Work for the new agreement:

In order to formally accept the funds from DWR for this project, the Board must adopt a "Resolution Accepting Funds" (see Attachment B).  Adoption of the resolution will also authorize the Director of Community Services, or their designee, to sign the Project Partnership Agreement, and any amendment thereof, with DWR, as well as authorize the Manager of Natural Resources, or their designee, to sign requests for disbursements to be made under the Project Partnership Agreement.

Lastly, the awarded revenues and expenditures associated with the Project Partnership Agreement were not included in the estimated revenue and appropriations for the Cache Creek Resources Management Plan Budget for Fiscal Year 2023-24; therefore, a Board adoption of a budget resolution is needed (see Attachment C).

At this time, Staff recommends that the Board of Supervisors:

1. Approve the Project Partnership Agreement, in the amount of $2,477,500, with the California Department of Water Resources for the Huff's Corner Levee Raise & Channel Reconfiguration Project - Phase II;
    
2. Adopt resolution accepting the awarded funds from the California Department of Water Resources and making associated administrative decisions; 
    
3. Adopt resolution increasing the Cache Creek Resources Management Plan Budget for Fiscal Year 2023-2024 by $2,477,500.

Completion of this project has involved ongoing collaboration between the following:

The Competitive Bid Process is not required for the execution of this agreement; however, all applicable County Procurement policies will be followed when contracting with vendors to perform the work funded by the agreement.