Chapter 6: Plan Implementation Rancho Palos Verdes, California
• Draft Feasibility Report
Chapter 6. Plan Implementation
This Chapter presents the requirements for implementing the Recommended Plan,
including Federal and Non-Federal cost-sharing, and the division of responsibilities between
the Federal Government and the Non-Federal Sponsor, the City of Rancho Palos Verdes. It
also lists the major milestones necessary for project approval, and milestones associated with
designing and constructing the Recommended Plan.
Recommended Plan Cost-Sharing
Federal and Non-Federal cost-sharing for the Recommended Plan is in accordance
with Section 210 of the Water Resources Development Act of 1996, which establishes the cost
sharing rules for projects authorized after 12 October 1996. The rules for ecological restoration
projects require that the Non-Federal share of the first cost of the project or separable element
will be 35%. Non-Federal Sponsors shall provide 100%of any lands, easements, rights-of-
way, relocations of utilities or other existing facilities or structures, and disposal areas
• (LERRD). The value of LERRD shall be included in the Non-Federal 35% share. Where the
LERRD exceeds the Non-Federal Sponsors 35% share, the Sponsor will be reimbursed for the
value of LERRD which exceeds the 35% Non-Federal share. The Non-Federal Sponsor is also
responsible for 100% of the costs for operation, maintenance, repair, rehabilitation, and
replacement of project features (OMRR&R).
Table 6-1.Apportionment of Recommended Plan First Costs
(October 19 98 Price Levels)
Non-Federal Federal
Project Feature First Cost % Cost % Cost
First Cost of Construction $27,440,000 35% $9,604,000 65% $17,836,000
LERRD'S 100% $30,000 0%
Cash $9,574,000 $17,836,000
OMRR&R(average annual) 100% 0%
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Division of Plan Responsibilities
The Division of Plan Responsibilities, was based on considering the requirements and
procedures of current Federal public laws and policies.
Federal Responsibilities
The Federal Government will provide 65% of the First Cost of Implementing the
Recommended Plan including construction, planning, engineering and design (PED) and
construction management, estimated to be a total of$17,836,000. In addition to its financial
responsibility, the Federal Government would:
a. Design and prepare plans and specifications for construction of the Recommended
Plan;
b. Administer and manage contracts for construction and supervision of the project
after authorization, funding and execution of a Project Cooperation Agreement with the City of
Rancho Palos Verdes.
Non-Federal Responsibilities
The City of Rancho Palos Verdes would be responsible for providing 35% of the.First
Cost of implementing the Recommended Plan, estimated to be$9,604,000. The 35% share of11
the project cost includes the City of Rancho Palos Verde's responsibility for providing all lands,
easements; rights-of-way, relocations and disposal areas (LERRDs). The LERRDs required for
the project at this time include obtaining permits from California State Lands Commission for
areas located offshore, and 0.9 acres of City of Rancho Palos Verdes properties located
adjacent to the landslide, presently valued at$5,000.
A temporary easement for access to the area as well staging and storage area will be
required for construction presently valued at about$19,000. The City will also be responsible
for operation, maintenance, replacements, repairs and rehabilitation. This will require the City
to make any repairs to the containment dike structure which can be expected to occur during
major storm events. This is estimated to cost about$117,700 on an average annual basis. The
City will also be required to remove landslide material from behind the dike as necessary to
avoid encroachment on the dike structure. This requirement is expected to be required after
the 50 year economic life. The City of Rancho Palos Verdes will also be required to provide
certain local cooperation items based on Federal law and policies as follows:
a. Provide all lands, easements and rights of way, including suitable borrow and
dredged material disposal area, necessary for construction and maintenance of the project;
b. Accomplish or assure performance of all utility relocation or alteration necessary for
construction, operation, or maintenance of the project;
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c. Hold and save the United States free from damages due to construction, operation,
4110 and maintenance of the project, excluding damages due to the fault or negligence of the
United States or its contractors;
d. Provide any additional amount by cash contribution before award of construction
contract to equal to 35% of the cost allocated to environmental restoration, presently estimated
at$9,604,000. The value of lands, easements, rights-of-way, relocations and dredged material
disposal areas provided and allocated to environmental restoration may be credited towards
this payment;
e. Enter into an agreement with the Federal Government which provides prior to
construction, 25% of preconstruction engineering and design (PED) costs;
f. Assume responsibility to operate, maintain, repair, replace and rehabilitate
(OMRR&R), estimated to be on average annual basis about$117,700 for dike repairs, and
removal of sediment buildup to avoid encroachment of the landslide upon the dike structure,
without cost to the Government, in a manner compatible with the project's authorized
purposes, and in accordance with applicable Federal and State laws and regulations and any
specific directions prescribed by the Federal Government in the OMRR&R manual and any
subsequent amendments thereto;
g. Perform at the time of construction, environmental investigation to identify the
existence and extent of any hazardous substances regulated under the Comprehensive
Environmental Response, Compensation, and Liability Act(CERCLA), 42 USC 9601-9675, on
• all lands, including submerged lands, necessary for construction, operation, and maintenance;
h. Assume complete financial responsibility for the cleanup of any hazardous materials
located on project lands, including submerged lands, and regulated under CERCLA; and be
responsible for operating, maintaining, repairing, replacing, and rehabilitating the project_in a
manner so that liability will not arise under CERCLA;
i. Grant the Government a right to enter, at reasonable times and in a reasonable
manner, upon land which the local sponsor owns or controls for access to the project for the
purpose of inspection, and if necessary, for the purpose of completing, operating, maintaining,
repairing, replacing, or rehabilitating the project;
j. Keep, and maintain for a minimum of three years after completion of construction of
the project, books, records, documents, and other evidence pertaining to costs and expenses
incurred pursuant to the project to the extent and in such detail as will properly reflect total
project costs;
k. Comply with all applicable Federal and State laws and regulations, including Section
601 of Title VI of the Civil Rights Act of 1964, Public Law 88-352, and Department of Defense
Directives 5500.11 issued pursuant thereto and published in Part 300 of Title 32, case of
Federal Regulations, as well as Army Regulation 600-7, entitled "Nondiscrimination on the
Basis of Handicap in Programs and Activities Assisted or Conducted by the Department of the
Army; and,
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I. Prevent future encroachments on project structures, lands, easements, rights-of-way
which might interfere with the proper functioning of the project or cause risks to public health
and safety.
Sponsorship Agreement
Prior to the start of construction, the City of Rancho Palos Verdes will be required to
enter into a Project Cooperation Agreement(PCA)with the Federal Government and satisfy
state laws and all applicable regulations. In general, the items included in the Agreement have
been outlined in the previous paragraphs.
Financial Analysis
Financial information on the Non-Federal Sponsor's ability to fund their share of the
plan is required to establish implementation of the project as required by the Principles and
Guidelines. The information includes a preliminary financing plan outlining the costs, schedule
of expenditures, and a statement of financial capability by the Non-Federal Sponsor, including
sources of funds, authorities to use the identical sources and their capability to obtain the
funds. The City of Rancho Palos Verdes will be requested to provide a preliminary financial
plan as part of the final report.
Local Cooperation
Subsequent to public review of the draft report, the City of Rancho Palos Verdes will be
requested to provide a letter of intent indicating their support for the recommended plan and its •
willingness and intent to execute the Project Cooperation Agreement including providing the
Non-Federal required assurances.
Procedures for Project Implementation
Future actions necessary for project approval and implementation are summarized as
follows:
a. The final report will be reviewed by the Corps of Engineers, South Pacific Division
Commander, who will then issue a public notice announcing completion of the final report.
b. The report will then be submitted for concurrent Washington level review by
Headquarters, U.S. Army Corps of Engineers (HQUSACE), and the Office of the Assistant
Secretary of the Army (Civil Works) (ASA (CW)).
c. The 90-day State and agency review and coordination of the Environmental
Assessment by HQ will be ongoing concurrently during the HQUSACE review.
d. Concurrent Washington level review by HQUSACE and ASA(CW) will conclude with
a HQUSACE staff assessment, the 90-day State and agency review, review input by the ASA
(CW), HQUSACE final assessment, a field visit and meeting if necessary, and the
documentation of report review prepared by HQUSACE.
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e. The Washington level decision-making process will follow the decision-making
• sequence of HQUSACE and ASA(CW), once the documentation of report review has been
completed. There will be a briefing if necessary for the Designated Senior Representatives of
Decision-Makers to resolve any outstanding issues. The Chief of Engineers will provide his
recommendations on the report to the ASA (CW), who will provide the report and proposed
recommendations to the Office of Management and Budget(OMB) to obtain their views and
comments on whether the proposed recommendations are consistent with Administrative
policies. Prior to the transmittal of the report to the Congress and signing of the Record of
Decision by the ASA(CW), the Non-Federal Sponsor, the State of California, interested
Federal Agencies, and other parties, will be advised of any significant modifications made to
the recommendations and will be afforded an opportunity to comment further.
f. The report will then be transmitted to Congress for project authorization with the Chief
of Engineers report, ASA(CW) report, State and agency comments, and Office of Management
and Budget comments.
g. Congress will be required to authorize the project for implementation, generally as
part of a Water Resources Development Act.
h. Funds could be provided, when appropriated in the budget, for Preconstruction,
Engineering and Design (PED), upon issuance of the Division Engineer's public notice,
announcing the completion of the final report and pending project funding authorization. A
Design Cooperation Agreement will need to be developed and executed between the Federal
Government and the City of Rancho Palos Verdes, whereby the City will provide 25% of the
cost of PED studies.
i. The Corps of Engineers will complete final design and plans and specifications for
project construction.
j. Subsequent to appropriation of construction funds by Congress, formal assurances of
local cooperation in the form of a Project Cooperation Agreement would be required from the
City of Rancho Palos Verdes.
k. The City of Rancho Palos Verdes will be required to provide all real estate
requirements required for project implementation.
I. Bids for construction will be advertised and contracts awarded.
m. Upon completion of construction, the project will be turned over to the City of
Rancho Palos Verdes who will be responsible for OMRR&R in accordance with guidelines
provided by the Corps of Engineers.
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Project Management Plan
0.
A Project Management Plan (PMP)for implementation of the Recommended Plan, will be
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prepared upon receiving a letter of intent from the City of Rancho Palos Verdes that they are
interested in proceeding with the Recommended Plan. The PMP will lay out activities,
responsibilities, schedules and costs required for final design and construction of the project. A
summary of the major milestones for completing the design, execution of project coordination
agreement, and construction phases of the project will be presented in the final report. In
general, it is expected that final design and plans and specifications will take about two years
to complete following the receipt of Federal and Non-Federal funds to initiate PED.
Construction will take from one to one and one-half years to complete.
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