RPVCCA_SR_2011_05_17_15_Reimbursement_Of_Funds_To_CAL_EMACITY OF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
HONORABLE MAYOR &CITY COUNCIL MEMBERS ~.
DENNIS McLEAN,DIRECTOR OF FINANCE &INFORMATIO
TECHNOLOGY DEPARTMENT
MAY 17,2011
BUDGET ADJUSTMENT FOR REIMBURSMENT OF FUNDS TO CAL
EMA RELATED TO 2005 STORM CLAIM DAMAGES AT ABALONE
COVE,HESSE PARK AND BURMA ROAD
CAROLYN LEHR,CITY MANAGER 0--
Staff Coordinator:Matt Waters,Senior Administrative Analyst
RECOMMENDATION
Approve a budget adjustment in the Capital Improvement Projects Fund reserve in the
amount of $59,221 to repay California Emergency Management Agency (Cal EMA)for
payments previously received by the City for Abalone Cove,Hesse Park,and Burma Road
"small"storm-disaster clean-up projects conducted in 2005.
BACKGROUND:
The heavy winter storms of early 2005 caused significant damage and led to extensive
repairs at a number of locations within the City of Rancho Palos Verdes.The C.ity filed for
and received a total of $173,619 in small project,disaster-related funding;$131,310 from
the Federal Emergency Management Agency (FEMA)and $42,309 from the California
Emergency Management Agency (Cal EMA).Small projects,as defined by FEMA,are
automatically paid,based on FEMA's estimates.Cal EMA functions as the fiscal
intermediary (pass-through agency)between the City and FEMA.The City was tentatively
paid in late 2005 and early 2006 for a variety of small,storm-related projects,based on the
best available information at that time.
DISCUSSION:
Cal EMA,after reviewing the City's federal and state applications,accounting and other
records,issued a final claim closeout report on March 3,2010.Staff and the City's disaster
cost recovery consultant,Jerry Quinn of Gerard J.Quinn &Associates,reviewed and
accepted Cal EMA's findings at that time.This review and reimbursement process is
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BUDGET ADJUSTMENT FOR REIMBURSMENT OF FUNDS TOCAl EMA RELATED TO
2005 STORM CLAIM DAMAGES AT ABALONE COVE,HESSE PARK AND BURMA ROAD
May 17,2011
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routine.Following a disaster event such as the heavy storms of 2005,emergency action
often needs to be taken quickly,and funds are granted and expended on an expedited
basis.State and federal payments are made based on the best available information,but
subsequent adjustments and repayments are routine.
This repayment to Cal EMA is due to three reasons:
•Flood insurance covered (subject to deductibles)a substantial portion of the cost of
repairs at Hesse Park;
•Repair work included in the original estimate for the Old Burma Road project was
later deemed to be neither necessary,nor cost-effective,and was removed from
the scope of work;and
•Funding for Abalone Cove debris removal and repair was received from a different
agency,the Federal Highway Administration (FHWA),which eliminated the need for
FEMA funding.
Hesse Park Water Damage
Between February 16 and February 23,2005,a storm system produced rainfall runoff
heavy enough to overwhelm Hesse Park's drainage system,leading to extensive damage
to the building's interior.Repairs related to the water and mud damage to the Hesse Park
building included removal of mud and water,carpet cleaning and deep-cleaning,ceramic
tile cleaning,drying out of rooms using air blowers and dehumidifiers,replacing of linoleum
flooring in the Activity Room,and partial interior painting of the Fireside Room,Activity
Room,and Multi-Purpose Room.The project was completed on June 24,2005.
The initial project worksheet prepared by Cal EMA with City assistance,led to a
reimbursement of $20,674.25 for storm clean-up.Because the damages were deemed the
result of flooding,Cal EMA determined that the claim was first subject to the $100,000 loss
limit in accordance with the City's flood insurance policy.Since the project costs were
covered under the City's insurance policy,the City was only eligible for the $5,000 general
loss deductible.Therefore,the City owes Cal EMA $15,674.25.
Repair/Re-grade of Old Burma Road
A storm system produced sufficient rainfall between February 16 and 23,2005 to cause
significant erosion along a one-quarter mile section of the Old Burma Road.The storm
formed ruts several feet deep,leaving the road barely passable by a four-wheel drive,high-
axle vehicle.The scope of work for the project called for the repair and re-grading of
approximately 1.8 miles of trail ways from Old Burma Road Gate to the Paintbrush Canyon
sediment basin.The project also initially included the cleaning out of 36-inch diameter
half-pipes,estimated to be one-third full,along a distance of three-fourths of a mile.The
project was completed on September 13,2005.
The original $12,000 claim was based upon the initial scope of work estimates.The clean-
out of the half-pipe storm drains,estimated to cost about $3,500,was later deemed to be
neither necessary to the project,nor cost effective The City is eligible for the trail repair
and re-grading,at a cost of $8,500.Therefore,the City owes Cal EMA a $3,500
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BUDGET ADJUSTMENT FOR REIMBURSMENT OF FUNDS TOCAL EMA RELATED TO
2005 STORM CLAIM DAMAGES AT ABALONE COVE,HESSE PARK AND BURMA ROAD
May 17,2011
Page 3
repayment.
Remove Debris from Abalone Cove Shoreline Park Parking Lot
A debris stockpile was made at the parking lot at Abalone Cove during the storm system
that produced significant rainfall between February 16 and 23,2005.Contractors
deposited storm-related debris from public properties,rights of way,and roadways.The
debris pile was estimated at 4000 cubic yards and the haul distance was approximately 1.6
miles to the Old Burma Road sand pit area.The scope of work included the hauling away
of debris and its subsequent compaction.The scope also included the delivery and
shaping of aggregate needed to resurface the Abalone Cove parking lot in places where it
had been damaged by the debris removal operation.The project was completed on March
30,2005.
The City was tentatively ruled eligible for $41,544.15 in state and federal assistance from
Cal EMA and FEMA,but subsequently the City received full funding for this project from
the FHWA's Emergency Relief Fund.Due to this complete funding from another source,
the City is ineligible for the funds received from FEMA and Cal EMA for the cost of the
debris removal.The City owes Cal EMA a full reimbursement of $41,544.15.
FISCAL IMPACT
Final calculations and billing statements provided to the City by Cal EMA brought the total
amount due to $59,221,consisting of $46,755 in federal funds and $12,466 in state funds.
The Capital Improvement Projects fund has been carrying a $274,430 FEMA reserve in the
event any repayments are required as a result of funds received for the FY04-05 winter
storm damage.This reserve is separate from the CIP Reserve for future projects,currently
estimated to be $5.2 million on June 30,2011.Staff proposes that the repayment of
$59,221 be paid from the FEMA reserve.Afterwards,the amount of the FEMA reserve
would then be $215,209.Because the FY10-11 budget for the CIP does not include an
appropriation for the repayment,the proposed budget adjustment is necessary to make the
disbursement.
ATTACHMENTS:
Resolution No.2011-
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RESOLUTION NO.2011-_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES,AMENDING RESOLUTION NO.2010-55,THE BUDGET
APPROPRIATION FOR FISCAL YEAR 2010-2011,FOR A BUDGET
ADJUSTMENT TO THE CITY'S CAPITAL IMPROVEMENTS PROJECTS
FUND.
WHEREAS,Section 3.32 of the Rancho Palos Verdes Municipal Code provides that all
expenditures in excess of budgeted allocations must be by supplemental appropriation of the
City Council;and
WHEREAS,on June 15,2010,the City Council of the City of Rancho Palos Verdes
adopted Resolution 2010-55,approving a spending plan and authorizing a budget appropriation
for the 2010-11 fiscal year;and
WHEREAS,the City experienced strong storms in 2004-2005,resulting in needed
repairs in a number of locations including Hesse Park,Abalone Cove Shoreline Park Parking
Lot,and the Old Burma Road;and
WHEREAS,the City received $173,619 in small project disaster related funding from the
Federal Emergency Management Agency (FEMA)and the California Emergency Management
Agency (Cal EMA);and
WHEREAS,upon completion of a review of the federal and state applications,
accounting and related records,it has been determined that City has to repay a total of $59,221
to FEMA and Cal EMA;and
WHEREAS,the City has established a Capital Improvement Projects Fund Reserve in
the event repayments are required for funds received for FY 04-05 winter storm damage.
NOW BE IT,THEREFORE,RESOLVED BY THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES:
The following adjustment to appropriations is made,as follows:
CAPTIAL IMPROVEMENT PROJECTS FUND:
Administration 330-3030-461-69-00 Miscellaneous Expenditures $59,221
PASSED,APPROVED,AND ADOPTED THIS 1th DAY OF MAY,2011.
Mayor
ATTEST:
City Clerk
State of California )
County of Los Angeles )ss
City of Rancho Palos Verdes)
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I,CARLA MORREALE,City Clerk of the City of Rancho Palos Verdes,hereby certify that the
above Resolution No.2011-_was duly and regularly passed and adopted by the said City
Council at a regular meeting thereof held on May 17,2011.
City Clerk
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