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CC SR 20250715 G - Landslide Emergency Contract Continuation CITY COUNCIL MEETING DATE: 07/15/2025 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration to continue the emergency justification for work and emergency contracting for the Greater Portuguese Bend-Ancient Altamira Landslide Emergency Project RECOMMENDED COUNCIL ACTION: (1) Reconfirm, by a four-fifths vote, there is a need to continue the work on the Emergency Project declared by Council-adopted Resolution No. 2024-20 on May 7, 2024, finding an emergency exists requiring immediate action in the Greater Portuguese Bend-Ancient Altamira Landslide Complex (Landslide Complex) to seek to mitigate the movement of the landslide; and (2) Direct the City Clerk to confirm the same in the minutes of this City Council meeting, via Minute Order, reflecting this action; FISCAL IMPACT: The Portuguese Bend Landslide emergency response is projected to reach approximately $48 million from the period beginning in October 2022 through the fiscal year (FY) ending June 30, 202 5, including purchase order carryovers and continuing appropriations from FY 2023-24. This amount is funded through various sources, including the General Fund, CIP Fund, ARPA, Supervisor Hahn’s Social Program Grant, and Metro Funds. Additionally, for FY 2025-26, the City Council adopted the following budget of $17,750,000 in the Capital Improvement Program for the Portuguese Bend Landslide: VR FY 2025-26 Adopted Budget $17,750,000: Capital Infrastructure Program (CIP) Fund: Fund Source: Capital Infrastructure Program (CIP) Fund FY 2025-26 Adopted Budget 8202 - Abalone Cove Sanitary Sewer Repair Program 3,000,000 8304 - Portuguese Bend Landslide Remediation 700,000 8307 - Portuguese Bend Landslide Remediation - Emergency Stabilization Measures 8,050,000 Construction 5,750,000 Professional Services (Engineering, Environmental, Inspection, Management 1,725,000 Contingency 575,000 8308 - Portuguese Bend Landslide Remediation - Deep Dewatering Wells 1 thru 6 Permanent Power (City's Federal Grant Match) 525,000 8309 - Portuguese Bend Landslide Hydrology & Hydraulics Study 1,400,000 1 Fund Source: Capital Infrastructure Program (CIP) Fund FY 2025-26 Adopted Budget TOTAL - FY 2025-26 (CIP FUND) $13,675,000 Special Revenue (Restricted) Funds: Fund Source: Special Revenue (Restricted) Funds FY 2025-26 Adopted Budget 8302 - Palos Verdes Drive South Landslide Repair Program 2,500,000 Gas Tax (Fund 202) 750,000 Prop C (Fund 215) 1,150,000 Measure R (Fund 220) 600,000 8308 - Portuguese Bend Landslide Remediation - Deep Dewatering Wells 1 thru 6 Permanent Power 1,575,000 Federal Grant 1,575,000 TOTAL - FY 2025-26 SPECIAL REVENUE (RESTRICTED) FUNDS $4,075,000 As part of the FY 2025-26 budget, the City Council directed staff to present a priority list of landslide emergency response projects/activities totaling $9 million so that the City Council may consider future budget reductions based on the priority order ran k list. Should the City Council enact any budget reductions, then any agreements/contracts for those projects/activities impacted by the budget reductions could be cancelled or reduced with 30 days due notice to the vendor and payment for costs incurred wi thin the cancellation period. Staff will present the rank list of projects as part of the August 19, 2025 Landslide Complex emergency extension staff report. FY 2024-25 Revised Budget: For FY 2024-25, the City Council appropriated $36.8 million (including Purchase Order carryovers and continuing appropriation from FY 2023-24) for emergency work outside the normal bidding process due to the emergency declaration as follows: • $23.9 million for emergency response, boreholes and deep dewatering wells (DDW), including $9.6 million approved on May 7, 2024 (unspent balance from Hydraugers Project by June 30, 2024 was carried over in FY 2024-25) and $6.1 million on October 1, 2024. • $4 million for emergency stabilization measures for additional DDWs approved on October 1, 2024. • $4 million for winterization approved on October 1, 2024. • $1.1 million for operations and maintenance of DDWs between January and March 31, 2025, approved on December 17, 2024. • Approximately $3.9 million of the following CIP projects are deferred to FY 2025 - 26 as approved on January 21, 2025: o $0.6 million for Crenshaw Blvd. Rehab; o $0.6 million for Park Playground Improvements; 2 o $0.55 million for the Sidewalk Management program; o $1.7 million for Western Avenue Beautification; and, o $0.5 million for Altamira Canyon Drainage • $2 million for operations and maintenance of DDWs (approximately $1.5 million from April 1, 2025 through June 30, 2025) and approximately $0.5 million for additional fissure filling approved on January 21, 2025. • $710,000 from the CIP Fund approved on March 18, 2025 for repairs to the Abalone Cove Sanitary Sewer System by: o Reallocating $400,000 from the Measure R Fund to the CIP Fund for landslide emergency road repairs, o Reallocating $200,000 from the Gas Tax Fund to the CIP Fund for landslide emergency road repairs, and o Appropriating the remaining $110,000 from the CIP Fund. • $500,000 from the CIP Fund for additional operations and maintenance costs associated with the DDW Program approved on May 6, 2025. Assistance to the geologic hazard abatement districts was approved in the form of loans and in-kind assistance as follows: • On February 4, 2025, the City Council affirmed the use of the financial assistance loan to Abalone Cove Landslide Hazard Abatement District (ACLAD) in the amount of $1.6 million approved by the City Council on July 2, 2024 for ACLAD to implement their deep dewatering well plan; and • $100,000 for in-kind project and construction management services provided by the City to assist the ACLAD with implementation of their DDW plan. In summary, the following tables are a summary of approved budget appropriations in FY 2024-25 and summary of funding sources by Fund. FY 2024-25 Summary of Funding Sources (by Fund): Funding Sources for FY 2024-25 TOTAL In Millions CIP Fund 14.5 CIP Fund (Reserves)5.0 CIP Fund (Cont Approp 01/21/25)0.5 General Fund (Transfers-Out Reserves to the CIP Fund) 6.4 General Fund 3.4 Special Revenue (Restricted) Funds ARPA Fund 3.4 Metro Fund (Prop C, Measure R)1.4 Sup. Hahn's Social Program Grant 2.2 TOTAL $36.81 3 FY 2024-25 Summary of Budget Appropriations: Amount Budgeted: See Fiscal Impact above VR Additional Appropriation: N/A Account Number(s): Funding sources – see Fiscal Impact above ORIGINATED BY: David Copp, Deputy Public Works Director REVIEWED BY: Ramzi Awwad, Public Works Director APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. July 1, 2025 City Council Staff Report – Emergency Landslide Stabilization Contract Continuation and Award of Multiple Contracts for Emergency Landslide Stabilization and Related Infrastructure Repairs FY 2024-25 Budget Appropriations (Summary) in millions TOTAL FY 2024-25 Adopted Budget $4.6 $13.7 October 1, 2024 $14.1 Emergency response, boreholes, DDW, winterization ARPA Fund 0.5 LA County Grant (Sup. Hahn)2.2 CIP Emergency Reserves 5.0 General Fund Unallocated Fund Balance - Transfers Out 6.4 December 17, 2024 $1.1 O&M for DDDW between Jan-Mar 2025 CIP Fund 1.1 January 21, 2025 $2.0 Additional O&M for DDW between Apr-Jun 2025 and fissure filling CIP Fund (DDW)1.5 CIP Fund (Fissure Filling)0.5 February 4, 2025 $0.1 In-Kind Services for ACLAD Affirmed $1.6 million of loans to ACLAD and KCLAD CIP Fund (DDW)0.1 March 18, 2025 $0.7 Additional O&M Ab Cove Sanitary Sewers CIP Fund 0.1 Reallocate Measure R 0.4 Reallocate Gas Tax 0.2 May 6, 2025 $0.5 Additional O&M DDW CIP Fund 0.5 TOTAL - FY 2024-25 $36.8 Carryover from FY 2023-24 ( Prof/Tech, Reallocation 4 BACKGROUND: On October 3, 2023, the City Council adopted Resolution No. 2023-47, declaring a state of local emergency relating to the land movement in the Landslide Complex. The state of emergency, as well as the continuation of associated emergency contracting has been timely renewed and is current. On July 1, 2025, the City Council awarded multiple contracts for emergency landslide stabilization and related infrastructure repair work (Attachment A). DISCUSSION: Pursuant to Public Contract Code § 22050, the City Manager and Director of Public Works must report to the City Council at its regular meeting the reasons justifying why the emergency continues to exist and why action outside of the normal bidding process is necessary to respond to the emergency. Furthermore, Public Contract Code § 22050 states that the City Council shall, at every regularly scheduled meeting , consider and reaffirm that there is a need to continue to remediate the emergency until the authorized emergency repairs have been completed. Accordingly, because the work has not yet been completed, this item is on tonight’s agenda. This item will be placed on each subsequent agenda until all aspects of the project are completed. The current status of the Deep Dewatering Wells program is the following: • The DDWs continue to be monitored and re-drilled or replaced as needed within the current approved budget. • The total combined water extraction rate of the DDWs is currently at approximately 630 gallons per minute or 0.91 million gallons per day. • Since the start of the DDW program in September 2024, approximately 285 million gallons or 859 acre-feet of water have been extracted from certain locations around the toe of the Landslide Complex. Overall extraction rates have recently decreased due to the reasons described below. • DDW-7 has sheared due to land movement. Based on the relatively low production rate of this DDW, the City’s geologists are advising that this DDW should not be re-drilled but rather re-located. Accordingly, DDW-7 has been decommissioned. • DDW-8 has sheared due to land movement. A plan is being developed to re - drill the well in the near future. • DDW-10 experienced an electrical malfunction. The affected equipment is being replaced, and the well is anticipated to be back in service by the end of the week. • DDW-11 experienced pump failure because of an insufficient water flow rate to keep the pump cooled. Due to the insufficient water flow, the City’s geologists are advising that this DDW should not be re-drilled but rather relocated. Accordingly, DDW-11 has been decommissioned. 5 Table 1 - DDW Current Water Extraction Rates as of July 1, 2025 DDW No. Date Operational Current Approximate Water Extraction Rate (Gallons Per Minute) Total Water Extraction to Date Acre-Ft Million Gallons 1 9/13/2024 105 (re-drilled 3/21/25)  113 37 2 9/17/2024 105 (re-drilled 5/29/25) 109 36 3 9/21/2024 100 (re-drilled 3/24/25) 107 35 4 9/21/2024 (decommissioned 3/27/25)  90 30 4A 3/29/2025 55 5 9/25/2024 90 (re-drilled 3/26/25)  112 37 6 9/28/2024 85 (re-drilled 12/29/24 and 5/23/25) 89 30 7 10/15/2024 Decommissioned 6/3/25  15 5 8 10/17/2024 0 (re-drill plan in progress)  59 20 9 10/25/2024 Decommissioned 11/07/24  60 20 9A 11/16/2024 90 (re-drilled 12/29/24 and 5/10/25) 10 10/24/2024 0 (Electrical repairs in progress) 103 34 11 12/03/2024 Decommissioned 3/14/25  2 1 Totals 630 859 285 Plans for winterization in Fiscal Year 2025-26 will be prepared in advance of the rainy season. Monitoring of winterized areas will be conducted prior to and during rain events. The conditions of the landslide complex continue to necessitate the City’s emer gency response. CONCLUSION: The effects of the ongoing land movement continue to be felt in the Greater Portuguese Bend-Ancient Altamira Landslide Complex. Staff recommends reconfirming that there is a need to continue to remediate the emergency identified by City Council -adopted Resolution No. 2024-20 (originally by Resolution No. 2023-47), and reconfirm, by a four- fifths vote, the need for continuing the work on the Portuguese Bend Landslide Emergency Project. ALTERNATIVES: In addition to Staff recommendation, the following alternative action is available for the City Council’s consideration: 1. Take other action or provide direction, as deemed appropriate. 6