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CC SR 20250819 G - Landslide Emergency Contract Continuation CITY COUNCIL MEETING DATE: 08/19/2025 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; (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: Portuguese Bend Landslide Budget 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, 2025, 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 and $860,300 for property tax assessments in the General Fund: [Continued on Next Page] FY 2025-26 Adopted Budget: Capital Infrastructure Program (CIP) Fund: Funding 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 TOTAL - FY 2025-26 (CIP FUND) $13,675,000 Special Revenue (Restricted) Funds: Funding Sources: 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 $4,075,000 General Fund: Funding Source: General Fund FY 2025-26 Adopted Budget Expenditures ($) Encumbered ($) YTD Spent & Encumbered (%) Balance 3150 Property Tax Assessments KCLAD 475,902 475,902 0 100% $0 ACLAD 384,398 384,398 0 100% $0 TOTAL - FY 2025-26 $860,300 $860,300 $0 100% $0 Since the majority of expenditures occurred in FY 2024-25, the following summarizes the approved appropriations and expenditures for that fiscal year: 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; 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 Budget Appropriations: FY 2024-25 Summary of Funding Sources (by Fund): Amount Budgeted: See Fiscal Impact above Additional Appropriation: N/A Account Number(s): Funding sources – see Fiscal Impact above VR ORIGINATED BY: David Copp, Deputy Public Works Director REVIEWED BY: Ramzi Awwad, Public Works Director APPROVED BY: Ara Mihranian, AICP, City Manager 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 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 ATTACHED SUPPORTING DOCUMENTS: A. August 5, 2025 City Council Staff Report – Emergency Landslide Stabilization Contract Continuation (Linked) B. 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 (Linked) 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 B). On August 5, 2025, the City Council approved continuing the emergency justification for work and emergency contracting for the Greater Portuguese Bend -Ancient Altamira Landslide Emergency Project (Attachment A). 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 author ized 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. DISCUSSION: Emergency Stabilization Measures The current status of the Deep Dewatering Wells (DDWs) program is the following: • Since the start of the DDW program, approximately 306 million gallons, or 940 acre-feet of water have been extracted. • DDW-5 has sheared due to land movement. The City’s Geologists are evaluating the potential for re-drilling or re-locating this well. Funding for this and other DDW activities comes from FY2025 -26 DDW maintenance and operations funds approved by the City Council as part of the FY2025-26 Capital Improvement Program (CIP). • DDW-7 has sheared, and based on its low production rate, the City’s Geologists are advising that the well be re-located rather than re-drilled in its approximate existing location. • DDW-8 has sheared due to land movement. Re-drilling is underway and should be complete shortly. • DDW-9A has sheared due to land movement. Redrilling is scheduled to begin following the completion of DDW-8. • DDW11 has sheared and based on the low production rate, the City’s Geologists are advising that this DDW should not be re-drilled, but rather re- located, should additional funding become available. Due to the significant cost of relocating this DDW, considered to be well above maintenance and operation costs, there are currently no plans in place to relocate the well. Table 1 - DDW Current Water Extraction Rates as of August 11, 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 100 (re-drilled 3/21/25) 126 41 2 9/17/2024 100 (re-drilled 5/29/25) 123 40 3 9/21/2024 90 (re-drilled 3/24/25) 121 39 4 9/21/2024 N/A (decommissioned 3/27/25) 90 29 4A 3/29/2025 55 5 9/25/2024 Offline (re-drilled 3/26/25; redrill required) 116 38 6 9/28/2024 80 (re-drilled 12/29/24 and 5/23/25) 101 33 7 10/15/2024 N/A (decommissioned 6/3/25) 15 5 8 10/17/2024 Offline (re-drill in progress) 59 19 9 10/25/2024 N/A (decommissioned 11/07/24) 67 22 9A 11/16/2024 55 (re-drilled 12/29/24 and 5/10/25; redrill required) 10 10/24/2024 120 (re-drilled 5/11/25) 120 39 11 12/03/2024 N/A (decommissioned 3/14/25) 2 1 Totals 600 940 306 Preparations for the 2025-26 rainy season have started with field reconnaissance by geologists. The information from the field-reconnaissance will be used to prioritize improvements and repairs, constrained by the approved winterization budget in the FY 2025-26 CIP. 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.