I. RECOMMENDATION:
Staff is recommending that the Council concur with staff's request to delay the Derrick Reservoir Rehabilitation Project until October 2023 in order to await a response on potential funding from the State of CA under the Drought Relief Grant Program.
II. BACKGROUND:
The City has been working diligently on plans and specifications for the Derrick Tank rehabilitation project and expected to start construction October 1, 2022. The City applied for a drought relief grant in late 2022 for $5.238 Million dollars to rehabilitate the existing tank. Staff was expecting to receive a response from the California Department of Water Resources (DWR) in spring however, in recent days, the City was advised from DWR that we may not hear from the state regarding award of funds until later September this year.
III. DISCUSSION:
Due to the recent communication from DWR, staff is recommending holding off on moving to the bid/construction phase of the project until 2023 (October) in order to see if the City is awarded full/partial funding for the project. The City is also looking at other funding opportunities that may come up this year under the federal infrastructure bill as well as adding this project to the federal budget priority list.
Staff is just looking for concurrence from the Council to hold off until next year. The plans and specifications for the project are at 90% so the project is just about shovel ready.
IV. ALTERNATIVES:
- Continue with construction and finalize plans to 100% and bid project.
V. FISCAL IMPACT:
There is no anticipated fiscal impact by waiting one year. Material costs are a variable but it is unknown if prices will increase or decrease. |