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CC - Item 4D – Approve Resolution No. 2024-51 to Authorize the Execution of the Safe, Clean Water Program Municipal Transfer Agreement (Agreement No. 2024MP66)ROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: BEN KIM, CITY MANAGER DATE: SEPTEMBER 24, 2024 SUBJECT: APPROVE RESOLUTION NO. 2024-51 TO AUTHORIZE THE EXECUTION OF THE SAFE, CLEAN WATER PROGRAM MUNICIPAL TRANSFER AGREEMENT (AGREEMENT NO.2024MP66) SUMMARY In November 2018, Los Angeles County voters passed Measure W, a special parcel tax of 2.5 cents per square foot of impermeable area to fund local water quality projects and programs. Measure W created the Safe, Clean Water (SCW) Program which aims to provide local, dedicated funding for stormwater and urban runoff programs and projects that intend to increase the local water supply, improve water quality, and protect public health. Forty percent (40%) of the parcel tax revenues are allocated to the Municipal Program. Under the Municipal Program, cities receive direct funding that is proportional to the revenues that are generated within its boundaries. Pursuant to Los Angeles County Flood Control District Code Section 16.05.A.1. prior to the receipt of SCW Program funds, municipalities must enter into an agreement with the Los Angeles County Flood Control District (District) to transfer funds. A Transfer Agreement between the District and the City of Rosemead was approved by the City Council on August 25, 2020, and expired at the end of Fiscal Year 2023-24. It is recommended that the City Council authorize the execution of a new Agreement to ensure continued receipt of SCW Program funds. BACKGROUND On November 6, 2018, the Los Angeles County voters passed Measure W with a two-thirds majority. In July of 2019 the Los Angeles County Board of Supervisors approved the Los Angeles Region Safe, Clean Water Program Implementation Ordinance in accordance with Measure W. The ordinance established the Safe, Clean Water Program's guiding criteria and procedures. Following a significant public comment and review period, in June of 2020 the Los Angeles County Board of Supervisors approved the standard template Agreement for the transfer of SCW Program funds to municipalities. AGENDA ITEM 4.1) City Council Meeting September 24, 2024 Paee 2 of 3 The 2018 voter approved Measure W established a Special Parcel tax of 2.5 cents per square foot of impermeable area for the purpose of improving and protecting water quality. Publicly owned parcels are exempt from the Special Parcel tax under state law. Additionally, property owners who have installed stormwater capture improvements can qualify for a tax credit and low-income seniors and non-profit organizations are eligible for an exemption. An estimated $285 million in tax revenue is anticipated to be generated annually for the SCW Program. The Municipal Program within the SCW Program allocates direct funding to cities proportional to revenues generated within its boundaries. The Municipal Program will receive forty percent (40%) of the total SCW Program annual revenues. Rosemead has received approximately $560,000 in SCW Program funds each year since FY 20-21. The Municipal Program is designed to maximize the ability of local governments to address local Stormwater and Urban Runoff challenges and opportunities. SCW Program funds can be used for eligible project development, design, construction, effectiveness monitoring, operations and maintenance (including operation and maintenance of projects built to comply with 2012 MS4 permits), as well as for other programs and studies related to protecting and improving water quality in lakes, rivers, and oceans. Up to thirty percent (30%) of Municipal Funds may be used to pay for costs and expenses incurred related to the continuation or maintenance of applicable programs/projects implemented prior to November 6, 2018. To receive SCW Program funds municipalities are required to enter into a Municipal Transfer Agreement with the District. The agreement stipulates that annual budgets, progress and expenditure reports, and independent audits are expected deliverables under the Municipal Program. Annual expenditure plans are due no later than 90 days prior to the start of the Fiscal Year for which the Plan is prepared. Progress reports are due annually, 6 months after the close of each Fiscal Year. Audit reports are due 9 months after the end of the 3`d Fiscal Year (i.e., 3/31/28, for July 2024 through June 2027). Municipalities are expected to receive their portion of SCW Program revenue funds by the end of December each year, provided a duly executed Transfer Agreement is in effect and subject to the Municipality's compliance with the conditions described in "Exhibit A". STAFF RECOMMENDATION It is recommended that the City Council approve Resolution No. 2024-51 to authorize the City Manager to execute the Transfer Agreement between the Los Angeles County Flood Control District and the City of Rosemead for a term that shall expire at the end of Fiscal Year 2027-28. City Council Meeting September 24, 2024 Page 3 of 3 FISCAL IMPACT The City of Rosemead is expected to receive an estimated annual allocation of up to $570,000 annually to address local stormwater and urban runoff challenges and opportunities. ENVIRONMENTA REVIEW This agenda item does not constitute a project under the California Environmental Quality Act ("CEQA" ), and it can be seen with certainty that it will have no negative impact on the environment. As such, this matter is exempt under CEQA. STRATEGIC PLAN IMPACT The project is consistent with the Strategic Plan's guiding principal for fiduciary responsibility of providing for transparency in financial management of City's finances and providing quality of life enhancement. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Prepared by: D-'-elle GaYcia Public Works Fiscal and Project Manager Submitted by: Albert Leung .1 Acting Director of Public Works Attachment A: Resolution No. 2024-51 Attachment B: Safe, Clean Water Program Municipal Transfer Agreement No. 2024MP66 Attachment A Resolution No. 2024-51 RESOLUTION NO. 2024-51 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE LOS ANGELES REGION SAFE, CLEAN WATER PROGRAM, MUNICIPAL TRANSFER AGREEMENT WITH THE LOS ANGELES COUNTY FLOOD CONTROL DISTRICT WHEREAS, the City Council of the City of Rosemead ("City") is eligible to receive funding for Stormwater, Urban Runoff Pollution and Water Quality projects, through the Los Angeles County Flood Control District; and WHEREAS, the City shall receive an amount directly proportional to the Safe, Clean Water (SCW) Program Special Parcel tax revenues generated within its boundaries; and WHEREAS, pursuant to Section 16.05(A)I of the Los Angeles County Flood Control District Code, prior to their receipt of SCW Program funds, Municipalities must enter into an agreement with the District to transfer SCW Program funds; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: SECTION 1. The City Council hereby approves and authorizes the City Manager to execute the Safe Clean Water Program Municipal Transfer Agreement with the Los Angeles County Flood Control District, in the form attached to this Resolution as Exhibit "A". SECTION 2. The City Clerk shall certify to the adoption of this resolution and hereafter the same shall be in full force and effect. PASSED, APPROVED, AND ADOPTED this 24' day of September, 2024. Steven Ly, Mayor APPROVED AS TO FORM: ATTEST: Rachel Richman, City Attorney Ericka Hernandez, City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES) § CITY OF ROSEMEAD ) I, Ericka Hernandez, City Clerk of the City Council of the City of Rosemead, California, do hereby certify that the foregoing City Council Resolution, No. 2024-51, was duly adopted by the City Council of the City of Rosemead, California, at a regular meeting thereof held on the 24th day of September, 2024, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Ericka Hernandez, City Clerk Attachment B Safe, Clean Water Program Municipal Transfer Agreement No. 2024MP66 Municipal Program Agreement N0.2024MP66 TRANSFER AGREEMENT BETWEEN THE LOS ANGELES COUNTY FLOOD CONTROL DISTRICT AND ROSEMEAD AGREEMENT NO.2024MP66 SAFE, CLEAN WATER PROGRAM—MUNICIPAL PROGRAM This Transfer Agreement, hereinafter referred to as "Agreement,' is entered into as of by and between the Los Angeles County Flood Control District, hereinafter referred to as "District," and Rosemead, hereinafter referred to as "Municipality." WHEREAS, District, pursuant to the Los Angeles Region Safe, Clean Water (SCW) Program ordinance (Chapter 16 of the Los Angeles County Flood Control District Code) and the SCW Program Implementation Ordinance (Chapter 18 of the Los Angeles County Flood Control District Code), administers the SCW Program for the purpose of funding Projects and Programs to increase stormwater and urban runoff capture and reduce stormwater and urban runoff pollution in the District; WHEREAS, pursuant to Section 16.04.A.2. of the Los Angeles County Flood Control District Code, forty percent (40%) of annual SCW Program tax revenues shall be allocated to Municipalities within the District, in the same proportion as the amount of revenues collected within each Municipality, to be expended bythose cities within the cities' respective jurisdictions and bythe Countywithin the unincorporated areas that are within the boundaries of the District, for the implementation, operation and maintenance, and administration of Projects and Programs, in accordance with the criteria and procedures established in this Chapters 16 and 18 of the Los Angeles County Flood Control District Code; WHEREAS, pursuant to Section 16.05.A.1. of the Los Angeles County Flood Control District Code, prior to their receipt of SCW Program funds, Municipalities must enter into an agreement with the District to transfer SCW Program funds; WHEREAS, the Countyof Los Angeles Board of Supervisors has approved a standard template Agreement, as required by and in accordance with Section 18.09 of the Los Angeles County Flood Control District Code, for the transfer of SCW Program funds to Municipalities. NOW, THEREFORE, in consideration of the promises, mutual representations, covenants and agreements in this Agreement, the District and the Municipality, each binding itself, its successors and assigns, do mutually promise, covenant, and agree as follows: DEFINITIONS The definitions set forth in Sections 16.03 and 18.02 of the Los Angeles County Flood Control District Code shall apply to this Agreement. In addition, the following definitions shall also apply "Agreement" means this Transfer Agreement, including all exhibits and attachments hereto. "Annual Plan" means the plan referred to in Section 18.09.13.5 of the Code that includes the contents specified in Exhibit A. "Code" means the Los Angeles County Flood Control District Code. "Days" means calendar days unless otherwise expressly indicated. "Fiscal Year" means the period of twelve (12) months terminating on June 30 of any year. "Safe Clean Water (SCW) Program Payment" means the Municipalitys annual allocation of SCW Program funds as described in Section 16.04.A.2. of the Code disbursed bythe District to the Municipality. "Year"means calendar year unless otherwise expressly indicated. 11. PARTYCONTACTS The District and the Municipality designate the following individuals as the primary points of contact and communication regarding the Municipal Program and the administration and implementation of this Agreement. Los Angeles County Flood Control District Municipality-, Rosemead Name: Harts Harouny Name: Address: 900 S FremontAve, Alhambra, CA 91803 Address: 1. Phone: 626 300-2620 Phone: Page 1 of 14 Municipal Program Agreement No.2024MP66 Email: hharouny@dpw.lacounty.gov Email: Either party to this Agreement may change the individual identified as the primary point of contact above by providing written notice of the change to the other party. III. EXHIBITS INCORPORATED BYREFERENCE The following exhibits to this Agreement, including any amendments and supplements hereto, are hereby incorporated herein and made a part of this Agreement: EXHIBITA—ANNUAL PLAN CONTENTS EXHIBITB —GENERALTERMS AND CONDITIONS EXHIBIT C — NATURE -BASED SOLUTIONS (Best Management Practices) EXHIBIT D —OPERATIONS AND MAINTENANCE GUIDANCE DOCUMENT IV. MUNICIPAL PROGRAM IMPLEMENTATION A. The Municipality shall annually prepare and submit to the District, an Annual Plan. The Annual Plan shall be submitted not later than 90 -days prior to the startof the Fiscal Year for which the Plan is prepared. B. The Municipality shall utilize the SCW Program Payments in compliance with Chapters 16 and 18 of the Code. C. The Municipality shall comply with the terms and conditions in Exhibits B, C, and D, of this Agreement, and all applicable provisions of Chapters 16 and 18 of the Code, specifically including, without limitation, Section 18.06. V. SCW PROGRAM PAYMENTS TO MUNICIPALITIES A. SCW Program Payments will generally be available for disbursement by December 31, provided a duly executed transfer agreement is in effect and subject to the Municipalitys compliance with the conditions described in paragraph B, below; however the District may, in its discretion, change the date and number of the actual disbursements for any Fiscal Year based on the amount and timing of revenues actually collected by the District. B. The District shall disburse the Municipalitys SCW Program Payment upon satisfaction of the following conditions: (1)the District has received the Annual Progress/Expenditure Report required pursuantto Section 18.06.D of the Code; (2) the District has received Municipalitys Annual Plan for that Fiscal Year, and (3) the Municipality has complied with the audit requirements of Section B-6 of Exhibit B. C. Notwithstanding any other provision of this Agreement, no disbursement shall be made at anytime or in any manner that is in violation of or in conflict with federal, state, County laws, policies, or regulations. D. All disbursements shall be subject to and be made in accordance with the terms and conditions in this Agreement and Chapters 16 and 18 of the Code. VI. TERM OF AGREEMENT This Agreement shall expire at the end of the 2027-28 Fiscal Year. The parties shall thereafter enter into anew agreement based on the most recent standard template agreement approved by the Board. VII. EXECUTION OF AGREEMENT This Agreement maybe executed simultaneously or in any number of counterparts, including both counterparts that are executed manually on paper and counterparts that are in form of electronic records and are executed electronically, whether digital or encrypted, each of which shall be deemed an original and together shall constitute one and the same instrument. The District and the Municipality hereby agree to regard facsimile/electronic representations of original signatures of authorized officers of each party, when appearing in appropriate places on this Agreement and on any addenda or amendments thereto, delivered or sent via facsimile or electronic mail or other electronic means, as legally sufficient evidence that such original signatures have been affixed to this Agreement and any addenda or amendments thereto such that the parties need not follow up facsimile/electronic transmissions of such documents with subsequent (non- facsimile/electronic) transmission of "original" versions of such documents. Further, the District and the Municipality. (i) agree that an electronic signature of any party may be used to authenticate this Agreement or any addenda or amendment thereto, and if used, will have the same force and effect as a manual signature; (ii) acknowledge that if an electronic signature is used, the other party will rely on such signature as binding the party using signature, and (iii) hereby waive any defenses to the enforcement of the terms of this agreement based on the foregoing fors of signature. Page 2 of 14 IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto. By— Name: Title: Date: LOS ANGELES COUNTY FLOOD CONTROL DISTRICT: By— Name: Title: Date: Municipal Program Agreement No.2024MP66 Page 3 of 14 Municipal Program Agreement No.2024MP66 EXHIBIT A—ANNUAL PLAN CONTENTS A-1. Description of all projects anticipated to be funded using the SCW Program Payment. Include a discussion of how the projects will result in the achievement of one or more SCW Program Goals, including quantitative targets and corresponding metrics for subsequent reporting of all applicable parameters. A-2. Description of all programs anticipated to be funded using the SCW Program Payment. Include a discussion of how the programs will result in the achievement of one or more SCW Program Goals; including quantitative targets and corresponding metrics for subsequent reporting of all applicable parameters. A-3. Description of all operation and maintenance activities anticipated to be funded using tie SCW Program Payment. Include a discussion of how those activities will result in the achievement of one or more SCW Program Goals. Additional operation and maintenance activities, even if funded by other sources, should be referenced to provide an overview of anticipated overall project approach. A-4. Description of the stakeholder and community outreach/engagement activities anticipated to be funded with the SCW Program Payment, including discussion of how local NGOs or CBOs will be involved, if applicable, and if not, why. Additional outreach/engagement activities, even if funded by other sources, should be referenced to provide an overview of anticipated overall project approach. A-5. Description of postconstruction monitoring for projects completed using the SCW Program Payment. Additional post -construction monitoring activities, even if funded by other sources, should be referenced to provide an overview of anticipated overall project approach. A-6. Provide the status of any projects that have been awarded (or are seeking award of) Institute for Sustainable Infrastructure (ISI) verif cation, if applicable. A-7. Provide the budget for the activities described in provisions Al through A-5 SCW Program Payment. Page 4 of 14 Municipal Program Agreement No.2024MP66 EXHIBIT B— GENERAL TERMS AND CONDITIONS B-1. Accounting and Deposit of Funding Disbursement 1. SCW Program Payments distributed to the Municipality shall be held in a separate interest-bearing account and shall not be combined with other funds. Interest earned from each account shall be used by the Municipality only for eligible expenditures consistent with the requirements of the SCW Program. 2. The Municipality shall not be entitled to interest earned on undisbursed SCW Program Payments, interest earned prior to disbursement is property of the District. 3. The Municipality shall operate in accordance with Generally Accepted Accounting Principles (GAAP). 4. The Municipality shall be strictly accountable for all funds, receipts, and disbursements for their SCW Program Payment. B-2. Acknowledgement of Credit and Signage The Municipality shall include appropriate acknowledgement of credit to the District's Safe, Clean Water Program for its support when promoting activities funded with SCW Program funds or using any data and/or information developed SCW Program funds. When the SCW Program Payment is used, in whole or in part, for construction of an infrastructure Project, signage shall be posted in a prominent location at Project site(s) or at the Municipalitys headquarters and shall include the Safe, Clean Water Program color logo and the following disclosure statement: "Funding for this project has been provided in full or in part from the Los Angeles County Flood Control District's Safe, Clean Water Program." At a minimum the sign shall be 2' x 3' in size. The Municipality shall also include in each of its contracts for work under this Agreement a provision that incorporates the requirements stated within this paragraph. When the SCW Program Payment is used, in whole or in part, for a scientific study, the Municipality shall include the following statement in the study report: "Funding for this study has been provided in full or in partfrom the Los Angeles County Flood Control District's Safe, Clean Water Program:' The Municipality shall also include in each of its contracts for work under this Agreement a provision that incorporates the requirements stated within this paragraph. B-3. Acquisition of Real Property- Covenant Any real property acquired in whole or in part with SCW Program funds shall be used for Projects and Programs that are consistent with the SCW Program Goals and with the provisions of Chapter 16 and 18 of the Code. Any Municipality that acquires the fee title to real property using, in whole or in part, SCW Program funds shall record a document in the office of the Registrar-Recorder/County Clerk containing a covenant not to sell or otherwise convey the real propertywithout the prior express written consent of the District, which consent shall not be unreasonably withheld. B-4. Amendment Except as provided in Section II of the Agreement, no amendment or variation of the terns of this Agreement shall be valid unless made in writing and signed bytthe parties. No oral or written understanding or agreement not incorporated in this Agreement is binding on any of the parties. B-5. Assignment The Municipality shall not assign this Agreement B-6. Audit and Recordkeeping 1. The Municipality shall retain for a period of seven (7) years, all records necessary in accordance with Generally Accepted Accounting Principles to determine the amounts expended, and eligibility of Projects implemented using SCW Program Payments. The Municipality, upon demand by authorized representatives of the District, shall make such records available for examination and review or audit by the District or its authorized representatives. Records shall include accounting records, written policies and procedures, contract files, original estimates, correspondence, change orderfiles, including documentation covering negotiated settlements, invoices, and anyother supporting evidence deemed necessary to substantiate charges related to SCW Program Payments and expenditures. 2. The Municipality is responsible for obtaining an independent audit to determine compliance with the terms and conditions of this Agreement and all requirements applicable to the Municipality contained in chapters 16 and 18 of the Code. Municipality shall obtain an independent audit of their SCW Program Payments everythree (3) years. Audits shall be funded with Municipal Program funds. 3. Municipality shall file a copyof all audit reports bythe ninth (91') month from the end of each three (3) year period Page 5 of 14 Municipal Program Agreement No.2024MP66 to detail the preceding three (3) years of expenditures. Audit reports shall be posted on the District's publicly accessible website. Due date example below. Every Third Fiscal Year Fiscal Year I Audit Begins i Audit Re ort Due to District 2023-24 1 7/112027 No later than 3/31/2028 4. Upon reasonable advanced request, the Municipality shall permit the Chief Engineer to examine the infrastructure Projects using SCW Program Payments. The Municipality shall permit the authorized District representative, including the Auditor -Controller, to examine, review, audit, and transcribe any and all audit reports, other reports, books, accounts, papers, maps, and other records that relate to the SCW Program Payments. Examination activities are considered District administration of the SCW Program. 5. Expenditures determined by an auditto be inviolation of any provision of Chapters 16 or 18 of the Code, or of this Agreement, shall be subject to the enforcement and remedy provisions of Section 18.14 of the Code. B-7. Availability of Funds District's obligation to disburse the SCW Program Payment is contingent upon the availability of sufficient funds to permit the disbursements provided for herein. If sufficient funds are not available for any reason including, but not limited to, failure to fund allocations necessary for disbursement of the SCW Program Payment, the District shall not be obligated to make any disbursements to the Municipality under this Agreement. This provision shall be construed as a condition precedent to the obligation of the District to make any disbursements under this Agreement. Nothing in this Agreement shall be construed to provide the Municipality with a right of priority for disbursement over any other Municipality. If any disbursements due to the Municipality under this Agreement are deferred because sufficient funds are unavailable, it is the intention of the District that such disbursement will be made to the Municipality when sufficient funds do become available, but this intention is not binding. If this Agreement's funding for any Fiscal Year is reduced or deleted by order of the Board, the District shall have the option to either cancel this Agreement with no liability occurring to the D isbict or offer an amendment to the Municipality to reflect the reduced amount. B-8. Choiceof Law The laws of the State of California govern this Agreement. B-9. Claims Any claim of the Municipality is limited to the rights, remedies, and claims procedures provided to the Municipality under this Agreement. Municipal expenditures of a SCW Program Payment that involves the District shall utilize a separate and specific agreement to that Project that includes appropriate indemnification superseding that in this Agreement. B-10. Compliance with SCW Program The Municipality shall comply with and require its contractors and subcontractors to comply with all provisions of Chapters 16 and 18 of the Code. B-11. Compliance with Law, Regulations, etc. The Municipality shall, at all times, comply with and require its contractors and subcontractors to comply with all applicable local, state and federal laws, rules, guidelines, regulations, and requirements. B-12. Continuous Use of Municipal Projects; Lease or Disposal of Municipal Projects The Municipality shall not abandon, substantially discontinue use of, lease, or dispose of all ora significant part or portion of any Project funded in whole or in partwith SCW Program Payments during the useful life (defined as 30 years unless specified otherwise in annual plans and subsequent reports) of the Project without prior written approval of the District. Such approval may be conditioned as determined to be appropriate bythe District, including a condition requiring repayment of a pro rata amount of the SCW Program Payments used to fund the Project together with interest on said amount accruing from the date of lease or disposal of the Project. B-13. Disputes Should a dispute arise between the parties, the party asserting the dispute will notify the other parties in writing of the dispute. The parties will then meet and confer within 21 calendar days of the notice in a good faith attempt to resolve the dispute. If the matter has not been resolved through the process set forth in the preceding paragraph, any party may initiate mediation of the dispute. Mediation will be before a retired judge or mediation service mutually agreeable to the parties. Page 6 of 14 Municipal Program Agreement %.2024MP66 All costs of the mediation, including mediator fees, will be paid one-half by the District and one-half by the Municipality. SCW Program Payments shall not be used to pay for any costs of the mediation. The parties will attempt to resolve any dispute through the process set forth above before filing any action relating to the dispute in any court of law. B-14. Final Inspection and Certification of Registered Professional Upon completion of the design phase and before construction of a project, the Municipality shall provide certification by a Califomia Registered Professional (i.e., Professional Civil Engineer, Engineering Geologist) that the design has been completed. Upon completion of the project, the Municipality shall provide for a final inspection and certification bya California Registered Professional (i.e., Professional Civil Engineer, Engineering Geologist), that the Project has been completed in accordance with submitted final plans and specifications and any modifications thereto and in accordance with this Agreement. B-15. Force Majeure In the event that Municipality is delayed or hindered from the performance of any act required hereunder by reason of strikes, lockouts, labor troubles, inability to procure materials not related to the price thereof, riots, insurrection, war, or other reasons of a like nature beyond the control of the Municipality, then performance of such acts shall be excused for the period of the delay, and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay. B-16. Funding Considerations and Exclusions 1. All expenditures of SCW Program Payments by Municipality must comply with the provisions of Chapters 16 and 18 of the Los Angeles County Flood Control District Code, including but not limited to the provisions regarding eligible expenditures contained in Section 16.05.A.2 and the provision regarding ineligible expenditures contained in Section 16.05.A.3. 2. SCW Program Payments shall not be used in connection with any Project implemented as an Enhanced Compliance Action ("ECA") and/or Supplemental Environmental Project ("SEP") as defined by State Water Resources Control Board Office of Enforcement written policies, or any other Project implemented pursuant to the settlement of an enforcement action orto offset monetary penatties imposed bythe State Water Resources Control Board, a Regional Water Quality Control Board, or any other regulatory authority, provded, however, that SCW funds may be used for a Project implemented pursuantto a time schedule order ("TSO") issued bythe Los Angeles Regional Water Quality Control Board if, at the time the TSO was issued, the Project was included in an approved watershed management program (including enhanced watershed management programs) developed pursuant to the MS4 Permit. B-17. Indemnification The Municipality shall indemnify, defend and hold harmless the District, the County of Los Angeles and their elected and appointed officials, agents, and employees from and against any and all liability and expense, including defense costs, legal fees, claims, actions, and causes of action for damages of any nature whatsoever, including but not limited to bodily injury, death, personal injury, or property damage, arising from or in conjunction with: (1) any Project or Program implemented bythe Municipality, in whole or in part, with SCW Program Payments or (2) any breach of this Agreement bythe Municipality. B-18. Independent Actor The Municipality, and its agents and employees, if any, in the performance of this Agreement, shall act in an independent capacity and not as officers, employees, or agents of the District. The Municipality shall not contract work with a contractorwho is in a period of debarment from any agency within the District. (LACC Chapter 2.202) B-19. Integration This is an integrated Agreement. This Agreement is intended to be a full and complete statement of the terms of the agreement between the District and Municipality, and expressly supersedes any and all prior oral orwritten agreements, covenants, representations and warranties, express or implied, conceming the subject matter of this Agreement. B-20. Lapsed Funds 1. The Municipality shall be able to carry over uncommitted SCW Program Payments for up to five (5) years from Page 7 of 14 Municipal Program Agreement No.2024MP66 the end of the fiscal year in which those funds are transferred from the District to the Municipality. 2. If the Municipality is unable to expend the SC W Program Payment within five (5) years from the end of the fiscal year in which those funds are transferred from the District to the Municipality, then lapsed funding procedures will apply. Lapsed funds are funds that were transferred to the Municipality but were not committed to eligible expenditures by the end of the fifth (5th) fiscal year after the fiscal year in which those funds were transferred from the District. 3. Lapsed funds shall be allocated bythe Watershed Area Steering Committee of the respective Watershed Area to a new Project with benefit to that Municipality, if feasible in a reasonable time frame, or otherwise to the Watershed Area. 4. In the event that funds are to lapse, due to circumstances beyond the Municipalitys control, then the Municipality may request an extension of up to twelve (12) months in which to commit the funds to eligible expenditures. Extension Requests must contain sufficient justification and be submitted to the District in writing no later than three (3) months before the funds are to lapse. 5. The decision to grant an extension is at the sole discretion of the District. 6. Funds still uncommitted to eligible expenditures after an extension is granted will be subject to lapsed funding procedures without exception. Example Below. Fiscal Year Funds Lapse Extension Commit By Transferred After Request Due 2019-20 6/30/2025 No later than No later than 3/31/2025 1 6/30/2026 B-21. Municipal Project Access Upon reasonable advance request, the Municipality shall ensure that the District or any authorized representative, will have safe and suitable access to the site of any Project implemented bythe Municipality in whole or in part with SC W Program Payments at all reasonable times. B-22. Non -Discrimination The Municipality agrees to abide by all federal, state, and County laws, regulations, and policies regarding non- discrimination in employment and equal employment opportunity. B-23. No Third -Party Rights The parties to this Agreement do not create rights in, or grant remedies to, anythird party as a beneficiary of this Agreement, or of any duty, covenant, obligation, or undertaking established herein B-24. Notice 1. The Municipality shall notify the District in writing within five (5) working days of the occurrence of the following: a. Bankruptcy, insolvency, receivership or similar event of the Municipality, or b. Actions taken pursuant to State law in anticipation of filing for bankruptcy. 2. The Municipality shall notify the D istrict within ten (10) working days of any litgation pending or threatened against the Municipality regarding its continued existence, consideration of dissolution, ordisincorporation. 3. The Municipality shall notify the District promptly of the following: a. Any significant deviation from the submitted Annual Plan for the current Fiscal Year, including discussion of any major changes to the scope of funded projects or programs, noteworthy delays in implementation, reduction in benefits or community engagement, and/or modifications that change the SC W Program Goals intended to be accomplished. b. Discovery of any potential archaeological or historical resource. Should a potential archaeological or historical resource be discovered during construction, the Municipality agrees that all work in the area of the find will cease until a qualified archaeologist has evaluated the situation and made recommendations regarding preservation of the resource, and the District has determined what actions should be taken to protect and preserve the resource. The Municipality agrees to implement appropriate actions as directed bythe District. c. Any public or media event publicizing the accomplishments and/or results of this Agreement and provide the opportunityfor attendance and participation by District representatives with at least fourteen (14) days' notice to the District. B-25. Municipalitys Responsibility for Work The Municipality shall be responsible for all work and for persons or entities engaged in work performed pursuant to this Agreement including, but not limited to, contractors, subcontractors, suppliers, and providers of services. The Municipality shall be responsible for responding to any and all disputes arising out of its contracts for work on the Project. The Districtwill not mediate disputes between the Municipality and any other entity concerning responsibility for Page 8 of 14 Municipal Program Agreement No.2024MP66 performance of work. B-26. Reporting The Municipality shall be subject to and comply with all applicable requirements of the District regarding reporting requirements. Municipalities shall report available data through the SCW Reporting Module, once available. 1. Annual Progress/Expenditure Reports. The Municipality shall submit Annual Progress/Expenditure Reports, using a format provided bythe District, within six (6) months following the end of the Fiscal Yearto the District to detail the activities of the prior year. The Annual Progress/Expenditure Reports shall be posted on the District's publicly accessible website and on the Municipalitys website. The Annual Progress/Expenditure Report shall include: a. Amount of funds received; b. Breakdown of how the SCW Program Payment has been expended; c. Documentation that the SCW Program Paymentwas used for eligible expenditures in accordance with Chapters 16 and 18 of the Code; d. Description of activities that have occurred, milestones achieved, and progress made to date, during the applicable reporting period including comparison to the Annual Plan and corresponding metrics; e. Discussion of any existing gaps between what was planned and whatwas achieved for the prior year, include any lessons learned; f. Description of the Water Quality Benefits, Water Supply Benefits, and Community Investment Benefits and a summary of how SCW Program Payments have been used to achieve SCW Program Goals for the prior year, including graphical representation of available data and specific metrics to demonstrate the benefits being achieved through the years' investments. g. Discussion of alignmentwith other local, regional, and state efforts, resources, and plans, as applicable. This includes discussion of opportunities for addressing additional SCW Program Goals, leveraging SCW Program Goals, and increasing regional capacity to supplement the SCW Program. h. Additional financial or Project -related information in connection with activity funded in whole or in part using SCW Program Payments as required bythe District. i. Certification from a California Registered Professional (Civil Engineer or Geologist, as appropriate), that projects implemented with SCW Program Payments were conducted in accordance with Chapters 16 and 18 of the Code. j. Report on annual and total (since inception of program) benefits provided by programs and projects funded by SCW Program Payment. This includes comparisons to annual plans and alignment with corresponding specific quantitative targets and metrics (note that SCW Reporting Module will facilitate calculation of benefits and graphical representation of pertinent data): i. Annual volume of stormwater captured and treated ii. Annual volume of stormwater captured and reused iii. Annual volume of stormwater captured and recharged to a managed aquifer iv. Annual creation, enhancement, or restoration of Community Investment Benefits. If none, discuss considerations explored and reasons to not include. v. Annual acreage increases in Nature -Based Solutions and claimed level of NBS (with matrix demonstrating determination of good, better, best, as outlined in Exhibit C). If none, discuss considerations explored and reasons to not include. vi. Annual expenditures providing DAC Benefits. If none, discuss considerations explored and reasons to not include. 2. Documentation of the Community Outreach and Engagement utilized for and/or achieved with the SCW Program Payment described in the Annual Plan Exhibit A. This information must be readily accessible to members of the public. 3. As Needed Information or Reports. The Municipality agrees to promptly provide such reports, data, and information as maybe reasonably requested by the District including, but not limited to mated al necessary or appropriate for evaluation of the SCW Program or to fulfill any reporting requirements of the County, state or federal govemment. B-27. Representations, Warranties, and Commitments The Municipality represents, warrants, and commits as follows: 1. Authorization and Validity. The execution and delivery of this Agreement, including all incorporated documents, by the individual signing on behalf of Municipality, has been duly authorized bythe governing body of Municipality, as applicable. This Agreement constitutes a valid and binding obligation of the Municipality, enforceable in accordance with its terms, except as such enforcement may be limited by law. 2. No Violations. The execution, delivery, and performance by the Municipality of this Agreement, including all incorporated documents, do not violate any provision of any law or regulation in effect as of the date set forth on the first page hereof, or result in any breach or default under any contract, obligation, indenture, or other instrument Page 9 of 14 Municipal Program Agreement No.2024MP66 to which the Municipality is a party or by which the Municipality is bound as of the date set forth on the first page hereof. 3. No Litigation. There are no pending or, to the Municipalitys knowledge, threatened actions, claims, investigations, suits, or proceedings before any governmental authority, court, or administrative agencywhich affect the Municipalitys abilityto complete the Annual Plan. 4. Solvency None of the transactions contemplated bythis Agreement will be or have been made with an actual intent to hinder, delay, or defraud any present or future creditors of the Municipality. As of the date set forth on the first page hereof, the Municipality is solvent and will not be rendered insolvent by the transactions contemplated by this Agreement. The Municipality is able to pay its debts as they become due. 5. Legal Status and Eligibility The Municipality is dulyorganized and existing and in good standing under the laws of the State of California. The Municipality shall at all times maintain its current legal existence and preserve and keep in full force and effect its legal rights and authority. 6. Good Standing. The Municipality must demonstrate it has not failed to complywith previous County and/or District audit disallowances within the preceding five years. B-28. Travel Any reimbursement for necessary ground transportation and lodging shall beat rates not to exceed those set by the California Department of Human Resources; per diem costs will not be eligible expenses. These rates maybe found at http://www.calhr.ca.gov/employees/Pages/travel-reimbursements.aspx Reimbursement will beat the State travel amounts that are current as of the date costs are incurred by the Municipality. No travel outside the Los Angeles County Flood Control District region shall be reimbursed unless prior written authorization is obtained from the Program Manager. B-29. Unenforceable Provision In the event that any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable, the parties agree that all other provisions of this Agreement have force and effect and shall not be affected thereby. B-30. Withholding of Disbursements and Material Violations Notwithstanding any other provision of this Agreement, the District may withhold all or any portion of the SCW Program Payment for any Fiscal Year in the event that: 1. The Municipality has violated any provision of this Agreement; or 2. The Municipality fails to maintain reasonable progress in achieving SCW Program Goals, following an opportunity to cure. 3. Failure to remain in Good Standing, described in Section B-26 of Exhibit B. 4. Failure to submit annual reports on meeting SCW Program Goals. Page 10 of 14 Municipal Program Agreement No.2024MP66 EXHIBITC—NATURE BASED SOLUTIONS (NBS) BEST MANAGEMENT PRACTICES Municipalities shall consider incorporation of Nature -based solutions (NBS) into their projects. NBS refers to the sustainable management and use of nature for undertakirg socio -environmental challenges, including climate change, water security, water pollution, food security, human health, and disaster risk management. As this environmental management practice is increasingly incorporated into projects for the SCW Program, this guidance document may be expanded upon to further quantify NBS practices based on benefits derived from their incorporation on projects. The SCW Program defines NBS as a Project that utilizes natural processes that slow, detain, infiltrate or filter Stormwater or Urban Runoff. These methods may include relying predominantly on soils and vegetation; increasing the permeability of Impermeable Areas; protecting undeveloped mountains and floodplains; creating and restoring riparian habitat and wetlands; creating rain gardens, bioswales, and parkway basins; enhancing soil through composting, mulching; arid, planting trees and vegetation, with preference for native species. NBS may also be designed to provide additional benefits such as sequestering carbon, supporting biodiversity, providing shade, creating and enhancing parks and open space, and improving qualityof life for surrounding communities. NBS include Projects that mimic natural processes, such as green streets, spreading grounds and planted areas with water storage capacity. NBS may capture stormwater to improve water quality, collect water for reuse or aquifer recharge, or to support vegetation growth utilizing natural processes. Municipalities are to include in each Annual Progress/Expenditure Report whether and how their project achieves a good, better, or best for each of the 6 NBS methods in accordance with the guidance below. Additionally Annual Progress/ Expenditure Reports should include discussion on any considerations taken to maximize the class within each method. If at least 3 methods score within a single class, the overall project can be characterized as that class. Municipalities must attach a copy of the matrix for each project with the good, better, or best column indicated for each method, to facilitate District tracking of methods being utilized. METHODS VegetatioNGreen Space Increase of Permeability Protection of Undeveloped Mountains & Floodplain Use of climate appropriate, eco -friendly vegetation (groundcover, shrubs, and trees) / green space 5%- 15% covered by new climate -appropriate vegetation Wtallation of vegetated andscape — 25%-49% paved area removed Redesign of existing impermeable surfaces and/or installation of permeable surfaces (e.g. permeable pavement and infiltration trenches) *Preservation of native vegetation I .Minimal negative ii to existing drainage system Use of native, climate appropriate, eco -friendly vegetation (groundcover, shrubs, and trees) / green space 160/6- 35% covered by new native vegetation Installation of vegetated landscape — 50%-74% paved area removed Improvements of soil health (e.g., compaction reduction) vegetation a Installation of new features) to improve existing drainage system or, BEST'` blishment of plant munities with a sity of native nation mdcover, shrubs.. and ;) /'green space that is native and climate- opriate than 35% covered by native vegetation illation of vegetated scapa — 75%-100% ;d area removed ation of well-connected self -sustained natural scapes with healthy permeable surfaces. appropriate vegetation of open green ion of features to natural hydrology Pace " of 14 Creation & Restoration of Riparian Habitat & Wetlands New Landscape Elements Enhancement of Soil existing riparian habitat and wetlands _.Planting climate appropriate vegetation between 11 a 20 different climate appropriate or native pla species newly planted o No potable water used sustain the wetland Elements designed to capture runoff for other simple usage (e.g. rain gardens and cisterns), capturing the 85th percentile 24-hour storm event for at least 50% of the entire parcel Use of soil amendments such as mulch and compost to retain moisture jsoil and prevent ion sting of new climate opriate vegetation to enhance soil organic matter *Full restoration of existing riparian habitat and wetlands *Planting of native vegetation - between 21 and 40 different native plant species newly planted • No potable water used to sustain the wetland Elements that design to capture/redirect runoff and filter pollution (e.g. bioswales and parkway basins), capturing the 85th percentile 24-hour storm event from the entire parcel Use of soil amendments such as mulch and compost that are locally generated to retain moisture in the soil, prevent erosion, and support locally based composting and other soil enhancement activities Planting of new native, climate -appropriate vegetation to enhance soil organic matter Municipal Program Agreement No.2024MP66 ands Planting of plant munities with a rsity of native dation— between 41" 50 different native tspecies newly potable water used to iin the wetland le sized elements that .ure and treat runoff to dement or replace ting water systems wetlands, da0ighting ams, groundwater ,ation, floodplain 3mation), capturing the i percentile 24-hour 'n event from the entire :el and/or capturing off - runoff zh as mulch and mpost that are locally nerated.. especially use next -generation design in regenerative scrbents (e.g. )odchips, biochar) to ain moisture in the soil, =.vent erosion, and pport on-site mposting and other it enhancement of new native, appropriate on to enhance soil Page 12 of 14 Municipal Program Agreement No.2024MP66 EXHIBIT D—OPERATIONS AND MAINTENANCE GUIDANCE DOCUMENT Municipalities shall operate and maintain infrastructure projects for the useful life of the project and are to consider using the following guidance for operations and maintenance for infrastructure projects. Operational maintenance is the care and upkeep of Projects that may require detailed technical knowledge of the Project's function and design. Project specific operational and maintenance plans shall consider the activities listed below and set forth specific activities and frequencies (not limited to those below) as determined to be appropriate by the Municipalities and best practices, including stakeholder engagement as applicable. Operational maintenance is to be performed by the operator of the Project with a purpose to make the operator aware of the state of readiness of the Project to deliver stormwater and urban runoff benefits. Litter Control • Regular removal of litter, nonhazardous waste materials, and accumulated debris near planted areas, rock areas, decomposed granite areas, rest areas, fence perimeters, adjoining access roads and driveways, drains, pedestrian trails, viewing stations, shelter houses, and bicycle pathways. • Regular inspection and maintenance of pet waste stations. • Maintaining trash receptacles. • Removal of trash, debris, and blockages from bioswales. • Inspection and cleaning of trash booms. • Inspection of weir gates and stop logs to clean debris, as required. 2. Vegetation Maintenance Weed control o Recognition and removal of weeds, such as perennial weeds, morning glory, vine -type weeds, ragweed, and other underground spreading weeds. o Avoiding activities that result in weed seed germination (e.g. frequent soil cultivation near trees or shrubs). o Regular removal of weeds from landscape areas, including from berms, painted areas, rock areas, gravel areas, pavement cracks along access roads and driveways, drains, pedestrian trails, viewing stations, park shelters, and bicycle paths. Tree and shrubbery trimming and care o Removal of dead trees and elimination of diseased/damaged growth. o Prevent encroachment of adjacent property and provide vertical clearance. o Inspect for dead or diseased plants regularly. Wetland vegetation and landscape maintenance o Installation and maintenance of hydrophytic and emergent plants in perenniallywet and seasonal, intermittent habitats. o Draining and drawdown of wetland and excessive bulrush removal o Weed and nuisance plant control. o Removal of aquatic vegetation (e.g. algae and primrose) using appropriate watercraft and harvesting equipment. o Wildflower and meadow maintenance. o Grass, sedge, and yarrow management. o Removal of unwanted hydroseed. 3. Wildlife Management • Exotic species control. • Provide habitat management; promote growth of plants at appropriate densities and promote habitat structure for animal species. • Protect sensitive animal species (e.g. protection during critical life stages including breeding and migration). • Avoid disturbances to nesting birds. • Avoid spread of invasive aquatic species. 4. Facility Inspection • Inspect project sites for rodent and insect infestations on a regular basis. • Inspect for and report graffiti in shelter houses, viewing stations, benches, paving surfaces, walls, fences, and educational and directional signs. • Inspect facilities for hazardous conditions on roads and trails (e.g. access roads and trails, decomposed granite pathways, and maintenance roads). Page 13 of 14 Municipal Program Agreement No.2024MP66 • Inspect shade structures for structural damage or defacement. • Inspect hardscapes. • Inspect and maintain interpretive and informational signs. • Inspect site furnishings (e.g. benches, hitching posts, bicycle racks). • Maintain deck areas (e.g. benches, signs, decking surfaces). • Visually inspect weirs and flap gates for damage; grease to prevent locking. • Inspect all structures after major storm events, periodically inspect every 3 months, and operate gates through full cycles to prevent them from locking up. 5. Irrigation System Management Ensuring automatic irrigation controllers are functioning properly and providing various plant species with proper amount of water. o Cycle controller(s) through each station manually and automaticallyto determine if all facets are functioning properly. o Inspection should be performed at least monthly. o Recover, replace, or refasten displaced or damaged valve box covers. o Inspect and repair bubbler heads. o Repair and replace broken drip lines or emitters causing a loss of water (to prevent ponding and erosion). o Maintain drip system filters to prevent emitters from clogging. Inspection and cleaning should occur at least monthly. o Inspect and clean mainline filters, wye strainers, basket filters, and filters at backflow devices twice a year. o Maintain and check function of the drip system. Keeping irrigation control boxes clear of vegetation. Operating irrigation system to ensure it does not cause excessivelywet, waterlogged areas, and slope failure. Utilizing infrequent deep watering techniques to encourage deep rooting, drought tolerant plant characteristics to promote a self-sustaining, irrigation free landscape. Determine watering schedules based on season, weather, vadation in plant size, and plant varieties. At least four times a year (e.g. change of season), reschedule controller systems. • Tum off irrigation systems at the controller at the beginning of the rainy season, or when the soil has a high enough moisture content. • Use moisture sensing devices to determine water penetration in soil. 6. Erosion Management and Control • Inspect slopes for erosion during each maintenance activity. • Inspect basins for erosion. • Take corrective measures as needed, including filling eroded surfaces, reinstalling or extending bank protection, and replanting exposed soil. Ongoing Monitoring Activities • Monitor controllable intake water flow and water elevation. • Examine inflow and outflow structures to ensure devices are functioning properlyand are free of obstructions. • Water quality sampling (quarterly, unless justified otherwise). • Checking telemetry equipment. • Tracking and reporting inspection and maintenance records. 8. Vector and Nuisance Insect Control • Monitoring for the presence of vector and nuisance insect species. • Adequate pretreatment of influent wastewater to lessen production of larval mosquitos. • Managing emergent vegetation. • Using hydraulic control structures to rapidly dewater emergent marsh areas. • Managing flow velocities to reduce propagation of vectors. Page 14 of 14