SUBJECT: RESOLUTION AUTHORIZING THE CITY TO ACCEPT AND APPROPRIATE FUNDS FROM THE CALIFORNIA COASTAL CONSERVANCY IN THE AMOUNT OF $400,000 FOR THE IMPLEMENTATION OF THE ARROYO VIEJO CREEK RESTORATION PROJECT AT THE KNOWLAND PARK/ OAKLAND ZOO SITE AND TO ENTER INTO AGREEMENTS WITH THE CALIFORNIA COASTAL CONSERVANCY FOR THESE FUNDS

PURPOSE AND SCOPE

In accordance with the Measure H Charter Amendment, which was passed by the voters at the General election of November 5, 1996, we have made an impartial financial analysis of the accompanying Council Agenda Report and Proposed Resolution. In making our analysis, we obtained and reviewed a copy of Resolution #78151 C.M.S. In addition, we had discussions with agency staff for clarification of dollar amounts listed in the agenda report.

Since the Measure H Charter Amendment specifies that our impartial financial analysis is for informational purposes only, we did not apply Generally Accepted Government Auditing Standards as issued by the Comptroller General of the United States. Moreover, the scope of our analysis was impaired by Administrative Instruction Number 137, effective May 21, 1997, which provides only one (1) week for us to plan, perform and report on our analysis.

SUMMARY

This resolution authorizes a contract with the California Coastal Conservancy to secure grant funds in the amount of $400,000, for the purpose of a creek restoration project of Arroyo Viejo Creek at the Oakland Zoo in Knowland Park. The funds will cover partial expenses of
the creek restoration project over a 3-year period (i.e., FY 2003-04 through FY 2005-06). The $400,000 will be used specifically for construction costs, as stipulated by the Coastal Conservancy grant.

The project is collaboration between the City, the Oakland Zoo and the Alameda County Flood Control and Water Conservation District (County). The initial restoration design was funded by the County. The City is the lead on this project and is responsible for administration of the grant and for implementation of the project. The Oakland Zoo will be responsible for maintenance of the project after construction is completed.

FISCAL IMPACT

The total projected cost of the Arroyo Viejo Creek Restoration Project is $964,000, including the grant and matching funds:

Description	Amount
Coastal Conservancy Grant	$400,000
Proposition 40, Robert Z'Berg Harris Block Grank Program	$400,000
In-kind contributions from Oakland Zoo staff and volunteers	$144,000
In-kind contributions from City staff	$ 20,000
Total	$964,000

CONCLUSION

The Proposed Resolution appears to be reasonable.

Prepared by:

Marilen Isidro

Issued by:

Roland E. Smith, CPA, CFS
City Auditor

Report completion date:
January 9, 2004

Report Number:04-086