The URL can be used to link to this page

Home My Public Portal About15) 9.B Rosemead Blvd Fund AllocationADMINISTRATIVE SERVICES DEPARTMENT MEMORANDUM DATE: September 18, 2012 TO: The Honorable City Council FROM: Jose E. Pulido, City Manager ( By: Tracey L. Hause, Administrative Services Direct AGENDA ITEM 93. SUBJECT: BUDGET ALLOCATION FOR THE ROSEMEAD BOULEVARD SAFETY ENHANCEMENT AND BEAUTIFICATION PROJECT RECOMMENDATION: The City Council is requested to amend the current Fiscal Year (FY) 2012-13 City Budget to provide additional resources to the Rosemead Boulevard Safety Enhancement and Beautification Project (Rosemead Boulevard Project) by taking the following action(s): a) An appropriation of $650,000 from the Gas Tax Unappropriated Fund Balance; b) An earmark of the future FY 2013-14 Proposition C funds in the amount of $448,000 to be allocated to the project when these funds become available in FY 2013-14; c) An earmark of the future FY 2013-14 Measure R funds in the amount of $336,440 to be allocated to the project when these funds become available in FY 2013-14; d) An appropriation of $510,625 from the City's Economic Development General Fund Reserve; or e) An appropriation of $510,625 from the Unappropriated General Fund Balance. BACKGROUND: 1. On March 6, 2012, the City Council adopted Resolution No. 12-4802 to approve the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for the Rosemead Boulevard Project and authorized the City Manager to release the plans and specifications for bid upon receipt of Caltrans' Authorization to Proceed with Construction (E-76). The projected total project budget for the Rosemead Boulevard Project was $18,291,288. This total budget City Council September 18, 2012 Page 2 included the components of construction costs and soft costs of $13,209,956 and $5,081,332 respectively. 2 On March 26, 2012, project staff (i.e., Community Development Director, Steve Masura and Vanir Project Manager, Kristi Twilley) submitted to Caltrans the Request for Authorization to Proceed with construction. This authorization, typically provided within three to four months of submittal, must be granted and secured prior to the solicitation of bids for the project. 3. On June 5, 2012, the City Council approved, among other General Fund Reserves, an Economic Development General Fund Reserve of $8,000,000 to promote and stimulate economic development activity in the City's commercial corridors. 4. On June 6, 2012, the City received Caltrans Right -of -Way approval, a key component for the ultimate E-76 approval from Caltrans. 5. On June 28, 2012, the final changes were made to the Request for Authorization to Proceed with Construction package based on the updated project cost estimate produced by Gruen Associates. 6. On July 2, 2012, the Request for Authorization to Proceed with Construction package was approved by Caltrans Local Assistance (i.e., Los Angeles) and forwarded to Caltrans Headquarters (i.e., Sacramento) for final approval. 7. On July 6, 2012, Gruen Associates submitted a construction drawing hard cost estimate of $14,652,644 for the base items in the Rosemead Boulevard Project's scope of work. 8. On July 17, 2012, the Request for Authorization to Proceed with Construction package was approved by Caltrans Headquarters and forwarded to the Federal Highway Administration (FHWA) the entity that issues the actual E-76 document. 9. On July 31, 2012, Caltrans notified Temple City that the Federal Highway Administration, with issuance of the E-76 document, approved the Rosemead Boulevard Project to proceed to the construction phase. 10. On August 17 and 24, 2012, the City advertised a Notice Inviting Bids for the Rosemead Boulevard Project in the San Gabriel Valley Tribune, Pasadena Star News and Temple City Highlander. 11. On September 5, 2012, the City hosted a mandatory bid walk through to introduce the project to potential bidders. Eleven general contractors were in attendance as well as several subcontractors. 12. On September 20, 2012, the City will receive construction bids from General Contractors for the Rosemead Boulevard Project. City Council September 18, 2012 Page 3 ANALYSIS: During the past two and a half years, the City has been diligently working to redesign Rosemead Boulevard (approximately 2 miles) from Callita Street (north) to the south side of the Union Pacific Railroad (UPRR) railroad tracks (south) in Temple City. As currently designed, this project will enhance pedestrian, bicycle, and public transit circulation by providing new sidewalks, transit stop improvements, bicycle facilities, and other pedestrian and bicycle amenities. Moreover, the provision of new trees and other landscaping along the sidewalks and with new street medians, street lighting, street furnishings, decorative planters, retaining walls, entry monuments, and signage, all of which will create visual consistency and enhance the appearance of the entire two mile length of the boulevard. Thus, transforming Temple City's segment of Rosemead Boulevard from a regional highway into a pedestrian friendly corridor. Based on the current construction estimates provided by Gruen Associates of $14,652,644 and the revised estimates for the soft costs of $4,826,206, for a total revised budget of $19,478,850 (Attachment "A"), additional resources are necessary at this time to ensure that the construction budget remains consistent with the current design. In an effort to achieve this objective, the City Manager, Administrative Services Director along with the City's funding consultant, Avant -Garde are recommending that the City Council consider the following budget amendments in order to increase funding for the construction portion of this project from $12,707,579 to $14,652,644 by using these funding sources: • Unallocated Gas Tax Fund Balance of $650,000; • Earmark Fiscal Year 2013-14 Proposition C funds of $448,000; • Earmark Fiscal Year 2013-14 Measure R funds of $336,440; and • Economic Development Reserve or Unappropriated General Fund Balance for $510,625. Staff has verified with the Los Angeles County Metro Transit Authority (LACMTA) that future Proposition C funds and Measure A funds can be earmarked. Furthermore, staff is recommending that the $510,625 come from the Economic Development Reserve of $8,000,000, authorized by the City Council on June 5, 2012. This reserve was established by the City Council to provide monetary resources for future economic development growth in the City's commercial corridors. With the enhancements this project will provide, staff is anticipating an increase in the tax base, primarily in the areas of property tax and sales tax. An alternative funding source would be the Unappropriated General Fund Balance that currently has a balance of $1,598,281, for these types of one-time budget expenditures. Although the City Council has the option of using the Unappropriated General Fund Balance as a funding source, it is staff's recommendation that the Economic Development Reserve be utilized for this project because it is consistent with this fund's purpose. In light of the current construction climate, it is possible that the construction bids for the Rosemead Boulevard Project may come in lower than Gruen Associate's construction estimate of $14,652,644, and funding from either the Economic Development Reserve City Council September 18, 2012 Page 4 or the Unappropirated General Fund Balance in the amount of $510,625 may not be necessary. However given the considerable time, effort and resources the City has devoted and committed to the Rosemead Boulevard Project over the past two and a half years, staff is recommending that all of the requested funding sources be authorized by the City Council up to $14,652,644 for the construction costs just in time for the project's bid opening on September 20, 2012. If the City Council chooses to not fully fund the Rosemead Boulevard Project at $14,652,644 for construction costs, and if on September 20, 2012 the construction bids come in higher than current construction budget of $12,707,579, the City would have to re -bid this project while delaying the implementation of this important capital improvement project. CONCLUSION: Since the City is required to disclose the amount budgeted for this project prior to the bid opening on September 20, 2012, staff is requesting the City Council fully fund the Rosemead Boulevard Project so that there is minimal risk in having to re -bid this project. Staff has identified sufficient resources that are available from Gas Tax funds, future Proposition A and Measure R funds and the General Fund (i.e., Economic Development Reserve). If approved by the City Council, the requested funding amendments to the FY 2012-13 City Budget and earmarks for the FY 2013-14 will add $1,945,065 to the Rosemead Boulevard Safety Project which would increase the current $12,707,579 construction funds available, up to $14,652,644 to ensure completion of this project and remain consistent with the current design. FISCAL IMPACT: Funding in the amount of $1,160,625 from current unappropriated fund balances (i.e., Gas Tax and General Fund) or reserves (i.e., Economic Development Reserve) and $784,440 from earmarked dollars for FY 2013-14 Proposition C and Measure R funds (i.e., funding sources that must be used for transportation related projects), collectively will provide the necessary funding required to complete the Rosemead Boulevard Project as currently designed. Hence, the project construction budget will become $14,652,644, while also increasing the total project budget to $19,478,850. ATTACHMENT: A. Rosemead Boulevard Safety Enhancement and Beautification Project Budget Worksheet Attachment A ROSEMEAD BOULEVARD SAFETY ENHANCEMENT and BEAUTIFICATION PROJECT Budget Overview Construction phase expenses budget 3670 W. Temple Ave., #278, Pomona, CA 91768 September 2012 Total Local & State Funds $ 15,161,133 Total Federal Funds $ 4,317,717 TOTAL FIRM BUDGET $ 19,478,850 Total Encumbrances (pre -con) to date $ (3,662,$54) 19% $ 15,916,496 AVANT G A K D E ROSEMEAD BOULEVARD SAFETY ENHANCEMENT and BEAUTIFICATION PROJECT No additional grant Funds are being pursued at this time : Call for Projects (CFP) funds Funds are encumbered for the project; Expenses must be paid in advance and submitted for reimbursment . Annual or other per capita dispersements based on projections s Funds must be spent within two fiscal years per program s Funds are direct payment from Caltrans re: relinquishment; non-restrictive and designated for specialty soft costs 1�7 3670 W. Temple Ave., #278, Pomona, CA 91768 AVANT (, A �i 1) T Guaranteed Future Fiscal Potential reimbursement Year (FY) supplemental Fund Cash in the Bank funds, Allocations, funds, Total per Fund FEDERAL FUNDS - federal reimbursement funds distributed AlSTPL annually per capita $ - $ 641,710 $ 366,103 $ - $ 1,007,813( HPLU • federal reimbursement funds earmarked from B congressional legislation $ - $ 719,920 $ - $ - $ 719,920 HSIP - Highway Safety Improvement Program, federal C reimbursement competitive grant $ - $ 340,000 $ - $ - $ 340,000 CMAQ-federal reimbursement funds secured through D LACMTA Call for Projects $ - $ 2,249,984 $ - $ - $ 2,249,984 COUNTYFUNDS I A- monthly receipts of County sales taxes for ElProp transit functions $ 1,500,000 $ $ - $ - $ 1150010001 C- monthly receipts of County sales taxes for I FlProp transportation $ 4,070,210 $ - $ 869,000 $ 448,000 $ 5,387,210 (Measure R - monthly receipts of County sales tax I 1 G initiative for transit&transportation $ 483,700 $ - $ - $ 336,440 $ 820,140 ISTATE FUNDS 1 - J Prop 16 - State -generated bond funds distributed per H capita in two allocations 1$ 11131,010 $ - $ - $ $ 1,131,0101 Traffic Congestion Relief (TCR) funds - quarterly receipts ($ I of State generated sales taxes on G�asoline s 422,898 $ $ - $ - $ 422,898 - Rubberized Asphalt Concrete,State (RAC 1 reimbursement competitive grant awarded 1 $ - 1 $ 110,250 $ - $ - $ 110,250 BTA -Bicycle Transportation; State reimbursement funds, K competitive grant awarded $ $ 443,000 $ - $ - $ 443,000 1 CITY FUNDS I I LISuccessor Agency Funds 1 $ 1,800,0001 $ - $ $ - $ 1,800,000 Lighting & Landscaping Assessment District (LLD) - M funds locally generated by assessment 1 1$ 1 2,000,000 1 $ - $ - $ - $ 2,000,000 General Fund Account: Payment from Caltrans (non. N restrictive) s 1 $ 386,000 $ - $ $ - $ 386,000 1Gas Tax Funds I$ $ - $ - $ 650,000 $ 650,000 1Economic Development Reserve 1 $ 510,625 $ 510,625 ITotal Funds 1 $ 11,793,818 1 $ 4,504,864 $ 1,235,103 $ 1,945,065 $ 19,478,850 No additional grant Funds are being pursued at this time : Call for Projects (CFP) funds Funds are encumbered for the project; Expenses must be paid in advance and submitted for reimbursment . Annual or other per capita dispersements based on projections s Funds must be spent within two fiscal years per program s Funds are direct payment from Caltrans re: relinquishment; non-restrictive and designated for specialty soft costs 1�7 3670 W. Temple Ave., #278, Pomona, CA 91768 AVANT (, A �i 1) T