HomeMy Public PortalAbout08) 7E Budget Allocation-Rosemead Blvd ProjDATE :
TO:
FROM:
ADMINISTRATIVE SERVICES DEPARTMENT
MEMORANDUM
October 2, 2012
The Honorable City Council
Jose E. Pulido , City Manager M \A
By : Tracey L. Hause , Admini~t i ve Services Dire ct"'-. -<...J
AGENDA
ITEM ?.E.
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 Monito ring 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
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October 2, 2012
Page2
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 with in 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 econom ic 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 Author ization
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
Admin istration , with issuance of the E-76 document, approved the Rosemead
Boulevard Project to proceed to the construction phase.
1 0. 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 Highlande r.
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.
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October 2 , 2012
Page 3
12. On September 7 , 2012, Addendum "8" was issued, comprised mostly of
responses to initial bidder questions and adjustments needed on certain items in
the bid schedule .
13. On September 13, 2012, Addendum "C" as a single item addendum extending
the bid date to October 4, 2012.
14. On Oct ober 4, 2012, the City will receive construction bids from General
Contractors for the Rosemead Boulevard Project.
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 m ile
length of the boulevard. This will transform Temple City's segment of Rosemead
Boulevard from a regional highway into a pedestrian friendly corridor.
Based on the current construct ion 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 MeasureR 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 (LACMT A) 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
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October 2, 2012
Page 4
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 cons istent 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
or the Unappropirated General Fund Balance in the amount of $510,625 may not be
necessary. However g iven 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 October 4, 2012 .
If the City Council chooses to not fully fund the Rosemead Boulevard Project at
$14,652,644 for construction costs, and if on October 4 , 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 by a couple of months 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 October 4, 2012, staff is requesting the City Council fully fund the
Rosemead Boulevard Project so that there is m i nimal risk in having to re-b id th is
p roject.
Staff has identified sufficient resources that are available from Gas Tax funds, future
Proposition A and Measure R funds (i.e., funding sources that must be used for
transportation related projects) and the General Fund (i.e., Economic Development
Reserve). If approved by the City Council, the requested funding amendments to the
FY 2012-1 3 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, collectively
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October 2, 2012
Page 5
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, increasing the total project budget to $19,478,850.
ATTACHMENT:
A. Rosemead Boulevard Safety Enhancement and Beautification Project Budget
Worksheet