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Home My Public Portal About12) 7I Rosemead Bvd Project Budget AdjustmentAGENDA ITEM 7.1. MANAGEMENT SERVICES DEPARTMENT DATE: November 6, 2012 MEMORANDUM TO: Honorable Mayor and City Council FROM: Jose E. Pulido, City Manage' By: Brian Haworth, Assistant to the City Manager SUBJECT: BUDGET ADJUSTMENT FOR THE ROSEMEAD BOULEVARD SAFETY ENHANCEMENT AND BEAUTIFICATION PROJECT RECOMMENDATION: It is recommended that the City Council increase the construction budget by $1,089,375 for the Rosemead Boulevard Safety Enhancement and Beautification Project through the following actions: a) A reappropriation of $600,000 in programmed Gas Tax monies; and b) An allocation of $489,375 from the Economic Development Fund Reserve. BACKGROUND: 1. On October 16, 2012, the City Council (Council) rejected all responsive bids for the project as the bids exceeded the $14.65 million construction budget by more than five percent (i.e., the lowest responsive bid received was $15.66 million). 2. On October 19, 2012, staff issued an expedited schedule to solicit contractor bids for the project with the same construction budget. Construction bids are due to the City on November 8, 2012. An award of construction contract is tentatively scheduled for Council consideration on November 20, 2012. 3. On October 31, 2012, the City hosted a mandatory bid walkthrough to introduce the project to potential bidders. Eleven general contractors as well as several subcontractors were in attendance. City Council November 6, 2012 Page 2 ANALYSIS: Based on the recently rejected bids received for the project, costs are expected to exceed the City's $14.65 million construction budget. In order to obtain competitive bids and move the project into construction by early next year, staff is recommending that the Council consider increasing the construction budget by $1,089,375 (i.e., for a total of $15.74 million) through the following two measures: Measure 1: ReaDDropriation of $600.000 in Proarammed Gas Tax Monies The Fiscal Year (FY) 2012-13 City Budget contains a $750,000 Gas Tax line item appropriation (i.e., CIP Project No. 13-02) for a pavement conditions survey, and repaving of streets as recommended by the survey findings. The existing allocation of funds is as follows: Pavement Conditions Survey $ 50,000 Rei)avina of Streets $700,000 TOTAL $750,000 According to the City's Public Safety and Services Division, work on the pavement conditions survey will not begin until early next year, concluding in May 2013. It is most likely that those streets identified in the survey for repaving would not be programmed for work until July 2013, meaning that the available $700,000 in appropriations would remain unspent and require a rollover into the next FY City Budget. Given this timing circumstance, and the fact that the City receives over $1 million annually in Gas Tax revenues, staff is recommending that the street repaving allocations identified by the survey be considered as part of the FY 2013-14 City Budget. With this in mind, staff is recommending that the Council move forward with a reallocation of the $750,000 in Gas Tax funds to assist the project as follows: Rosemead Boulevard Project $600,000 Detour Street Improvements $100,000 Pavement Conditions Survev $ 50,000 TOTAL $750,000 This scenario allows $600,000 in additional construction funding for the project, as well as $100,000 for improvements to primary detour roads that will accommodate vehicular traffic during project construction, and nearby Baldwin Avenue underpass improvements. By early next year, detour roads—including segments along Temple City Boulevard, Broadway and Sultana Avenue—are planned to receive pothole repairs, road patching, adequate pavement markers City Council November 6, 2012 Page 3 and striping refreshing (as needed). The recommended reallocation still allows for the pavement conditions survey to continue as planned. Measure 2: Allocation of $489,375 from the Economic Development Fund Reserve A $489,375 appropriation from the City's Economic Development Fund is being requested. This appropriation will most likely allow some bid alternates to be included with the project (e.g., colored concrete, pavers, larger street tree sizes, specialty signage and monuments). It should be noted that the Council previously made an appropriation from the Economic Development Fund Reserve to the project on October 2, 2012 in the amount of $510,625. The requested and additional appropriation of $489,375 from this fund source will realize $1 million toward leveraging a $20.57 million project. Attachment "A" contains the project's proposed and revised construction budget, should the Council approve the aforementioned measures. If the Council chooses not to fully fund the project's proposed and revised construction budget at $15.74 million, and if on November 8, 2012 the construction bids come in higher than the current budget of $14.65 million, staff would have to re -bid the project while delaying a couple months implementation of this important capital improvement project. CONCLUSION: Since the City is required by Caltrans to disclose the construction budget for the project prior to bid opening on November 8, 2012, staff is requesting the Council to increase the budget from $14.65 million to $15.74 million. This action will minimize the risk of over budget bids and maximize the opportunity to move the project into construction by January 2013. FISCAL IMPACT: There is no fiscal impact to the FY 2012-13 City Budget as the requested $600,000 reallocation of Gas Tax funds essentially shifts funds from one project to another. However, there will be financial impact to the Economic Development Fund Reserve, should the additional $489,375 appropriation be approved by the Council. City Council November 6, 2012 Page 4 ATTACHMENT: A. Revised Proposed Budget Attachment A ROSEMEAD BOULEVARD SAFETY ENHANCEMENT and BEAUTIFICATION PROJECT Budget Overview October 2012 Total Local & State Funds $ 16,250,508 Total Federal Funds $ 4,317,717 TOTAL FIRM BUDGET $ 20,568,225 Total Encumbrances (pre -con) to date $ (3,662,354) 18% Construction phase expenses budget $ 16,905,871 IPA 3670 W. Temple Ave., 4278, Pomona, CA 91768 Avant Garde Inc. ROSEMEAD BOULEVARD SAFETY ENHANCEMENT and BEAUTIFICATION PROJECT Lighting & Landscaping Assessment District (LLD) - funds Guaranteed Potential M locally generated by assessment - $ 2,000,0001$ - $ reimbursement 2,000,0001 Future Fiscal Year supplemental Fund Cashinthe Bank funds, 1 $ 386,000 $ - 1 $ (FY) Allocations< funds, Total per Fund STPL- federal reimbursement funds distributed annually 1$ 650,000 1 $ - $ - 1$ 600,000 I$ 1,250,000 1 Economic Development Reserve $ 510,625 1 A per capita $ - $ 641,710 $ 366,103 $ - $ 1,007,813 1HPLU - federal reimbursement funds earmarked from No additional grant funds are being pursued at this time Call for Projects (CFP) funds B congressional legislation $ - $ 719,920 $ - $ - $ 719,920 1 HSIP- Highway Safety Improvement Program, federal „Annual or other per capita dispersements based on projections C reimbursement competitive grant $ 1 $ 340,000 1 - $ $ - $ 340,000 I 1 secured through 1$ DICMALACM4TAfCal fral orrProectsemen[funds - 1$ 2,249,9841$ - $ - $ 2,249,984 Iatnrar¢uNIi3'T � _ _ ( Prop A - monthly receipts of County sales taxes for transit E functions $ 1,500,000 $ - $ - $ - $ 1,500,000 receipts of County sales taxes For Flt ans por ationhly 1 $ 4,939,210 l $ - 1 $ 448,000 1 $ 5,387,210 l Measure R - monthly receipts of County sales tax initiative G fortransit.&transportation $ 483,700 $ - l $ 336,4401 $ 820,140 1 Prop 1B - State -generated bond funds distributed per capita H in two allocations $ 1,131,010 $ - $ - $ - $ 1,131,010 Traffic Congestion Relief (TCR) funds - quarterly receipts of I State generated sales taxes on gasoline s 1 $ 422,898 1 $ - 1 $ - 1 $ - 1 $ 422,898 I RAC - Rubberized Asphalt Concrete, State reimbursement J competitive grant awarded 1 $ - 1 $ 110,2501 $ - 1 $ - 1 $ 110,2501 TA -Bicycle Transportation; State reimbursement funds, K competitive grant awarded 1 I I $ - 1 1 $ 443,000 1 I $ - $ - 1 I I $ 443,000 1 I Lighting & Landscaping Assessment District (LLD) - funds M locally generated by assessment - $ 2,000,0001$ - $ $ 2,000,0001 General Fund Account: Payment from Caltrans (non - IN restrictive) s 1 $ 386,000 $ - 1 $ - 1 $ - 1 $ 386,000 1 Gas Tax Funds 1$ 650,000 1 $ - $ - 1$ 600,000 I$ 1,250,000 1 Economic Development Reserve $ 510,625 1 1$ 489,375 1$ 1,000,0001 ITotal Funds $ 13,823,443 $ 4,504,864 1 $ 1,150,543 1$ 1,089,375 1$ 20,568,225 1 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 a Funds are direct payment from Caltrans re: relinquishment; non-restrictive and designated for specialty soft costs 3670 W. Temple Ave., #278, Pomona, CA 91768 Avant Garde Inc.