20A - AA AND AGMT WITH OCTA FOR SR-55 (2)

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Approve Cooperative Agreements with OCTA to Acquire Properties and Easements and Reimburse City for Project Costs Related to SR-55 Widening Project May 5, 2020 Page 3 The California Department of Transportation (Caltrans) and OCTA require that an individual Utility Agreement be executed for each identified relocation (Exhibit 6). In this case, three Utility Agreements are required, one for Ritchey Street, one for the freeway crossing and one for the pressure regulating station. The Utility Agreements will allow the City to recuperate all costs associated with the relocation projects including staff and consultant time spent in planning, design and construction phases dating back to July 27, 2018. The proposed project relocations must be complete by December 2021 to allow the freeway widening work to proceed on schedule. The proposed facility relocations are extensive and will require special construction methods. In an effort to expedite project delivery time and achieve operational efficiencies, staff is seeking approval to utilize the 'Construction Manager at Risk' (CMAR) project delivery method. The CMAR project delivery method differs from the traditional design -bid -build model the City typically employs for construction projects; the CMAR method allows the City to hire a construction manager, via a competitive process, while the project is still in the design phase. In the design phase, the selected construction manager will work with the City's Water Resources design team to identify risks, provide cost projections, and refine the project schedule. After selection of a construction contractor, the CMAR will provide construction planning, phasing, and scheduling for the duration of the project. Should this method be employed, staff will return to the City Council for approval prior to awarding a CMAR contract for the proposed water relocation projects. Additionally, and consistent with OCTA's practice on major capital projects, OCTA agrees to compensate the City for its participation on the Project. The cost of the City's participation in the Project will be covered as a Project cost following federal guidelines. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 - Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy G (develop and implement the City's Capital Improvement Program in coordination with the Community Investment and Deferred Maintenance Plans). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT The total project costs for the three utility relocation projects are estimated at $6,600,000, which will initially be incurred by the Water Utility Capital Construction Fund. The relocation of these utilities is necessary to accommodate OCTA's SR-55 Widening Project. OCTA will pay the City on a reimbursement basis the actual and necessary costs to complete the three utility relocation projects. Expenditures on these projects will not be realized until construction contracts are awarded by Council in the future. Staff will program construction costs into the FY 2020-21 and 2021-22 Capital Improvement Program, and in the associated Water Capital Construction Budgets (Account No. 06617647-66301). Approval of Cooperative Agreement C-0-2201 and the associated Utility Agreements will allow the City to recover all eligible costs incurred in the Water Capital Fund to facilitate the relocation of the utilities. 20A-3