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REQUEST FOR <br />COUNCIL ACTION <br />IMIII walfiellill,[•310J11=I =1111I1,lei •7e%9:9 <br />MAY 5, 2020 <br />TITLE: <br />AUTHORIZE THE ISSUANCE OF A <br />CHANGE ORDER TO INCREASE THE <br />CONSTRUCTION CONTRACT WITH R.J. <br />NOBLE (PROJECT NO. 19-6941) BY <br />$952,978 TO PERFORM ADDITIONAL <br />STREET IMPROVEMENTS, FOR A NEW <br />ESTIMATED TOTAL PROJECT DELIVERY <br />COST OF $1,985,538 <br />(PROJECT NOS.19-6941, 19-6617) <br />(GENERAL FUND) <br />/s/Kristine Ridge <br />CITY MANAGER <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1" Reading <br />❑ Ordinance on 2" ° Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />rK•�rnutn�.;rc. <br />FILE NUMBER <br />RECOMMENDED ACTION <br />Authorize the issuance of a change order to increase the existing construction contract with R.J. <br />Noble (Project No. 19-6941) to perform additional street improvements in the amount of $952,978, <br />for a new total not to exceed $1,986,338, to be completed by June 30, 2020, subject to non - <br />substantive changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />Every year, the Orange County Transportation Authority (OCTA) determines whether a local <br />jurisdiction is eligible to receive Measure M funding, which is the half -cent sales tax for <br />transportation improvements in Orange County, by confirming certain eligibility requirements are <br />satisfied. Measure M funds are intended to augment, rather than replace, existing transportation <br />expenditures; therefore, local jurisdictions are required to utilize General Funds for maintenance, <br />construction and other transportation -related expenditures. Each fiscal year, OCTA sets a <br />benchmark amount local jurisdictions must spend. The Fiscal Year 2019-20 MOE benchmark <br />requirement for the City of Santa Ana is close to $8 million. To ensure the benchmark is met, a <br />Maintenance of Effort certification must be submitted. The City has used Measure M funding to <br />complete a variety of capital projects throughout the City and is currently eligible to receive close <br />to $20 million. <br />Along with submittal of the MOE certification, this year, the City will be undergoing an MOE <br />compliance audit in the fall of 2020. Currently, the City has made over $8 million in MOE eligible <br />expenditures. In order to confidently meet the benchmark and maintain access to Measure M <br />funds, an additional amount of MOE work is proposed to be completed this fiscal year. The City's <br />Pavement Management System has identified several locations and high -priority roads in need of <br />23B-1 <br />