Item 14 - Appropriate Additional Construction Funding

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Appropriation Adjustment for SA Blvd and 5th Street Bike Lane December 20, 2022 Page 2 3 1 3 3 the Contractor was forced to pause their construction until they received approval to proceed by OCTA and the City to resume construction within in the OC Streetcar segments. Due to these delays, the Contractor has experienced significant escalation of material costs and labor rates to perform the remaining work. Throughout the project, the City has worked closely with OCTA to expedite construction whenever possible. In doing so, due to their overlapping construction footprints, the City’s Contractor took on work originally designated for the OC Streetcar in order to expedite and deliver certain roadway improvements more efficiently. In order to cover the cost escalations and the additional work performed by the Contractor (Exhibit 2), the City will be receiving reimbursement from OCTA and requests an appropriation adjustment to recognize $400,000 from OCTA OC Streetcar Funding as well as a reallocation of $350,000 in unspent Measure M2 Funds to the Santa Ana Boulevard and 5th Street Protected Bike Lane Project (Exhibit 3). ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, the recommended actions are exempt from further review. Categorical Exemption Environmental Review No. ER- 2016- 097 was filed for the project. FISCAL IMPACT With the approval of the budget reallocations and appropriation adjustments, the total funding needed to deliver the project will be available for expenditure. 1. Budget reallocation to of $150,000 in unspent Measure M2 Fairshare funds to the Santa Ana Boulevard and 5th Street Protected Bike Lane Project (Project No. 17-6880) from Project Development FY 22/23 (No. 23-6899). 2. Budget reallocation of $200,000 in unspent Measure M2 Fairshare funds to the Santa Ana Boulevard and 5th Street Protected Bike Lane Project (Project No. 17- 6880) from Right of Way Management FY 22/23 (No. 23-6900). 3. Appropriation adjustment to recognize $400,000 in Orange County Transportation Authority OC Streetcar Project funds in the Select Street Construction, Expense Reimbursement revenue account (No. 05917002-57000) and appropriate the same amount to the Select Streets Construction, Improvements Other Than Building expenditure account (No. 05917660-66220). All funds are available for expenditure in Fiscal Year 2022-23; however, any remaining balances not expended by the end of the fiscal year will be carried forward into FY 2023-24 for expenditure. The following table summarizes the $750,000 that will be made available by this Council action to fund the additional construction costs: