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M2 Escalation Adjustments for Regional Capacity Program Programs <br />November 1, 2022 <br />Page 2 <br />3 <br />0 <br />2 <br />5 <br />rent, and working remotely has helped intensify housing market demand, which has <br />escalated market values of over 25 percent in Orange County, and plummeted housing <br />inventory for sale and lease. These circumstances compounded have made it extremely <br />difficult to deliver and construct certain projects for the community. <br />OCTA recently approved a temporary policy change for eligible RCP projects that were <br />impacted by the extraordinary cost increases of inflation. This temporary policy for <br />inflation which would allow local agencies to request adjustments to eligible right-of-way <br />and construction allocations consistent with the Engineering News Record Construction <br />Cost Index, based on the actual 20-city average, for fiscal years 2020-21, 2021-22, and <br />2022-23. <br />The OCTA temporary policy change requires agencies to request authorization and <br />approve a Resolution (Exhibits 1 and 2) from their governing bodies to apply for each <br />escalation adjustment to the original M2 allocations. <br />ENVIRONMENTAL IMPACT <br />There is no environmental impact associated with this action. <br />FISCAL IMPACT <br />If the Recommended Action is approved, the City will be authorized to request escalation <br />adjustments in the amounts below: <br />RECOMMENDED <br />PROJECTS <br />ORIGINAL <br />GRANT <br />AWARD <br />(03217663) <br />ORIGINAL <br />MATCH <br />UPDATED <br />GRANT <br />AWARD <br />(03217663) <br />NEW CITY <br />MATCH <br />FUNDS <br />Bristol St. Improvements <br />from Civic Center Dr. to <br />Washington Ave. <br />$3,273,573 $1,091,191 $3,964,790 $230,406 <br />Bristol St. Improvements <br />from Warner Ave. to St. <br />Andrew Pl. <br />$7,501,206 $2,500,402 $9,085,091 $527,962 <br />Warner Ave. <br />Improvements from Oak <br />St. to Grand Ave. <br />$7,494,000 $2,498,000 $9,076,364 $527,455 <br />Total: $18,268,779 $6,089,593 $22,126,245 $1,285,823 <br />If approved by the OCTA Board of Directors, the above adjustments would result in <br />revised M2 allocations with updated City match requirements needed for completion of <br />the projects. Any additional City match requirements will be budgeted via State/Local <br />funds in future Capital Improvement Program cycles – to align with Escalation adjustment <br />consideration and award.