Item 23 - Construction Funding and Construction Engineering Services

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South Main Corridor Appropriation Adjustments and Agreement Amendment July 19, 2022 Page 3 monies for PWA Service Enhancement (South Main Corridor Public Art) in the First Quarter Budget Update. Staff recommends adding the $624,000 from the General Fund allocation to the South Main Corridor Improvements Project (No. 17-9001). The increased funding will allow for the implementation of the art, continued oversight and consistency in delivering the project (Exhibit 2). On January 19, 2021, the City Council also authorized the City Manager to execute an agreement with Butier Engineering, Inc., to provide construction engineering services for the South Main Corridor Improvement Project. On September 21, 2021, staff returned to City Council to amend the agreement by increasing compensation by $300,000, due to the increased project scope to address the utilities issues. Now, with the three-month project extension and the added art scope, the funds approved in the first amendment will not be sufficient to complete the project. Staff requests approval of an amendment to the agreement with Butier Engineering, Inc., to increase the agreement amount by an additional $376,000, for a total of $1,612,924 for construction engineering services (Exhibit 3). This funding will come from the remainder of the $1,000,000 General Fund allocation to the South Main Corridor Improvements Project (No. 17-9001). The increased agreement capacity will allow for continued oversight and consistency in delivering the project, including managing the art initiative (Exhibit 4). ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, the recommended actions are exempt from further review. Categorical Exemption Environmental Review Nos. ER- 2020-103, ER-2020-105, ER-2020-109, and ER-2020-110 were filed for the project. FISCAL IMPACT Approval of the requested Appropriation Adjustments will provide the following funding: 1. Recognize $291,000 from prior year fund balance in the Water Fund, Public Works Water Revenue, Prior Year Carryforward revenue account (No. 06017002-50001) and appropriate the same amount to the Acquisition & Construction, Water Utility Capital Projects, Water Capital Project expenditure account (No. 06617647-66301). 2. Re -appropriate FY 2021-22 general fund monies in the amount of $1,000,000 in the Public Works Revenues, Prior Year Carry Forward revenue account (No. 01117002- 50001) and appropriate the same amount to the PWA Service Enhancements, Improvements Other Than Building expenditure account (No. 01117017-66220), for the South Main Corridor Improvements Project (No. 17-9001). Approval of the request to reallocate funds will provide funding in the amount of $130,144.72 in unspent HUTA 2103 Gas Tax.