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Home My WebLink About20A - AA FOR PROJECT 19-6942,17-6880,17-6801REQUEST FOR COUNCIL ACTION IMIII Walfiellill,[•310J11=I =1111I1,lei •7e%9:9 APRIL 07, 2020 TITLE: APPROVE AN APPROPRIATION ADJUSTMENT AND ADDITIONAL CONTINGENCY FUNDS FOR EXISITING CONTRACTS TO ADD STREET IMPROVEMENT AND MEDIAN LANDSCAPING PROJECTS FOR AN ESTIMATED TOTAL PROJECT DELIVERY COST OF $2,981,016 (PROJECT NOS. 19-6942, 17-6880, & 17- 6801) /s/ Kristine Ridge CITY MANAGER IN*9191IT, ILTA l21kilr]AIII IEel kiI A I=11 N INISI Zd•IIJ, Eel I 111111111i fie], I Ill APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2" d Reading ❑ Implementing Resolution ❑ Set Public Hearing For rK•�rnum�.ic. FILE NUMBER 1. Approve an increase to existing contract contingencies to perform additional street improvements and median landscape improvements as summarized in the tables below, for a total of $2,981,016: Street Improvements Work Project Original Original Additional Summary No. Contractor Contract Contingency Contingency New Total Amount Amount Exhibit 1 19-6942 All American $1,716,649 $68,000 $742,500 $2,527,149 Asphalt Median Landscape Improvements Work Project Original Original Additional Summary Contractor Contract Contingency Contingency New Total Amount Amount Exhibit 17-6880 Vido $3,776,881 $377,688 $1,195,702 $5,350,271 Samarzich Exhibit 17-6801 Aramexx $2856,418 $300,160 $1,042,814 $4,199,392 Construction 20A-1 Approve Appropriation Adjustment & Add Contingency Funds to Existing Contracts April 7, 2020 Page 2 2. Approve an Appropriation Adjustment recognizing $2,473,000 in the General Fund, Prior Year Fund Balance revenue account, and appropriating the same to the General Fund, Public Works Roadway Markings & Signs, Improvements Other Than Building expenditure account. DISCUSSION Orange County Transportation Authority's (OCTA) Measure M is a 30-year half -cent sales tax for transportation improvements in Orange County through 2041. The City has used Measure M funding to complete a variety of projects throughout the City and is currently eligible to receive close to $20 million in Measure M funds. Every year, OCTA determines whether a local jurisdiction is eligible to receive Measure M funding by confirming certain requirements are satisfied. Because Measure M funds are intended to augment, rather than replace, existing transportation expenditures, one of the requirements is for local jurisdictions to use General Funds for maintenance, construction and other transportation related expenditures. Each fiscal year, OCTA sets a benchmark local jurisdictions must meet. The Fiscal Year 2019-20 Maintenance of Effort (MOE) benchmark requirement for the City of Santa Ana is close to $8 million. To ensure the benchmark is met, an MOE certification must be submitted. Along with submittal of the MOE certification, this year, the City will be undergoing an MOE compliance audit in the fall of 2020. Currently, the City has made approximately $6 million in MOE eligible expenditures. In order to safely meet the $8 million benchmark and maintain access to Measure M funds, an additional $3 million of MOE work must be completed this fiscal year. Staff recommends carrying out eligible street improvements in the amount of $0.7 million and median landscaping work in the amount of approximately $2.3 million to meet the requirement. Raitt Street, from First Street to Civic Center Drive (Exhibit 4), was identified by the City's pavement management system as being in need of repair work. Raitt Street is also part of a streetcar construction project led by the County of Orange. A street improvement project is ideal in this location as it can leverage streetcar construction work to deliver a larger project. Improvements include a mix of concrete and asphalt repairs on Raitt Street. Additional improvements to be completed with the allocation of funds include alley paving and speed cushions on Bewley Street. The work will be performed by All American Asphalt. In regards to the median landscaping, the City engaged a landscape architect that understands the City's goal to improve the aesthetic appearance of arterial corridors (Exhibit 5) where landscaping has withered due to drought conditions and changes limiting irrigation. The consultant prepared schematic designs defining general concepts (Exhibit 6) and a corresponding rough estimate of construction costs. The plants chosen are primarily California native and were selected for their drought tolerant characteristics and ease of maintenance. The concepts were developed in a scalable manner to allow for subsequent construction phases as new funding becomes available. The project will be completed by Vido Samarzich and Aramexx Construction. Staff contacted a number of contractors currently working on City construction projects to gauge their ability to complete the above work by June 30, 2020. When choosing which contracts to add 20A-2 Approve Appropriation Adjustment & Add Contingency Funds to Existing Contracts April 7, 2020 Page 3 contingency funds and accommodate the proposed work, key considerations included favorable unit prices in order to leverage the most cost effective work, continued compliance with the Community Workforce Agreement, the location of their current projects, and a contractor's ability to complete their current projects in a timely manner. During the February 18, 2020, City Council meeting, the mid -year budget update presented to the City Council projected a net year-end balance of $10.1 million in the General Fund. Staff seeks approval to utilize a portion of these General Funds to add monies to existing contract contingencies (Exhibits 1-3) to deliver the street improvement and median landscaping projects by fiscal year end and thus meet the MOE requirement. Not doing so will jeopardize close to $20 million in future grant funding from OCTA. 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 C (invest resources and technology to extend the service life of existing infrastructure to protect the City's investment and support a high quality of life standard). ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, the recommended actions are exempt from further review. Each change order is covered by its corresponding construction contract, and each contract has its own Categorical Exemption Environmental Review (see attached RFCA awarding the construction contracts. FISCAL IMPACT As reported on February 18, 2020, with the Midyear Budget Update, staff expected the General Fund to have $10.1 million in excess of the City Council's policy reserve thresholds. After the City Council approved the Midyear appropriation adjustments and the cost of the special election, the revised estimate of available General Fund balance is $9.2 million. We expect the COVID-19 pandemic to have a significant impact on General Fund revenue. At this time, it is too early to quantify the impact; but early information suggests a potential reduction of at least $20 million. The City Council should carefully consider the importance of using General Fund balance for street improvements and beautification at this time. A more measured approach would be an approximate $3 million use of the General Fund balance to ensure the City meets its requirements to spend General Fund money on street maintenance per the Orange County Transit Authority Maintenance of Effort. Each Cost Analysis (Exhibits 1-3) indicates the amount of additional contingency for each project for a total of $2,981,016 in additional roadway and median landscape improvements. Approval of the requested Appropriation Adjustment will recognize $2,473,000 from the General Fund prior year fund balance revenue account (No. 01102002-50001) and appropriate the same amount to the Public Works Roadway Markings & Signs General Fund, Improvements Other Than Building 20A-3 Approve Appropriation Adjustment & Add Contingency Funds to Existing Contracts April 7, 2020 Page 4 expense account (No. 01117620-66220). With the balance of $508,016 already in Account No. 01117625-66220, a total of $2,981,016 will be available for expenditure in FY 2019-20 as follows: Exhibit Fiscal Year Accounting Unit — Account No. project No. Fund Description Accounting Unit - Account No. Description Amount Public Works Roadway 1 2019- 01117625-66220 General Markings and Signs, $742,500 20 (19-6942) Fund Improvements Other Than Building Public Works Roadway 2 2019- 01117625-66220 General Markings and Signs, $1,195,702 20 (17-6880) Fund Improvements Other Than Building Fiscal Accounting Unit — Fund Accounting Unit - Exhibit Year Account No. Description Account No. Amount project No. Description Public Works Roadway 3 2019- 01117625-66220 General Markings and Signs, $1,042,814 20 (17-6801) Fund Improvements Other Than Building Total $2,981,016 Exhibits: 1. Roadway Improvements Cost Analysis — Project #19-6942 2. Median Landscape Improvement Cost Analysis — Project #17-6880 3. Median Landscape Improvement Cost Analysis — Project #17-6801 4. Roadway Improvements List 5. Median Corridor Location Map 6. Landscape Improvements Design Concept 20A-4 AAA EXHIBIT 1 COST ANALYSIS PROJECT NO. 19-6942 LOCAL STREET PREVENTATIVE MAINTENANCE FY 2018-2019 EXPENDITURE CATEGORY ORIGINAL CHANGE NEW TOTAL AMOUNT Construction Contract $1,716,649 $1,716,649 Construction Administration & $115,351 $115,351 Inspection and Testing Contingencies $68,000 $742,500.00 $810,500 TOTAL $1,900,000 $742,500.00 $2,642,500 20A-5 V/K EXHIBIT 2 COST ANALYSIS PROJECT NO. 17-6880: Santa Ana Boulevard and 5th Street Protected Bike Lane [ATPL5063 (170)] EXPENDITURE CATEGORY ORIGINAL CHANGE AMOUNT NEW TOTAL Construction Contract $3,776,881 $3,776,881 Construction Administration $150,543 $150,543 Inspection and Testing $178,888 $178,888 Contingencies $377,688 $1,195,702.00 $1,573,390 TOTAL $4,484,000 $1,195,702.00 $5,679,702 20A-6 ARA EXHIBIT 3 COST ANALYSIS PROJECT NO. 17-6801 & 17-6886: CIVIC CENTER BIKE BOULEVARD AND SAFE ROUTES TO SCHOOL ENHANCEMENTS FOR SEPULVEDA ELEMENTARY SCHOOL EXPENDITURE CATEGORY ORIGINAL CHANGE AMOUNT NEW TOTAL Construction Contract $2,856,418 $2,856,418 Construction Administration $105,562 $105,562 Inspection and Testing $120,860 $120,860 Contingencies $300,160 $1,042,814.00 $1,342,974 TOTAL $3,383,000 $1,042,814.00 $4,425,814 20A-7 ROADWAY IMPROVEMENTS LIST STREET SEGMENT MATERIAL Bewley Street: Fifth Street to Washington Avenue (Speed Cushions) Asphalt Alley: South of Santa Ana Boulevard, East of Shelton Street Asphalt Raitt Street: First Street to Fifth Street Asphalt XV4:11a]k1E,1 20A-8 City of Santa Ana 03-24-2020 As AVCTA AV 1 .. . GARDEN GROVE BLVG , • 1 1 ■ � w � 1 ;1 y � r 1 BANTAC AV 1 _...,..i � A.-P . . .. �...W r .... r r r. AA. W HINGT v 1 CIVIC NIER DR I O 1 1 i 1 r I sANTA A.i1R BLVd' L 1 Exhibit 5 j.U1'R1""'7N AV _A CLARA AV la . r ... 4] % N r% ; � • 1 4 MC FADDEN AV r EDINGER AV } GINGER AV -� EDINGERAV ...... ........ 1 . .. ...... s •1 1 1 a 1 1 y F � WARNER AV 3j. � '9 6EGERS 1 1 - - - - -L J- ➢YER Ra_ • �� (.. 1 1 1 1 e _1JN-LOdlEP AV ■ Contractor Vido Samalzich Aramexx $1,162,702.35 $1,010,481.50 Key Map Median Cor2OAtQge Completed N 0.0 0.5 1.0 Miles 3 � 0 u _ 0 U m 0 CL � m Ll'-� s � CD o EV m. o o \}0. \ 20A(o \ )\\\}\ \\ � ■ � 0 0 � a 2: No s 20A-1.1 LLI \-0 U A54< §\� ) ? 0 Z in \{ 32 � � ■ / 0 _) / �j < I \/ z @ f - - !\ § / \\ \ 2 ` � ^__ U ro a LL z w� A l�I, B ■ ■ 5 � � I : J j �2OA.1f\ )§ M 0 0 ( ( ) 5 \ \\\\\\ Z _ / �\ }\\ ) � � � m Nm m � — o - 0 0 coi m m