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HomeMy WebLinkAbout2022-084 - Request for Escalation Adjustment by the Orange County Transportation AuthorityRESOLUTION 2022-084 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING A REQUEST FOR ESCALATION ADJUSTMENT BY THE ORANGE COUNTY TRANSPORTATION AUTHORITY TO THE MEASURE M2 ALLOCATION FOR THE BRISTOL STREET IMPROVEMENTS PROJECT WHEREAS, the Orange County Transportation Authority (OCTA) conducted the 2020 call for projects under the Measure M2 Regional Capacity Program (RCP); and WHEREAS, the City of Santa Ana received an M2 allocation (Measure M2 Competitive ACE funds) in the amounts of $3,792,750 and $8,434,500 from OCTA to fund the Bristol Street Improvements from Civic Center Drive to Washington Avenue and the Bristol Street Improvements from Warner Avenue to Saint Andrew Place; and WHEREAS, the City of Santa Ana committed to providing a minimum of 25% in matching funds forthe Bristol Street Improvements from Civic Center Drive to Washington Avenue and the Bristol Street Improvements from Warner Avenue to Saint Andrew Place; and WHEREAS, the City of Santa Ana established fiscal year 2020/21 as the program year to commence the construction phase of the above projects; and WHEREAS, the City of Santa Ana has experienced construction increased cost due to material supply and labor inflation. Material cost and demand has seen a dramatic increase that has been unprecedented. Many of the recent construction bids that are being received are two times the amount of the engineer's estimate and budget for the City's projects. This has made it extremely difficult to deliver and construct projects for the community; and WHEREAS, OCTA approved a temporary policy change for eligible RCP and RTSSP projects that were impacted by the extraordinary cost increases of inflation, which would allow local agencies to request adjustments to eligible right-of-way and construction allocations consistent with the Engineering News Record Construction Cost Index, based on the actual 20-city average, for fiscal years 2020-21, 2021-22, and 2022- 23; and WHEREAS, the OCTA temporary policy change requires agencies to request authorization from their governing bodies to apply for an escalation adjustment to the original M2 allocation. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Ana as follows: Resolution 2022-084 Page 1 of 3 Section 1. The Executive Director of Public Works, or his or her designee, is hereby authorized to request an escalation adjustment in the amount of $2,853,940 for the Bristol Street Improvements Project, which if approved by the OCTA Board of Directors, would result in a revised M2 allocation of $14,367,700. Said funds, if approved, shall be matched by funds from the City at the same 25% level, resulting in an additional City funding need of $713,485, which will be funded through State/Local Funds. Section 2. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution ADOPTED this 15' day of November, 2022. '4VA4,,1V Vicente Sarmiento Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: J n M. Funk Chief Assistant City Attorney AYES: Councilmembers Hernandez, Lopez, Mendoza, Penaloza, Phan, Bacerra, Sarmiento (7) NOES: Councilmembers None (0) ABSTAIN: Councilmembers None (0) NOT PRESENT: Councilmembers None (0) Resolution 2022-094 Page 2 of 3 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2022- 084 to be the original Resolution adopted by the City Council of the City of Santa Ana on November 1, 2022. Date: 111 3 I ?_?Z erk of the Council City of Santa Ana Resolution 2022-084 Page 3 of 3