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Home My WebLink About55B - RESO - PRELIM ENGINEERING AND MAINTENANCE GUIDEWAY PROJREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: OCTOBER 4, 2010 TITLE: RESOLUTION AUTHORIZING MATCH FUNDING FOR PRELIMINARY ENGINEERING AND ONGOING OPERATIONS AND MAINTENANCE FOR THE SANTA ANA-GARDEN GROVE FIXED GUIDEWAY PROJECT 1 CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Ordinance on 151 Reading ? Ordinance on 2nd Reading ? Implementing Resolution ? Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution authorizing a grant request to the Orange County Transportation Authority (OCTA) for preliminary engineering funding in the amount of $4.44 million with a City required local match of $444,400 (10%) with an additional local match of (10%) for the whole project comprised of a combination of federal, state and local discretionary funds and private sector contributions; and per the grant request, an expenditure of $1 million over a 2 year period for operations and maintenance in FY 18/19 and FY 19/20 for the Santa Ana-Garden Grove Fixed Guideway Project. DISCUSSION The OCTA Board recently approved Measure M2's Project S funding guidelines and authorized OCTA staff to issue a call for projects for preliminary engineering (PE) for eligible fixed guideway projects. This effort is necessary to position the two eligible projects, the Anaheim and the Santa Ana-Garden Grove Project to successfully compete for federal Small/New Starts funding and other federal appropriations. The Federal Transit Administration's (FTA's) Small/New Starts competitive funding process requires a more exhaustive preliminary engineering phase. This is to ensure that a solid project definition based on reliable cost estimates, benefits, impacts, and risks are defined. FTA expects the PE process to result in a definitive scope, alignment, and design features so that the project cost and implementation schedule are known with enough certainty that the construction funding request from the Small/New Starts category will not change. The current cost estimate for the PE phase for both the Anaheim and the Santa Ana-Garden Grove guideway projects is approximately $30 million. The OCTA Board voted to make available $27 million for the PE phase and required the two projects to make up the additional $3 million through a 10% match requirement. Santa Ana's PE cost for Phase I of the fixed guideway project 55B-1 RFCA - Resolution for Preliminary Engineering October 4, 2010 Page 2 of 3 from SARTC to Bristol Street is estimated to be $4.44 million. The required 10 percent local match from the City is $444,400. This will be budgeted in the FY 11/12 and FY 12/13 budget. Additionally, the 10 percent local match requirement for the whole project is anticipated to be funded from a combination of federal, state and local discretionary funds and private sector contributions. As the project progresses through preliminary engineering, the cities will continue to work with OCTA and the private sector to identify additional funding sources. Further, included in the OCTA application guidelines is the requirement that all agencies applying for PE funding submit a five-year operations plan, consistent with FTA standards. Santa Ana's Phase I fixed guideway operation and maintenance costs are projected to be $2 million annually. OCTA is recommending that federal Congestion Mitigation Air Quality (CMAC) funds be used for the first 3 years of operation. For years four and five the City must commit $500,000 each year for, FY 18-19 and FY 19-20 for a total local contribution of $1 million dollars. These local funds would come from a mixture of sources including but not limited to: M2 Local Turnback and other discretionary funds. The chart below shows the estimated funding strategy to achieve the $2 million annual amount needed for operations and maintenance. Five-Year Funding Plan for Fixed Guideway Operations Year 2015 Year 2020 CMAQ 100% % Farebox 21.53% Metrolink reciprocity 3.07% City Discretionary Funds (1) 25.00% Private sector .90% Advertising/parking revenue 2.50% DA/other .00% 100% 100.00% 1. M2 Local Turnback, General Fund, and/or Other Staff is working with our fixed guideway team to prepare the PE application which is due to OCTA by October 8, 2010. Once the applications are reviewed and ranked by OCTA staff, recommendations will be developed and ultimately approved by the OCTA Board. It is anticipated that this approval process will be completed by November 30, 2010. 55B-2 RFCA - Resolution for Preliminary Engineering October 4, 2010 Page 3 of 3 ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funds for the local match of 10 percent for PE in the amount of $444,400 to be paid in increments of $222,200 in FY 11/12 and FY 12/13 are available in Measure M Street Construction (accounting unit 03217660-66220). Funds for operations in the amount of $500,000 per year will be available from City discretionary funds such as M2 Local Turnback, and other sources in FY 18/19 and FY 19/20. Funds for the local match of 10 percent for the whole project will be comprised of a combination of federal, state and local discretionary funds and private sector contributions. APPROVED AS TO FUNDS AND ACCOUNTS: c r Raul Godinez II Francisco Gutierrez Executive Director Executive Director Public Works Agency Finance & Management Services Agency RG/DB Exhibit: 1. Resolution 55B-3 55B-4 RESOLUTION NO. 2010- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING THE SUBMITTAL OF AN APPLICATION FOR FUNDING THE PRELIMINARY ENGINEERING PHASE OF THE SANTA ANA FIXED GUIDEWAY SYSTEM Iss9/30/10 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1: The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The Orange County Transportation Agency (OCTA) has approved Measure M2 Project S (Transit Extensions to Metrolink) (hereinafter "Project S") funding guidelines, for preliminary engineering efforts associated with eligible fixed guideway projects to enhance regional transit capabilities through creation of new connections to the existing Metrolink system; and B. On September 13, 2010, the OCTA Board of Directors directed staff to issue a call for Project S eligible projects and return to the OCTA Transportation 2020 Committee with programming recommendations on November 15, 2010; and C. The Santa Ana and Garden Grove Fixed Guideway Project is an eligible project for funding through Project S ; and D. Project S funding guidelines require that the preliminary engineering phase result in a specific project with reasonably certain cost estimates and implementation schedules, in order that the Project is eligible to compete for Federal Transit Authority (FTA) competitive funding and other federal appropriations; and E. Project S funding guidelines require that the City commit to a ten percent (10%) local match for preliminary engineering phase costs; a ten percent (10%) match for the whole proposed Project comprised of any combination of federal, state and local discretionary funds and private sector contributions; and provide a funding strategy for ongoing operations and maintenance of the Project for a minimum of five years; and F. The City Council anticipates the operations and maintenance funding will be paid from a mix of sources including M2 Local Turnback, local discretionary funds and private contributions 55B-5 G. The Santa Ana Public Works Agency has recommended that the City submit an application for Project S funds, to fund the preliminary engineering of the Santa Ana and Garden Grove Fixed Guideway Project. Section 2: The City Council of the City of Santa Ana authorizes the Executive Director of the Public Works Agency to submit an application to the OCTA for Measure M2 Project S funding in the amount of Four Million, Four Hundred Forty-Four Thousand, Four Hundred Forty-Four Dollars ($4,444,444), to complete preliminary engineering of the Santa Ana and Garden Grove Fixed Guideway Project. Section 3. The City Council will provide match funding of ten percent (10%) for the preliminary engineering of the Santa Ana and Garden Grove Fixed Guideway Project and a ten percent (10%) match for the whole project. Section 4: The City of Santa Ana demonstrates its financial commitment for operation and maintenance funding as shown in the attached funding plan (Attachment 1). Section 5: The City Council appoints the City Manager, or the Executive Director of the Public Works Agency or his designee, as agent for the City of Santa Ana to conduct all negotiations, execute and submit all documents, as well as applications, agreements, amendments, payment requests and so on, which may be necessary for the completion of the project. Section 6: 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 day of 2010. Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney By: Laura Sheedy 55B-6 Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN Councilmembers NOT PRESENT Councilmembers CERTIFICATE OF ORIGINALITY I, Maria D. Huizar, Clerk of the Council, do hereby certify the attached Resolution No. to be the original resolution adopted by the City Council of the City of Santa Ana on 2010. Date: Clerk of the Council City of Santa Ana 55B-7 55B-8 ATTACHMENT 1 Five-Year Funding Plan for Fixed Guideway Operations Year 2015 Year 2020 CMAQ 100% 0% Farebox 21.53% Metrolink reciprocity 43.07% Local sources' 25.00% Private sector 4.90% Advertising/parking revenue 2.50% TDA/other 3.00% 100% 100.00% 1. M2 Local Turnback, General Fund and/or Other 55B-9 55B-10