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HomeMy WebLinkAbout10 OCTA MEASURE 2 TIER 2 FUNDING DEFERRED10 AGENDA REPORT RAgenda eviewed: m OD City Manager Finance Director �A MEETING DATE: FEBRUARY 18, 2014 TO: JEFFREY C. PARKER, CITY MANAGER FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS /CITY ENGINEER SUBJECT: AUTHORIZE THE REQUEST FOR THE ORANGE COUNTY TRANSPORTATION AUTHORITY MEASURE M2 TIER 2 ENVIRONMENTAL CLEANUP PROGRAM FUNDING DEFERRAL FOR THE TUSTIN LEGACY DETENTION BASIN AND WETLANDS SUMMARY The City of Tustin was awarded a grant in the amount of $824,688 from the Orange County Transportation Authority (OCTA) Measure M2 Environmental Cleanup Program Tier 2 for the Tustin Legacy Detention Basin. The funds were budgeted for Fiscal Year 2013/2014 and the grant requires that a contract for the work must be awarded by June 30, 2014. Project design is in process. However, award of the construction contract is not anticipated until the end of 2014. A 24 -month funding deferral request will be submitted to OCTA at the first 2014 grant semi - annual review. To submit the request for deferral, OCTA requires City Council concurrence with the request. RECOMMENDATION It is recommended that the City Council authorize the Public Works Department to request a one- time, two year extension from OCTA for the Measure M2 Environmental Cleanup Program Tier 2 funding for construction of the Tustin Legacy Detention Basin. FISCAL IMPACT The total project cost is estimated at $1,268,750. The OCTA Measure M2 Grant provides $824,688 of the total project cost. The City has a 35% match of $444,062 currently budgeted in the Fiscal Year 2013/2014 Capital Improvement Program from the Tustin Legacy Backbone Infrastructure Fee Program. If the extension is approved, there will be no change to the project funding. CORRELATION TO THE STRATEGIC PLAN The request for a two year extension contributes to the fulfillment of the City's Strategic Plan Goal A: Economic and Neighborhood Development. Specifically, the project implements Strategy #6, expanding recreational activities. BACKGROUND AND DISCUSSION On October 2, 2012, the City Council adopted Resolution No. 12 -82, authorizing the application for OCTA Measure M2 Environmental Cleanup Tier 2 Grant Program Funds for the Tustin Legacy Detention Basin. On February 25, 2013 the OCTA Board of Directors approved the funding for the Tustin Legacy Detention Basin Project. The project, located at the northeast corner of Barranca Parkway and Red Hill Avenue, will include the design and construction of final grading, landscaping, irrigation, signage and water quality features for the basin. Authorization of the Measure M2 Tier 2 Project Extension to OCTA February 18, 2014 Page 2 The Project is currently in the design process with some added project enhancements for the prominent corner of Tustin Legacy at Red Hill and Barranca Parkway. These added elements, namely community identity signage and decorative water scape component, similar in concept to the element located at Jamboree and Barranca were not originally planned in conjunction with the water quality enhancements but have been merged into the project to provide a holistic improvement and sense of place to this unimproved portion of Legacy. Grant project status is reviewed by OCTA every six months during the semi - annual review process. Contract work must be awarded prior to the end of the programmed fiscal year to encumber the funds. If work cannot be initiated within this time frame, a request to defer funding may be submitted to OCTA for consideration. Funding deferrals must be submitted to OCTA in conjunction with the semi - annual review process. The reviews are held in the Spring and the Fall. The M2 Ordinance No. 3 permits a delay for up to 24 months. Implementing agencies may request a one- time delay of up to 24 months per project allocation. Agencies shall justify this request, receive City Council concurrence, and seek approval of OCTA staff, the Technical Steering Committee, Technical Advisory Committee, and the OCTA Board of Directors as part of the semi - annual review process. Expired project funding is subject to reprogramming in a subsequent call for projects. It is anticipated design completion and the execution of a request for proposals for construction services will occur in late 2014. To provide for any unforeseen delays, a 24 month deferral of the grant has been recommended as a precaution. The recommended action will enable the City to request a deferral of grant funds from OCTA for the project, thereby maintaining a significant source of project funding. ou a . Stack, P.E. it t oVf Public Works /City Engineer SACity Council Items\2014 Council Items \02 -18- 2014 \M2 Tier 2 Extension \M2 Tier 2 extension.docx