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HomeMy WebLinkAbout06 AUTHORIZE THE REQUEST FOR MEASURE M2 TIER 2 ENVIRONTMENTAL CLEANUP PROGRAMowl AGENDA REPORT ��ST1 MEETING DATE: MARCH 7, 2017 TO: JEFFREY C. PARKER, CITY MANAGER Agenda Item Reviewed.- City eviewed: City Manager Finance Director 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 EXTENSION FOR THE MEDIAN IRRIGATION REPLACEMENT AND STORM DRAIN RETROFITS SUMMARY The City of Tustin was awarded a grant in the amount of $200,000 from the Orange County Transportation Authority (OCTA) Measure M2 Environmental Cleanup Program Tier 2 for the Median Irrigation Replacement and Storm Drain Retrofits project. The funds were budgeted for Fiscal Year 2016/2017 and the grant requires that a contract for the work must be awarded by June 30, 2017. Project design is in process. However, award of the construction contract is not anticipated until August 2017. A funding extension request will be submitted to OCTA at the first 2017 grant semi-annual review. To submit the request for extension, 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 Median Irrigation Replacement and Storm Drain Retrofits. FISCAL IMPACT The total project cost is estimated at $969,304. The OCTA Measure M2 Grant provides $200,000 of the total project cost. The City has a match of $769,304 currently budgeted in the Fiscal Year 2016/2017 Capital Improvement Program from the Gas Tax and Measure M2 Fair Share. If the extension is approved, there will be no change to the project funding. CORRELATION TO THE STRATEGIC PLAN The request for an extension contributes to the fulfillment of the City's Strategic Plan Goal E: Strong Community and Regional Relationships. Specifically, the project implements Strategy #2, working collaboratively with agencies on issues of mutual interest and concern. BACKGROUND AND DISCUSSION On April 19, 2016, the City Council authorized staff to submit an application for OCTA Measure M2 Environmental Cleanup Tier 2 Grant Program Funds for the Median Irrigation Replacement and Storm Drain Retrofit project. On September 12, 2016, the OCTA Board of Directors approved the funding request. The proposed project includes the removal and replacement of the turf and overhead spray irrigation in the medians on Irvine Boulevard from SR55 to Old Irvine Boulevard, First Street from SR55 to Newport Avenue, and Newport Avenue from McFadden Avenue to Wass Authorization of the Measure M2 Tier 2 Project Extension to OCTA March 7, 2017 Page 2 Street. The project also includes the installation of 24 automatic retractable screens for catch basins near the project locations. 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 extensions 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 spring 2017. 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. Stack, P.E. Public Works/City Engineer SACity Council Items12017 Council ItemsW-07-20171Project X Extension.docx