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Home My WebLink About10 APPROPRIATE FUNDING FOR TRAFFIC SIGNAL INSTALLATION AT NEWPORT AVE & DEL AMOAGENDA REPORT MEETING DATE: NOVEMBER 19, 2019 TO: MATTHEW S. WEST, CITY MANAGER Agenda Item 1 n Reviewed: City Manager Finance Director FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: APPROPRIATE SUPPLEMENTAL FUNDING FOR THE NEWPORT AVENUE / SCHOOLSFIRST TRAFFIC SIGNAL INSTALLATION PROJECT, CIP NO. 40092, AND THE DEL AMO AVENUE / NEWPORT AVENUE IMPROVEMENTS PROJECT, CIP NO. 70249 SUMMARY Staff is requesting supplemental appropriations from the unappropriated reserves of the Gas Tax Fund (Fund 130) for the Newport Avenue / SchoolsFirst Traffic Signal Project, CIP No. 40092, and the Del Amo Avenue / Newport Avenue Improvements Project, CIP No. 70249. RECOMMENDATION It is recommended that the City Council: 1. Appropriate $150,000 from the unappropriated reserves of the Gas Tax Fund (Fund 130) for the Newport Avenue / SchoolsFirst Traffic Signal Installation Project, CIP No. 40092; and 2. Appropriate $1,350,000 from the unappropriated reserves of the Gas Tax Fund (Fund 130) for the Del Amo Avenue / Newport Avenue Improvements Project, CIP No. 70249. FISCAL IMPACT The Fiscal Year 2019-2020 Capital Improvement Program includes funding for the Newport Avenue / SchoolsFirst Traffic Signal Installation Project, CIP No. 40092, and the Del Amo Avenue / Newport Avenue Improvements Project, CIP No. 70249, in the amounts of $200,000 and $550,000 respectively. The projects are funded with Gas Tax funds (Fund 130). SchoolsFirst Federal Credit Union (SchoolsFirst) will be constructing the improvements as part of their site development project. The City will reimburse SchoolsFirst for its share of the costs pursuant to the Reimbursement Agreement. Based on actual bids received, the City's share is $312,060 for the traffic signal installation and $1,855,956 for the other improvements. Additional funding is needed in the amount of $150,000 for CIP No. 40092 and $1,350,000 for CIP No. 70249. Sufficient funds are available in the unappropriated reserves of the Gas Tax Fund (Fund 130). Of the City's share, approximately $1.12M will be attributable to the sale of the City -owned 11 - acre parcel on the west side of Newport Avenue across from SchoolsFirst and approximately $350,000 will be attributable to the sale of the City -owned 6.5 -acre parcel on the east side of Newport Avenue adjacent to Micro Center. Supplemental Appropriation for SchoolsFirst Public Improvements November 19, 2019 Page 2 CORRELATION TO THE STRATEGIC PLAN The projects contribute to the fulfillment of the City's Strategic Plan Goal A; Economic and Neighborhood Development. DISCUSSION AND BACKGROUND On July 2, 2019, the City Council authorized approval of the Disposition and Development Agreement (DDA) with SchoolsFirst Federal Credit Union for conveyance of the City owned 1.8 - acre parcel adjacent to the existing SchoolsFirst campus, located in Pacific Center East on the east side of Newport Avenue and Del Amo Avenue between Edinger Avenue and Valencia Avenue, and development of SchoolsFirst's corporate headquarters at the existing campus. As part of the DDA, SchoolsFirst will construct a number of offsite improvements in the public right- of-way, some of which are to be reimbursed in full or in part (50%) by the City pursuant to a Reimbursement Agreement. Underground utility work to provide services to the site is to be fully paid for by SchoolsFirst. Improvements subject to reimbursement by the City include the following: • Construction of a driveway into the 11 -acre City -owned parcel across from the existing SchoolsFirst driveway on Newport Avenue (100%); • Catch basin / storm drain relocation out of the proposed driveway (100%); • Installation of a traffic signal (50%); • Median modifications on Newport Avenue to accommodate a dual left -turn pocket into the 11 -acre City owned parcel (50%); • Median landscape / irrigation improvements on Newport Avenue and Del Amo Avenue adjacent to the SchoolsFirst site (50%); • Median landscape / irrigation improvements on Newport Avenue between Del Amo Avenue and Edinger Avenue (100%); and • Construction of sidewalk and landscaping / irrigation along Newport Avenue and Del Amo Avenue along the SchoolsFirst property frontage (50%). The improvements were separated into four bid packages based on type of work and were competitively bid by SchoolsFirst. Three bids were received for each of the four bid packages, as well as three bids for construction survey services. All bids include the payment of prevailing wages, as determined by the California Department of Industrial Relations. Design services, soft construction costs, construction survey services, and temporary traffic control costs were proportionately distributed among the improvements and were added to the hard construction costs with the applicable reimbursement ratio applied to determine the City's share for each. The City's total share was calculated to be $312,313 for the traffic signal installation and $1,858,635 for the other improvements. SchoolsFirst is contributing 50% towards the costs of the traffic signal installation and median reconstruction / landscape / irrigation improvements on Newport Avenue in front of SchoolsFirst. The balance of the costs, totaling $660,349, along with 100% of the costs of the driveway construction and catch basin / storm drain relocation, totaling $457,498, will be attributable to the sale of the City -owned 11 -acre parcel on the west side of Newport Avenue between Valencia Avenue and the freeway offramp. SchoolsFirst is contributing 50% towards the costs of the median landscape / irrigation improvements on Del Amo Avenue. The balance of the costs, totaling $68,534, along with half the cost of the median landscape / irrigation improvements on Newport Avenue, north of Del Amo Avenue in front of the hotels, $281,312, will be attributable to the sale of the City -owned 6.5 -acre parcel on the east side of Newport Avenue adjacent to Micro Supplemental Appropriation for SchoolsFirst Public Improvements November 19, 2019 Page 3 Center. Lastly, the City is sharing in 50% of the costs of the sidewalk / landscape / irrigation improvements along Newport Avenue and Del Amo Avenue in front of SchoolsFirst, in the amount of $421,941. Supplemental appropriations are requested in the amount of $150,000 for the Newport Avenue / SchoolsFirst Traffic Signal Project, CIP No. 40092, and $1,350,000 for the Del Amo Avenue / Newport Avenue Improvements Project, CIP No. 70249. ,6. Stack, P.E. of Public Works/City Engineer Attachment(s) 1. Location Map — CIP No. 40092 2. Location Map — CIP No. 70249 SAUy Council ltws12019 Council Items\11-19-20191SchoolsFrst-Supplemental Appropnation)Appmve Supplemental Appropnalion (CIP70249)_drall_EJ.docx ATTACHMENT 1 LOCATION MAP - CIP NO. 40092 CITY OF TUSTIN 0 FLP N-Vmt A— — Sdwd~ 7S �P PROJECT LOCATION z .II I PROJECT NAME NEWPORT AVENUE / SCFIOOLSFIRST TRAFFIC SIGNAL INSTALLATION (CIP N0.40092) 1 ATTACHMENT 2 LOCATION MAP - CIP NO. 70249 CITY OF TUSTIN PROJECT NAME: DEL AMO AVENUE / NEWPORT AVENUE ROADWAY MAPROVEMENTS (CIP NO. 70249)