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ADOPT RESOLUTION TO AUTHORIZE TRANSFER AND APPROPRIATION OF FUNDS FOR THE CALIFORNIA STREET ROAD DIET PROJECT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Transfer funds totaling $846,305 from various projects to the California Street Road Diet, Project No. WT18005/Federal Project No. ATPSB1L-5008(194).
a. $20,800 from the High Friction Surface Treatment, Project No. WT16022.
b. $125,005 from the Bicycle Master Plan Program, Project No. WT17003.
c. $260,000 from the Rule 20A Street Lighting Program, Project No. WT15021.
d. $244,500 from the Traffic Signal Modification Program, Project No. WT15029.
e. $196,000 from the California and Vine Rectangular Rapid Flashing Beacon Improvements, Project No. WT21018.
2. Appropriate funds in the amount of $549,695 from the Public Facility Fee Air Quality Fund Balance to the California Street Road Diet, Project No. WT18005/Federal Project No. ATPSB1L-5008(194).
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
On June 13, 2023, by Resolution No. 2023-06-13-1212, Council awarded a Construction Contract, in the amount of $9,446,626, to George Reed, Inc. of Modesto, CA, to complete the California Street Road Diet, Project No. WT18005/Federal Project No. ATPSB1L-5008(194).
The project will implement lane reductions and install approximately four miles of bicycle facilities along California Street from Alpine Avenue to Eighth Street, and Eighth Street from California Street to El Dorado Street (Attachment A - Vicinity Map). The improvements will transform California Street into a complete street that will accommodate all modes of travel as envisioned in the City’s Bicycle Master Plan (BMP). The project was included in the 2018-23 and 2019-24 Five-Year Capital Improvement Plans (CIP).
The project will be using approximately $11.2M in funding from the Active Transportation Program (ATP); Measure K sources; and Affordable Housing and Sustainable Communities Program (AHSC). AHSC is connected with an affordable housing development project entitled Hunter House, which has multiple funding sources including tax credits. State approval of AHSC funding is expected once tax credits are received for the project. AHSC funding was not used to fund the Construction Contract with George Reed, Inc. because this funding source is not anticipated to be available until spring of 2024 when tax credits for the Hunter House project are received. Therefore, staff has assembled alternative funding until the AHSC becomes available to fully fund construction management, materials testing, construction contingency, and staff time.
Staff has identified unencumbered Measure K funds in several project accounts that are sufficient to cover the shortfall left by the outstanding AHSC funds. Staff recommends that Council adopt a resolution authorizing the transfer of funds, in the total amount of $1,396,000, to the California Street Road Diet, Project No. WT18005/Federal Project No. ATPSB1L-5008(194).
DISCUSSION
Background
On December 5, 2017, by Resolution No. 2017-12-05-1501, Council approved a new BMP for the City. The BMP was completed with input from stakeholders in the community with the goal of improving access to bicycle facilities for residents of the City. The California Street corridor is a key corridor and is part of the north-south backbone bicycle network of the BMP.
The California Street Road Diet project will implement lane reductions and install approximately four miles of Class II and IV bicycle facilities along California Street from Alpine Avenue to Eighth Street, and a Class III bicycle route along Eighth Street from California Street to El Dorado Street (Attachment A - Vicinity Map). The improvements will transform California Street into a complete street that will accommodate all modes of travel as envisioned in the City’s BMP. The project will also upgrade/repair existing curb ramps, sidewalks, and complete signal modifications within the project limits.
The project will be using approximately $11.2M in funding from the ATP ($4.39M); the Measure K Smart Growth Incentive Program ($4.21M); Measure K Bicycle, Pedestrian and Safe Routes to School Program ($1.38 M); and AHSC Program ($1.2M) for design and construction of the project. The Measure K funds were identified in the 2018-23 and 2021-26 Five-Year CIPs. The ATP funds were identified in the 2019-24 Five-Year CIP. AHSC funds will be appropriated pending approval received from the State. AHSC is connected with an affordable housing development project entitled Hunter House, which has multiple funding sources including tax credits. State approval of AHSC funding is expected once tax credits are received for the project. Design of the project was completed, and the project was subsequently advertised for construction.
Present Situation
On June 13, 2023, by Resolution No. 2023-06-13-1212, Council awarded a Construction Contract, in the amount of $9,446,626, to George Reed, Inc. of Modesto, CA, to complete the California Street Road Diet, Project No. WT18005/Federal Project No. ATPSB1L-5008(194). AHSC funding was not used to fund the Construction Contract as this funding source is not expected to be available until spring of 2024 when tax credits for the Hunter House project are received. Consequently, this leaves the California Street Road Diet project with insufficient funds for construction management, material testing, contingency, and staff time in the initial stages of construction. Staff has assembled alternative funding until the AHSC becomes available.
Staff has identified unencumbered Measure K funds in several project accounts that are sufficient to cover the shortfall left by the outstanding AHSC funds. Staff recommends that Council adopt a resolution authorizing the transfer of funds, in the total amount of $1,396,000, to the California Street Road Diet, Project No. WT18005/Federal Project No. ATPSB1L-5008(194). When AHSC funding becomes available during construction, remaining funds can be returned to the fund balance upon project completion or redirected to additional curb, gutter, and sidewalk repair improvements for the project.
FINANCIAL SUMMARY
The resolution includes the following actions to provide sufficient funding to fund all construction related costs to complete the project:
1. Transfer funds totaling $846,305 from various projects to the California Street Road Diet, Project No. WT18005/Federal Project No. ATPSB1L-5008(194), Account No. 4510-000-800007-300-000-30-45-000-000.
a. $20,800 from the High Friction Surface Treatment, Project No. WT16022, Account No. 4570-000-800007-300-000-30-45-000-000.
b. $125,005 from the Bicycle Master Plan Program, Project No. WT17003, Account No. 4570-000-800007-300-000-30-45-000-000.
c. $260,000 from the Rule 20A Street Lighting Program, Project No. WT15021, Account No. 4570-000-800007-300-000-30-45-000-000.
d. $244,500 from the Traffic Signal Modification Program, Project No. WT15029, Account No. 4510-000-800007-300-000-30-45-000-000.
e. $196,000 from the California and Vine Rectangular Rapid Flashing Beacon Improvements, Project No. WT21018, Account No. 4570-714-800007-250-252-30-45-000-000.
2. Appropriate funds in the amount of $549,695 from Public Facility Fee Air Quality Fund Balance to the California Street Road Diet, Project No. WT18005/Federal Project No. ATPSB1L-5008(194), Account No. 4510-000-800007-300-000-30-45-000-000.
There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended actions.
Attachment A - Vicinity Map