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CC 2016-01-12_09k Oak Park Rehabilitation Project Funding MEMORANDUM TO: CITY COUNCIL FROM: GEOFF ENGLISH, PUBLIC WORKS DIRECTOR SUBJECT: OAK PARK REHABILITATION PROJECT FUNDING REQUEST DATE: JANUARY 12, 2016 RECOMMENDATION: It is recommended the City Council appropriate $205,000 from the Sales Tax Fund to the Oak Park Rehabilitation project and authorize the City Manager to enter into a reimbursement agreement with the City of Grover Beach for the completion of this work. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Construction costs for the proposed project are approximately $205,000. Staff is recommending an appropriation of funds from the Local Sales Tax Fund. The current unallocated Local Sales Tax fund balance is approximately $645,000, before considering other requests pending Council approval on the January 12, 2016 agenda. BACKGROUND: The City of Grover Beach is proceeding with a road rehabilitation project for the segment of Oak Park Boulevard from Grand Avenue to the Arroyo Grande City limits near Sierra Drive. A yellow highlighted segment of Oak Park Boulevard in the diagram below shows the paving limits of this Grover Beach project. Item 9.k. - Page 1 CITY COUNCIL OAK PARK REHABILITATION PROJECT FUNDING REQUEST JANUARY 12, 2016 PAGE 2 This project, which will be advertised for competitive bidding by the City of Grover Beach on January 23, 2016, was in large part funded by $1.5M in Regional Surface Transportation Funds programmed by SLOCOG. The project was originally considered to be a regional project with project limits extending to the bridge deck on the west side of Highway 101, however, in the final funding, distribution was limited to the portions of Oak Park Boulevard within the Grover Beach City limits. Bids for this project are due on February 3, 2016 and it is anticipated that construction will begin in April or May of 2016. ANALYSIS OF ISSUES: As currently designed, this road surface improvement project will terminate at the City of Arroyo Grande city limits at the intersection of Sierra Drive and Oak Park Boulevard. The section of Oak Park Boulevard within the Arroyo Grande and Pismo Beach city limits will not receive any surface improvements. The diagram below depicts the City of Arroyo Grande segment. Oak Park Rehab- City of Arroyo Grande segment Item 9.k. - Page 2 CITY COUNCIL OAK PARK REHABILITATION PROJECT FUNDING REQUEST JANUARY 12, 2016 PAGE 3 A preliminary Engineer’s Estimate to complete a grind and repave project on the City’s section including all associated costs is approximately $205,000. This cost estimate includes the demolition and reconstruction of the curb ramp at the southeast corner of the intersection adjacent to AJ Spurs. There is some potential reduction in the area of paving required in this segment because Phillips 66 is scheduled to begin a gas line project in February in which they are conditioned to pave one full lane width on Oak Park Boulevard within this road segment. The Public Works Director for the City of Pismo Beach has expressed a willingness to work with the City of Arroyo Grande to have the Pismo Beach segment of Oak Park Boulevard paved at the same time in a cooperative effort with Arroyo Grande. All costs for the road surface work in this segment would be covered by the City of Pismo Beach. The diagram below depicts the City of Pismo Beach segment. Oak Park Rehab- City of Pismo Beach segment Staff is proposing to prepare design plans, specifications and an updated Engineer’s Estimate for the City of Arroyo Grande segment of Oak Park Boulevard and to provide these documents to the City of Grover Beach. The City of Grover Beach Public Works Director has agreed to bid the Arroyo Grande segment as an Ad Alternate through the bid addendum process with their current bidding effort. Bidding our segment with the Grover Beach project would most likely allow for lower bids for the City of Arroyo Grande because of the benefit of scale. Generally speaking, with Capital Improvement Projects the greater the quantity of work, the lower the unit cost. Item 9.k. - Page 3 CITY COUNCIL OAK PARK REHABILITATION PROJECT FUNDING REQUEST JANUARY 12, 2016 PAGE 4 The City of Grover Beach would then award the City of Grover Beach section and the City of Arroyo Grande portion of the work to the qualified low-bidder. The contractor would complete the Arroyo Grande portion of the work, tracking and invoicing this portion of the work separately. The City of Arroyo Grande would then reimburse the City of Grover Beach for the work completed within our city limits. If the Council approves, staff will draft a reimbursement agreement between the City of Arroyo Grande and City of Grover Beach, which the City Manager would be authorized to execute. Additionally, it will be necessary for the City Council to allocate $205,000 from the unallocated Local Sales Tax fund balance to cover all construction costs and contingencies. ALTERNATIVES: The following alternatives are provided for City Council consideration: - Approve staff’s recommendation to allocate the requested funds and to authorize the proposed plan for bidding and awarding this proposed project; - Do not approve staff’s recommendation and request further information; - Modify the staff recommendation and approve; - Provide direction to staff. ADVANTAGES: Approval of the staff recommendation will have the following potential advantages:  Pave the segment of Oak Park Boulevard from the city limits to the bridge deck on the west side of Highway 101. This road segment is in distressed condition.  The City will potentially benefit from lower unit cost due to “piggy-backing” on the larger City of Grover Beach project.  There will potentially be less traffic disruptions if one contractor completes both projects. DISADVANTAGES: This project will use funds from the Sales Tax account that could be used for other purposes. ENVIRONMENTAL REVIEW: This project is exempt per CEQA Section 15301(c). PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, January 7, 2016 and the agenda and staff report were posted on the City’s website on Friday, January 8, 2016. Item 9.k. - Page 4