CC 2021-09-28_08f Castillo Del Mar Add FundsMEMORANDUM
TO: CITY COUNCIL
FROM: BILL ROBESON, ASSISTANT CITY MANAGER/PUBLIC WORKS
DIRECTOR
BY: ROBIN DICKERSON, PE, CITY ENGINEER
JILL MCPEEK, CAPITAL IMPROVEMENT PROJECT MANAGER
SUBJECT: CONSIDERATION TO APPROVE AN AMENDMENT TO THE FISCAL
YEAR 2021-22 CAPITAL IMPROVEMENT BUDGET FOR THE
CASTILLO DEL MAR EXTENSION PROJECT, PW 2020-05
DATE: SEPTEMBER 28, 2021
SUMMARY OF ACTION:
Authorize a budget amendment to transfer $15,000 of Local Sales Tax Funds from fund
balance to fully fund the Castillo Del Mar Extension project.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The amended FY 2020-21 Capital Improvement Program budget included $1,066,580.72
for the Castillo Del Mar Extension project. It is now estimated that an additional $15,000
will be needed to complete the project, and it is recommended that Local Sales Tax funds
be appropriated for this purpose. On July 27, 2021, Council approved the allocation of
$2,493,950 of American Rescue Plan Act (ARPA) funds to previously budgeted
infrastructure projects, providing $1,746,500 of anticipated excess Local Sales Tax funds
in Fiscal Year 2021-22. Staff time will be necessary to coordinate construction activities
with the contractor and engineering consultants.
RECOMMENDATION:
It is recommended the City Council approve an amendment to the Fiscal Year 2021-22
Capital Improvement Program budget to transfer $15,000 of Local Sales Tax funds from
fund balance to the subject project.
BACKGROUND:
On January 12, 2021, the City Council awarded a construction contract for the Castillo
Del Mar Extension project and authorized the City Manager to approve change orders for
a total of 10% of the contract amount of $930,943.20, or $93,094.32 , to be used for
unanticipated costs during the construction phase of the project. There has been
$81,269.20 in contract change orders executed for the project to date. These include a
change to the specified Rectangular Rapid Flashing Beacon signs to the same type of
signs used in the Village area; unearthing of unmarked underground piping and
unsuitable existing soil conditions; modifications to the parking lot driveway entrance
ramps to better accommodate ADA access; safety railing on both sides of the storm drain
Item 8.f. - Page 1
CITY COUNCIL
CONSIDERATION TO APPROVE AN AMENDMENT TO THE FISCAL YEAR 2021-22
CAPITAL IMPROVEMENT BUDGET FOR THE C ASTILLO DEL MAR EXTENSION
PROJECT, PW 2020-05
SEPTEMBER 28, 2021
PAGE 2
system; installation of a water meter for street trees; replacement of worn and damaged
ADA truncated domes; and additional erosion control planting and jute netting.
Based on current projections, it is estimated the final project costs will exceed the
available budget and that an additional $15,000 will be needed to complete the project.
These costs are a result of unforeseen items such as quantity increases, unknown buried
objects, additional geotechnical services, changes in field conditions, changes in soils
conditions for outlet structures, conflicts between field and plan conditions, increased
transition lengths between new and existing.
ANALYSIS OF ISSUES:
Of the $93,094.32 approved by Council on January 12, 2021 to be used for unanticipated
costs during the construction phase of the project, $85,188.89 was from the City of Arroyo
Grande and $7,905.43 from the Lucia Mar Unified School District (LMUSD) for the items
LMUSD is funding. These items include street lighting, parking lot striping, and an access
drive that connects the two LMUSD parking lots and provides additional parking. No
changes to the contract have been identified for the items being funded by LMUSD.
Therefore, it is estimated that the $7,905.43 of LMUSD’s contingencies will not be used
for the project leaving $85,188.89 for unanticipated costs, of which $81,269.20 in contract
change orders have been executed.
In order to fully fund and complete the project, staff is recommending a transfer of $15,000
of Local Sales Tax funds that were returned to fund balance from the use of American
Rescue Plan Act (ARPA) funding on previously budgeted infrastructure projects. The
following table presents the projected final project costs.
Budget
Available
Projected
Expenditures
Projected
Shortfall
Construction $ 930,943 $ 930,943 $ 0
- Construction contract 930,943
Contingencies (City funds only) 85,189 94,730 - 9,541
- Change orders to date 81,269
- Estimated additional quantities 13,461
Contract Admin 19,516 20,790 - 1,274
- Engineering contract 7,000
- PG&E street lights contract 10,990
- Bid advertisement 1,176
- Plan sets 173
- Annual storm water permit 566
- Backflow device 885
Item 8.f. - Page 2
CITY COUNCIL
CONSIDERATION TO APPROVE AN AMENDMENT TO THE FISCAL YEAR 2021-22
CAPITAL IMPROVEMENT BUDGET FOR THE C ASTILLO DEL MAR EXTENSION
PROJECT, PW 2020-05
SEPTEMBER 28, 2021
PAGE 3
Budget
Available
Projected
Expenditures
Projected
Shortfall
Testing 14,994 19,179 - 4,185
- Testing contract 14,994
Design 8,034 8,034 0
- Engineering contract 8,034
Totals $ 1,058,676 $ 1,073,676 - $ 15,000
The table above identifies the amount of contingency funding provided by the City (“City
funds only”) because the $7,905.43 of LMUSD’s aforementioned contingencies will not
be used for the project.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Approve staff’s recommendation;
2. Do not approve staff’s recommendation and request further information;
3. Modify staff’s recommendation and approve; or
4. Provide direction to staff.
ADVANTAGES:
The extension of Castillo Del Mar will result in improved access for the Vista Del Mar and
the Heights at Vista Del Mar developments, and will help relieve congestion related to
traffic surrounding Arroyo Grande High School.
DISADVANTAGES:
A transfer of Local Sales Tax funds takes away funding from other infrastructure projects.
ENVIRONMENTAL REVIEW:
The project was reviewed in compliance with the California Environmental Quality Act
(CEQA), the CEQA Guidelines and the City of Arroyo Grande Rules and Procedures for
Implementation of CEQA. The City Council adopted a Mitigated Negative Declaration on
August 22, 2006 which included the extension of Castillo Del Mar. In September 2020,
per Section 15162 of the CEQA Guidelines, City staff reviewed the adopted Mitigated
Negative Declaration and found that there are no substantial changes that would require
additional environmental review. On September 22, 2020, Council adopted Resolution
No. 5036 confirming the environmental determination .
Item 8.f. - Page 3
CITY COUNCIL
CONSIDERATION TO APPROVE AN AMENDMENT TO THE FISCAL YEAR 2021-22
CAPITAL IMPROVEMENT BUDGET FOR THE C ASTILLO DEL MAR EXTENSION
PROJECT, PW 2020-05
SEPTEMBER 28, 2021
PAGE 4
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the Ci ty’s website in accordance with
Government Code Section 54954.2.
Item 8.f. - Page 4