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HomeMy WebLinkAbout2003-04-21 City Council (6)TO: City Manager’s Repor HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE: SUBJECT: APRIL 21, 2003 FUNDING STATUS UNDERCROSSING, PROJECT 10121 OF HOMER AVENUE CAPITAL IMPROVEMENT CMR:246:03 CALTRAIN PROGRAM This is an information report; no Council action is requested at this time. REPORT IN BRIEF On July 22, 2002 Council approved staffs recommendation to proceed with the Homer Avenue Undercrossing Project with the assurance that, working with the Santa Clara Valley Transportation Authority (VTA), staff would identifT sufficient funding sources to address the $690,000 funding shortfall for the project. The VTA committed to repro~anmaing $700,000 in gant funding to the Homer Avenue Undercrossing per the attached draft Fund Transfer Ageement (Attachment A). This provides sufficient funding commitments to meet the estimated project budget of $5M. Prior to the deadline of September 30, 2002, staff submitted 100% plans, specifications and estimates for the project to Caltrans and received its approval. Staff requested authorization to proceed to the construction phase. This authorization obligates the federal funds that have been previously committed. In November 2002 Caltrans informed staff that it had over-obligated ~ant funds for FY 2002/03 and although the project was approved, it could not obligate the funds for this project during the current fiscal year. Staff has been working with Caltrans, VTA and the Metropolitan Transportation Commission (MTC) toward a solution in order to proceed with the project and not jeopardize the current level of funding commitments. Staff has secured formal approvals (Advance Construction Authorization) from Caltrans that will allow the City to proceed with the project and be reimbursed with $3.0 million in federal and state funds at a later date. The City will need to advance funding from the General Fund Infrastructure Resetwe to the project until reimbursement is received in order to have sufficient funding to award a construction contract later this spring. CMR:246:03 Page 1 of 6 The project is currently out to bid and staff will return to Council in June with the award of contract, approval of the funding apeement with the VTA for the Bicycle Propam pant funds, and a Budget Amendment Ordinance to accept pant funds and provide for the loan from the General Fund Infrastructure Reserve. BACKGROUND The Homer Avenue Caltrain Undercrossing project involves the construction of a bicycle and pedestrian tunnel under the Cattrain tracks connecting the South of Forest Area and Downtown Palo Alto to the Palo Alto Medical Foundation (PAMF), Sheraton Hotel and surrounding area. An agpessive project schedule was developed to comply with pant funding conm~itment deadlines and to coincide with the Peninsula Corridor Joint Powers Board (PCJPB) weekend track closures, scheduled through March 2004. By taking advantage of the weekend track closure and building the undercrossing this year, Palo Alto would avoid additional project costs of $400,000 to $500,000 for railroad flagging and construction of a shoo-fly track to reroute trains around the construction zone; and be able to maintain scheduled Caltrain service. The current $5.0 million budget is not sufficient to cover these costs if the project were delayed. Over the past 3 ?pears, Council has taken a number of actions in support of this project and a summary table ot~ these actions is provided on Attachment B. Most recently, on July 22, 2002, staff presented Council with an update of the funding status and project cost estimates and recommended that Council approve proceeding with the project (CMR:313 :02). The report explained there was a shortfall in the conm~itted pant funding of $690,000 and that staff had met with VTA and MTC representatives to identify available sources to make up this deficit. Council directed staff to proceed and continue to seek funding resources. Since that time, an additional $700,000 was conm~itted by the VTA, thus reaching the goal to tully fund the project with outside funding. This funding was reallocated from the $1.0 million propammed in the VTA Bicycle Expenditure Program for the California Avenue Bicycle/Pedestrian Underpass replacement project, which is still at the feasibility study stage. (The remaining $300,000 has been reallocated to the Embarcadero Bridge and Bike Path project, which is also currently out to bid). DISCUSSION Status of Federal Funding In order to firmly commit the $3,011,500 in federal and state funds propammed to the project by the funding deadline, the City needed to secure Caltrans approval of the environmental and right-of-way documents, and complete project plans, specifications and estimate (PS&E) by September 30, 2002, and secure approval of an Authorization to Proceed, resulting in issuance of a form E-76. Staff submitted all the required doculnents in advance of the deadline and received written confirmation of Caltrans’ approval of the plans. Subsequently, in November 2002, staff received written notification that Caltrans was returning the request for form E-76 and informed staff that Cattrans had over- CMR:246:03 Page 2 of 6 obligated gant funds for the Bay Area region for FY 2002/03 and although the project was approved it could not obligate the funds for this project. Staff met with representatives of Caltrans, VTA and MTC on December 20, 2002 and on February 14, 2003 to discuss the serious impacts that not obligating the committed funding would have on the Homer Avenue project. At these meetings, the City was encouraged to apply for "advance construction authorization" (AC authorization) from Caltrans for the federal funds and a similar approval for the state funds. The AC authorization is utilized when federal funds may not be available for obligation, but are anticipated with future federal and state transportation funding reauthorization legislation. If a local agency wishes to proceed with its own funds due to the urgency that a project proceed, the requesting agency must have sufficient funds available to cover project expenses until federal and state matching reimbursement funds become available and must consider the risk that they may never become available. The AC authorization establishes the date for the beginning of reimbursable activities for the construction phase. MTC and Caltrans have stated that all projects previously obtaining AC authorization have eventually been reimbursed. Furthermore, on March 26, MTC adopted policies and procedures for prioritizing projects when federal reauthorization of TEA-21 may occur in late 2004. The policies cal! for the first cycle of the new federal transportation funding to be used to fund outstanding TEA-21 projects that did not receive Form E-76 due to insufficient obligation authority in 2002. The Homer Avenue Undercrossing falls within this category. Staff submitted the AC authorization form on December 20, 2002 and received approval in March 2003, establishing the start date for reimbursement of construction funds. Over 60 agencies in the Bay Area have also applied for AC authorization to implement projects in a timely manner or are on a waiting list for funding reauthorization (Attachment C). Status of State Fundina Staff has also submitted requests to Caltrans to extend the $293,000 in unexpended State Transportation Improvement Progam (STIP) funds for 20 months and has obtained Caltrans approval of advance construction for the STIP funds. However, due to the state budget crisis, the California Transportation Commission (CTC) is in the process of establishing statewide priorities for the allocation of STIP funds this year. The Homer Avenue Undercrossing is currently in the category of"noncapacity construction projects," a low priority which is unlikely to be allocated. Staff submitted a formal written request (Attachment D) to the CTC and the Assistant Director of Public Works attended the CTC meeting on April 3, 2003 and presented the City’s request that the project be moved into the higher category of "projects at significant risk of losing other funding." The Commission directed CTC staff to work with Palo Alto to consider reclassifying this project on the higher priority category in the next STIP allocation as a project at risk of losing significant other funding. CMR:246:03 Page 3 of 6 Staff hopes to have a final determination on this issue by the CTC when staff returns to Council in June with a final project budget and the award of a construction contract. Staff also hopes the actual project cost determined based on the low bid may reduce some of the need for utilizing City reserves for advance funding. Next Steps The project is currently out to bid and staff plans to bring the award of a construction contract to Council in June 2003. Staff will continue to work with MTC, VTA and CTC staff to secure the STIP funding allocation within the next two months. As a safeguard, staff plans to submit a Transportation Development Act (TDA) fund application later this month for the $293,000 to backfill the STIP funds, if necessary. In June, staff will also bring forward a Budget Amendment Ordinance to accept and expend approved ~’ant funding not currently in the project budget and to provide a loan from the General Fund as explained in the Resource Impact section of this report. If the City does not proceed with the project now, there would be several serious financial consequences: TFCA gant funds in the amount of $325,000 not associated with the AC authorizations are scheduled to expire within the next year (Attachment E). Delaying the project will result in a $500,000 increase in construction cost due to inflation, railroad track relocation, additional flagging and lost opportunib, to construct during planned Caltrain weekend track closures scheduled to cease in March 2004. Loss of reimbursement for desi~on costs and staff time totaling approximately $1 million that the City would not receive if the project ceases. Not proceeding with the project would result in the need for the City to secure more ~’ant funds or commit City funds to the project. Staff believes it has explored all available ~’ant fund options and it is doubtful that substantial new sources of funding will be available to make up a funding shortfall associated with a more costly project in the future. RESOURCE IMPACT The committed funding sources for this project total $5,131,510 as noted below: Project Fundina TEA-21 federal funds Congestion Mitigation & Air Quality (CMAQ) * CMR:246:03 $2,035,510 Page 4 of 6 State Transportation Improvement Progam (STIP) matching funds"$_69,810 Local funds and developer mitigation fees $ 350,680 City, Electric Utility, Fund (Project 8930)$ 225,000 Transportation Fund for Clean Air (TFCA) pro~am funds $ Federal Transportation Enhancements (TEA) progam*"$502,000 STIP, state matching funds*$ 66,190 Transportation Development Act (TDA) funds from VTA $ 200,000 Transportation for Livable Communities (TLC)~"$ 464,000 Measure B Funds, Bicycle Expenditure Progam $ 700.000 Total Project Budget $5,131,510 The combined federal and state matching funds total $3,331,510 and are noted with an asterisk. Of that amount,-$320,010 was obligated for design costs and has been invoiced for rei.mbursement. The remaining $3,011,500 Federal funds are expected to be reimbursed in December 2004. This will require a loan from the General Fund Infrastructure Reserve to the project until reimbursement is received in order to have sufficient funding to award the construction contract in June 2003. As discussed previously, the remaining $293,000 in state matching funds are not yet allocated and staff is pursuing additional TDA pant funds to backfill the state funds if necessary, and other funding strategies. If no other outside funds are found, these costs will need to be funded through the Infrastructure Reserve Fund. The General Fund Infrastructure Reserve (IR) has a current balance of approximatel), $~1._94.700: allocatin~ approximately $3 million to the Homer Avenue Caltrain Undercrossing CIP number 10121 will reduce that balance to approximately, $27.9 million. The opportunity cost of advance funding for this project will be approximately $!20,000 in interest that would have accrued to the Infrastructure Reserve. Council should be advised that the proposed FY 2003-05 budget will drain approximately $10 million from the IR fund balance to approximately $17:1 million at year end June 30. 2005. POLICY IMPLICATIONS Current Council priorities have established that existing infrastructure projects have priority, over new infrastructure projects, which is not consistent vvith this recommendation. However, this project is consistent with Comprehensive Plan Transportation Policy T-14: Improve pedestrian and bicycle access to and between local destinations and Prouam T-21; Study projects to depress bikeways and pedestrian walkways under Ahna Street and Caltrain tracks and ifiaplement if feasible. In addition, the Coordinated Area Plan for the SOFA includes two policies related to this facility.: Policy, T-13" Support the construction of a railroad undercrossing at Homer and CMR:246:03 Page 5 of 6 Alma, and Policy T-20: Facilitate implementation of the recommendations of the Railroad Crossing Feasibility Study to improve pedestrian access from SOFA and PAN~ campus and points west. ATTACHMENTS Attachment A: Santa Clara Valley Transportation Authority 1996 Measure B Bicycle Program Fund Transfer Agreement Attachment B:Suncmary of Past City Council Actions Attachment C:Letter to the California Transportation Conm~ission Attachment D:Status of MTC Projects with Federal Funds Attachment E:Funding Matrix and Deadlines PREPARED BY:Elizabeth Arnes, Senior Engineer Gayle Likens, P&CE/Transportation Projects Manager Sharon Macway, PW Projects Coordinator DEPARTlVIENT HEAD:/~ 2 GLENN S. ROBERTS Director of Public Works CITY MANAGER APPROV~~ ~ EMILY HARRISON Assistant City Manager co:Palo Alto Bicycle Advisory Conm~ittee David Jury, Palo Alto Medical Foundation SOFA Working Group Daryll Maxey, Caltrain Joint Powers Board Michael Evanhoe, VTA Marc Roddin, MTC Elaine Meyer, University South Neighborhood Group City/School Traffic Safety Committee David Neuman, Stanford University CMR:246:03 Page 6 of 6 ATTACHMENT A S.~kNTA CLAP~ VALLEY TP~_NSPORTATION AUTttOR1TY 1996 M:EASURE B BICYCLE PROGI~AVI ’ TFD-N-D TI~qSFER AGREEMEN - This Cooperative Agreement (Agreement) is made as of ,2003, between the Santa Clara Valley Transportation _4:uthority 0fTA) and the City of Palo Alto ~¢[ember Agency) .... This _~eement is made with reference to the following facts: Bo Go On November 5, 1996, the voters of Santa Clara County enacted by majority vote the !996 Measure A Sales Tax program and the 1996 Measure B sales t~m. The 1996 Measure B program.included $12 million for bicycle projects in Santa Clara County. The VTA Board.of Directors adopted the Santa Clara Count~w~dde Bicycle Plan on September i0, 2002, which included the Tier i priority list of bicycle projects. The Tier i bicycle projects will be funded out of the Bicycle Expendittme Program that was adopted by the VTA Board of Directors on August 3, 2000. The Bicycle Ex-penditure Program is a ten-year $32 million funding program for the Tier i projects in the Santa Clara CountTwide Bicycle Plan. The Santa Clara County Board of Supervisors approved the NIeasure B Bicycle. Program on August 17, 2000. VTA has been desigmated by the Count7 of Santa Clara as the Program ~,Ianager for the 1996 Measure B .Bicycle Program, and is responsible for disbursing Measure B Bicycle Program funds. This Agreement specifies the conditions under which ~_1 will disburse Measure B Bicycle Program funds to the Member Agency for the Homer =&venue Undercross’mg Project. Section 1. Project Description . The Member Agency will complete the const-~action of the Homer Avenue Undercrossing (referred to herein as "Project"). The project is.a new bicycle!pedestrian undercrossing of the Caltrain ~racks 800 feet south of the Palo _Alto Caltrain Station. The project ~it! connect the South of Forest Area neighborhood to the Caltrain station, the Palo Alto Medical Foundation and points beyond. Section 2. Award of ~Ieasure B Bicycle Funds $ ~00,00 in Measttre B Bicycle Program ~%mds will beprovided to the ~Iember Agency for implementation of the Project. Section 3. Minimum Local Match The Member Agency agrees to provide a local match equal to at least 20% of the total project cost, as shown in Attachment ~ The local match shall not include funds from the following sources: a)Transportation Development Act Article 3 30% set-aside for the Bicycle Expenditure Program b)Transportation Fund for Clean Air Program Manager 50% set-aside for the Bicycle Expenditure Program c)Transportation Equity Act for the 21’~ Century Enhancements 2n~ Cycle set aside for the Bicycle Expenditure Program d)~ny other funds approved by the VTA Board of Directors as being dedicated to the Bicycle Expenditure Program Section 4. Bicycle Technical Guidelines’ Standards The Member Agency shall ensure that the Project will comply w-ith the standards in the Bicycle Technical Guidelines adopted by the VTA Board of Directors in September 1999, unless compliance wouid result in extraordinary cost and/or environment~ impacts. Section 5. Review of Plans The Member Agency shall provide two copies of the 100% desi~o-n plans of the Project to VTA as soon as they are available. Section 6. Administrative Costs The Member Agency’s allowable administrative costs for the Project are limited to 5% of the Measure B Bicycle funding. Section 7. Reimbursements Any costs incurred for the Project before full execution of this Agreement are not eli~ble are reimbursement. The Member Agency shall submit invoices to VTA with documentation of costs incurred during the invoice period, using the form shown in Attachment B. VTA shall pay the Member Agency within thirty days after receipt of each invoice and to continue making such payments until the Project is complete or the Measure B Bicycle fund contribution is fully invoiced; whichever occ~s ~st. Page 2 of 5 Section 8. Monitoring and Status Reports The Member Agency shall submit yearly-basis financial and implementation status reports to VTA by August i of each year. Each report shall itemize the obligation and expenditure of funds, and the progress to date in the implementation of the Section 9. Audit The Member Agency shall retain all books, documents, papers, accounting records and other evidence pe~g to costs for three years after completion of the Project. The Member Agency shall also allow VTA or an independent auditor selected by VTA to audit all expenditures relating to the Project and to require all recipients of funds allocated under this Agreement to fully cooperate with such audits, within three years of the date of the final payment to the Member Agency. Section 10. Marketing and Public Relations The Member Agency shall use VTA-approved and County of Santa Clara-approved !ogos and signage for the Project as shown in Attachraent C on signs posted at the site of all construction. The logos shall be used on any printed material intended for public dissemination associated with the Project, including but not limited to brochures, handbooks, schedules, maps, and promotional materials. The Member Agency shall credit the VTA as the Program Manager and the County of Santa Clara as the funding source in any related articles, news releases, or other publicity materials that are produced by the Member Agency for the Project. Sections 11. Notices Any notice which may be required under this Agreement shall be in writing, shah be effective when received, and shall be given by personal service, by U.S. Postal Service mail, or by certified mail (return receipt requested), to the addresses set forth below, or to such addresses which may be specified in writing to the parties hereto. M_ichael P. Evanhoe Chief Development Official Santa Clara Valley Transportation Authority 3331 North First Street San Jose, CA 95134 Glenn Roberts Public Works Director Cit-y of Palo Alto 250 Hamilton Avenue Palo .Alto, CA 94303 Page 3 of 5 Section 12. Staff Liaisons Liaison with the Member Agency with regard to the day-to-day activities of the Project shall be with Elizabeth Ames. Liaison with the VTA with regard to the day-to-day activities of the Project shall be with Amin Surani. Notification of change of status of contact persons shall be made in writing within thirty 30 days. Section 13. Member Agency Liability Neither VTA nor any officer or employee thereof sha~ be responsible for any damage or liability occurring by reason of anything done or omitted to be done by the Member Agency under or in connection with any work, authority or jurisdiction delegated to VTA or the Member Agency under this Cooperative Agreement. Pursuant to Government Code 895.4, Member Agency shall ~y defend, indemnify, and save harmless VTA from all suits or actions of every name, kind and description brought on for or on account of injury (as defined in Government Code Section 810.8) occurring by reason of anything done or omitted to be done by the Member Agency under or in connection with any work, authority or jurisdiction delegated to VTA under this Cooperative Agreement. Section 14. VTA Liability Neither the Member Agency nor any officer or employee thereof shall be responsible for any damage or liability occurring by reason of any~dJng done or omitted to be done by VTA under or in connection mdth any work, authority or jurisdiction delegated to the Member Agency or VTA under this Cooperative Agreement. Pursuant to Government Code 895.4, VTA shall fully defend, indemnify, and save harmless the Member Agency from all suits or actions of every name, kind and description brought on for or on account of injury (as defined in Government Code Section 810.8) occurring by reason of anything done or omitted to be done by VTA under or in connection with any work, authority or jurisdiction delegated to ]~A under this Agreement. Page 4 of 5 Section 15. Additional Terms and Conditions A.The Member Agency shall fully expend Measure B Bicycle Program funds by ,.T~,l.~n.e 30, 2005. B.This Agreement shall terminate on June 30, 2005, unless all parties agree, in ~riting, to an extension. Co No alternation or variation of the terms of this Cooperative Agreement sha~ be valid unless made in writing and signed by both of the parties hereto and no oral understanding or agreement not incorporated herein shall be binding on any of the parties hereto. City of Palo Alto (Member Agency) SANTA CLARA VALLEY TRANSPORTATION AUTHORITY (VTA) Glenn Roberts, Public Works Director Peter M. Cipolla, General Manager Approved as to Form:Approved as to Form: Name, City Counsel Counsel Page 5 of 5 Attachment B 1996 Measure B Bicycle Program Request for Reimbursement Countywide Bike Plan Proj ~)#: Agency: Contact: Phone: Project Title: Project Location & limits: Description of Work funded by Measure B: Date: Request #: For this period of work start date:end date: Please attach support documentation for this reimbursement Total Project Allocation Amotmt: Less cumulative previous requests: Remaining balance after previous request.’ Amount of this request: $ $ $ $ Remaining Project Allocation Amount for future requests: $ To the best of my knowledge, the above information is true and accurate and I have been authorized by the project sponsor to request this disbursement of funds. Nanle: Tide: Date: Agency: Signature VTA approvals: u~. ~u pay Celia Chung, Transportation Planner Michael P. Evanhoe, Director E x x E ATTACHMENT B C 0 (D o ,9.o .~_ Z LLI ooo ooo r- ooo oo o o o o ATTACH_NIENT C z o z-~ iii!i!~i~!<<<<<<<<<<<m~<<<<~<<<<<<<<<<<0 3000000000000000000oooooooo0oooo Z March 31, 2003 1%. Kirk Lindsey, Chair California Transportation Cormmission !!20 N Street 1%oom 2221 (MS-52) Sacramento, CA 958 !4 Cityof Pa!o Alto Office of the Mayor and Cify CouT~.ciI ATTACHMENT D Re: Agenda Item~,’-’~ STKP :Mlocation Plan Dear Mr. Lindsey: The purpose of this letter is to request that the California Transportation Commission correctly classify the "Homer _&venue Undercrossing Project as a "Project at Significant Risk of Losing Other Funding if Not Al!ocated." This project is currently included in PPNO 2168 (Santa Clara County/MTC C2vL&Q match reserve) on page 6 of 10 of the Draft STIP al!ocation Priorities for F’f 2002-03 table, and is incorrectly classified as ’?,Ion-capacity Projects, Construction Programmed in FY 02-03 or on Extension." The remaining STIP allocation for this project is $293,000. These STIP funds leverage $3.0 million in federal funds and $1.8 million in !ocal funds. The project is ready to go to construction this summer. It is on a very tight construction timeline, as work must be completed during Caltrain’s weekend closure of the railroad line for the CTX railroad improvement project, which extends only throu~ March 2004. If the project is delayed beyond this construction ~4ndow, costs ~41! increase by approximately $500,000, and $325,000 of local funds from the _Air District wi!l expire. This project has already absorbed substantial cost increases and the City cannot afford to lose the STIP funds, the Air District funds, or to absorb any additional costs at this time. The Homer Avenue Caltrain Undercrossing Project wil! construct a pedestrian/bicycle undercrossing of the Caltrain tracks in the south part of downtown Palo Alto, connecting the Downtown, the transit center, Palo Alto Medical Foundation (a major re~onal medical facility) and surrounding businesses. This connection will make it easier for the many people employed on the west side of the trac~ to cross into the downtow~a business district, stimulating economic development in this part of town. The project itself will create approximately 60 construction jobs, this summer, in a county with over 8% unemployment. eThe Homer Undercrossing is a significant multi-modal transportation mm-astmcmr improvement that is supported by a w4de range of interest ~oups. We appreciate the Commission’s favorable consideration of this request at the April 3 meeting. Sincerely, Dena Mossar Mayor co:Members of the California Transportation Commission Dianne Steinhauser, Metropolitan Transportation Commission Michae! Evanhoe, Santa Clara Val!ey Transportation Authority Senator Byron Sher Assemblyman Joe Simitian Palo Alto CiU Council P.o. Sox ~.0250P~o Alto, CA 94303 650.329.2477 650.328.363! fax ATTACHMENT E TEA-21 (CMAQ) FUND STIP (Tea-21 CMAQ Match) STP/Trans. Enhancement Fund (TEA) ~STIP (TEA Match) TFCA TDA Bicycle Expend. Plan-VTA/Tier 2 TLC Obligated/Avail. Funds TEA-21 (CMAQ) STIP Local (Dev. Mit. Fees) CPA Utilities TOTAL Funding Amount $1,752,500 $226,810 $502,000 $66,190 $325,000 $200,000 $700,000 $464,000 $283,010 $37,000 $350,000 $225,000 Critical Deadlines 6130/04 6/30/04 6/30/04 6/30/04 10/1/03 6/30/05 4/1/06 9/30/04 9/30/03 6/30/04 N/A N/A Comments E-76 filed timely, Advance Construction Authorization approved extending deadline to obligate funds. E-76 filed timely, Advance Construction Authorization approved extending deadline to obligate funds. E-76 filed timely, Advance Construction \uthorization approved extending deadline to obligate funds. E-76 filed timely, Advance Construction ~,uthorization approved extending deadline to obligate funds. Final Invoice Final Invoice Final Invoice TLC funds must be obligated by 9/30/04 and ~roject complete and operational by 9/30/05. Invoiced, waiting for reimbursement. Invoiced, waiting for reimbursement. $300K PAMF, $50K Sheraton Hotel BAQ FY02/03 Midyear Adj.