HomeMy WebLinkAbout10/02/2007, C2 - SANTA BARBARA AVENUE WIDENING; HIGH TO BROAD, SPECIFICATION NO. 90408 council M�D°
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CITY OF SAN LUIS OBISPO
FROM: Jay Walter, Public Works Director
Prepared By: Bridget Fraser, Engineer IIIA
SUBJECT: SANTA BARBARA AVENUE WIDENING; HIGH TO BROAD,
SPECIFICATION NO. 90408
CAO RECOMMENDATION
1. Authorize the purchase of additional right-of-way at 2140 Santa Barbara Avenue(Assessor's
Parcel No. 003-752-005), for the sum of $64,200 and authorize the CAO to sign all
necessary purchase and escrow documents.
2. Authorize the CAO to approve a Purchase Agreement for additional right-of-way located at
2034 Santa Barbara Avenue (Assessor's Parcel No. 003-752-007), for a sum not to exceed
$155,000.
3. Authorize the Mayor to sign the Certificates of Acceptance for additional Santa Barbara
Avenue right-of-way acquisitions.
4. Approve plans and specifications for the "Santa Barbara Street Widening; High to Broad
Streets, Specification No. 90408" project and authorize staff to advertise for bids for
project construction.
5. Authorize CAO to award the contract if lowest responsible bid is within Engineer's
Estimate of$660,000.
6. Approve the transfer of $51,422 from the budgets of several completed projects to the
project budget and appropriate $315,000 in approved additional State grant revenue to the
project budget and $200,366 from the unreserved General Fund balance to the project
budget.
DISCUSSION
Background
In 1999, the City Council authorized staff to hire a consultant to prepare an operational study for
Santa Barbara Avenue. The operational study, which was approved by Council in 2000, included
a recommendation to widen Santa Barbara Avenue from Upham to Broad to improve traffic
conditions and maintain safety. The portion from Upham to High was widened as part of the Rarig
property improvements and as part of the City's Railroad Transportation Center project.
In 2001, Council established a new setback line between High and Broad seven feet from the current
right-of-way line on the easterly side. This setback was established to prevent any new building
within this setback and reserve the additional seven feet for a future street widening. Subsequently,
a Capital Improvement Project to purchase the right-of-way and widen this remaining two block
section of Santa Barbara Avenue was included in the City's 2003-05 Financial Plan.
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Project Description
As stated above, the purpose of this project is to improve traffic conditions and maintain safety on
this arterial street. The operational study recommended widening the street to 49' between curbs
to allow left turn pockets and a center turn lane between High and Roundhouse and allow for a
second left turn lane on to Broad while maintaining the existing bike lanes, parking and loading
zones. This project will address most, but not all, of the operational study recommendation. This
project will add the center turn lane and left turn pockets between High and Roundhouse and will.
maintain bike lanes on both sides of the street; however, the northerly 200' feet could not be
widened the full 39' width due to an existing building on the east side. In order to install the left
turn lane onto High and maintain bike lanes, a section of parking on the west side in front of
Farris Lighting will be removed.
This project will widen the street the full 49' width between Roundhouse and Broad; however, a
second left turn lane on to Broad will not be installed with this project. Adding a second left turn
lane will require extensive upgrades to the signal at Broad. Funding for this upgrade will be
sought and a future project programmed. Even with these short falls, this project still fulfills the
overall goal—improving traffic conditions and maintaining safety.
Right-of-way Acquisitions
This project requires the acquisition of additional right-of-way along the two parcels on the
eastside in the block between High and Roundhouse (2034 and 2140 Santa Barbara Avenue)..
Since the City already owns the parcel between Roundhouse and Broad (Fire Station No. 1) no
acquisition of additional right-of—way is required in this block. The City hired the firm Reeder,
Gilman & Million of Santa Maria, certified state licensed appraisers, to determine the fair market
value for the two needed parcels. The fair market value is determined using recent sales of
comparable properties.
1. 2140 Santa Barbara
The fair market value for this parcel is $64,200. Based on this fair market value, an acquisition
agreement was negotiated with, and found acceptable by the property owner. A copy of the
purchase agreement is available for review in the Council office.
Z 2034 Santa Barbara
The appraisal for this property was received at the time of writing this report. The City's right-of-
way agent will review the appraisal, prepare the appraisal summary and purchase agreement and
then present it to staff for review and approval. Upon staff's approval a formal offer will be
presented to the owner after which a negotiation period will ensue. Expediting the purchase of this
property is necessary in order to secure it before the construction award deadline discussed below.
To expedite the purchase of this property staff recommends that the CAO be given authority to
authorize and execute the purchase of the property as long as the purchase price does not exceed
$155,000.
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Santa Barbara Avenue Widening—High to Broad Street Page 3
Grant Status
This project is predominantly funded with State Transportation Improvement Plan (STIP) funding.
To meet STIP guidelines, the construction contract must be awarded by December 30, 2007 or the
City risks losing the $506,000 in STIP construction funds. The contract documents for construction
of the widening are now finished and ready for bidding, however, acquisition of the two required
properties is pending. The City can not award construction for this project if the needed right-of-way
has not been secured. Staff recommends advertising the project to keep it moving forward
anticipating that both properties will be secured before the December 30th deadline.
CONCURRENCES
1. The Community Development Department has granted this project a Mitigated Negative
Declaration in accordance with the California Environmental Quality Act(CEQA) .
2. The Tree Committee approved the application for tree removals associated with this project at
their August 27"' meeting.
3. The acquisition agreement for Conroy (2140 Santa Barbara) has been reviewed and approved by
City Attorney.
4. The pending encroachment permit from Caltrans is expected to be issued within 4-6 weeks. Any
permit requirements will be added to the project by addendum if permit is issued before bid
opening or by contract change order if issued after the project is awarded.
FISCAL IMPACT
The project to widen Santa Barbara Avenue between High and Broad is included in the City's 2003-
05 Financial Plan (pages 139-141 of Appendix B). The current budget for this project is $461,112.
As shown in the table below, the total estimated cost for this project is $1,027,900. One reason for
this large discrepancy is that the current project budget does not reflect $315,000 of new 2006 STIP
allocations. Originally, STIP funds in the amount of $130,000 for acquisition and $320,000 for
construction were allocated for this project as part of the 2002 STIP. Since that time,the project was
deferred by the state due to budget issues and then delayed until additional funding could be
identified due to rising costs. The project was finally reprogrammed in the 2006 STIP where an
additional $129,000 for acquisition and an additional $186,000 for construction were allocated to the
project. These additional STIP allocations need to be appropriated into the project budget.
After taking into account the additional STIP funding, a budget short fall of$251,788 still remains.
As shown in the table below, most of this is due to construction related costs. The original 2003-05
budget did not account for construction management costs. The current proposed budget allows for
$30,000 for costs associated with compaction testing or possible archaeological monitoring. The
original budget was also based on estimates generated for the 2002 STIP application—most likely in
2001. These costs were already 2-3 years old before entering the 2003-05 budget. When the project
was reprogrammed in the 2006 STIP, a budget shortfall was recognized and there was some attempt
made to correct the budget. An additional $186,000 was added at that time to the STIP construction
allocation. This new estimate, most likely generated in 2005, is again nearly 3 years old. Although
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Santa Barbara Avenue Widening—High to Broad Street Page 4
there is some indication that construction prices are leveling off, there have still been significant cost
increases in the last three years.
Staff recommends funding this shortfall of$251,788 with a transfer from several completed projects,
and with a new appropriation from the unreserved General Fund balance. Staff recommends
transferring $51,422 from various budgets of several completed projects to the project budget. This
balance represents the remaining residual funds of five completed General Fund projects (Mission
Walkway, Mission Plaza Repairs, Mill Street Curb and Gutter, Emergency Storm Drain, and
Damon-Garcia Parking Lot) completed within the last four years.
Additionally, staff recommends appropriating $200,366 from the unreserved General Fund balance.
As noted in the recent interim financial report for 2006-07, the City ended last fiscal year in
stronger financial shape than we estimated in the 2007-09 Financial Plan, which was largely due
to one-time sources. Given the importance of this project in meeting the City's 2007-09 major
City goal for traffic congestion relief,(it is a key component of the adopted work program); staff
believes that this is appropriate one-time use of our one-time, stronger reserves. Even with this
added appropriation, based on the stronger ending financial position in 2006-07, projected
General Fund reserves at the end of 2007-09 will be 25% of operating expenditures compared
with our policy minimum of 20% A summary of the project accounting is shown below:
Current Budget Proposed
+New STIP I Budget Variance
Design $ 119112 $ 12,960 $ 1,788
Surveying $ 10,400
Advertising, Printing and Other Costs $ 2,500
Acquisition $ 259,000 $ 2599000 $ -
Right-of-way consultant $ 23,800
Appraisals $ 11,000
Escrow/Closing Costs $ 5,000
Right-of-way: 2140 Santa Barbara $ 64,200
Right-of-way:2034 Santa Barbara $ 155,000
Current Budget $ 130,000
Additional STIP $ 129,000
Construction $ 506,000 $ 7269000 $ 2209000
Construction Contract $ 660,000
Contingencies at 10% $ 66,000
Current Budget $ 320,000
Additional STIP $ 186,000
Construction Management $ - $ 30,000 $ 309000
Inspection &Testing $ 15,000
Monitoring $ 15,000
TOTAL $ 7769112 $ 110279900 $ 2519788
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ALTERNATIVES
Defer the project . The project could be deferred until additional grant funding can be obtained.
The current STIP construction funding would be forfeited. Staff would need to reapply for
funding in the next STIP cycle where the project would compete against other projects for
available funding. In addition, based on past experience, costs are more likely to increase with
time. More importantly, traffic congestion will increase and suggested safety improvements will
be delayed.
ATTACHMENTS
1. Vicinity Map
AVAILABLE FOR REVIEW IN THE COUNCIL OFFICE
1. Plans and Specifications
2. Purchase Agreement—City/Conroy-2140 Santa Barbara
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