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01/22/2008, BUS 3 - LOS OSOS VALLEY ROAD/US 101 INTERCHANGE PROJECT FUNDING PLAN
i council "'wary 22,2008 acEnba wpont lu�N.I. s3 CITY OF SAN LUIS OBISPO FROM: Department Head: Kenneth Hampian, City Administrative Offi r Prepared By: Jay D. Walter, Director of Public Wor SUBJECT: LOS OSOS VALLEY ROAD/US 101 INTERCHANGE PROJECT FUNDING PLAN CAO RECOMMENDATION 1. Adopt a resolution establishing a funding plan for the Los Osos Valley Road/Us 101 Interchange Project seeking a minimum of 50% grant funding from State and Regional funding sources. 2. Establish Alternative 3 (The Minimum Build) as the City preferred alternative subject to Caltrans review and comment. REPORT-IN-BRIEF The San Luis Obispo Council of Governments (SLOCOG) has requested that any jurisdiction pursuing state and regional improvement program (STIP) grant funding assistance for major highway projects that demonstrate a valid financial plan for development and construction of their projects. As part of these plans the jurisdictions are to consider phasing and local match augmentation to help prioritize funding from a limited funding amount. While not final at this point, approximately $20 million will become available for programming for the 2008 State Transportation Improvement Program (STIP) cycle. This amount may increase if the Board is willing to program future funding from the 2010 STIP cycle as well. The City is acting as the lead agency for the Los Osos Valley Road (LOVR)/US 101 Interchange project which is now ready to pursue state and regional funding. Although the Council has adopted both the LOVR Sub Area Fee and the Citywide Transportation Impact fee (both of which established a 50/50 local match amount assumption) SLOCOG is requesting that a formal approval of the City's Funding Plan for the interchange project be done by Council. As discussed in this report, the Funding Plan for the project reaffirms Council's commitment to a 50/50 ratio in using local to regional/state funds to complete the entire project as well as authorizes staff to develop a financing package (when final construction cost estimates are completed) that would include bond financing for the City's remaining component using Transportation Impact Fee (TIF) as the funding source. However, as previously discussed with the Council, while our goal Los Osos Valley Road Interchange Project Funding Plan Page 2 would be to fund debt service payments using TIF revenues, the underlying security for the bonds would be the General Fund. DISCUSSION Background The US 101/Los Osos Valley Road interchange has long been established as a major Council goal by the Council (i.e. Traffic Congestion Relief— FY 2007-09 Financial Plan). Advance development work is substantially complete and the City is now pursuing state and regional funding assistance to begin right of way and future construction. While many at first glance may consider this interchange local in nature, it functions as a major regional facility. The interchange is the primary US 101 access facility to the San Luis Obispo Regional Airport, which is in the midst of significant expansion to meet projected demand of the County. The interchange also delivers significant access to the coastal communities of Los Osos, Baywood and Morro Bay as well as the central areas of the County. The interchange is experiencing significant congestion and operational problems that have begun to effect access to these critical areas of County communities. A one-page fact sheet outlining why this interchange is important, and what the City has already done to support its improvement, is provided . as Attachment 1. The San Luis Obispo Council of Governments (SLOCOG) has requested that any jurisdiction pursuing state and regional grant funding assistance for major highway projects demonstrate a valid financial plan for development and construction of their projects. As part of these plans, the jurisdictions are to consider phasing and local match augmentation to help prioritize funding from the limited STIP source. Attachment 2 is a copy of the recent SLOCOG staff report regarding this issue. While not final at this point, approximately $20 million will become available for programming for the 2008 STIP cycle. This amount may increase if the Board is willing to program future funding from the 2010 STIP cycle as well. The good news is that the City has taken the lead in developing (and funding) these critical improvements by acting as lead agency for the development of the various Caltrans documents to deliver construction documents. In addition, the Council has taken the bold steps in actually funding the initial phases of construction at the interchange location in order to expedite capacity and operational improvements. The City has made a hard choice and not relied on regional or state funding to implement the initial construction phases of the project. The not so good news is that in order for the most important phase of the project to be completed, the City must now rely on SLOCOG funding support to finish the major portion of the interchange facility widening. What's been done so far? The City of San Luis Obispo has taken a unique leadership role in helping get improvements completed at this regionally significant location. Not only has the City advanced much of the funding to deliver the advanced work needed for Caltrans approval, but it has also constructed the initial phases of the project using scarce local funding. The Council has long recognized the advantages of 1 Los Osos Valley Road Interchange Project Funding Plan Page 3 constructing improvements sooner rather than later and has spent or committed over $10,000,000 so far in making improvements at this location. The following table shows the City's commitment to the project by use of its local funds: Work Completed (or Significantly Completed)—To Date Cost Project Study Report PSR Completed $189,000 Advanced Development,Environmental Review and Value $845,000 Analysis (PA&ED)-95%complete Phase 3, Plans, Specifications & Estimates (PS&E) — Requests $2,385,000 for Proposals to circulate in February 2008) Construction Interchange Phase 1: Calle Joaquin relocation (complete) $6,640,000 Phase 2: Misc. Widening, Sidewalk and Striping for $234,000 northbound Lane Addition (complete) Total to Date: $10 93 000 Of this total, only $130,000 has been received from non-City sources ($100,000 from SLOCOG and $30,000 from the County to help with the PSR) to help complete this work. This amount reflects significant local investment in helping make improvements at this regional location. The final phase of the project is beginning,but the City cannot fund the rest of the project alone. Where to from Here—the City's Project Financial Plan and Timing Funding The City's financial plan for the LOVR/US 101 Interchange project has assumed that the City would participate with up to 50% local funding for the project. That aggressive approach to use local funding for financing a large portion of the project has not changed. Funding for the project has been included in both the citywide Transportation Impact Fee program (TIF) as well as the LOVR Sub- Area Fee program, which was developed specifically for development projects near the interchange location. The TIF program has also been modified to include the costs for financing of the TIF component to help accelerate delivery of the project. Consistent with past Council policy actions in light of the significance of this project, staff is recommending that the Council reinforce its prior commitment to use bond financing for the final City portion of the interchange project. While many jurisdictions may not be willing to make this kind of local commitment, the interchange project is considered crucial for transportation purposes and the Council has repeatedly established its delivery as a major City goal. A final estimate of debt service costs and annual payments cannot be done until grant funding amounts and a final construction cost estimate is refined through the plans, specification and estimates (PS&E) phase of the project which is about to start. Based upon the current cost estimate and the 50150 local match philosophy, the following grant and bond amounts would be necessary. Los Osos Valley Road Interchange Project Funding Plan Page 4 Using the 50150 local fund contribution amount identified above, this would mean that the City now needs $14,857,000 in regional, state or federal funds to help complete the final phase of the project at this time. The following two tables illustrate this request: Project Costs Project Study Report(Completed) $189,000 Advanced Development, Environmental Review and Value $845,000 Analysis PS&E of Interchange Phase 3 $3,300,000 Right-of-Way (ROW) $1,450,000 Construction Interchange Phase 1: Calle Joaquin relocation (complete) $6,640,000 Phase 2: Misc Widening, Sidewalk and Striping $234,000 (complete) Phase 3: Ramp Improvements, Bridge Widening, etc. $14,800,000 (future) Construction Mana ement $2,400,000 Total Project Cost: $29 858 000 Funding Sources Count /SLOCOG STIP/RTIP(received) $130,000 Local Fund -Transportation Impact Fees Communitywide $5,445,000 LOVR Sub-Area $9,425,000 Regional Grant: 50% of Project Costs $14,857,000 Total Project Funding: $19-R-;7,000 The local funding amounts shown in the above table are slightly higher than those that have been previously adopted by Council (due to current costs estimates). When approved, staff will need to return to Council with an adjustment to the TIF program to reflect the slight increase in project cost. Of course, we will continue to pursue other funding sources such as direct developer contributions and federal earmarks in order to help reduce costs to the county and local funding requests. Based upon the funding appropriated by the Council to date and assuming the City is successful in obtaining the 50/50 match, this would result in a potential need for the City to issue bonds for about $7,000,000, based upon current cost project costs. Annual debt service payments for this amount would be approximately $500,000 which is less than the annual TIF revenues we have historically received. Once reimbursements to Costco have been completed for the costs of constructing Calle Joaquin, remaining fees collected through the LOVR Sub-Area Fee program will also be used to retire the bonds. �ry J Los Osos Valley Road Interchange Project Funding Plan Page 5 Timing Because the Council has established the interchange improvements as a major City goal, the current two year Financial Plan allocates $2,385,000 to begin the project plans, specifications and estimates. It is anticipated that the RFP for design and ROW acquisition will be circulated in February with an engineering firm to be under contract by May 2008. If additional funding is necessary to complete this component of the work, the City will fund the amount from local funding sources. Thus, the primary areas we need financial assistance are in ROW, construction and construction management of the large widening project. The City's intention is to complete the design and ROW acquisition of the project as soon as possible. While there are potentials for delay, construction ready documents should be ready for use in 2010. The following table outlines the City's request for funding from SLOCOG to complete the project: Funding FY 2008-09 FY 2009-10 FY 2010- Subtotal 11 ROW $1,450,000 $1,450,000 Construction $12,207,000 $12,207,000 Construction lvlana ement $1,200,000 $1,200,000 Total Project Funding: $1450 000 $13 407 000 1 $14 857 000 This would mean that ROW funding would be needed in 2009 to acquire the necessary land to proceed to construction and the majority of regional funding would be needed the following fiscal year. Alternatives Update- Council "Preferred Alternative" As reported to Council in the November 6, 2007 staff report for the LOVR/US 101 project update, the Caltrans' Project Report review process has now reduced the potential interchange alternatives down to two. These two alternatives are: Alternative #3 — The Minimum Build and Alternative 6 — the Moderate Build. As shown in Figure 1 and outlined in the November 2007 staff report, Alternative #3 widens and lengthens the existing ramps in place, widens LOVR bridge to five lanes, widens LOVR to Higuera Street and builds Class R bike lanes along LOVR. The project delivers a minimum of 20-year capacity for the interchange. Although council members expressed opinions about Alternative #3 — The Minimum Build, being the only financially viable alternative, the Council did not adopt that as the City's preferred alternative. This was partially based upon the Caltrans requirement that the final preferred alternative be a recommendation in the adopted Project Report. While this process is soon to conclude, 3,.:r i Los Osos Valley Road Interchange Project Funding Plan Page 6 SLOCOG has requested that the City verify that the minimum build alternative is the locally preferred alternative. A •-IDIS O �� s�RAnq� �li. � i -Ryy ♦.rPm r wm ~�� '. I o�..er. ©uohhru . .. ....._.. Figure 1 -Alternative 3—Minimum Build 2007) Alternative Cost Com arison 2007 Dollars) Alternative Cost #3 —Minimum Build $21,700,000 #6—Moderate Build $29,430,000 Staff recommends that the Council now adopt Alternative# 3 as the local preferred alternative to satisfy SLOCOG requests. Although the Caltrans process still needs to conclude staff does not foresee any issues choosing this as the City's preferred project at this point. Next Steps The SLOCOG Board will be considering FY 2008 STIP cycle funding recommendations at their February 6, 2008 meeting. A letter (Attachment 3) has been submitted to SLOCOG outlining the status and funding plan for the LOVR/US 101 interchange. FISCAL IMPACT As discussed above, adoption of the recommended funding plan will outline the City's formula for delivering this direly needed project. Both the TIF program and the LOVR Sub-Area fee programs have been established by Council to help fund the local component of the project. Much of the LOVR Sub Area Fee has been used or committed to build the initial phases of the project. Future local contributions to the project and repayment of bonds necessary to front the City's portion of the project will be made from annually collected TIF fees. 3-� Los Osos Valley Road Interchange Project Funding Plan Page 7 Based upon current cost estimates and the assumed local match requirement, annual TEF receipts should be sufficient to cover annualized bond payments. However, if TEF revenues do not cover the annual cost, the General Fund may need to cover this annual payment and seek reimbursement from TIF sources in future years. Additionally, due to the size of the annual bond payment, the use of TEF funding in future years may be restricted, thus deferring other transportation projects in the TIF program that might need funding. Staff recommends this commitment of TIF revenues at this time due to the priority of the LOVR interchange project and the current possibility of receiving STIP funding. Delays to construction funding for the project could lead to significant construction cost increases based upon recent historical construction and material cost trends. Staff will return to Council with a full outline of the bond payment estimates and revised project funding estimates once SLOCOG has decided what amount of STIP funding should be allocated to the project at this time. ALTERNATIVES Council could modify the local match requirements or proposed financing plan for the LOVR/US 101 interchange project. This alternative could reduce the likelihood of receiving a substantial STIP funding recommendation from SLOCOG. ATTACHMENTS 1. LOVR FAQ 2. January 9, 2008 SLOCOG Staff Report 3. City LOVR/US 101 Funding Letter to SLOCOG 4. Resolution G:\Staff-Reports-Agendas-Minutes\_CAR\2008\Ttansportation\LOVR Funding Strategy\CAR L.OVRFund Plan 1-08.130C 2,7 city Of� .Attachment 1 C�&_ �� san lues oBispo F.A.Q. Sheet Los Osos Valley Road Interchange Improvements 1. Why are improvements to the L.OMA. Interchange needed? Traffic at the interchange is approaching gridlock at certain times of the day and conditions will continue to deteriorate without improvement to the interchange. Improvements to the interchange will reduce traffic congestion, increase bicycle and pedestrian safety, and enhance much needed circulation to a major transportation corridor within the City and region. 2. How will the improvements benefit the region? The LOVR interchange serves as a major access point for Morro Bay, Baywood Park, Los Osos, State parks and the SLO County Regional Airport. In fact, 40% of interchange traffic is generated by persons who reside outside of SLO. Along with meeting day-to-day regional needs, interchange expansion will greatly improve regional emergency evacuation. 3. How has the City "stepped up to the plate" in support of the project? • Improving the interchange is firmly anchored in the City's General Plan, with both the Circulation and Land Use Elements calling for its expansion. • In 2007, the City Council designated the L.O.V.R. Interchange improvements one of its highest community priorities. • The Council has backed-up this priority by taking bold steps to fund and design the interchange improvements, with a commitment to raise local funds equal to at least 50% of the estimated $21 -$26 million cost. • The Council has established a special funding district that has already generated $2.3 million for the project. in addition to committing community-wide traffic impact fees (TIF). 4. What has been done to make the project "ready to go"? A lot! Most design and environmental work has already been completed, and Caltrans has agreed to a strategy that avoids building an entirely new interchange. Detailed design work for the expansion has been locally funded in the City's 2007-09 Budget ($2.5 million). 5. Next Steps • Caltrans is expected to sign-off on the final environmental document in early 2008. • Staff will release an RFP for the design process in spring of 2008 Attachment 2 SAN LUI' )BISPO COUNCIL OF GOVE. AMEND% ,hmPnr 1 STAFF REPORT MEETING DATE: January 9, 2008 SUBJECT: 2008 Transportation Funding and Programming Cycle Presentation on Major Highway Projects - Information Only SUMMARY In December, the SLOCOG Board received information from staff on the final funding targets for the 2008 Transportation Funding and Programming Cycle specific to the Highway, Streets, and Roads capital program. Government Code (Sec.14524 & 14525) directs the California Transportation Commission (CTC) to adopt a biennial State Transportation Improvement Program (STIP) that includes the amount that may be programmed in each county for regional transportation improvement programs/projects. The STIP program is the primary source of funding for major highway and road improvements and in December the Board reviewed three general categories of STIP and/or STIP ready projects summarized below. • Currentiv funded STIP projects: The Board reviewed projects that have ex sLni pfundin commies that fall within the 2008 STIP period and took an action to maintain current programmed funding for the following projects (SR 46E widening, US 101 SLO Ops 18; US 101141 IC Landscaping). • STIP proiects with funding shortfalls• The Board also assessedundue STIP projects (i.e. SR 46E/101 IC, Willow Rd. IC, Price Canyon Rd. widening) and directed staff to work with sponsoring agencies and Caltrans as necessary to close the funding shortfall gap. • STIP ready projects: Lastly, the Board was briefed on c �oects"inh queues and directed staff to require sponsoring agencies to complete programming documents, prepare financial plans, and ultimately enter in to.project funding contracts with the Board if any STIP funding is to be recommended in February. The purpose of this staff report is to provide information on each of the major projects seeking capital funding from the STIP program. Project summary�nformation sheets are included in the staff report. The information sheets provide the Board with a discussion about the following: a)The transportation deficiency in need of fixing; b)The proposed project and how it will fix the deficiency; c)A strategy to implement the project timely and efficiently; d)The amount of funding requested by the local agency; and; e)Clarification of issues that may affect the programming of STIP funding in February. A presentation on each project will be made at the January 9`"SLOCOG Board meeting. RECOMMENDATIONS Staff: Receive and provide comment TTAC/CTAC Circulated via email for input; Next meeting scheduled January 23rd, 2008 BACKGROUND The 2008 Transportation Funding and Programming Cycle is broken out in to four distinct programs and strategies, each complimenting the goals and stated objectives and action policies of the 2005 Regional Transportation Plan. The four key capital programs are summarized as follows and final funding targets provided in the table below: • Highway. Streets, and Roads Program — Mainline, major regional routes, and interchange improvements_ ■ Non Motorized Program—Bicycle, pedestrian, and community enhancements. • _Public Transportation Program—Transit • Maximizing Efficiency of the System — Demand and system management projects and advance technologies B-1-1 " A Mt"MW` 2 Final runding Targets(STIP Program Funds Only) RTP Capital Program STIP Cycle COG/CTC FY RANGE TARGET ADOPTION • Highway,Streets &Roads 08 STIP Feb-08/Jun-08 08/09—09/10 $7,99t,000 08 STIP Feb-08/Jun-08 11/12-12113 $J2,27 4,0—o 0 10 STIP Feb-08/Jun-08 13/14 -15/16 $14M tto$2i31111 Totals for Program: Low($20.3M)likely; High w/2010 AdvanoAe- U to 481W)less likely • Non Motorized/Enhancements (includes targets forSR2S, Open Space,Key Class limps., Urban Greening) 06 STIP(A) Feb-08/Jun-08 9/10-11/12 $1,750,000 08 STIP Feb-08/Jun-08 9/10-13/14 $2,380,000 • Public Transportation Prop 1 B Discussed in December Report(B-2) $0 System Efficiency Strategies(Demand Management Improvements) • 08 STIP Feb-08/Jun-08 08/09- 12/13 $1,200,060 Currently funded STIP projects with no funding shortfalls (fy 8/9 to fy 12/13) Three of seven currently committed STIP projects that fall within the 2008 STIP period do not have funding shortfalls. No action will be necessary in February. A status of each project is restated from the December staff report below. • Route 41/101 Interchange (landscaping only —The project is fully funded. The project is part of the 41/101 IC improvement project. The landscaping component of this project has been separated from the parent project and is programmed to follow the completion of the interchange reconstruction in fiscal year fy 10/11. • US 101 South Cc Operational Improvements (#1,2 & 5) 1B — The project is fully funded. Operational improvements are ready to go and will be allocated in early fy 8/9. • S.R. 46 East Expressway Whitley 1 segment - The project is fully funded. In total, approximately $24m in SLOCOG STIP funds have been committed toward improvements on the 46 corridor. $5.4m in SLOCOG STIP funds remain committed in fy 9/10 to widening SR 46 East from two lanes to four in the Whitley 1 segment of the corridor. These funds are identified in a financial plan matching [TIP and Prop 1 B CMIA funding (Total Segment Cost: $105). The first segment improvement known as "Union" (Airport Rd east to Geneseo) will break ground in March 2008. Recent bids received for the Union segment were approximately $7.7m below the engineer's estimate. Caltrans District 5 proposes keeping any cost savings from Union on the overall widening improvement project. DISCUSSION Information sheets for each of the seven candidate projects seeking STIP funding are attached to this staff report beginning on page B-1-4. 1. Currently Funded STIP Projects Seeking STIP Funding (Shortfalls Identified) -- ------ eq 1. At 46 east/101 operational improvements - City of Paso Fund-in-g-Ruest: $810—The City of Paso Robles is working with Caltrans D5 and SLOCOG to minimize project cost increases. The City, SLOCOG, and Caltrans are investigating potential phasing of the project to minimize funding impacts in this STIP cycle. The City and SLOCOG support using the projected $7.7m cost savings from the SR 46E widening project "Union Segment" as the funding source for the $8m shortfall. A likely agenda addendum item will provide three additional funding options to address the $8m shortfall for this project See initial project Information on Pg. B-1-4. 2. US 1011Wi1low Rd Interco - County Funding Request: $4 M in FY 10111 The County is working to develop a very aggressive finance plan for the interchange and road extension project. Significant local funds are proposed to be collected through an assessment district and/or through bonding of dev. fees in the South County Nipomo area. The County is seeking approximately 50% of STIP funds for Phase 1 improvements and 3�b B-1-2 A iTAc.I+M 610T L approximately 300/L STIP funds for Phase 1 and Phase (i.e. the full interchange improvement with frontage &extension roads). See Project information sheet Pq. B-1-6. 3 Price.Canyon Rd, Ormonde-Rt 227. widen-CountvsFundina'_Re750K m FY 8/9? The County has indicated this project is underfunded by under a $1 M. The project is one of two phases to widen shoulders and provide Class II bike lanes on Price Canyon Rd beginning at SR 227. Recommendations in the Major Investment Study for US 101 identify the importance of parallel route improvements to both 227 and Price Canyon Rd. See Proiect information sheet Pg. B-1-7. II. New STIP Proiects with Local Funding gym_.,._--�•r ^-g--4^�- ,n -�, :. -. + _.. -•--..-:rrz,.x. 4. US .1017Bnsco Rd. lnferchancie..lmprovements: City of,AG funcJ�ng'Request e$4 5'M. The Arroyo Grande City Council has discussed project alternatives at a November 27?' council meeting. Direction has been given to staff to pursue a phased improvement strategy that focuses on the widening of the undercrossing at US101 and Brisco Rd. North bound auxiliary lanes to the main line would be included in this project consistent with the project scope of SLO Ops 1C. The City has committed to a 50/50 funding partnership. December, the Board supported reprogramming $545k currently committed toward SLO Ops IC's project development work and shift those funds toward the Brisco project. See Proiect information sheet Pg. B-1-8. 5. US101ZLosuOsos::Vallev Roed"Interchange C! sofSCO FuridPng;Requestx$15M. The tY . San Luis Obispo City Council discussed project alternatives at their November 6 meeting and have committed to a 50/50 partnership in funding the "entire project". City of SLO correspondence attached. See oroiect information sheet Pg. B-1-9. 6. r10. US,1'01/461N�Interctiange Crty ofsPaso Fund"i g;RequestF_$ µM The City of Paso Robles has submitted a Draft Project Report and Environmental Document to Caltrans for signature. The Project Report presents phaseable components to address the deficiencies of this intersection. See project information sheet Pg. B-1-11 _ -�-- , ..._ E 7. S R..1:Riaht Tum Pocket= Santa Rosa and Walnut=St sLOCOG:Funding Request 600k A -Project report is completed to extend the right turn pocket on SR 1 in San Luis Obispo at Olive St. Caltrans has completed the project report and the improvement will "provide an operational benefit for accessing US 101 and for mainline flow of SR 1 through San Luis Obispo. Project information sheet Pa. Ill. Funding Summary Requests The table below summarizes the funding requests against the available programming revenues. In February, staff will provide programming options/scenarios that considers project readiness, local match commitments, and the agency's ability to deliver the project in a timely manner. Programming Capacity(2008 STIP) Agency Request Low High 20,300 34,000 Underfunded STIP Projects Rt 46 east/101 operational.improvements Paso/Caltrans 8,000 12,300 26,000 US 101/Willow Rd Interchange County of SLO 4,000 8,300 22,000 Price Canyon Rd,Ormonde-Rt 227,widen County of SLO 750 7,550 21,250 New Start sTIP Projects US 101/1-os Osos valley Road Interchange SLO City 15,000 -7,450 6,250 US 101/Brisco Rd.Interchange Improvements AG 4,500 .11,950 1,750 US 101146W Interchange: Paso 5,000 -16,950 -3,250 S.R. 1 Right Tum Pocket;Santa.Rosa and Walnut St.: Caltrans 1,000 -17,950 -4,250 The attached project information sheets for the seven projects outlined above address the key milestones the SLOCOG Board has set prior to consideration of programming STIP funding to individual projects. Project finance plans, draft environmental documents, and draft project reports have all been identified by the SLOCOG Board as a requirement for programming. B-1-3 �� gTfAC14M IT Z, #1 -US 101 AT SR 46E OPERATIONAL IMPROVEMENTS IN PASO ROBLES o What is the transportation deficiency? State Route 46 East (SR 46E) is the major east/west corridor and truck route serving San Luis Obispo County regional and interregional traffic. In San Luis Obispo County it extends from the Kern County line to the intersection with another state route, US 101. At this interchange the capacity is well below the current needs, especially during the summer Friday PM peak hour operations for the westbound SR 46 to southbound US 101 turning movement causes queue lengths well beyond the intersection, occasionally as far as Golden Hill Road. The purpose and need of this project is: o To improve the safety and operational characteristics of the 130'street /Riverside Avenue intersection; o To eliminate an existing isolated exit ramp at the intersection of 16"' street and Riverside Avenue; o To improve access to southbound US 101 near the existing 16'"street exit ramp; and o To improve the safety and operational characteristics of the US 101/SR 46 East interchange by increasing capacity of the westbound and southbound turning movement. o What is the proposed project? The administrative draft project report (2007) proposes improvements constructed at three principle locations as follows: 13'h Street Overcross o Existing sidewalks and barriers will be replaced with new sidewalks and barriers improving the turning radii at the 13'" Street/Riverside Avenue. 17'" Street Ramps o The 16"' Street off-ramp will be relocated and aligned with 17°i Street. o A new southbound US-101 on-ramp will be constructed adjacent to the new 17'h Street off-ramp, including a signal at this intersection. - -� - Q • _ �\ -`-.yet- 3w h �, .y4�. �` IV- _ •ti M �, .�. 4 • :s.ypA• `J . ATMOOZE T' 2 US-101/SR-46 East o A second left turn lane will be added for the westbound SR-46E to southbound US- 101 turning movement. o The southbound US-101 on-ramp will be widened to two lanes to accommodate the additional turn lane. o The second lane will continue as an auxiliary lane that will exit at the proposed off- ramp at 17w Street. The project is currently underfunded due to cost escalations; retaining wall; reconstruction of existing southbound on-ramp to meet Caltrans design standards. ' r�I i V%E .i-a •"�.-�,.; `--�---i are -',1,' o'+�`- r f 4 �• �'-0'^�r'a� .�h•V .,��iia qr(a1C���o'j� `" fY X�•�� �.r, - .- ..` o What is the sponsoring agency's implementation strategy? • The City of Paso Robles is requesting to reallocate the savings from the 46 East Improvement project (approximately $7.7M) to the proposed project at US-101 and SR-46E. • The opportunity for phasing this project is being investigated by the City with input from Caltrans staff and a meeting to discuss this and other issues will occur in the second week in January, 2008. • Agenda item B-2 identifies four options to address the funding shortfalls and or sequencing of improvements o What are the SLOCOG identified issues with the project? 1. There exists a funding shortfall of over$8.5M: • This project is currently programmed at $7.8M including $6.95M for construction. • Current cost estimates from the City of Paso Robles are $15.4M for construction. 2. Increase of SLOCOG STIP funds on this project will impact the ability to fund new STIP candidate projects. ,1_Limited options to secure Caltrans partnership funding as part of the 2008 STIP (see agenda.B-2 for more info 0- i� ATtALHrIEMT' Z #2- WILLOW ROAD INTERCHANGE What is the transportation deficiency and/or project background? The unincorporated community of Nipomo lies in southern San Luis Obispo County just north of the Santa Maria River, the City of Santa Maria, and the Santa Barbara County line. Over 15,000 people reside within the community boundaries with an additional nearly 10,000 people residing in nearby neighborhoods. The 2000 U.S. Census of Population and Housing designated Nipomo and its neighboring areas along with the City of Santa Maria as an Urbanized Area. Nipomo is one of the fastest growing communities in the county, and the growth rate over the last 10 years far surpassed expectations. Additionally, in the foreseeable future, significant development is approved and expected in this area. Over the next 20 years, growth is projected to increase from 15,000 to over 23,000. Presently, a single interchange and freeway crossing — at Tefft Street - serves the majority of its residents and shoppers. Today, congestion and deficiencies exist as this interchange is operating below acceptable Levels of Service standards. What is the proposed project? Construction of a new interchange at Willow Rd. will provide needed relief to the Tefft St. IC and serve the growing population of the Nipomo Mesa. WILLOW ROAD EXTENSION/US 101 INTERCHANGE PROJECT - ix 91 -, K - PHASE 1 i What is the sponsoring agency's implementation strategy? The total interchange project will cost approximately $_million, and the extension project will cost an estimated $_million. The county of San Luis Obispo has taken a phased approach to implement the project. • Phase 1 and 2 -Willow Road extensions and frontage road • Phase 3 Willow Rd. 101 southbound on and off ramps and park and ride lot • Phase 4 the remaining Willow road extension to Thompson Ave., including a bridge over US 101 northbound on and off ramps. What are the SLOCOG identified issues with the project? • None (no change in project scope) �7 1 - ATT I� -14 MMT Z #3 - PRICE CANYON ROAD WIDENING G_ -' What is the transportation deficiency and/or project background? Price Canyon Road functions as a major alternative route to Highway 101 for travel between South San Luis Obispo County and the City of San Luis Obispo. The segment of roadway to be widened is the first of two segments that does not have full shoulders and Class II bikelanes. The project limits are between the northern junction with Highway 227 and Corral de Piedra to the south. What is the Proposed Project? The project will complete the widening of this segment to full standards with two twelve-foot lanes and six foot shoulders to provide for Class II bikelanes. Additional project improvements include: Widening two bridges, improving a poor intersection alignment, and improving drainage.. What is the sponsoring agency's implementation Strategy? Funds will be used in conjunction with other funding sources, including: Federal Demonstration funds, Bridge Replacement funds, Regional State Highway Account funds, and other local funds. This project currently has $1.5m programmed in STIP funds and is seeking an additional $750k. SLOCOG staff may consider programming a portion of the unfunded amount from the Non Motorized Program category of the.STIP to address the class II bikelanes that will be constructed with this project. What are the SLOCOG identified issues with this project? PRICE CANYON ROAD WIDENING None, other than Phase I Funding shortfall. ismo i8 Ch �b M ATff4Gr}r-t�JT Z #4- Brisco Road/US 101 Interchange What is the transportation deficiency and/or project background? This project is to provide improvements to the ramps (NB Brisco and NB Grand), and construct auxiliary lanes in the NB and SB direction. These areas have noticed increased congestion from local -Jr it development as well �� as increases in regional traffic. Actual �� ' accident rates exceed + r '' State average . Camino Mercado �_ �, ,N r accident rates at ramp locations, and four city street segments are operating gn the LOS ' S D-E range- projected �� .�• ����, .-. 'jj��+•^•��, f',, �-:{. w� �', ar 'yam / ��' �� .T�+r+.. �?i:i •.1 r � � to be E-F as future ``, a ,� demand grows. # A What is the proposed project ? The Project Study r ., * fir'' yam►.•,: " .+ r'� r,> to] Branch Report (PSR) for the - Brisco Road/ Route 4 r ' ;'! ' ' �, •r" `' �`" ' r I � '.,L � C��.d'h •1 � u 101 interchange r+;rw; project identifiedr r J � — �' r r, r 1 Halcyon alternatives f' for a�����,-� .� c '•--' °" "`"�. -'..-- u>� Grand .. analysis in the Project :•, % �� , "r °;M Approval and Environmental '"sem �-7 Determination ,-^ �' � •'� ��' � ?_` „` �^:� a � (PA&ED) process. These alternatives have been identified to the City Council and the city have chosen the preferred alternative as the following: • Widening of the Brisco Road underpass • The northbound on and off ramps at Brisco Road remain open • Construction of a southbound auxiliary lane between Halycon Road and Grand Ave. • Construction of a northbound auxiliary lane between Grand Ave. and Camino Mercado; and • Improvements to the east Grand Ave. /Route 101 interchange/ Route 101 ramps. This project is a portion of a larger project which might include relocation of both Brisco Ramps and or improvements to Camino Mercado northbound ramp. These future options would be considered at a later time depending upon Caltrans'design exception approvals. Sponsoring Agency's Proposed Implementation Strategy: The city has committed to a 50/50 funding partnership. The larger project would be considered at a later date based largely on Caltrans approval of the design exceptions. SLOCOG concerns: • No final approved project report. • No selected preferred alternative with Caltrans's approval. 6- 1 - 8 3�� 1 A 1rMc A m eAjT 2 J; #5 - Los Osos Valley Road/US101 Interchange • What is the Transportation Deficiency? The Los Osos Valley Road/US101 Interchange is a important link in the regional transportation system. It is the primary access to US 101 for the community of Los Osos (pop. -14,000), a primary access to the Regional Airport for South County residents, and for a growing regional commercial center along Los Osos Valley Road. Although the Interchange overcrossing was recently reconfigured to provide three lanes (at the expanse of bike lanes), the facility continues to operate at level of service E at peak hours. Without improvements, the facility will continue to degrade to LOS F with possible impacts to US 101 operations. Vehicle queues extending into US 101 mainline have been observed, and when present this condition impacts the highways' safety and operations. The primary deficiency of the interchange is the lack of capacity on LOVR and non-standard geometrics. • _What is the Proposed Project?- Although the City Council has yet to make a decision on the preferred alternative, the Project Development Team selected a recommended alternative for the City Council to consider. The alternative is considered the minimum build but improves interchange operations for the minimum 20 years required for STIP capacity increasing projects. Further, the preferred alternative improves the operations better than the more extensive modifications in the other feasible alternative considered in the project report. The "preferred alternative" would construct a new 2 lane (with bike lanes) bridge structure south of the existing overcrossing. It would also widen LOVR between South Higuera and the existing 4- lane section west of the USS :. :., , 101, widen and improve the '•,',, t*,:'� 'E�-� t . . . vertical geometry of the ramps, and increase J hydrologic capacity under the vn-edeovR u,hr,�a� , rams and US 101 which are aanSBRamP d ^9a,anes , NJ den Romps an P g ) � !tutu lnlerseclron; � prone to flooding. , -slos qua. • What is the Implementation Strategy -_The City and 'rnaease 46rt cop3aty Caltrans have worked over y,; J'� unser ramps unays,o,j, recent years to make interim improvements that have 4 improved the roadway + ✓f !lWWen NB'oN�ramp, NasrBdtlgeSuudule 3 + Partallelto.Exatln BnA a 'ti r geometry and vehicle capacity ;; $ consmx,slam g�vau while working toward a long 4L term improvement. Phase 1 j) �a f oftanned improvements was P P #> ' completed this year which Y 'X8 Q, realigned Calle Joaquin, improving intersection spacing and signal operations. The r r Draft Project Report for all F�,,�� , �. � •� �, r � �:. ~� .r additional improvements isF complete and the Project .4 a `tJYtif' Approval and Final =" c Environmental Document are expected in May 2008. The City has funded nearly all of the project's development phases and initial improvements to the interchange which has cost approximately $9 Million. The construction of the remaining improvement is approximately $21 Million bringing to approximately $30 Millon the project's total cost. The city has requested that SLOCOG program 50% of this cost ($15 Million) in the 2008 RTIP cycle. A iTAC 0 M ENT' Z\ • What are the SLOCOG Identified Issues with theProiect? o Funding request is very significant—Although SLOCOG has forecast this project to receive very significant funding from the RTIP, the poor funding situation has continued to be more enduring and serious than anticipated. While SLOCOG staff applauds and recognizes the City of San Luis Obispo for contributing very significant resources to project development and initial project improvements, SLOCOG staff suggests all sources of potential city funds be reexamined to provide an enhanced city share for capital funds. o SLOCOG concurs with the Project Development Team's selection of the minimum build as the preferred alternative. The alternative has a higher benefit/cost ratio, less significant environmental impacts, and a higher, likelihood of being fully funded that the other viable alternative being considered. Any funding recommendation would be based on assumed cost estimates for this alternative. Incremental costs for selection of alternatives other than the minimum build is recommended to be bome by partners other than SLOCOG. o Park and Ride Lot — The City plans to construct a Park and Ride Lot in the interchange project area under a different project report and construction contract. While SLOCOG agrees with this approach, any funding for the interchange project would include a condition of approval that the park and ride lot be completed at the time of interchange completion. o Dalidio Ranch— The passage of the Dalidio Ranch Initiative without a funding plan for the Prado Road Interchange creates a concern for the viability of investments made to the Los Osos Valley Road Interchange. Without a Prado Road/US 101 Interchange to provide access to Dalidio Ranch, the additional traffic of the development would result in operations worse than currently observed. Although a remedy is not clear on the Prado Road interchange funding plan, SLOCOG anticipates that its transportation partners will ensure that very significant public investments as proposed are not negated. 34 AITAGHP'tEwr 2. #6- SR West/US-101 Improvements in Pas. Robles ➢ What is the transportation deficiency? The US-101 and SR46W intersection has current and projected deficiencies including intersection and freeway operations as well as local and regional accessibility issues. A project is needed here to: o reduce existing and projected traffic congestion, o improve traffic operations, and o reduce delay. The purpose of the proposed project is to reduce existing congestion, improve traffic operations and accommodate anticipated travel demand through the year 2038. The draft project report proposes to: o Improve the US-101 ramp intersections with SR46W to meet Caltrans minimum Level of Service (LOS CID cusp, Delay < or= 35sec) o Improve the frontage road intersections with SR-46W to meet the City of EI Paso de Robles minimum Level of Service (LOS D, Delay < or= 55sec), and o Reduce interregional, regional and local congestion through the US-101/SR-46W interchange. ➢ What is the proposed project? The draft project report (2007) proposes Allv improvements constructed at three principle t locations: 4ssb Theatre Drive: ' o Relocation of Theatre Drive to intersect t V at a new location on SR-46W , j �•, " ' ' ° ' approximately 900 feet west of the 1 ...M existing location. Vine Street o Relocation of South Vine Street suchlit, 1that it becomes northern leg of the new 4 - . Theatre Drive SR-46W intersection. +var o The relocation of South Vine Street will require a new bridge over the creek that passes through the site. �/9 US-101/SR-46 We nterchanoe Q1TA"MEj,1r Z o The ramp �► AV, ��, ; termini/frontage road intersections will be ' • M'_- tit ' ' '� ,. � converted into roundabouts. o This project does not include any , modifications to the l�' mainline of US-101 or ?y, y the separation structures over SR- "" xr 46W. ➢ What is the sponsoring agencies implementation strategy? The City of Paso Robles recognizes that the project could be phased. They would like to begin with the realignment of Theatre Drive, followed by the realignment of Vine Street and concluding with the construction of the roundabouts at the interchange of UW-101 and Sr- 46W. ➢ What are the SLOCOG identified issues with the project? 4. The proposed project is consistent with the 1999 US Route 101 North County Corridor Study and 2005 RTP. 5. Project could be phased if necessary. 6. Future need to construct project is estimated at over$25M. 7. The draft IS/EA was approved by Caltrans QA/QC on 12/4/07. 3 A rrAcxm-L -r 9 #7 — State Route 1/Olive Street Right-turn Channelization • What is the Transportation Deficiency? - The existing right-tum channelization from SR 1 to Olive Street, which provides access to the US 101 SB onramp, lacks necessary capacity for vehicle queues during peak hours. The lack of vehicle storage. results in queues extending into the travel lanes of SR 1, reducing capacity and creating a safety concern. • What is the Proposed Project?- The proposed extension of the existing right-turn channelization has been identified for a number of years as one of a number of improvements to the vicinity around the SR1/US 101 interchange. Caltrans is currently preparing a programming and environmental document required to complete the project. SLOCOG staff is proposing funding this operational improvement as a part of the 2008 RTIP. • What is the Implementation Strategy - SLOCOG staff recommends that the project be fully funded at this time with RTIP funds with Caltrans acting as lead agency with construction anticipated in 2010 • What are the SLOCOG Identified Issues with the Proiect? .E. o Funds will draw capacity away from other high-priority projects. A o Concerns over project creep, cost escalations, and schedule. However, :. j � project is an important operational , improvement on a highway experiencing high peak-hour congestion. x � v'�'-T'J.o;':�tq •'41. . ^ •� ,--�... ��' Jam, .. �,S Attachment , 3 ilkucity ®f sAn WIS OBISPO Public Works Department • 919 Palm Street • San Luis Obispo, CA 93401-3218 December 26, 2007 Ron DeCarli Executive Director San Luis Obispo Council of Governments 1150 Osos St. Ste 202 San Luis Obispo; CA 93401 Subject: Los Osos Valley Road/US 101 Interchange Project Status and Funding Plan Dear Mr. DeCarli, This letter is to advise you of the status of the Los Osos Valley Road/US 101 Interchange project and to outline the City's financial plan for delivery of this regionally significant transportation improvement project. As you know, this freeway interchange is the primary access facility to the San Luis Obispo Regional Airport, which is, in the midst of significant expansion to meet projected demand and the future needs of our county. The location also delivers significant access to the coastal communities of Los Osos and Morro Bay as well as the central areas of the City and County of San Luis Obispo. It will, therefore, also serve as a major regional access point to the freeway, should a disaster ever require evacuation. However, the interchange is experiencing significant congestion and operational problems have begun to effect access to these critical areas of our communities. The good news is that the City has taken the lead in developing (and funding) these critical improvements by acting as lead agency for the development of the various Caltrans documents to deliver construction documents. In addition, the Council has taken bold steps in actually funding the initial phases of construction at the interchange location in order to expedite capacity and operational improvements. In essence, we have made a hard choice and not relied on regional or state funding to implement the initial construction phases of the project. However, in order for the most important phase of this important regional project to be completed, the City must have a regional funding partner to help finish the major portion of the interchange facility widening. What's been done so far? The City of San Luis Obispo has taken a unique leadership role in helping get improvements completed at this regionally significant location. Not only has the City advanced much of the funding to deliver the advanced work needed for Caltrans approval, but we have also constructed the initial phases of the project using our scarce local funding. The Council has long recognized the advantages of constructing improvements sooner rather than later and have spent or The City of San Luis Obispo is committed to include the disabled in all of its services,programs and activities. Telecommunications Device for the Deaf(805)781-7410. J ' Page 2 of 4 committed over$10,000,000 so far in making improvements at this location. The following table shows the City's commitment in use of local funds: gAna5 leted (or Si ficantl Completed)—gforNB t Stud R ort "'-MD]eted) R ced Development, Environmental Re is(95%com ]ete) (RFP to Circulate in February 2008) ge1: Calle Joa uin relocation (com lete2:Misc. Widening, Sidewalk and StriLane Addition(com tete , , Of this total, only $130,000 has been received from non-City sources to help complete this work ($100,000 from SLOCOG and $30,000 from the County to help with the PSR). Obviously, this amount reflects significant local investment in helping make improvements at this regional location. Unfortunately, the final phase of the project is now necessary and the City can not fund the project alone. We need SLOCOG's help and partnership. Where to from Here— the City's Project Financial Plan and Timing Funding As you know, the City's financial plan for the LOVR/US 101 Interchange project has always assumed that the City would participate with up to 50% local funding for the project. That aggressive use of local funding for financing a large portion of the project has not changed. Funding for the project has been included in both the citywide Transportation Impact Fee (TIF) program as well as an area-wide fee program developed specifically for development projects near the interchange location. The TIF program has also been modified to include added costs for debt financing the TIF component to help accelerate delivery of the project. A primary difference in the City's financial plan for the project and those you may see proposed for other projects in the County is that the City is proposing to bond for the final City component of the interchange project. While our plan is to use TIF to repay debt service costs, the underlying security for the financing would be the General Fund. Many jurisdictions would not be willing to make this kind of local commitment. However, the City considers the interchange project as crucial for transportation purposes and the Council has repeatedly established its delivery as a major Council goal. Using the 50/50 local fund contribution amount identified above, this would mean that the City now needs $14,857,000 in regional, state or federal funds to help complete the final phase of the project at this time.The following two tables illustrate this request: A f1�0.CJ�1 MpVf" 3 Page 3 of 4 Project Costs Project Study R ort (Completed) $189,000 Advanced Development,Environmental Review and Value Analysis $845,000 PS&E of Interchange Phase 3 $3,360,000 Right-of-Way $1,450,000 Construction Phase 1: Calle Joaquin relocation(complete) $6,640,000 Phase 2: Misc Widening, Sidewalk and Striping(complete) $233 000 Phase 3: Ram Im rovements, Bridge Widening, etc.(future) $14,800,000 Construction Management $2,400,000 Total Pro'ect Cost: $29 857,000 Funding Sources County/SLOCOG RTIP(received) $130,000 Local Fund-Transportation Impact Fees Communitywide $5,445,000 LOVR Sub-Area $9,425,000 Regional Grant: 50% of Project Costs $14,852E ,000 Total Project Fundin : $29 857,000 The local funding amounts shown in the above table are slightly higher than those that have been adopted by Council (due to current costs estimates) and as such, the Council will approve the revised amounts at its upcoming January 22, 2007 meeting. This item should also provide you with a specific City adopted financial plan to use in your recommendations for project funding consideration. Of course, we will continue to pursue other funding sources such as direct developer contributions and federal earmarks in order to help reduce costs to the'county and local funding requests. Timing Because the Council has established the interchange improvements as a major City goal, the current two year Financial Plan allocated $2,385,000 to begin the project plans, specifications and estimates: It is anticipated that the request for proposals (RFP) for design and right-of-way (ROW) acquisition will be circulated in February 2008, with an engineering firm to be under contract by May 2008. If additional funding is necessary to complete this component of the work, the City will fund the amount from local funding sources. Thus, the primary areas we need financial assistance is in ROW, construction and construction management of the large widening project. Our intentions are to complete the design and ROW acquisition of the project as soon as possible. While there are potentials for delay, it is our intention to have construction-ready documents that could be ready for use in 2010. The following table outlines the City's request for funding from SLOCOG to complete the project: �-Z� ATTACWM@Vr 3 � Page 4 of 4 Funding FY 2008-09 FY 2009-10 FY 2010-11 Subtotal ROW $1,450,000 $1,450,000 Construction $12,207,000 $12,207,000 Construction Management $1,200,000 $1,200,000 Total Project Funding: $1 450 000 $139407000 $l4 857,000 This would mean that ROW funding would be needed in 2009 to acquire the necessary land to proceed to construction; and the majority of regional funding would be needed the following fiscal year. I hope this helps clarify the status of the project and demonstrates the City's significant local funding commitments to the project. I know that you and the Board will have a difficult time in making recommendations for allocating the scarce regional funding. While we know the competition will be fierce, we also believe that the City has developed one of the most stable financial plans for making these improvements happen and has dedicated significant local funds to make construction of regional improvements occur sooner rather than later. In addition, our field observations and traffic modeling efforts have demonstrated that this project serves a very high percentage of non-City traffic. Although this is the case, we are not proposing to request additional direct financial participation from other jurisdictions at this time and feel the regional transportation funding pot is a better way to account for this participation. We look forward to working with you, your staff and the Board to help deliver this regionally important project. If you have any questions, please do not hesitate to contact me at 781-7114 or by email at khampian@slocity.org. Sincerely, Ken Hampian ' --� City Administrative Officer cc: City Council Jay D. Walter Bill Statler Timothy Bochum G:\Transportation-Data\lnlerchanges\Los Osos Valley at 101\Budget\2007-08 STIMSLOCOG STIP Letter 12-07 vBill.doc /1z RESOLUTION NO. (2008 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ESTABLISHING A FUNDING PLAN FOR THE LOS OSOS VALLEY ROADIUS 101 INTERCHANGE PROJECT AND ADOPTING ALTERNATIVE#3 AS THE LOCALLY PREFERRED ALTERNATIVE AND AUTHORIZING THE CAO TO NEGOTIATE WITH SLOCOG FOR REGIONAL AND STATE FUNDING ASSISTANCE WHEREAS, the City Council has adopted a Circulation Element of the General Plan and the San Luis Obispo Council of Governments (SLOCOG)has adopted a Regional Transportation Plan (RTP); and WHEREAS, both the City Circulation Element and the County RTP identify the Los Osos Valley Road/US 101 interchange as a major regional transportation facility that needs improvements to meet existing and future transportation needs in the County; and WHEREAS, the City has created special funding mechanisms to bring local dollars to the project, and has used approximately $10,000,000 in existing Transportation Impact Fees (TIF), Los Osos Valley Road Sub-Area Fees and direct development contributions to construct initial phases of the project and to plan for future work; and, WHEREAS, the progress generated by these City funding programs have made the project near ready for construction, with design and environmental clearances from Caltrans expected in the coming weeks; and, WHEREAS, SLOCOG has solicited project funding and phasing plans from county jurisdictions requesting funding from the FY 2008 State Transportation Improvement Program (STIP), and whereas the City's plans for this regional facility demonstrate great project readiness. NOW THEREFORE,BE IT RESOLVED by the Council of the City of San Luis Obispo that it: 1. Establishes a funding program for the Los Osos Valley Road/US 101 interchange project with an objective of using local funds to match state (STIP)/federal funding for the overall project in an amount equivalent to a 50/50 match and, 2. Will continue to seek other private, local, state and federal funding for the project to reduce local funding needs for the project; and, 3. Will use bond financing for the final City portion of the Interchange project using TIF and LOVR Fees to pay the debt service costs with the General Fund being the underlying security for the bonds; and, 4. Hereby establishes Alternative #3 of the LOVR/US 101 interchange project alternatives as the City's locally preferred alternative. Resolution No. (2008 Series) Page 2 On motion of seconded by and on the following vote: AYES: NOES: ABSENT: the following resolution was adopted this day of , 2008. David F. Romero,Mayor ATTEST: Audrey Hooper, City Clerk APPROVED AS TO FORM: Jona . Lowell, City Attorney RECEIVE® COUNOL HEHORANDLIH JAN 221008 TY C1 RRED Ell F IC Date: January 22, 2008 M NG AGENDA DATE44L ITEM #__a__ TO: City Council COUNCIL TCDD DIA ErCAO FIN DIR VIA: Ken Hampian, City Administrative Officer XACAO ;""IRE CHIEF EORNEY CSW DIR CLERK/ 1110 Z7POLICE CHF FROM: Jay Walter, Public Works Director DPT D ZREC DIR ,2f HR DIRK SUBJECT: Los Osos Valley Road/US 101 Interchange Funding Up The purpose of this memo is to provide the Council with a status update regarding Item B-3 on tonight's agenda - the Los Osos Valley Road/US 101 Interchange Funding Plan. On Friday 01-18-08, the San Luis Obispo Council of Governments (SLOCOG) released the agenda reports for its Transportation Technical Advisory Committee . (TTAC) meeting for Wednesday, January 23, 2008. As part of that agenda the draft SLOCOG recommendations for state and regional funding have been publicized. Staff is continuing to review the recommendations in regards to the Los Osos Valley Road/US 101 Interchange project. It appears that the LOVR/US 101 interchange project has received a favorable recommendation for funding from SLOCOG staff, however, the timing and amount for funding is heavily contingent upon whether another project (HWY 46E/US 101) is either funded wholly or in phases. SLOCOG has provided two scenarios for consideration with an initial recommendation that the HWY 46E/US 101 project be phased as project components are developed. City staff concurs with this approach and recommends that the Council affirm this position at tonight's meeting. A revised resolution with pertinent language is attached (see new #2). If the SLOCOG Board adopts this phased approach for the HWY 46E/US 101 project, it appears that the LOVR/US 101 Interchange project could receive a funding recommendation in the amount up to $14.8 million beginning in FY 2010-11. This timeframe will work well for us because we can have plans and specifications ready for bid until 2010-11. As part of the FY 2008 STIP cycle, SLOCOG staff has identified another improvement project within the City (HWY 1/Olive Street Southbound right turn lane) that they consider to merit funding from limited STIP accounts. This project, which is estimated to cost $1 million to complete, proposes to extend the southbound right turn lane on HWY 1 to improve the queue across a property that is currently vacant. While this project is a valid improvement, City staff believes that the LOVR interchange is the highest priority project in the City and current STIP funding recommendations should make the LOVR interchange project whole if possible. As such, staff is proposing to work with SLOCOG to revise the draft funding recommendation to delay the HWY 1 project to a future year and focus funding on the LOVR interchange project to make that project whole.. I The $14.8 million is very-close to the City requested amount wentified for the project. In addition to this, SLOCOG will be recommending that a "Cooperative" agreement be entered into between the City and SLOCOG to guarantee delivery of the project and set matching requirements for project cost increases, if necessary. Staff concurs with this request and will continue to work with SLOCOG staff to finalize issues and language of the cooperative agreement. Attachment 1 is a revised resolution with language specifically supporting the SLOCOG draft recommendation and the phased approach to the HWY 46E/US 101 project. Staff will update the Council on these issues during the agenda item presentation for this evening. G:\Staff-Reports-Agendas-MinutesLCCMemos\2008\RED FILE COUNCIL MEMORANDUM LOVR IC Funding.doc RESOLUTION NO. (2008 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ESTABLISHING A FUNDING PLAN FOR THE LOS OSOS VALLEY ROADIUS 101 INTERCHANGE PROJECT AND ADOPTING ALTERNATIVE#3 AS THE LOCALLY PREFERRED ALTERNATIVE AND AUTHORIZING THE CAO TO NEGOTIATE WITH SLOCOG FOR REGIONAL AND STATE FUNDING ASSISTANCE WHEREAS, the City Council has adopted a Circulation Element of the General Plan and the San Luis Obispo Council of Governments (SLOCOG)has adopted a Regional Transportation Plan (RTP); and WHEREAS, both the City Circulation Element and the County RTP identify the Los Osos Valley Road/US 101 interchange as a major regional transportation facility that needs improvements to meet existing and future transportation needs in the County; and WHEREAS, the City has created special funding mechanisms to bring local dollars to the project, and has used approximately $10,000,000 in existing Transportation Impact Fees (TIF), Los Osos Valley Road Sub-Area Fees and direct development contributions to construct initial phases of the project and to plan for future work; and, WHEREAS, the progress generated by these City funding programs have made the project near ready for construction, with design and environmental clearances from Caltrans expected in the coming weeks; and, WHEREAS, SLOCOG has solicited project funding and phasing plans from county jurisdictions requesting funding from the FY 2008 State Transportation Improvement Program (STIP), and whereas the City's plans for this regional facility demonstrate great project readiness. NOW THEREFORE,BE IT RESOLVED by the Council of the City of San Luis Obispo that it: 1. Establishes a funding program for the Los Osos Valley Road/US 101 interchange project with an objective of using local funds to match state (STIP)/federal funding for the overall project in an amount equivalent to a 50/50 match; and, 2. Supports SLOCOG efforts to phase in regionally significant proiects, such as the HWY 46e/US 101 project, and securing $14.8 million in STIP funding for the LOVR/US 101 .Project as proposed in the draft SLOCOG Transportation Technical Advisory Committee agenda for its meeting of January 23, 2008. 3. Will continue to seek other private, local, state and federal funding for the project to reduce local funding needs for the project; and, 4. Will use bond financing for the final City portion of the Interchange project using TIF and LOVR Fees to pay the debt service costs with the General Fund being the underlying security for the bonds; and, 5. Hereby establishes Alternative #3 of the LOVR/US 101 interchange project alternatives as the City's locally preferred alternative. Resolution No. (2008 Series) Page 2 On motion of , seconded by and on the following vote: AYES: NOES: ABSENT: the following resolution was adopted this day of 2008. David F. Romero, Mayor ATTEST: Audrey Hooper, City Clerk APPROVED AS TO FORM: Jonathan P. Lowell, City Attorney