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HomeMy WebLinkAbout08/19/2008, C3 - ORCUTT ROAD TRAFFIC SIGNAL INSTALLATION, SPECIFICATION NO. 90521B council ""Dam 8/19/08 j agcnba Report CITY OF SAN LU I S O B I S P O FROM: Jay D. Walter, Director of Public Works 10W. Prepared By: Matt Horn, Supervising Civil Engineer _- SUBJECT: ORCUTT ROAD TRAFFIC SIGNAL INSTALLATION, SPECIFICATION NO. 90521B CAO RECOMMENDATION 1. Approve the plans and specifications for the Orcutt Road Traffic Signal Installation Project Phase II, Specification Number 90521. 2. Authorize Staff to advertise for bids and authorize the City Administrative Officer to award the contract if the lowest responsible bid is within the Engineer's Estimate of$270,000. 3. Appropriate $360,000 from the Federal Highway Administration's Hazard Elimination Safety grant to fund this project. DISCUSSION Background The widening of Orcutt Road from Broad Street to Laurel Lane and the realignment of Bullock Lane is part of the 2007-09 Major City Goal for traffic congestion relief. Portions of Orcutt Road from Broad Street to Duncan Road are currently being widened as part of private development projects. Also, the widening of Orcutt Road from Duncan Road to Laurel Lane is a City Capital Improvement Plan(CIP)project and included in the 2005-07 Capital Improvement Plan. Capital Improvement Plan Project The CIP Project scope for widening Orcutt Road from Duncan Road to Laurel Lane includes installing a traffic signal at the intersection of Orcutt, Laurel, and Bullock. This project has been split into two separate phases (widening & traffic signal installation), with the first widening phase approved by Council on July 17, 2007. The project was originally planned for the two phases to be built together, but delays working with the Railroad to approve a signal preemption plan at the crossing necessitated phasing the project. The first phase of this project has been completed, and Orcutt Road from Duncan Road to Laurel Lane has been widened from two travel lanes to four, as well as adding two bike lanes and two medians. The railroad track crossing has been widened and new railroad gate arms have been installed. The second phase of this project calls for the installation of a traffic signal at the intersection of Orcutt, Laurel and Bullock. The increased number of travel lanes and the addition of Bullock Lane at the Laurel intersection make it important that this project proceed immediately behind the widening project. C3- t� Council Agenda Report-Orcutt Road Traffic Signal Installation Page 2 CONCURRENCES The Community Development Department has reviewed this project and has prepared a Categorical Exemption for compliance with the California Environmental Quality Act. The California Department of Transportation has reviewed this project and has prepared a Programmatic Categorical Exclusion for compliance with the National Environmental Policy Act. The California Department of Transportation has requested and received authorization to advertise this project from the Federal Highway Administration on behalf of the City. FISCAL IMPACT This project is identified in"the 2005-07 Financial Plan Appendix B, pages 151 through 154. Funding is recommended to come from a $360,000 Federal Hazard Elimination Safety (HES) grant which the City received for this specific project work in 2005. This grant funding requires a 10% local match, meaning the City is required to pay for 10% of the project costs up to $36,000. Project Funding Federal HES Grant $360,000 ** 10%Local Match $36,000 Total Available Funding $3969000 Estimated Project Costs Construction Engineer's Estimate $270,000 Construction Contingencies $76,000 Construction Inspection $50,000 Total $3969000 ** The Orcutt Road Widening Phase 1 project account currently has an available balance of $86,148. There is sufficient funding to support the 10% local match requirement of$36,000. Based on the City's current inspection staff workload and the suitability of this project for contracted construction inspection services, staff recommends contracting for this work. The project's grant funding can be used for 90% of these costs. Contingency funding is requested at 20% of the grant amount due to unknowns in working with the Railroad. Relationship to Short-Term Actions in Fiscal Heath.Contingency Plan The City's Fiscal Health Contingency Plan was recently activated and as a result all CIP projects are currently under review for possible deferral or deletion. A report is planned for Council review in September 2008 that will identify and recommend project deferrals and deletions. While this review is underway and not yet completed, staff recommends going forward with bidding for this project at this time for the following reasons: C�-2 Council Agenda Report-Orcutt Road Traffic Signal Installation Page 3 1. This project is part of the 2007-09 Major City Goal for traffic congestion relief. 2. This project is significantly grant funded with 90% of the funding provided by grants. For this reason, staff feels that the City should capitalize on this grant opportunity now. 3. This is a safety-related project. Delay or deferral of the project could cause serious safety related issues. As such,this project may be an unlikely candidate for CIP deletion or deferral. 4. Plans and specifications have already been prepared and the project is ready to advertise for bids. The current economic climate is favorable for construction bidding, therefore staff recommends capitalizing on this investment.. ATTACHMENTS 1. Vicinity Map 2. July 7, 2007 Council Agenda Report Authorizing Phase 1 Work AVAILABLE FOR REVIEW IN THE COUNCIL OFFICE Plans and Specifications G:\Staff-Reports-Agendas-Minutes\_CAR\2008\CIP\90521B Orcutt Road Widening\90521B Orcutt Road Approve.doc C3-� JLy YIIH UI R RWY VFJ�� INV��❑ ATTACHMO t w.r � 7 VW3E f R iWVS ® PF/GH A 000�� 7 �o �000�o o00\uo o�ODo�a f� NRI EN X140 o s D00000000� �NN:FER � c`s P oo p � p PRO= LOCATM g CGRRIM 0 y❑ 00D o 4 da © urtcHEuN H ow gV -0 O S D= y g o c7 VCA m S� a `Poll ®� c 'IDo mim O H4V5 IEISSNEA V ORCUIT Ip -- 1811 � HLC'NEE TANK FARM �� g ,a a. ol N �R Su �� GO�nGG C3—� ATTACHMENT 2 Council M.MnD� 07/17/07 j acenaa Report 1�Nmb. CITY OF SAN LUIS O B I S P O FROM: Jay D. Walter, Director of Public Works Prepared By: Matt Hom, Supervising Civil Engineer SUBJECT: ORCUTT ROAD WIDENING PROJECT, SPECIFICATION NO. 90521 CAO RECOMMENDATION 1. Approve an agreement with Union Pacific Railroad in an amount estimated to be $1,610,000 for additional easement area and construction of widened railroad crossing associated with the Orcutt Road Widening Project, Specification Number 90521 and authorize the Mayor to execute the agreement. 2. Authorize the CAO to approve the plans and specifications and award the contract for the Orcutt Road Widening Project, Specification Number 90521 if the lowest responsible bid is within the available budget of$925,000. 3. Appropriate $1,440,000 and $1,200,000 from the State Transportation Improvement Program grant funding and development fees respectively to fund this project. 4. Authorize the CAO to execute a reimbursement agreement with parties inside the Four Creeks Rezoning Projects Limits. DISCUSSION The Project The widening of Orcutt Road from Broad Street to Laurel Lane and the realignment of Bullock Lane is a City Capital Improvement Plan project as well as part of the City's Major Goals for congestion relief. Portions of Orcutt Road are currently under construction or are planned to be constructed as part of private development projects. The remaining portion of Orcutt Road, between Duncan and Laurel lanes, is to be widened by the City. The first phase of the City's project will complete the widening in this area by constructing two additional travel lanes, two bike lanes, sidewalks and medians. Bullock Lane will be realigned to meet Orcutt Road near Laurel Lane. The second phase of the project will install a traffic signal at the Orcutt, Laurel, Bullock Lane intersection. (See Attachments 1 and 2) In order to successfully fund and construct this project,coordination is required with adjacent private development projects,Union Pacific Railroad,and Caltrans. Union Pacific Railroad Agreement The project requires widening the railroad crossing on Orcutt Road. The City has received an agreement for approval from Union Pacific Railroad that will allow this facility to be upgraded C3-S ` ATTACHMENT 2 Orcutt Road Widening Page 2 to meet the City crossing needs. This agreement with Union Pacific Railroad will compensate the railroad for the additional easement area that the City needs for the widening, as well as for construction of new railroad crossing safety equipment. This current Union Pacific Railroad Agreement will expire if not executed by the City and returned to Union Pacific Railroad on or before August 6, 2007. If the agreement is allowed to expire the City will be required to get the project re-approved by the Public Utilities Commission, obtain a new engineer's estimate and updated agreement from Union Pacific Railroad. Processing time for these types of approvals is likely to take nine months. There are three items of the agreement with Union Pacific Railroad which are discussed in detail below. These areas of the agreement represent the largest cost to the City. I. Railroad Easement Widening Orcutt Road will necessitate the widening of the railroad crossing located to the West of Laurel Lane on Orcutt Road. In order for the City to have the use and benefit of this widened road the City must obtain an enlarged easement from Union Pacific Railroad. The existing easement is approximately 4,800 square feet, large enough for a two travel lane road. The new easement that the City is acquiring is approximately 19,700 square feet, large enough for four travel lanes, a median, two bike lanes, two sidewalk and construction slopes. The fixed price cost of this additional easement area is $137,544. (See Attachment 3) 2. Construction Improvements Construction and modifications of railroad facilities is specialized work and Union Pacific Railroad employs maintenance and construction personnel that build, construct and modify their own facilities. The City can not hire a contractor of its choice to do this work, but rather must contract with Union Pacific. This equipment is largely the safety facilities that prevent vehicle— train collisions. In order for the widening to occur, the new safety equipment must be installed with the newly configured street section. Union Pacific Railroad has reviewed the City's plans and based on that information has generated a construction cost estimate for this work. The proposed agreement would require the City pay all Union Pacific Railroad's construction costs for this project. The estimated construction for the Union Pacific Railroad construction effort is $1,000,000. This agreement clearly sets an obligation to pay, without a limit on the cost. At this point, there is no certainty of the final cost, only the estimate from Union Pacific. 3. Signboard Removal In order to widen Orcutt Road to the required width an existing signboard on Union Pacific Property within the City's new easement area must be removed. Union Pacific Railroad leases this signboard location to Clear Channel Communications who in turn sub-leases to CBS Outdoor. In order for the City to remove this signboard, the City is to pay Union Pacific Railroad a withdrawal fee of$12,600. This withdrawal fee will initiate a termination of lease with Clear Channel Communications who in turn will terminate the sub-lease with CBS Outdoor. Upon termination and removal of the signboard the City should anticipate claims for G 3-(0 � ATTACHMENT 2 Orcutt Road Widening Page 3 compensation from both Clear Channel Communication and CBS Outdoor for loss of revenue due to this signboard removal. Staff has requested, but not received an estimate from Clear Channel Communications or CBS Outdoor for the loss of revenue due to this sign removal. The actual claim amount and validity must be determined after the claim is made and documentation reviewed. As with the railroad construction costs, this cost can only be. Private Development Responsibilities The Four Creeks Rezoning Project Final Environmental Impact Report (EIR) mitigation measures require the developer to make these public improvements, as proposed in this project, to Orcutt Road prior to issuance of occupancy permits (See Attachment 4). The mitigation measures also allow the developer the option of depositing a mitigation fee in an amount equal to the estimated construction costs of these improvements with the City. The developer has requested the City construct these public improvements and a formal reimbursement agreement with the developer is currently being prepared. With cooperation from the developer, staff would anticipate the agreement would come to the CAO for approval in September. Having the City construct these improvements and entering into a reimbursement agreement with the developer for these public improvements is a benefit to all parties. The City obtains needed public improvements at low cost. The developer's are able to limit their liability for escalating costs due to the contractual requirements of Union Pacific Railroad as well as benefit from a lower portion of the total construction costs due to the grant funding. If a formal reimbursement agreement has not been reached by the time these public improvements have been constructed by the City there is some risk that the funding from the developer would be delayed or require future legal action to obtain. However, staff believes that this risk is small and outweighed by the benefit of securing the railroad agreement by the August deadline. Grant Status The City is currently in possession of a State Transportation Improvement Grant to assist with the funding of this widening project. The grant has one deadline associated with it. Staff must award a contract for construction by December 31, 2007. Failure to meet this deadline means the City would have to make another request for these same funds, competing with other agencies. Project Status Project plans are currently at the 90% completion stage with final plans expected to be completed by September. Because of the timeliness required with the signing of the railroad agreement, staff is bringing only a draft design to the Council at this time and requesting authorization for the CAO to approve final plans. This authorization approval will assist staff in meeting the grant award deadline. C 3-7 ATTACHMENT 2 Orcutt Road Widening Page 4 Installation of the signal at Orcutt and Laurel has been removed from the project at this time due to a combination of issues including the grant deadline and railroad permitting. Staff will pursue this phase of the project as soon as all work needed to begin construction of this first phase is complete. Staff believes, at this time, that adequate funds will remain in the project budget to build the signal. Foundations and conduit installations will be constructed with this phase to prevent damage to the new improvements. Staff has been working towards bring one package to Council which included the formal adoption of a reimbursement agreement, adoption of a Union Pacific Agreement, and a single set of project plans and specifications to complete all public improvements and traffic signalization. Because of changing staff at Union Pacific Railroad, changing deadlines for the grant funding, as well as the uncertainty of construction timing with private development, the presented recommendations represent staff's best efforts to compile one all-inclusive package. FISCAL IMPACT This project is identified in the 2005-07 Financial Plan Appendix B page 151. The construction of the Orcutt Road widening project will be funded from both State funds and private development mitigation fees. Project Funding Caltrans Funding(STIP) $1,440,000 Developer Fees $1,200,000 Total Available Funding $2,640,000 Estimated Project Costs Union Pacific Railroad Related Costs Union Pacific Railroad Easement $137,554 Union Pacific Railroad Construction $998,199 Union Pacific Railroad Contengencies* $474,247 Total $1,610,000 Construction Related Costs City Construction Estimate Costs $925,000 City Construction Contengencies $92,500 Material Testing $12,500 Total $1,030,000 Estimated Total Project Cost $2,640,000 *Included in the"Union Pacific Railroad Contingencies" is an estimated cost for a billboard claim. C 3—O ATTACHMENT 2 Orcutt Road Widening Page 5 ALTERNATIVES Delay the CAO Recommendations. Delaying the CAD's Recommendation until the reimbursement agreement with the developer is finalized will likely result in loss of the State Transportation Improvement Program (STIP) grant funding from Caltrans and require a new lengthy process with the railroad. In order for the City to receive the $1.44 million of grant funding from Caltrans, the City needs to have an agreement awarded to a contractor by the end of December, which in tum requires the City to accept the Union Pacific Railroad Agreement by the beginning of August. ATTACHMENTS I. Vicinity Map 2. Orcutt Road Widening Project Display 3. Railroad Improvements Display 4. Excerpt of mitigation measures from EIR for Four Creeks Rezoning Project AVAILABLE FOR REVIEW IN THE COUNCIL OFFICE I. Additional Orcutt Road Widening Displays 2. Union Pacific Railroad Agreement 3. EIR for Four Creeks Rezoning Project G:\Staff-Reports-Agendas-Minutes\_CAR\2007\CIP\90521 Orcutt Road Widening\90521 RRAgrApprove.doc