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HomeMy WebLinkAboutAgenda Report - July 19, 2017 C-17CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM C-•17 TM AGENDA TITLE: Adopt Resolution Authorizing the Appropriation for the Harney Lane Grade Separation Project ($2,006,508) MEETING DATE: July 19, 2017 PREPARED BY: Public Works Director RECOMMENDED ACTION Adopt resolution authorizing the appropriation for the Harney Lane Grade Separation Project, in the amount of $2,006,508. BACKGROUND INFORMATION: The Harney Lane Grade Separation Project was awarded and funds appropriated by Council at the August 19, 2015 and November 18, 2015 Council meetings (Exhibit A). The total amount appropriated for the project was $17,375,182 to fund the construction and various other contracts needed to complete the project. The appropriation also accounted for contingencies and staff time. The total value of the contracts, staff time, and other miscellaneous expenses that were encumbered during Fiscal Year 2015/16 amount to $15,368,674. Subtracting the amount of the original appropriation ($17,375,182) from the amount encumbered ($15,368,674) leaves the amount reserved for contingencies equal to $2,006,508. This portion of the original appropriation did not roll over to the new Fiscal Year. Current City policy requires that unspent and unencumbered appropriations are not continued into the following fiscal year. This is an important budgetary control to limit operating departments from continuing budgets over multiple years. Capital projects often extend over multiple years and generally require different budgetary controls. Staff is currently reviewing options, including amending contracting and/or budgetary policies, to create a Citywide Capital Improvement Program which would address this issue and avoid this issue for future projects. In this instance, only the base contract amounts, and a minimal amount of staff time in Fiscal Year 2015/16 were encumbered and no allowance was provided in the encumbrance for change orders, additional staff time or other contingencies. There have been change orders on the construction contract that occurred in the fiscal year following the initial encumbrance. Because of this, budget authority does not exist at a staff level to encumber additional funds on the contracts. The appropriation adjustment of $2,006,508 is needed to cover change orders on contracts, staff time, and other contingencies for the remainder of the project. FISCAL IMPACT: Funds for this project were originally appropriated in Fiscal Year 2015/16 and the Regional Transportation Impact Fee Capital account has sufficient fund balance to absorb this additional appropriation in the current Fiscal Year. The Regional Surface Transportation Program is a federal grant program that will reimburse City expense on the project. There is no impact to the General Fund from this transaction. APPROVED: Stephen Schwaba City Manager K:\WP\COUNCIL\2017\CC Harney Lane_approp adj.doc 7/10/17 Adopt Resolution Authorizing the Appropriation for the Harney Lane Grade Separation Project ($2,006,508) July 19, 2017 Page 2 FUNDING AVAILABLE: Appropriation requested: Regional Transportation Impact Fees (31499000.77020) Regional Surface Transportation Program (30799000.77020) TOTAL: , Andrew Keys Deputy City Manager/Internal Services Director _L-C)C-2-Q Charles E. Swimley, Jr. Public Works Director CES/RAY/tdb Attachment $500,000 $1,506,508 $2,006,508 K:\WP\COUNCIL\2017\CC Harney Lane_approp adj doc 7/6/17 RESOLUTION NO. 2015-146 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 2 TO THE PROFESSIONAL SERVICE AGREEMENT WITH MARK THOMAS & COMPANY, INC., OF SACRAMENTO, FOR THE HARNEY LANE GRADE SEPARATION PROJECT AND FURTHER APPROPRIATING FUNDS WHEREAS, on October 5, 2011, City Council approved the Professional Services Agreement with Mark Thomas & Company, Inc., of Sacramento, for the design of the Harney Lane Grade Separation Project; and WHEREAS, on June 3, 2015, City Council approved Amendment No. 1, adding funding assistance and utility coordination services to the Scope of Work, at a cost not to exceed $45,000; and WHEREAS, the design work has been completed and the project is moving to the next phases of work; and WHEREAS, staff recommends that the City Council approve Amendment No. 2 to the Professional Services Agreement, adding bidding assistance, right-of-way certification and utility coordination, project funding and reimbursement, National Environmental Protection Agency clearance, design support during construction, and extension of the term to June 30, 2018, at a cost not to exceed $398,343. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute Amendment No. 2 to the Professional Services Agreement with Mark Thomas & Company, Inc., of Sacramento, California, for the Harney Lane Grade Separation Project in the amount not to exceed $398,343; and BE IT FURTHER RESOLVED that funds in the amount of $500,000 be appropriated from the Regional State Transportation Program (307) for this project, with the additional funds above the cost of Amendment No. 2 appropriated to cover staff time to administer the project. Dated: August 19, 2015 I hereby certify that Resolution No. 2015-146 was passed and adopted by the City Council of the City of Lodi in a regular meeting held August 19, 2015, by the following vote: AYES: COUNCIL MEMBERS — Chandler, Kuehne, Mounce, Nakanishi, and Mayor Johnson NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None JENNIFER! City Clerk 2015-146 .T, . r .th6 . FERRAIOLO RESOLUTION NO. 2015-201 A RESOLUTION OF THE LODI CITY COUNCIL AWARDING THE BID FOR THE HARNEY LANE GRADE SEPARATION PROJECT TO DESILVA GATES CONSTRUCTION, LP, OF DUBLIN, SUBJECT TO CALTRANS APPROVAL OF DISADVANTAGED BUSINESS ENTERPRISE DOCUMENTATION; APPROVING EXTENSION OF COOPERATIVE WORK AGREEMENT; APPROPRIATING FUNDS; AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE ALL CONTRACTS/AGREEMENTS ON BEHALF OF THE CITY OF LODI WHEREAS, in answer to notice duly published in accordance with law and the order of this City Council, sealed bids were received and publicly opened on October 29, 2015, at 11:00 a.m., for the Harney Lane Grade Separation Project, described in the plans and specifications therefore approved by the City Council on July 15, 2015; and WHEREAS, said bid has been checked and tabulated and a report thereof filed with the City Manager as follows: Bidder Bid DeSilva Gates Construction, LP $14,313,074.75 Goodfellow Top Grade Construction, LLC $15,087,765.00 George Reed, Inc. $15,510,635.00 Bay Cities Paving & Grading, Inc. $15,779,658.38 RGW Construction, Inc. $15,790,794.70 Viking Stephens Joint Venture $16,070,432.05 Teichert Construction $16,124,862.00 McGuire Hester $16,352,357.00 Brosamer & Wall, Inc. $18,458,584.00 WHEREAS, staff recommends awarding the bid for the Harney Lane Grade Separation Project to the low bidder, DeSilva Gates Construction, LP, of Dublin in the amount of $14,313,074.75, subject to Caltrans approval of Disadvantaged Business Enterprise documentation; and WHEREAS, Regional Surface Transportation Program funds in the approximate amount of $600,000 have been allocated to the project and are scheduled to lapse on June 30, 2016. In order to preserve this funding source, it is necessary to request an extension of the associated Cooperative Working Agreement with Caltrans Local Assistance that administers these federal funds; and WHEREAS, staff recommends that City Council approve the extension of the Cooperative Work Agreement; and WHEREAS, staff recommends that the City Council appropriate funds for the Harney Lane Grade Separation project in the amount of $16,875,182; and WHEREAS, staff recommends authorizing the City Manager to execute the contract, within the appropriation, subject to Caltrans approval of Disadvantaged Business Enterprise documentation. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby award the bid for the Harney Lane Grade Separation Project to the low bidder, DeSilva Gates Construction, LP, of Dublin, California, in the amount of $14,313,075, subject to Caltrans approval of Disadvantaged Business Enterprise documentation; and BE IT FURTHER RESOLVED that the Lodi City Council hereby approves the extension of the Cooperative Work Agreement; and BE IT FURTHER RESOLVED that the Lodi City Council does hereby appropriate funds for the Harney Lane Grade Separation Project in the amount of $16,875,182; and BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute all Contracts/Agreements for this project on behalf of the City of Lodi, subject to Caltrans approval of Disadvantaged Business Enterprise documentation. Dated: November 18, 2015 I hereby certify that Resolution No. 2015-201 was passed and adopted by the City Council of the City of Lodi in a regular meeting held November 18, 2015, by the following vote: AYES: COUNCIL MEMBERS — Chandler, Kuehne, Mounce, Nakanishi, and Mayor Johnson NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None fENNIFER�'. . FERRAIOLO City Clerk 2015-201 RESOLUTION NO. 2017-137 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING APPROPRIATION FOR HARNEY LANE GRADE SEPARATION PROJECT WHEREAS, the Harney Lane Grade Separation Project was awarded and funds appropriated at the August 19, 2015, and November 18, 2015, Council meetings; and WHEREAS, only the base contract amounts for construction, testing and inspection, and construction administration were encumbered and no allowance was provided in the encumbrance for change orders, staff time, or other contingencies; and WHEREAS, there have been change orders on the construction contract that occurred in the fiscal year following the initial encumbrance, and because of this, budget authority does not exist at a staff level to encumber additional funds on the contracts; and WHEREAS, an appropriation adjustment of $2,006,508 is needed to cover change orders on contracts, staff time, and other contingencies for the remainder of the project; and WHEREAS, staff recommends that the City Council appropriate funds in the amounts of $1,506,508, from the fund balance of Regional Surface Transportation Program (30799000.77020) and $500,000 from the fund balance of Regional Transportation Impact Fees (31499000.77020) for Fiscal Year 2017/18 for this project. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize an appropriation for the Harney Lane Grade Separation Project, in the amount of $2,006,508, as set forth above. Dated: July 19, 2017 I hereby certify that Resolution No. 2017-137 was passed and adopted by the City Council of the City of Lodi in a regular meeting held July 19, 2017 by the following vote: AYES: COUNCIL MEMBERS — Chandler, Johnson, Mounce, Nakanishi, and Mayor Kuehne NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None I, cilE� NIFER FERRAIOLO CA . City Clerk 2017-137