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Home My WebLink About2009-07-14 - AGENDA REPORTS - ARRA HWY INFASTRUCTURE PROJ (2)Agenda Item: CITY OF SANTA CLARITA AGENDA REPORT CONSENTCALENDAR City Manager Approval: Item to be presented by: DATE': July 14, 2009 /0 SUB.IECT AMERICAN RECOVERY AND REINVESTMENT ACT (ARRA) - AUhI-IORIZ,E THE CITY MANAGER OR DESIGNEE TO AWARD TI-iE CONSTRUCTION-RF,LATED CONTRACTS FOR THE, FIVE PROJECTS (M0068, C0034, 0010, M0067, AND M0069) RELA'I'1 D TO THE HIGHWAY INFRASTRUCTURE PROGRAM_, AUTHORIZE CITY MANAGER OR DESIGNEE TO EXECUTE ANY DOCUMENTS REQUIRED AND RECI`lVI- AND APPROPRIATE PO I'ENTTAL FUNDS AWARDI=:D 'I-I-iROUGI-f ]'I -IL' BYRNE .JUS DICE ASSISTANCL; GRANT COMPI?TIT'IV1- PROGRAM; AND AUTHORIZE CITY MANAGER OR DESIGNEE TO EXECUTE ANY DOCUMENTS REQUIRED TO APPLY l"OIZ, RECEIVE, AND APPROPRIATE FUNDS FOR ARRA RELATED PROGRAMS DURING PERIOD STARTING JULY 15, 2009, AND ENDING AUGUST 24, 2009 DEPARTMENT- Public Works RECOMMENDED ACTION City Council authorise the City Manager or designee to approve the plans and specrlications and award the construction contracts and any related construction -engineering consultant contracts, including 15 percent contingencies, to the lowest responsive bidders in anuOunts not to exceed the available local and federal funding for the following five ARRA projects related to the Highway Infrastructure Program; authorize the City Manager or designee to authorise the expenditure of ARRA and local funds for any related construction -engineering consultant contracts. stall' oversight, and miscellaneous project administration costs • Asphalt Roadway Phase 1, Project M0072 —ARRA Funding: $1,500,000 RCSUrface and seal cracks to increase pavement life and enhance skid resistant properties Asphalt Roadway Phase II, Project M0073 - ARRA Funding $1,619.549 Resurface and seal cracks to increase pavement life and enhance skid resistant properties Adop%& _-&f / Newhall/Sierra Highway Median, Project C0034 — ARRA Funding,: $305,000 Improve traffic circulation and safety improvements at Newhall Avenue and Sierra Highway by constructing a,median Whites Canyon 'Turn Pocket, Project 03010 — ARRA 1' unding $1,200,000 Enhance the traffic flow through the intersection allowing through lanes to flow Without having to slow for turning traffic, which reduces I'uel consumption and aids driver comfort • Bridge Rehabilitation, Project M0074 — ARRA Funding: $550,101 Provide preventative maintenance and repair to bridges in the City as deemed necessary by ongoing inspection reports to protect the safety of the public. 2. Increase revenues in Account 229-4424.012 by $1,500,000 and appropriate funds to Account M0072229-5161.001. 3 Authorize the City Manager or designee to execute all documents for the ARRA projects as related to the Highway Infrastructure Program, subject to City Attorney approval. 4 Authorize the City Manager or designee to execute any documents required and receive and appropriate potential funds awarded to the City through the Byrne justice Assistance Grant Competitive Program. 5. Authorize the City Manager or designee to execute any documents required to apply for. receive, and appropriate funds for all ARRA related programs that may release guidelines during the time period starting July 15, 2009, and ending August 24, 2009 6. Any items from Recommended Actions 4 and 5 requiring action from the City Manager or designee during the time period starting July 15, 2009, and ending August 24, 2009, will be brought forth to City Council for ratification. BACKGROUND On February 17, 2009, President Barack Obama signed into law the American Recovery and Reinvestment Act (ARRA) of' 2009. The $787 billion federal economic stimulus contains a combination of spending programs and tax credits consisting of nearly $355 billion for transportation infrastructure, health care programs, education, housing assistance, and energy efficiency projects, $144 billion in state and local fiscal relief, and $288 billion in personal and business tax credits California's anticipated share will reach $85 billion; a total of $50 billion in new spending and $35 billion in tax credits. As specified by the ARRA program, the one-time project funds will be provided to the City via existing formula allocations Where are very specific eligibility requnrements associated with the project funding for individual projects, and funds may not be used for any other purpose On April 13, 2009, the City submitted live "Request to Proceed with Construction Authorization" applications to the California Department of Transportation (Caltrans). These 2 requests were for the Asphalt Roadway Phase 1, Asphalt Roadway Phase II, Newhall/Sierra Highway Median, Whites Canyon Turn Pocket, and Bridge Rehabilitation projects. Caltrans' Local Assistance has reviewed the City's -authorization requests and forwarded them to Caltrans' Headquarters for final approval and issuance of the authorization to bid the project. To date, staff has received authorization on all five projects except the Whites Canyon Turn Pocket project and its authorization is expected within two weeks. The City may not proceed with a bid and award until authorization has been received. As previously mentioned, all but one authorization has been received and the last one is forthcoming. In an effort to proceed with project delivery that may preserve or create jobs, staff seeks to move forward with the award process in an expeditious manner. By granting authorization to the City Manager or designee to award the ARRA and related contracts, the City will avoid unnecessary delays. On June 23, 2009, the City Council approved the 2009-10 Capital Budget which appropriated the ARRA funding for four of the five ARRA projects An additional revenue increase and related appropriation of $1,500,000 is necessary to fully fund the grants awarded to the City Local funds were previously made available to provide required matches for the ARRA pro_lects in the 2008-09 and the 2009-10 Overlay and Slurry Seal Program budgets On .tune 9, 2009, City Council authorized the award of a contract to Palp, Inc., dba Excel Paving for Project M0063, the 2008-09 Overlay and Slurry Seal Program, for a maximum amount of $6,600,000 that included a base bid and bid alternates. Presently, City staff will proceed with construction of the base bid scope of work to allow the remaining budget to be available for the ARRA funded projects should additional funding become necessary for project delivery. In light of the current economic situation, by awarding the base bid only, the City readies itself to meet any funding shortfalls, thus avoiding the potential forfeit of ARRA funding. Additional funding is also available in the 2009-10 Overlay and Slurry Seal Program. If the bids received for the ARRA projects are lower than the engineer's estimates and additional local funds are unnecessary, then the local City funds will remain in their respective protect budgets, and the 2008-09 Overlay and Slurry Seal Program scope will be amended to include some or all of the bid alternates. Funds are reserved in Expenditure Account M0063230-5161.001, 2008-09 Overlay and Slurry Seal Program, and Account M0071233-5161.001, 2009-10 Overlay and Slurry Seal Program, and are available to provide for any shortfalls that may be needed for delivery of the ARRA projects Byrne Justice Assistance Grant Competitive Program Through the $225 million Byrne Justice Assistance Grant (JAG) competitive program, staff collaborated with the Los Angeles County Sheriff's Department to determine any Sheriff's Department needs that could be met under this program's guidelines. Following these discussions, staff submitted an application to the United States Department of Justice on April 27, 2009, for an award of $40,564 to fund a patrol vehicle and computer equipment for the City's contracted Probation Officer At this time, it is unknown when the Department of' Justice will grant these awards. 3 Other ARRA Programs ams As guidelines for additional ARRA programs are released, the City may have to act quickly in order to meet application requirements. During the period of City Council hiatus from July 15, 2009, to August 24, 2009, there will be a potential need for the City to execute documents required by these programs. Given that many ARRA programs require municipal legislative bodies to take specific action to maintain compliance with federal rules and regulations, it is important the City have an authorized designee during City Council hiatus to fulfill potential program requirements for any additional ARRA program. ALTERNATIVE ACTIONS Other action as determined by the City Council. FISCAL_ IMPACT Currently, the Asphalt Roadway Phase II, 2008-09 Median Modification, Whites Canyon and Soledad Canyon Turn Pockets, and the 2009-10 Bridge Maintenance projects have been appropriated with ARRA grant funds. The recommended action to appropriate $1,500,000 into Account M0072229-5161.001, Asphalt Roadway Phase I, will increase the federal appropriations for a total ARRA appropriation of' $5,174,650 as follows Asphalt Roadway Phase 1 M0072229-5161.001 1 $1.500,000 Asphalt Roadway Phase 11 _ M0073229-5161.001 $1.619,549 { 2008-09 Median Modification C0034229-5161.001 $305,000 Whites Canyon and Soledad Canyon Road "Turn Pocket C3010229-5161.001 _ $1,200,000 2009-10 Bridge Maintenance M0074229-5161.001 $550,101 Total: $5,174,650 These amounts, plus previously appropriated funds in the expenditure accounts for the 2008-09 Overlay and Slurry Seal Program (M0063230-5161.001) and in the Fiscal Year 2009-10 Overlay and Slurry Seal Program (M0071233-5161.001), will provide necessary match amounts for construction, inspection services, labor compliance, staff oversight, and miscellaneous project administration costs. If awarded funding through the Byrne Justice Assistance Grant Competitive Program, the City could potentially receive an additional $40,564. ATTACHMENTS Resolution - ARRA City Manager Authorization 4 RESOLUTION 09- A RESOLUTION OF THE CITY COUNCIL m TI -fl Cl I'Y OF SANTA CLARITA, CALIFORNIA, AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE ALL DOCUMENTS AND AU1'I-IORI%E FUNDING ACTIONS FROM JULY 15, 2009,T0 AUGUST 24, 2009, FOR THE AME'RICAN RECOVERY AND RF,INVESTMENf ACT (ARRA) PROGRAM WHEREAS, the City Council will be in recess from .July 15, 2009, until August 24, 2009; and WHEREAS, on February 17, 2009, President Barack Obama signed into law the American Recovery and Reinvestment Act ("ARRA") of 2009; and WHEREAS, the City has been awarded $5,175,000 through the ARRA Highway Infrastructure Program; and WHEREAS, the City is currently awaiting the results of financial awards through the ARRA Byrne Justice Assistance Grant Competitive Program; and WFIIRI AS, actions may be required to effectuate the application, receipt, appropriation, and use of'ARRA related funding during the recess period: and WHERE AS, the City Council desires to delegate authority to the City Manager or designee to execute these required actions during the recess period. NOW, TFIERF FORF, the City Council ofthe City of Santa Clarita does hereby resolve as follows: S1CTION 1. Authorization of the City Manager or designee to approve the plans and specifications and award the construction contracts and any related construction -engineering consultant contracts, including 15 percent contingencies, to the lowest responsive bidders in amounts not to exceed the available local and federal funding for the five ARRA projects related to the Highway Infrastructure Program, authorization of the City Manager or designee to authorize the expenditure of ARRA and local funds for any related construction -engineering consultant contracts, staff oversight, and miscellaneous project administration costs SECTION 2 Authorization to increase revenues in Account 229-4424 012 by $1,500,000 and appropriate funds to Account M0072229-5161.001. SECTION 3 Authorization of the City Manager or designee to execute all documents for the ARRA projects as related to the Highway Infrastructure Program: subject to City Attorney approval SECTION 4. Authorization ofthe City Manager or designee to execute any documents required and receive and appropriate potential funds awarded to the City through the Byrne justice Assistance Grant Competitive Program J SECTION 5. Authorization of the City Manager or designee to execute any documents required to apply for, receive, and appropriate funds for all ARRA related programs that may release guidelines during the time period starting July 15, 2009, and ending August 24, 2009. SECTION 6. Any items from Sections 4 and 5 requiring action from the City Manager or designee during the time period starting July 15, 2009, and ending August 24, 2009. will be brought forth to the City Council for ratification. SECTION 7. The City Clerk shall certify to the adoption of this Resolution PASSED, APPROVED, AND ADOPTED this day of' MAYOR ATTEST - CITY CLERK STATE OF CALIFORNIA ) COUN'I Y OF LOS ANGF'L S ) ss CITY OF SAN'T'A CI ARI FA ) 2009. I, Sharon L DaNNson; MMC, City Clerk of the City of'Santa Clarita. do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of' Santa Clarita at a regular meeting thereof, held on the _ day of 2009, by the following vote. AYES. COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT. COUNCILMEMBERS: CITY CLERK 2 ("o STAT]" OF CALIFORNIA > COON fY OF LOS ANGF LES ) ss CITY OF SANTA CI,ARI I'A ) CERTIFICATION OF CITY COUNCIL RESOLUTION 1, Sharon L, Dawson, MMC, City Clerk of the City of Santa Clarita, do hereby certify that this is a true and correct copy of the original Resolution 09 - adopted by the City Council of the City of Santa Clarita, California on , 2009, which is now on file in my office. Witness my hand and seal of the City of Santa Clarita, California, this __ day of 2009. Sharon L Dawson, MMC City Clerk fly — Susan Caputo, CMC Deputy City Clerk